HomeMy WebLinkAbout4. C2 General Fund Assign
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brian LaMeres, City Controller
Anna Rosenberry, Director of Administrative Services
SUBJECT: FY14 Financial Audit – “Assignments” in the General Fund
MEETING DATE: December 15, 2014
AGENDA ITEM TYPE: Consent
RECOMMENDATION: The City Commission approves staff recommendation for Assignments in
the General Fund to be reported in the Comprehensive Annual Financial Report (CAFR) for fiscal year 2014.
BACKGROUND: Beginning in fiscal year 2012 the City was required by Governmental
Accounting Standards Board Statement 54 (GASB 54) to report ending fund balances using new
classification terminology. The objective of GASB 54 was to enhance the usefulness of fund balance information by providing clearer fund balance classifications. To that end, the terms “reserved”,
“unreserved”, “designated”, and “undesignated” have been replaced with the terms “nonspendable”,
“restricted”, “committed”, “assigned”, and “unassigned”, defined as follows:
Nonspendable: Nonspendable fund balances are rare for the City but would include items such as inventory and the prepaid lease/rental of the Law & Justice Center.
Restricted: The restricted fund balance category includes amounts that can be spent only for the
specific purposes stipulated by law or by external resource providers. The City’s Restricted Funds
include Impact Fees, Street & Tree Assessments, Gas Tax, and the Tax Increment Financing Districts, among others.
Committed: The committed fund balance classification includes amounts that can be used only
for the specific purposes determined by a formal action of the government’s highest level of decision-
making authority. The Committed Fund Balances currently reported in the City’s CAFR were established by the City
Commission on June 13, 2011. These fund balances represent financial activity that is not restricted
and therefore would be required to be reported in the City’s General Fund unless the Commission
chose to set the money aside in separate Special Revenue Funds, generally to facilitate better financial management and transparency. Committed fund balances include activities such as the Park Improvement Grants, the Story Mansion operations, and the Fire Department Capital &
Equipment Special Revenue Funds, among others.
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Assigned: Amounts in the assigned fund balance classification do not meet the criteria to be
classified as restricted or committed, but nonetheless are intended to be used by the government for
specific purposes. This intent can be expressed by the Commission or by an official or body to which
the Commission delegates the authority. The City Commission delegates this authority to the City Manager.
Unassigned: Unassigned fund balance is the residual classification for the government’s general
fund and includes all spendable amounts not contained in the other classifications.
Although the authority to Assign Fund Balances is delegated to the City Manger, the City
Commission requested during the presentation of the FY12 financial audit that in the future it would
like to see a list of the proposed Assignments in the General Fund before the audit of the CAFR was
completed.
That list of General Fund Assignments for Fiscal Year 2014 is presented here:
FY14 ENDING GENERAL FUND BALANCE - TOTAL:6,614,294$
ASSIGNMENTS:
1 CIP / CAPITAL CARRY-OVER BUDGETED IN FY14 BUT NOT SPENT UNTIL FY15:
POLICE DEPT: CIP GF050 - POLICE & COURT FACILITY DESIGN 1,256,134$
RECREATION DEPT: POOL DESIGN 386,642$
BROADBAND MASTER PLAN 60,000$
SUSTAINABILITY PROJECTS 13,720$
FACILITIES MGMT: VARIOUS FACILITY PROJECTS 27,500$
TOTAL CIP / CAPITAL CARRY-OVER ITEMS:1,743,996$
2 16.67% MINIMUM RESERVE LEVEL REQUIRED BY CITY CHARTER (2 MONTHS OF REVENUES):4,084,688$
3 FY15 BUDGET: FY14 YEAR-END FUND BALANCE NEEDED TO BALANCE FY15 BUDGET:592,076$
TOTAL GENERAL FUND ASSIGNMENTS:6,420,760$
UNASSIGNED GENERAL FUND BALANCE - FY14:193,534$
The $27,500 listed for FACILITIES MGMT includes $12,000 for Fire Station 2 building siding; $6,500 for various parking lot repairs; $5,000 for Senior Center Air Conditioner work; and $4,000 for Senior Center bathroom vents.
UNRESOLVED ISSUES: None
ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: There are no fiscal effects of this approval by the Commission. The
Bozeman Municipal Code (BMC) already allows for the “re-appropriation” of prior year budget
amounts for Capital Improvement Plan items and building repair and maintenance items previously budgeted which have not been completed. (BMC §2.06.160(C) – BUDGET ADMINISTRATION AND OVERSIGHT) .
Therefore the action being taken now by the Commission is a reporting decision as opposed to a
spending or funding decision. This decision will affect how the General Fund Balance is reported in the CAFR for fiscal year 2014 to be presented to the Commission on December 22, 2014.
Report compiled on: December 5, 2014
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