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HomeMy WebLinkAboutC10. Resolution 4610 GASB Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brian LaMeres, City Controller Anna Rosenberry, Director of Administrative Services SUBJECT: Adoption of Resolution 4610, Amending Resolution 4319 by adding the Local Street Share Fund Balance and Revenues Recorded in the Community Transportation Fund to the List of Committed Special Revenue Fund Balances in accordance with the Governmental Accounting Standards Board Statement 54 (GASB 54). MEETING DATE: June 22, 2015 AGENDA ITEM TYPE: Consent RECOMMENDATION: Adopt Resolution 4610, amending Resolution 4319, which approved the commitment of Special Revenues Fund Balances in accordance with Governmental Accounting Standards Board Statement 54 (GASB 54), by adding the local street share fund balance and revenues recorded in the Community Transportation Fund to the list of committed Special Revenue Fund Balances. BACKGROUND: On June 13, 2011 the City Commission adopted Resolution 4319 which implemented GASB Statement 54 by committing fund balances in the City’s Special Revenue Funds to be used only in accordance with certain stated purposes. (For more detail, please refer to Attachment 3 - June 13, 2011 Commission packet). In the current fiscal year 2015 there was financial activity which required the City to add another Fund Balance to that list, specifically the portion of the Fund Balance in the Community Transportation Special Revenue Fund attributable to the property tax revenue generated from the five mills levied in fiscal year 2015 for the local share of street improvements. In order to report this financial activity in a Special Revenue Fund, the activity must be restricted by law or else committed by the City Commission, that latter of which being the action requested here. If neither of those criteria is met, then we must report the financial activity in the General Fund. Therefore, the Finance Department recommends that the fund balance and any future revenues attributable to the property tax mill levy for the local share of street improvements be reported in the Community Transportation Special Revenue Fund as being committed for the sole purpose of providing the local share of street improvements. 73 It is recognized at this time that the dedicated mill levy for local street share may not continue in future fiscal years; however, this action is still necessary now in order to correctly report this activity in the financial statements for fiscal year 2015. Amounts reported as “committed” cannot be used for any other purpose unless the City Commission takes action to remove or change the constraint. FISCAL EFFECTS: The adoption of this resolution will have no overall fiscal effect, however it will result in an estimated $445,310 being classified as “committed” in the ending fund balance of the Community Transportation Special Revenue Fund. If the resolution is not adopted, then this $445,310 must be reported in the General Fund. (This dollar amount is just an estimate based on 5 mills and a mill value of $89,062 since at this time not all property taxes have been collected for the year). This process must be followed in order to comply with the requirements of GASB Statement #54 which is necessary to receive a clean unmodified audit opinion on the City’s financial statements. Failure to receive an unmodified opinion can adversely affect the City’s credit rating and increase its cost of borrowing. It can also make it more difficult to qualify for federal and state grant funds. ALTERNATIVES: As suggested by the City Commission. Attachments: 1) Proposed Resolution 4610 2) Resolution 4319 adopted June 13, 2011 3) Commission packet material for Resolution 4319 Report compiled on: June 14, 2015 74 Page 1 of 2 COMMISSION RESOLUTION NO. 4610 A RESOLUTION OF THE CITY COMMISSION OF BOZEMAN, MONTANA, AMENDING RESOLUTION 4319 BY ADDING THE COMMUNITY TRANSPORTATION SPECIAL REVENUE FUND TO THE LIST OF COMMITTED FUND BALANCES IN ACCORDANCE WITH GASB STATEMENT NO. 54. WHEREAS, the Governmental Accounting Standards Board (GASB) has issued Statement No. 54 – Fund Balance Reporting and Governmental Fund Type Definitions, which changes the terminology and classifications used for fund balance reporting on balance sheets of Governmental Funds; and WHEREAS, the City Commission did, on the 13th day of June, 2011, after due and proper legal notice, adopted Resolution 4319 Approving the Commitment of Special Revenue Fund Balances in Accordance with GASB Statement No. 54; and WHEREAS, in the final adopted budget for fiscal year 2015 the City Commission approved the levying of five general all-purpose property tax mills to fund the local share of street improvements; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues of this newly-adopted five mill property tax levy be formally committed to fund the local share of street improvements; 75 Resolution No. 4319, Adopting GASB Statement 54 for Special Revenue Funds Page 2 of 2 NOW THEREFORE BE IT RESOLVED that the City Commission of the City of Bozeman hereby accepts the aforementioned recommendations. PASSED AND ADOPTED this 22th day of June, 2015. ______________________________ JEFFREY K. KRAUSS Mayor ATTEST: ______________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: ______________________________ GREG SULLIVAN City Attorney 76 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brian LaMeres, City Controller Anna Rosenberry, Director of Finance Chris Kukulski, City Manager SUBJECT: GASB 54: Governmental Accounting Standards Board Statement 54 on Fund Balance Reporting for Special Revenue Funds MEETING DATE: June 13, 2011 AGENDA ITEM TYPE: Consent RECOMMENDATION: Adopt Resolution 4319 implementing GASB Statement 54 by committing fund balances in the City’s Special Revenue Funds to be used only in accordance with certain stated purposes. BACKGROUND: In March of 2009, the Governmental Accounting Standards Board (GASB) issued Statement 54, "Fund Balance Reporting and Governmental Fund Type Definitions" (GASB54). This new accounting statement is effective for the City’s fiscal year ending June 30, 2011. It is designed to establish fund balance classifications that are easier to understand and apply, and its objective is to isolate that portion of fund balance (assets minus liabilities) that is unavailable to finance the following year’s budget. GASB54 applies to fund balances reported in the General Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, and Permanent Funds. This Statement does not apply to Enterprise Funds and Internal Service Funds. (see attached for Fund Type definitions) One unique aspect of this statement is the level of governing body involvement that will be required to effectively implement this statement. Two old fund balance classifications will be replaced by five new fund balance classifications, one of which (“Committed”) requires action by the City’s highest decision-making body, the City Commission. Currently fund balance is classified by the City of Bozeman as either “reserved” or “unreserved.” GASB 54 will replace those classifications with the following hierarchy of five possible classifications: Non-spendable Fund balance includes amounts not in spendable form, such as inventory, or amounts legally required to be maintained intact legally, such as the principal in the Cemetery Perpetual Care fund. 84 Restricted Fund Balance includes amounts externally constrained to a specific purpose by their providers (such as State and Federal grant providers, bondholders, and higher levels of government) through constitutional provisions or by enabling legislation. Committed Fund Balance includes amounts internally constrained for a specific purpose by a government’s highest level of decision making authority (City Commission) such as the Park Improvement Grant program and the Big Box Fund. Amounts reported as committed cannot be used for any other purpose unless the City Commission takes action to remove or change the constraint. The Commission is being asked to take action here to Commit fund balances in the City’s Special Revenue Funds. Assigned Fund Balance includes amounts the City intends to use for a specific purpose. 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. (e.g., The City’s Annual Budget) Unassigned Fund Balance is the residual classification of fund balance – what, if anything, is left over after the above classifications are made. This was formerly known as “Unreserved Fund Balance”. Although these new classifications do apply to all of the City’s funds, the area of significant potential change in how funds are reported in the City’s Financial Statements is with Special Revenue Funds, and – if these Funds are indeed changed – then the General Fund as well. The City currently accounts for 51 Special Revenue Funds in its Financial Statements, with a total combined fund balance of roughly $13.5 million. In order to continue to report these 51 funds separately as Special Revenue Funds – apart from the General Fund – there needs to be either external action taken (“to restrict”) or internal action taken (“to commit”). If neither of these actions is taken, then GASB will require that the revenues, expenditures and ending fund balances of these Special Revenue Funds be combined and reported in the General Fund for financial reporting purposes. This could potentially skew the ending balance in the General Fund by $13.5 million and would result in an accounting that did not reflect the activity supported by general tax dollars and general revenues as we have come to know it. Many of these 51 Special Revenue Funds are already restricted externally, and therefore do not need to be addressed in this commitment resolution. Some have already been addressed by previous Commissions, and the question might arise as to why are they being presented here again. We are presenting them here again per the recommendation of our external auditor who advised us to err on the side of caution since not all authoritative bodies, such as the Government Finance Officer’s Association (GFOA) have weighed in with their interpretation of GASB 54. Nonetheless, we are required to have this Commitment Resolution passed before the end of this fiscal year - June 30, 2011. Therefore, the Finance Department recommends that the fund balances and future revenues in the Special Revenue Funds listed in the accompanying Resolution #4319 be committed to be used only for the stated purposes until at which time the Commission takes similar action to remove or change the commitment. 85 FISCAL EFFECTS: The adoption of this resolution will allow the city to comply with the requirements of GASB Statement #54. It is not intended to affect the calculation of the total ending fund balances in any of the City’s funds – it is simply a reclassification of these ending fund balances into five possible categories instead of two. However, compliance with Generally Accepted Accounting Principles (GAAP) as set forth in Statements issued by GASB is required in order for the City to receive an unqualified opinion on its Financial Statements. Failure to receive an unqualified opinion can adversely affect the City’s credit rating and increase its cost of borrowing. It can also make it more difficult to qualify for federal and state grant funds. ALTERNATIVES: As suggested by the City Commission. Attachments: Resolution 4319 excerpt from FY12 Recommended budget-Special Revenue Funds excerpt from FY12 Recommended budget-Fund Type Definitions Report compiled on: June 6, 2011 86 COMMISSION RESOLUTION NO. 4319 A RESOLUTION OF THE CITY COMMISSION OF BOZEMAN, MONTANA, TO APPROVE COMMITMENT OF SPECIAL REVENUE FUND BALANCES IN ACCORDANCE WITH GASB STATEMENT NO. 54 WHEREAS, the Governmental Accounting Standards Board (GASB) has issued Statement No. 54 — Fund Balance Reporting and Governmental Fund Type Definitions, which changes the terminology and classifications used for fund balance reporting on balance sheets of Governmental Funds; and WHEREAS, the Finance Department has reviewed the new terminology and classifications; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Americans With Disabilities Special Revenue Fund be committed to support Americans With Disabilities; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Community Housing Special Revenue Fund be committed to support Community Housing; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Development Impacts Special Revenue Fund, also known as the Big Box Fund", be committed to support community issues such as affordable housing and economic development; and Page 1 of 4 87 Resolution No, 4319, Adopting GASB Statement 54 for Special Revenue Funds WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Disaster Relief Special Revenue Fund be committed to support disaster relief efforts; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the City of Bozeman - Gallatin County Drug Forfeiture Special Revenue Fund be committed to support joint drug law enforcement efforts; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Fire Department Capital & Equipment Special Revenue Fund be committed to purchase buildings, vehicles, equipment, and property for the Fire Department; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Fish, Wildlife and Parks Management Special Revenue Fund be committed to support parks and recreation areas under joint management by the City of Bozeman and the State of Montana Fish, Wildlife and Parks Department; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Highway Safety Special Revenue Fund be committed to reducing the severity of accidents as well as reducing the number of accidents on all public roads and highways, including intersections; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Insurance Proceeds Special Revenue Fund be committed to the use of insurance claim reimbursements to repair or replace damaged or destroyed City property and equipment; and Page 2 of 4 88 Resolution No. 4319, Adopting GASB Statement 54 for Special Revenue Funds WHEREAS, the Finance Department recommends that the fund balance in the Law and Justice Lease Special Revenue Fund be committed to the allocation of the lease of space in the Gallatin County Law & Justice center for the City's Police Department and Municipal Court; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Parks Master Plan Development Fund be committed to support Park Improvement Grant projects, AND; WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Police D.A.R.E Special Revenue Fund be committed to support Drug Abuse Resistance Education; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Senior Transportation Special Revenue Fund be committed to support public transportation for senior citizens; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Story Mansion Special Revenue Fund be committed to support operating expenses of the Story Mansion; Page 3 of 4 89 Resolution No. 4319, Adopting GASB Statement 54 for Special Revenue Funds NOW THEREFORE BE IT RESOLVED that the City Commission of the City of Bozeman hereby accepts the aforementioned recommendations. PASSED AND APPROVED this 13"' day of June, 201 C If I, 0 a AAT 47'r U"7 L 1) C P SULLIVAN Attorney Page 4 of 4 90 4 1y L L CW M Y CHANGES IN FUND BALANCE/WORKING CAPITAL 12- - - - - -- - - __ - - -- -- - - ---- ------ - - - - -- Projected Beginning Estimated Appropriations Budgeted Ending Fund Balance! Revenues Fund Balance/ Working Capital Working Ca ltal General Fund 010 'General Fund 4,505,743 $ 23,587,268 $ 24,121,974 $ 3,971.037 Special Revenue Fronds 100 (Planning Fund 218,084 !727,260 657,504 287,840 103 iHealth- Medical Insurance 62,113 2,002,219 2,002,269 62,113 104 !Liability Insurance 17,714),17,714) 105 I P. E. R.S. Fund 22,601 _22,601 106 (Police Pension Fund 18,918 18,918 107 Fire Pension Fund _10,808 i 10 _.808 108 :Community Transportation 49,645 22.160 10,51,5 61,290 109 Highway Safety Improvement Projects 21,877 21,877 110 Gas Tax Apportionment 601,684 668,460 656,500 ,,613,644 111 Street Maintenance District 237,219 4,197,972 3,883,679 551,512 112 Tree Maintenance 156,784 !431,500 439,452 148,832 113 Fire Impact Fee 17,500 150,000 167,500 114 Street Impact Fee 7,589,881 700,000 879,400 7,410,481 115 Building Inspection Special Revenue 636,517 869,600 803,136 702,981 116 Dowtown Improvement District 656,312 1,100,158 1,242,878 513,592 118 HUD Projects 119 Economic Development Loan Fund 120 Community Horsing 319,432 50,000 40,000 329,432 121 Housing Revolving Loan Fund 63,219 7,000 14,400 55,819 122 (Blast Clean Up Loans 1-25. Drug Forfeiture 65,832)187,000 166,601 '45,433) 128 Fish Wildlife And Park Management Area:26,635 26,635 129 (Special Projects - Recovery Act, ARRA 130 Americans With Disability Act 4,210 4,210 131 (Beautification Of Bozeman 1,389 1,389 133 !Recreation Department Special Revenue 17,330 1,000 1,000 17,330 135 (Cemetery Department Special Revenue 2,280 2,280 136 ;Park Department Special Revenue 10,270 5,500 12,000 3,770 137 Library Department Special Revenue 11,436 5,200 I 7,900 736 138 Law & Justice Center 445,374 20,000 425,374 139 Police Department Special Revenue11 288,933 104,500:82,322 311,111 140 Police Domestic Violence 1,250 1,250 142 Sustainabi6ity Grant 143 TI N 7th Corridor 23,545 274,000 505,000 207,455) 144 'TIF 'NE Urban Renewal 116,5621i 63,900 75,000 105,462 145 TIF Mandeville Industrial 172,853)!34,000 138,853) 146 Lighting Dist.'s (146-170,181,182,200-224)492,275 315,000 315,000 492,275 174 Victim Witness Advocate 369,091 76,000 113,020 332.071 175. Senior Transportation 31,018 j 82,400 82,400 31,018 176 Business Improvement District 3,588 114,000 114,000 3,588 177 Neighborhood Special Revenue 969 969 179 Diaster Relief Fund 87,560 2,000 89 „560 91 CHANGES IN FUND BALANCE/WORKING CAPITAL FY 12s ---------------------------------------------- Projected Beginning Estimated appropriations Budgeted Ending Fund Balance/Revenues _Fund Balance/ Working Ca ital Working Ca ital 183 'Fire Department Special Revenue 32,569 32,569 184 'Parks Master Plan Develop 146,464 !146 „464 185 Insurance Proceeds 186 iDevelopment Impacts 655,722 8,000 I 663,722 187 'Fire Department Equipment 122,117)1 334,600 212,483 188 (City /County Drug Forfeiture 263,592 ,55,000 !318,592 189 ',Story Mansion Special Revenue 35,515 40,000 !34,675 40,840 191 ,Tourism BID 20,955 I 20,955 850 1 Park Land - Cash in Lieu 190,563 190,563 Total S ecial Revenue Funds 13 12 628 429 12 326 101 13.841 217 Debt Service Funds 300 .Special Improvement District Revolt', Fund 1,228,196 ';20,000 1,248,196 301 ,Library Bonds 192,143 1 314,849 316,132 190,860 302 !Bond P & 11995 Transportation Projects 237,611)!469,088 428,066 196,589) 305 ITIF 2007 Downtown Bonds 3,384)1 424,878 424,878 3,384) 3101SID Funds 2,096,424 1,500,000 1,500,000 2,096,424 Dotal Debt Service Funds 3,275,768 !2,728,815 2,669,076 3,335 „507 Construction Funds Capital Projects Pntergrise_Funds 600 ,Water 10,916 „509 6,127,297 14,542,098 2,501,708 610 Water Impact Fee - Net Assets 7,791,746 !475,000 5,250,000 3,016,746 620 'Waste Water 6,698,497 6,253,452 7,021,864 j 5,930,085 630 Waste Water Impact Fee -Net Assets 404,000 404 „000 640 Solid Waste 752,500 2,496,811 2,587,042 ,662,269 650 ,Parkin Enterprise 22,639 336,35f1 392,690 78,979 Total Enterprise Funds 26,136,613 16,092,910 30,197,694 12,031,829 internal Service Funds 710 - "Vehicle Maintenance Shop 37,240 794,164 748,716 82,688 720 iHealth- M®dicat Self - Insurance Fund 18,055)1 i 3,480,000 ( i 3,490,000 _28,055) Total Internal Service Funds 19,185 (4,274,164 4,238,716 t 54,633 Permanent Funds I 800 (Cemete Per etual Care 581,071 92 „000 673,071 Total Permanent Funds 581,071 92,000 ?;673,071 Total All Funds 48,057,269 59,403,586 73,553,561 1 33,907,294 49 FY12 City Manager's Recommended Budget City of Bozeman, Montana 92 z z Z2DoW0 m f1 ' O O ON 000000000000000000000000000000wW > - W W.w W W W W W w W W W Z Z Z Z Z Z. 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LLOJwwrww' z J¢rn_C?U }(n 0 zi 0 O w- < 4m w xf m F z m w ZL Fr2-1 .6uC) >-'P0 — UF -F 9 E-z I0 002 (n O W ° dYLL d 0 O F azLIJ } 2 m c w z > x 0 r152Z LL _ J 0 F ¢ n Z OwzliOF- W Oz z x N °Z Z FO 6 w w LU rr C} co w 0 Oq9q n d- 0 co LL W O F z wzdZ > w 0 J Fen(r9F w caz ¢ °w (LI ww Fad U LL uj w ®JW a 0z =ceCr Xa } ZU _jC)a2w wFL- ¢ LL )<2MPww c7 < C) E err (lw— L W Z(w19 °2W`Z wC'gF- ,2z ?>FOUW 0war1:00 zma — W < iLFU <CWiO 000 C3 ¢m W CL1C waa¢ W 0..F -E- LL 4- [rUWwC7C7T2..5,`aZ[L CLdC'f U9u94nF- F-FF -->93 CHANGES IN FUND BALANCE/WORKING CAPITAL ___________________________________________________________________ CHANGES IN FUND BALANCE/WORKING CAPITAL Projected Beginning Estimated Appropriations Budgeted Ending Fund Balance/ Revenues Fund Balance/ Working Capital Working Capital # General Fund 010 General Fund 4,505,743 23,587,268$ 24,121,974$ 3,971,037$ Special Revenue Funds - 100 Planning Fund 218,084 727,260 657,504 287,840 103 Health-Medical Insurance 62,113 2,002,219 2,002,219 62,113 104 Liability Insurance (17,714) - - (17,714) 105 P.E.R.S. Fund 22,601 - - 22,601 106 Police Pension Fund 18,918 - - 18,918 107 Fire Pension Fund 10,808 - - 10,808 108 Community Transportation 49,645 22,160 10,515 61,290 109 Highway Safety Improvement Projects 21,877 - - 21,877 110 Gas Tax Apportionment 601,684 668,460 656,500 613,644 111 Street Maintenance District 237,219 4,197,972 3,883,679 551,512 112 Tree Maintenance 156,784 431,500 439,452 148,832 113 Fire Impact Fee 17,500 150,000 167,500 - 114 Street Impact Fee 7,589,881 700,000 879,400 7,410,481 115 Building Inspection Special Revenue 636,517 869,600 803,136 702,981 116 Dowtown Improvement District 656,312 1,100,158 1,242,878 513,592 118 HUD Projects - - - - 119 Economic Development Loan Fund - - - - 120 Community Housing 319,432 50,000 40,000 329,432 121 Housing Revolving Loan Fund 63,219 7,000 14,400 55,819 122 Blast Clean Up Loans - - - - 125 Drug Forfeiture (65,832) 187,000 166,601 (45,433) 128 Fish Wildlife And Park Management Areas 26,635 - - 26,635 129 Special Projects - Recovery Act, ARRA - - - - 130 Americans With Disability Act 4,210 - - 4,210 131 Beautification Of Bozeman 1,389 - - 1,389 133 Recreation Department Special Revenue 17,330 1,000 1,000 17,330 135 Cemetery Department Special Revenue 2,280 - - 2,280 136 Park Department Special Revenue 10,270 5,500 12,000 3,770 137 Library Department Special Revenue 11,436 5,200 7,900 8,736 138 Law & Justice Center 445,374 - 20,000 425,374 139 Police Department Special Revenue 288,933 104,500 82,322 311,111 140 Police Domestic Violence 1,250 - - 1,250 142 Sustainability Grant - - - - 143 TIF N 7th Corridor 23,545 274,000 505,000 (207,455) 144 TIF NE Urban Renewal 116,562 63,900 75,000 105,462 145 TIF Mandeville Industrial (172,853) 34,000 - (138,853) 146 Lighting Dist.'s (146-170, 181, 182, 200-224)492,275 315,000 315,000 492,275 174 Victim Witness Advocate 369,091 76,000 113,020 332,071 175 Senior Transportation 31,018 82,400 82,400 31,018 176 Business Improvement District 3,588 114,000 114,000 3,588 177 Neighborhood Special Revenue 969 - - 969 179 Diaster Relief Fund 87,560 2,000 - 89,560 ----------------------------------------------FY 12---------------------------------------------- 94 49 FY12 City Manager’s Recommended Budget City of Bozeman, Montana CHANGES IN FUND BALANCE/WORKING CAPITAL Projected Beginning Estimated Appropriations Budgeted Ending Fund Balance/ Revenues Fund Balance/ Working Capital Working Capital 183 Fire Department Special Revenue 32,569 - - 32,569 184 Parks Master Plan Develop 146,464 - - 146,464 185 Insurance Proceeds - - - - 186 Development Impacts 655,722 8,000 - 663,722 187 Fire Department Equipment (122,117) 334,600 - 212,483 188 City/County Drug Forfeiture 263,592 55,000 - 318,592 189 Story Mansion Special Revenue 35,515 40,000 34,675 40,840 191 Tourism BID 20,955 - - 20,955 850 Park Land - Cash in Lieu 190,563 - - 190,563 Total Special Revenue Funds 13,538,889 12,628,429 12,326,101 13,841,217 # Debt Service Funds 300 Special Improvement District Revolv. Fund 1,228,196 20,000 - 1,248,196 301 Library Bonds 192,143 314,849 316,132 190,860 302 Bond P & I 1995 Transportation Projects (237,611) 469,088 428,066 (196,589) 305 TIF 2007 Downtown Bonds (3,384) 424,878 424,878 (3,384) 310 SID Funds 2,096,424 1,500,000 1,500,000 2,096,424 Total Debt Service Funds 3,275,768 2,728,815 2,669,076 3,335,507 Construction Funds Capital Projects - - - - Enterprise Funds 600 Water 10,916,509 6,127,297 14,542,098 2,501,708 610 Water Impact Fee - Net Assets 7,791,746 475,000 5,250,000 3,016,746 620 Waste Water 6,698,497 6,253,452 7,021,864 5,930,085 630 Waste Water Impact Fee - Net Assets - 404,000 404,000 - 640 Solid Waste 752,500 2,496,811 2,587,042 662,269 650 Parking Enterprise (22,639) 336,350 392,690 (78,979) Total Enterprise Funds 26,136,613 16,092,910 30,197,694 12,031,829 Internal Service Funds - 710 Vehicle Maintenance Shop 37,240 794,164 748,716 82,688 720 Health-Medical Self-Insurance Fund (18,055) 3,480,000 3,490,000 (28,055) - Total Internal Service Funds 19,185 4,274,164 4,238,716 54,633 Permanent Funds 800 Cemetery Perpetual Care 581,071 92,000 - 673,071 Total Permanent Funds 581,071 92,000 - 673,071 Total All Funds 48,057,269 59,403,586 73,553,561 33,907,294 ----------------------------------------------FY 12---------------------------------------------- 95 City of Bozeman GASB 54 Special Revenue Funds COMMISSION ACTION NEEDED NOW SPECIAL REVENUE FUND NAME COMMENTS RESTRICTED by:TO COMMIT AMERICAN WITH DISABILITY TRANSFERRED FROM GENERAL FUND FY95 YES COMMUNITY HOUSING TRANSFERRED FROM GENERAL FUND FY95 + FY96 YES DEVELOPMENT IMPACTS (Big Box)PREVIOUS COMMISSION SAID 1/2 AFFORDABLE HOUSING, 1/2 ECONOMIC DEVELOPMENT YES DISASTER RELIEF (HAIL DAMAGE, etc.)HAIL STORM JUNE 30, 2010 YES DRUG FORFEITURE CITY-COUNTY INTERLOCAL AGREEMENT w/ GALLATIN COUNTY YES FIRE DEP CAPITAL & EQUIPMENT 4 MILLS LEVIED, BUT STILL NEED TO COMMIT PER AUDITOR YES FISH WILDLIFE & PARK MGMT EAST GALLATIN & BOZEMAN PONDS REC AREAS YES HIGHWAY SAFETY TRANSFERRED FROM GENERAL FUND FY95 YES INSURANCE PROCEEDS SPRING SNOWSTORM JUNE, 2001 YES LAW & JUSTICE LEASE PREPAID LEASE AGREEMENT w/ GALLATIN COUNTY YES PARKS MASTER PLAN DEVELOP TRANSFERS FROM GENERAL FUND - PARK IMPROVEMENT GRANT PROJECTS YES POLICE SPECIAL REVENUE D.A.R.E.TRANSFER FROM GENERAL FUND YES SENIOR TRANSPORTATION 1 MILL LEVIED, BUT STILL NEED TO COMMIT PER AUDITOR YES STORY MANSION SPECIAL REV RENTALS, DONATIONS, INTEREST INCOME YES AFFORDABLE HOUSING RLF RECYCLED COMMUNITY DEVELOPMENT BLOCK GRANT HOUSING MONEY FEDERAL GRANT CFDA 14.219 NO BEAUTIFICATION DONATIONS RESTRICTED TO INTENT OF DONOR MCA 7-8-103 NO BID TOURISM TBID HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT MCA Title 7 Chapter 12 Part 11 NO BOGERT PK SPECIAL REVENUE DONATIONS RESTRICTED TO INTENT OF DONOR MCA 7-8-103 NO BUILDING INSPECTION MCA 50-60-104 NO CDBG BLOCK GRANTS COMMUNITY DEVELOPMENT BLOCK GRANTS - GENERAL FEDERAL GRANT CFDA 14.219 NO CEMETERY SPECIAL REVENUE DONATIONS RESTRICTED TO INTENT OF DONOR MCA 7-8-103 NO COURT RESTITUTION MCA 46-18-250 NO CTEP COMMUNITY TRANSPORTATION ENHANCEMENT PROJECTS FEDERAL GRANT CFDA 20.205 NO DOWNTOWN IMPROV DISTRICT: BID DOWNTOWN BUSINESS IMPROVEMENT DISTRICT MCA Title 7 Chapter 12 Part 11 NO DOWNTOWN IMPROV DISTRICT: TIFD DOWNTOWN TAX INCREMENT FINANCING DISTRICT MCA Title 7 Chapter 15 Part 42 NO DRUG FORFEITURE MRDTF MISSOURI RIVER DRUG TASK FORCE MCA 44-12-206 NO ECON DEVELOP RLF RECYCLED COMMUNITY DEVELOPMENT BLOCK GRANT ECONOMIC DEVELOPMENT FEDERAL GRANT CFDA 14.219 NO FIRE DEPT SPECIAL REVENUE STATE AND FEDERAL FIRE GRANTS - OPTICOM, ETC.FEDERAL GRANT CFDA 20.205 NO GAS TAX STATE GAS TAX APPORTIONMENT MCA 15-70-101 NO GRANTS-ENERGY ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM FEDERAL GRANT CFDA 81.128 NO HEALTH INSURANCE MCA 2-9-212 NO HUD, HOME+NON-CDBG GRANTS DEPT OF HOUSING & URBAN DEVELOPMENT GRANTS - F&H BUILDING, ETC.FEDERAL GRANT CFDA 20.205 NO LIBRARY SPECIAL REVENUE DONATIONS RESTRICTED TO INTENT OF DONOR MCA 7-8-103 NO LIGHTING DISTRICTS SPECIAL IMPROVEMENT LIGHTING DISTRICTS MCA Title 7 Chapter 12 Part 43 NO NEIGHBORHOOD ASSOCIATION DONATIONS RESTRICTED TO INTENT OF DONOR MCA 7-8-103 NO PARK LAND CASH-IN-LIEU BMC Chapter 18.50 NO PARK SPECIAL REVENUE (NOT PIG)DONATIONS RESTRICTED TO INTENT OF DONOR MCA 7-8-103 NO PLANNING MCA 76-1-404 NO RECREATION SPECIAL REVENUE DONATIONS RESTRICTED TO INTENT OF DONOR MCA 7-8-103 NO SPECIAL PROJECTS AARA AMERICAN RECOVERY AND REINVESTMENT ACT FEDERAL PASS-THRU MT HB 645 NO STREET & FIRE IMPACT FEES MCA 7-6-1603 NO STREET MAINTENANCE MCA Title 7 Chapter 12 Part 44 NO TIFD MANDEVILLE/WHEAT DR.MCA Title 7 Chapter 15 Part 42 NO TIFD N.E. URBAN RENEWAL MCA Title 7 Chapter 15 Part 42 NO TIFD NORTH 7TH CORRIDOR MCA Title 7 Chapter 15 Part 42 NO TREE MAINTENANCE MCA Title 7 Chapter 12 Part 41 NO VICTIM / WITNESS ADVOCATE MCA Title 46 Chapter 18 NO BMC = Bozeman Municipal Code MCA = Montana Code Annotated 96 39 FY12 City Manager’s Recommended Budget City of Bozeman, Montana An ACCOUNT is an organizational or budgetary breakdown which is found within city funds. Each department serves a specific function as a distinct organizational unit of government within the given fund. Its primary purpose is to facilitate organizational and budgetary accountability. An OBJECT OF EXPENDITURE refers to specific, detailed expenditure classification. It relates to a specific type of item purchased or service obtained. Examples of objects of expenditure include salaries, supplies, contracted service, travel, etc. The City’s financial operations and fund structure conform with Generally Accepted Accounting Principals (GAAP). The funds are grouped under governmental, proprietary, and fiduciary fund types. The City’s fund structure is comprised of the following funds, all of which are budgeted. GOVERNMENTAL FUND TYPES General Fund: The general fund is used to account for all financial resources of the city, except for those required to be accounted for in another fund. The general fund supports such basic services as the legislative branch, judicial branch, general administration, police, fire, finance, engineering, recreation, library services. Revenue Sources: The city's general fund is financed primarily by property taxes which provide nearly half of the general fund revenue. Other revenue sources include: licenses and permits, intergovernmental revenue, charges for services, fines and forfeitures, interest on investments, operating transfers, and miscellaneous revenues. Special Revenue Funds: Special Revenue funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or for major capital projects) that are legally restricted to expenditure for specific purposes. Special revenue funds support insurance costs, retirement costs, planning functions, and other services legally restricted for specific purposes. Revenue Sources: Special revenue funds are supported either through property taxes or through grants or other restricted revenue sources. Examples of special revenue funds supported by property taxes include employee health and comprehensive insurance funds. Examples of special revenue funds supported by grants or other restricted revenue sources include Community Development Block Grant, Housing and Urban Development, and Gas Tax Apportionment. Debt Service Funds: Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Debt Service funds provide financing for the city's two general obligation bonds--transportation and library facilities. Revenue Sources: Debt service funds are supported entirely through property taxes and interest income. Capital Project Funds: Capital project funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). 97 40 FY12 City Manager’s Recommended Budget City of Bozeman, Montana Revenue Sources: Capital project funds are supported by special assessments, long term debt proceeds, donations, and grants. PROPRIETARY FUND TYPES Internal Service Funds: Internal service funds are used to account for the financing of goods or services provided by one department to other departments on a cost-reimbursement basis. Internal service funds account for the city's vehicle maintenance functions. Revenue Sources: Internal service funds are supported through billings to other departments based on the sale of goods and the services provided. Enterprise Funds: Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises--where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Enterprise funds account for the city's water, waste water, and solid waste services. Revenue Sources: Enterprise funds are supported through user charges, penalties, and interest income. FIDUCIARY FUND TYPES Trust Funds: Trust funds are used to account for assets held by a governmental unit in a trustee capacity. These include (a) expendable trust funds, (b) permanent trust funds, and (c) pension trust funds Revenue Sources: Trust funds are supported by donations and interest income. 98