HomeMy WebLinkAboutResolution No. 2011-28 RESOLUTION NO. R2011-28
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF FRIEND�WOOD, T�XAS, ESTABLISHING
FUND BALANCE POLICIES AS REQUIRED BY GASB
54.
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WHEREAS, the Governmental Accounting Standards Board ("GASB") has
adopted Statement 54 ("GASB 54"), a new standard for governmental fund balance
reporting and governmental fund type definitions that become effective in governmental
fiscal years starting after June 15, 2010, and
WHEREAS, the City of Friendswood, Texas ("the City") elects to implement
GASB 54 requirements, and to apply such requirements to its financial statements
beginning with the current October 1, 2010 to September 30, 20ll fiscal year; and
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
TEXAS THAT THE CITY HEREBY ADOPTS THE FOLLOWING POLICY:
FUND BALANC�POLICY
Fund balance measures the net financial resources available to finance expenditures of
futwe period. The City's Unassigned General Fund Balance will be maintained at levels
sufficient to protect the City's creditworthiness as well as its financial position from
unforeseeable emergencies. The City will strive to maintain the Unassigned General Fund
Balance at a minimum of 90 days of prior year audited operating expenditures. Foimal
action of the City Council is required to appropriate the Unassigned General Fund Balance
and to commit funds for a specific source. Amendments or modifications of the committed
fund balance must also be approved by formal action of the City Council. All
commitments of fund balance must occur prior to the City's fiscal year end.
When it is appropriate far fund balance to be assigned, the City Council hereby delegates
authority to the City Manager or his designee.
In circumstances where an expenditure is to be made for a pwpose for which amounts are
available in multiple fund balance classifications, the order in which resources will be
expended is as follows: restricted fund balance, followed by committed fund balance,
assigned fund balance, and lastly, unassigned fund balance.
NOW THEItEFORE BE IT RESOLVED that the above policy is herby adopted by the
City of Friendswood, Texas.
PASSED,APPROVED, AND RGSOLV�D,this the 12th day of Seutember,2011.
David J.H. Smith
Mayor
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Melinda Welsh, TRMC � � ,
City Secretary '
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