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HomeMy WebLinkAboutResolution No. 11-7279 RESOLUTION NO. 11-7279 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY CLASSIFYING THE VARIOUS COMPONENTS OF FUND BALANCE AS DEFINED IN GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 54 AND PROVIDING OTHER AUTHORIZATIONS AND DISCLOSURES AS REQUIRED BY THE STATEMENT. WHEREAS, the Governmental Accounting Standards Board (GASB) has issued its Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions with the intent of improving financial reporting by prov iding fund balance categories that will be more easily understood; and WHEREAS, the City Council of the City of Dow ney has considered Administrative Policy No. 324 entitled “Financial Policy for GASB 54” which outlines the policy and procedures enacted to accurately categorize and report fund balance in the Governmental Fund; and WHEREAS, the new classification reflect an approach that focuses, not on financial resources available for appropriation within a fund, but on the extent to which amount in the fund can be spent; and WHEREAS, the City Council of the City of Downey designates the City Manager and Director of Finance as the City official to determine and define the amounts of those components of fund balance that are classified as “Assigned Fund Balance”; and WHEREAS, the classification and reporting of fund balance components as required by Governmental Accounting Standards Board Statement No. 54 becomes effective, starting with the 2010-11 fiscal year reporting. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City adopts the Governmental Accounting Standards Board (GASB) Statement No. 54 and authorizes and directs City Manager and Director of Finance to implement the policy hereby established. SECTION 2. The City authorize the City Manager or Director of Finance to determine and define amounts of those components of fund balance that are classified as “Assigned Fund Balance” and direct the preparation of financial reports which accurately categorize fund balance and provide other disclosure as required by the Statement. SECTION 3. The City Clerk shall certify to the adoption of this Resolution. APPROVED AND ADOPTED this 28th day of June, 2011. LUIS H. MARQUEZ LUIS H. MARQUEZ, Mayor ATTEST: JOYCE E. DOYLE JOYCE E. DOYLE, Interim City Clerk RESOLUTION NO. 11-7279 PAGE TWO I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a regular m eeting held on the 28th day of June, 2011, by the following vote, to wit: AYES: Council Members: Brossmer, Gafin, Guerra, Vasquez, Mayor Marquez NOES: Council Member: None ABSENT: Council Member: None ABSTAIN: Council Member: None JOYCE E. DOYLE JOYCE E. DOYLE, Interim City Clerk