HomeMy WebLinkAbout[10] Equity Designations Crry OF ST: JOSEPH Council Agenda Item 10
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MEETING DATE: March 15, 2012
AGENDA ITEM: Equity Classifications — Requested Action: Approve Equity
Classifications
SUBMITTED BY: Finance
BOARD /COMMISSION /COMMITTEE RECOMMENDATION: The Fire Board recommended
designating the following balances at 12/31/11 for future expenditures at their Feb. 2012 meeting:
Capital Reserve carry-over $395,568.43
Operating for training $20,000.00
Debt Service Relief $200,000.00
PREVIOUS COUNCIL ACTION: The City Council adopted the fund balance policy [revised] on
12- 15 -11. Council also adopted Resolution 2011 -024 committing specific revenue sources as required
under GASB 54.
BACKGROUND INFORMATION: The revised fund balance policy and Resolution 2011 -024 dictate
the classification of fund balance based on internal and external factors, and GASB 54. The following
classifications are provided for the governmental funds. The actual break -outs are attached.
Nonspendable fund balances are for items not expected to be converted to cash. For 2011 the city had a
prepaid expense for the January health insurance premium. By nature of the item, the amount is set aside
as a prepaid asset.
Restricted fund balances are for items externally restricting the use of the funds. The restrictions include
unspent bond proceeds, TIF, park dedication, PEG access, recreation center, charitable gambling and
revolving loan proceeds. State Statutes, grantors and creditors dictate the use of the funds with the City
accepting the restrictions.
Committed fund balances are amounts constrained for a specific purpose by Council resolution. The City
Council committed the remaining balance of the EDA for economic development functions.
Assigned fund balances are unspent non - general fund amounts not classified as nonspendable, restrict or
committed. The restraint of the use is self - imposed as approved by City Council and demonstrate a
specific purpose. The amounts may also include a portion of the general fund constrained in its use as
determined by the City Council.
Unassigned fund balance is for the general fund and residual deficit fund balances in other governmental
funds not classified in any other category. Unassigned amounts are available for any purpose. Council
established a stabilization arrangement for working capital of 4 -6 months in the general fund. For year -
ended 2011, the calculated working capital for the general fund is 5.5 months of the 2012 expenditures.
The Enterprise Funds have four classifications to the equity. The classifications are contributed from
other governmental funds, contributed from developers, designed for unspent capital outlay and
undesignated. The attached spreadsheet shows the allocation of the enterprise equity.
BUDGET /FISCAL IMPACT: Restrictions of the use of funds only.
ATTACHMENTS: Request for Council Action — Equity Classifications
REQUESTED COUNCIL ACTION: Approve the equity designations as presented.
City of St. Joseph
GASB 54 Equity Break -Down
December 31, 2011
Major Governmental Funds Nonmajor
GO Improvement Governmental
General (101,105,108) Bonds 2007A (341) Funds Total
Nonspendable
Prepaids 15,902.50 15,902.50
Restricted
Unspent Bond Proceeds 273,681.44 4,401,820.31 4,675,501.75
Tax Increments 7,211.44 7,211.44
Park Dedication Fees 72,760.02 72,760.02
PEG Access Fees (+ only) - -
Recreation Center 51,737.89 51,737.89
Charitable Gambling 5,100.26 5,100.26
Revolving Loan 14,192.02 14,192.02
273,681.44 4,552,821.94 4,826,503.38
Committed
EDA 49,582.49 49,582.49
Assigned
City Structure /Facility Study 18,882.76 18,882.76
Elections 30,110.37 30,110.37
Fire Operations 20,000.00 20,000.00
Fire Capital 395,568.43 395,568.43
Fire Debt Relief 200,000.00 200,000.00
Capital Outlay Reserves 2,144,985.33 2,144,985.33
Other Purposes 340,877.78 340,877.78
664,561.56 - 2,485,863.11 3,150,424.67
Unassigned
Working Capital (5.5 months) 980,000.00 980,000.00
Remaining Unassigned 70,256.76 (2,238.42) 68,018.34
1,050,256.76 - (2,238.42) 1,048,018.34
1,730,720.82 273,681.44 7,086,029.12 9,090,431.38
City of St. Joseph
Enterprise Funds Equity
December 31, 2011
Contributed - Contributed - Designated
Other Fund Developer for Unspent Capital Undesignated Total
Water (601) 3,939,836.01 319,207.71 116,029.07 3,316,162.81 7,691,235.60
Sewer (602) 4,051,602.01 1,445,176.23 164,090.67 2,050,058.70 7,710,927.61
Refuse (603) - - 21,500.00 262,557.77 284,057.77
Storm Water (651) 560,941.66 122,620.80 239,133.89 3,426,246.53 4,348,942.88
8,552,379.68 1,887,004.74 540,753.63 9,055,025.81 20,035,163.86