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Home My WebLink About[05b] Equity Designations 5(b) Council Agenda Item MEETING DATE: March 21, 2013 AGENDA ITEM:Equity Designations – Requested Action: Approve Equity Classifications SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The Fire Board recommended designating the following balances at 12/31/12 for future expenditures: Capital Reserve carry-over $281,398.96 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 2012 the city had a prepaid expense for the January health and life insurance premiums. 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, restricted 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 2012, the calculated working capital for the general fund is 5.75 months of the 2013 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. /z·äE{·uW;¦w 9·;©¦©z;CÒ79¨Òz·ä December31,2012 ContributedContributedDesignated OtherFundDevelopeforUnspentCapitalUndesignatedTotal r Water(601)3,939,836.01319,207.71139,379.372,990,661.187,389,084.27 Sewer(602)4,051,602.011,445,176.23192,430.171,949,255.047,638,463.45 Refuse(603)29,000.00262,685.64291,685.64 StormWater(651)560,941.66122,620.80232,961.783,279,942.714,196,466.95 8,552,379.681,887,004.74593,771.328,482,544.5719,515,700.31 WaterSewerRefuseStorm NetCapitalAssets13,715,254.0712,936,735.173,998,175.39 LessBondPayable(11,180,000.00)(5,519,078.00) Add02/05Ddebtissuecosts68,725.73 LessDeferredPremium(68,453.65)(22,328.00) InvestedinCAnetDeb2,535,526.157,395,329.173,998,175.39 t auditreport2,535,526.157,395,329.173,998,175.39 7zEE;©;-; Unrestricted4,853,558.12243,134.28291,685.64198,291.56 /z·äE{·uW;¦w 9¨Òz·ä5;zm·zD;;©CÒ7 December31,2012 5;zm·;7w;;©Ý;7CÒ7.-;t Reservedfor:Designatedfor: PrepaidsDebtServiceCapitalProjectsWorkingCapitalTotal GeneralFund(101,105,108)16,058.00200,000.00313,847.821,095,000.001,608,847.82 ©zm/¦z·/-Ò·zt 2013GFExpenditureBudget2,240,065.00 5.75monthsdesignated48% 1,075,231.20 RoundedDesignation1,075,000.00 D;;©CÒ79¨Òz·ä· t WorkingCapital1,075,000.00 CityStructure/Study7,021.45 Elections25,427.41 FireFundOperating20,000.00 FireFundCapital281,398.96 FireFundDebtRelie200,000.00 f Undesignated10186,115.19 Undesignated1051,231.51 Undesignated1089,078.72 1,721,331.24 TotalUndesignated96,425.42 TotalReserved16,058.00 TotalDesignated1,608,847.82 D;;©CÒ7,-; r r u Designatedfor EDA EDA(150)13,296.71 CityofSt.Joseph GASB54EquityBreakDown December31,2012 MajorGovernmentalFundsNonmajor GOImprovementGovernmental General(101,105,108)Bonds2007A(341)FundsTotal Nonspendable Prepaids16,058.00 16,058.00 Restricted UnspentBondProceeds141,585.893,103,441.253,245,027.14 TaxIncrements10,844.6810,844.68 1/2CentSalesTax1,264,824.391,264,824.39 ParkDedicationFees70,810.6570,810.65 PEGAccessFees(+only)9,078.729,078.72 RecreationCenter27,368.1827,368.18 CharitableGambling5,239.005,239.00 RevolvingLoan22,771.2322,771.23 9,078.72141,585.894,505,299.384,655,963.99 Committed EDA 77,651.5777,651.57 Assigned CityStructure/FacilityStudy7,021.457,021.45 Elections25,427.4125,427.41 FireOperations20,000.0020,000.00 FireCapital281,398.96281,398.96 FireDebtRelief200,000.00200,000.00 CapitalOutlayReserves1,358,579.381,358,579.38 OtherPurposes508,858.85508,858.85 533,847.821,867,438.232,401,286.05 Unassigned WorkingCapital(5.75months)1,075,000.001,075,000.00 RemainingUnassigned80,367.42(469.98)79,897.44 1,155,367.42(469.98)1,154,897.44 1,714,351.96141,585.896,449,919.208,305,857.05