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Home My WebLink About[04e] Equity Designations crrx OF ST.Jrrse NK Council Agenda Item 104e1 MEETING DATE: March 4, 2019 AGENDA ITEM: Equity Classifications—for Financial Year 2018 SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None 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 on 10-23-14 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 2018 the City had prepaid expenses for the January dental and medical insurance premiums. By nature of the items,the amounts are 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, 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 2018,the calculated working capital for the general fund is just under 6 months of the 2019 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. The amounts presented for unassigned are preliminary. A couple audit entries may come up with the audit to consider recording. Working capital is not expected to change. BUDGET/FISCAL IMPACT: Restrictions of the use of funds only. ATTACHMENTS: Request for Council Action—Equity Classifications Equity 2018—GASB 54 Equity 2018—Working Capital Equity 2018 -Enterprise REQUESTED COUNCIL ACTION: Approve the equity designations as presented. City of St.Joseph GASB 54 Equity Break-Down December 31,2018 Major Governmental Funds Nonmajor Governmental General(101,102,105,108) Local Option Sales Tax(200) Funds Total Nonspendable Prepaids 24,560 24,560 Restricted Unspent Bond Proceeds 65,256 65,256 Tax Increments 29,434 29,434 1/2 Cent Sales Tax 906,691 906,691 Park Dedication Fees 111,757 111,757 PEG Access Fees(+only) 5,051 5,051 Charitable Gambling 2,104 2,104 DEED CDAP 35,009 35,009 Lodging Tax 31,052 31,052 Revolving Loan 212,134 212,134 5,051 906,691 486,746 1,398,488 Committed EDA 62,141 62,141 Assigned Street Seal Coating/Crack Filling 126,870 126,870 Loader Tires 6,389 6,389 Elections 5,300 5,300 Schneider Field 1,263 1,263 Police Forfeiture 6,600 6,600 Severance Pay 122,343 122,343 Comp Plan Update 6,243 6,243 GASB Updates 6,000 6,000 Fire Operations 20,000 20,000 Fire Capital 470,973 470,973 Fire Debt Relief 129,452 129,452 Capital Outlay Reserves 542,625 542,625 Other Purposes 984,485 984,485 901,433 - 1,527,109 2,428,542 Unassigned Working Capital(6 months) 1,500,000 1,500,000 Remaining Unassigned (48,565) (10,076) (58,640) 1,451,435 - (10,076) 1,441,360 Governmental Funds Net Position 2,382,479 906,691 2,065,921 5,355,091 City of St.Joseph Enterprise Funds Equity December 31, 2018 Contributed- Contributed- Designated Other Fund Developer for Unspent Capital Undesignated Total Water(601) 5,063,941.06 457,313.71 82,621.13 3,327,589.58 8,931,465.48 Sewer(602) 5,067,660.35 1,552,934.73 177,276.49 2,238,782.94 9,036,654.51 Refuse(603) 42,015.46 - 6,812.62 199,427.38 248,255.46 Storm Water(651) 1,138,869.47 169,640.80 203,626.09 2,592,279.89 4,104,416.25 Street Light Utility(652) - - 24,000.00 10,691.87 34,691.87 11,312,486.34 2,179,889.24 494,336.33 8,368,771.66 22,355,483.57 Water Sewer Refuse Storm Street Lights Net Capital Assets 13,083,257.16 15,987,069.54 6,505.78 3,884,947.60 - Less Bond Payable (4,637,000.00) (7,036,968.60) - - - Add 12A Bond Payable - - - - - Add 12A Bond Premium - - - - - Less Deferred Premium (29,397.61) (9,260.11) - - - Invested in CA net Debt 8,416,859.55 8,940,840.83 6,505.78 3,884,947.60 - 21,249,153.76 A in accounting principle - - - - - - Unrestricted,fund stmt 514,605.93 95,813 68 241,749.68 219,468.65 34,691.87 1,106,329.81 add 501&502 415,428.95 91,276.06 - - 506,705.01 Unrestricted,gov wide 930,034.88 187,089.74 241,749.68 219,468.65 34,691.87 1,613,034.82 22,862,188.58 City of St.Joseph Equity Designations-General Fund December 31,2018 Designated/Reserved Fund Balance: Reserved for: Designated for: Prepaids Debt Service Capital Projects Working Capital Total General Fund(101,102,105,108) 24,560.19 129,452.13 615,882.52 1,661,148.97 2,406,483.62 Working Capital Calculation: 2019 GF Expenditure Budget 3,184,310.00 6 months designated 47% 1,496,625.70 Rounded Designation 1,500,000.00 General Fund Equity at 12/31/18: Working Capital 1,500,000.00 1,513,505.88 Schneider Field 1,263.34 Comp Plan Update 6,242.54 GASB Updates 6,000.00 Police Forfeiture 6,599.96 139,858.24 Street Sealcoating/Crack Fill 126,869.66 Loader Tires 6,388.62 Elections 5,299.75 Fire Fund Operating 20,000.00 Fire Fund Capital 470,973.25 Fire Fund Debt Relief 129,452.13 Designated-102 Severance 122,343.34 Designated-108 Cable Access 5,051.03 Undesignated-101 36,760.68 Undesignated-105 (85,325.19) 2,382,479.30 Total Undesignated (48,564.51) Total Reserved 24,560.19 Total Designated 2,406,483.62 General Fund balance 2,382,479.30 Committed for EDA designated entry Unappropriated EDA(150) 62,141.05 22,009.92 40,131.13