Item 4DCITY OF
SOUTH LAKE
MEMORANDUM
September 14, 2011
To: Shana Yelverton, City Manager
From: Sharen Jackson, Director of Finance
Subject: Resolution No. 11 -045, A Resolution of the City of Southlake, Texas,
Committing revenue sources for specific purposes and providing an
effective date
Action
Requested: Approval of Resolution No. 11 -045
Background
Information: The Governmental Accounting Standards Board ( "GASB ") has
adopted Statement 54, a new standard for governmental fund
balance reporting and governmental fund type definitions that
became effective in governmental fiscal year beginning after June
15, 2010. The purpose of the new statement is to improve
financial reporting by providing fund balance categories and
classifications that will be more easily understood. On September
6, 2011, City Council approved the amended Fund Balance
Policy. The governing body must also approve all commitments
by a formal action. The action to commit funds must occur prior to
the fiscal year -end, to report such commitments in the balance
sheet of the respective period, even though the amount may be
determined subsequent to fiscal year -end. A commitment can
only be modified or removed by the same formal action.
Implementation of GASB 54 will not impact the financial
operations of the city however the statement will only impact the
REPORTING of fund balance.
Financial
Considerations: None. The resolution commits the revenue sources for a specific
purposes as outlined in the attached resolution which consistent
with the city's current practice.
Strategic Link: F1 Adhere to financial management principles and budget
F3 Achieve fiscal wellness standards
Citizen Input/
Board Review: None required
Legal Review: None required
Page 2 of 2
Alternatives:
Supporting
Documents:
Staff
Recommendation
Deny and the revenue resource would not be committed for the
specific purposes.
Resolution No. 11 -045
Approval of Resolution No. 11-045
RESOLUTION NO. 11 -045
A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS, COMMITTING
REVENUE SOURCES FOR SPECIFIC PURPOSES AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the Governmental Accounting Standards Board ( "GASB ") has adopted
Statement 54, a new standard for governmental fund balance reporting and governmental fund
type definitions that became effective in governmental years starting after June 15, 2010, and
WHEREAS, the City Council elects to implement GASB 54 requirements, and to apply
such requirements to its financial statements beginning with the current 2011 fiscal year;
WHEREAS, the City Council has reviewed and approved the Fund Balance Policy and
has determined the ongoing revenue sources of the following should be committed for the
specific purposes;
• Police Fund- activities related to police service;
• Parks and Recreation Fund - activities related to park and recreation;
• Park Dedication Fund -park improvements;
• ,Storm Water Fund- maintenance, repair, and construction of storm water facilities;
• Library Donation Fund- support library activities;
• Oil and Gas Fund- activities related to oil and gas drilling;
• Public Art Fund - promotion, creation, and /or installation of public art throughout the
City;
• Reforestation Fund- ensure the natural environment is protected and preserved;
• Bicentennial Concessions Fund- Bicentennial Park maintenance, repair, and
improvements.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, THAT:
Section 1. The aforementioned revenue sources are committed for the specific
purposes.
Section 2. All matters stated in the preamble of this resolution are true and correct
and are hereby incorporated into the body of this resolution as if copied in their entirety.
Section 3. The City of Southlake authorizes and directs that this action be made part
of the City's permanent records.
Section 4. This resolution shall become effective from and after the date of its
passage.
PASSED AND APPROVED THIS THE 20 DAY OF AUGUST, 2011.
ATTEST:
Alicia Richardson, City Secretary
APPROVED AS TO FORM:
CITY ATTORNEY
John Terrell, Mayor
By: