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12 <br /> THE CITY OF <br /> win "' CITY COUNCIL AGENDA REPORT <br /> pL£ASANTON„ <br /> June 21, 2011 <br /> Finance Department <br /> TITLE: ADOPT A RESOLUTION ESTABLISHING THE CLASSIFICATION OF <br /> FUND BALANCES IN CONFORMANCE WITH THE GOVERNMENTAL <br /> ACCOUNTING STANDARDS BOARD STATEMENT NO. 54, "FUND <br /> BALANCE REPORTING AND GOVERNMENTAL FUND TYPE <br /> DEFINITIONS" <br /> SUMMARY <br /> Under current governmental accounting standards, the General Fund and other fund <br /> balances of the City are classified into three categories: reserved, unreserved <br /> designated and unreserved undesignated. Reserves are those which are not <br /> considered available due to financial, accounting or legal restrictions. Designated fund <br /> balances are established by Council policy for an intended purpose and are available <br /> for use per Council direction. <br /> In March 2009, the Governmental Accounting Standards Board (GASB) issued <br /> Statement No. 54. The purpose of Statement No. 54 is to clarify and bring consistency <br /> to the reporting of fund balances for the government sector. The City is required to <br /> implement these provisions no later than June 30, 2011 and to utilize these fund <br /> balance classifications in the City's comprehensive annual financial report (CAFR) for <br /> the 2010/11 FY. <br /> RECOMMENDATION <br /> Staff recommends the Council adopt the attached resolution classifying the City's fund <br /> balances in conformance with the Governmental Accounting Standards Board <br /> Statement No. 54, "Fund Balance Reporting and Governmental Fund Type Definitions." <br /> FINANCIAL STATEMENT <br /> There is no fiscal impact of implementing GASB Statement No. 54. <br />