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HomeMy WebLinkAboutDocumentation_Regular Council_Tab 28_07/11/2019Agenda Item #28. Regular Council STAFF MEMO Meeting: Regular Council - 11 Jul 2019 Staff Contact: Tatiana Racanati, Assistant Department: Finance Finance Director RESOLUTION NO. 29-19, ESTABLISHING THE COMMITTED FUND BALANCE IN THE GENERAL FUND FOR THE DISASTER RESERVE IN THE AMOUNT OF $500,000.00 To re-classify the assigned fund balance disaster reserve previously established in the general fund in the amount of 1,000,000.00 by classifying $500,000.00 as disaster reserve committed fund balance in the general fund, and by placing the remaining $500,000.00 in the water utility fund as a committed disaster reserve. To aprove the resolution RES ESTABLISHING COMMITED FUND BALANCE -H U RICAN E DISASTER -RESOLUTION Fund Balance Policy Village of Teguesta Page 509 of 537 Agenda Item #28. RESOLUTION NO. 29-19 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, ESTABLISHING THE COMMITED FUND BALANCE IN THE GENERAL FUND FOR THE DISASTER RESERVE PURSUANT TO THE VILLAGE COUNCIL'S FUND BALANCE POLICY ADOPTED THROUGH RESOLUTION 13-11; SETTING T14E AMOUNT OF SAID DISASTER RESERVE AT $500,000.00; PROVIDING AN EFFECTIVE DATE, AND FOR OTHER PURPOSES. WHEREAS, the Village Council has previously adopted a "Fund Balance Policy" which provides for a "disaster reserve" committed fund balance, the amount of which is to be established by the Village Council; and WHEREAS, the Village currently designates $1,000,000.00 for a disaster reserve as an assigned fund balance; and WHEREAS, the Village Council desires to re-classify the aforementioned assigned fund balance disaster reserve by classifying $500,000.00 as disaster reserve committed fund balance in the general fund, and by placing the remaining $500,000.00 in the water utility fund as a committed disaster reserve; and "EREAS, these designations and classifications will be in compliance with the Village's Fund Balance Policy and will be in the best interest of the Village and its residents. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1: The above recitals are true and correct and are hereby incorporated into this resolution. Section 2: The Village Council hereby directs that the currently established $1,000,000.00 designated as disaster reserve assigned fund balance be re-classified by Page 510 of 537 Agenda Item #28. designating $500,000.00 as disaster reserve committed fund balance in the general fund and by placing the remaining $500,000.00 in the water utility fund as a committed disaster reserve. Section 3: This Resolution shall become effective immediately upon adoption. Page 511 of 537 Agenda Item #28. RESOLUTION NO 13-11 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, ADOPTING A FUND BALANCE POLICY FOR THE VILLAGE OF TEQUESTA; PROVIDING AN EFFECIWE DATE; AND FOR OTHER PURPOSES. WHEREAS, the Village Council of the village of Taluesta, Florida, desires to adopt a Fund Balance Policy consistent with the Governmental Accounting Standards Board Statement No. 54, Fund Balwwe Reporting and Governmental Fund Type Definitions; and WHEREAS, such a policy has been prepared and a copy thereof is attached hereto; NOW, THEREFORE, BE IT RESOLVED By THE v-ELLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORlDA, AS FOLLOWS: Section 1: The Village Council of the Village of Tequesta, Florida, hereby adopts the "Village of Tequesta Fund Balance Policy", attached hereto as "Exhibit A", and hereby directs the Village Manager to implement said policy. Section 2: All resolutions or parts of resolutions in conflict herewith shall be and hereby are repealed. Section 3: This Resolution shall take effect immediately upon passage - Page 512 of 537 �kgenda Item #28. The foregoing Resolution was offered by Council Member Humpage who moved its adoption. The motion was seconded by Council Member Brennan and upon being put to a vote, the vote was as follows: Mayor Tom Paterno Vice -Mayor Vince Arena Council Member Abby Brennan Council Member Jim Humpage Council Member Calvin Turnquest For Adoption Against Adoption x x x x Absent The Mayor thereupon declared the Resolution duly passed and adopted this I Ph day of August, 2011. ATTEST: C1 � 6)� - n) UL L) 'U -LL Lori McWilliams, MMC Village Clerk OF S - A0 0...4 EAL INC P C. -O -OR 08ATED.':> am MAYOR OF TEQUESTA \1j, - - 'WNF� A Mr, Tom Page 513 of 537 .,�genda Item #28. VILLAGE OF TEQUESTA, F A FUND BALANCE POLICY UMIT A A. PURPOSE The Village hereby establishes and will maktain Fund Balance, as defined herein, in accordance with Governmental Accounting and Financial Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund TYPe Dqftnifions. Fund Balance shall be composed of non -spendable, restrict4 committed, assigned and unassigned amounts. A Fund Balance Policy is adopted in order to secure and maintain investment- grade credit ratings, meet samnal shortfalls in cash flow, and reduce susceptibility to emergency or unanticipated expenditures and/or revenue shortfalls. Fund balance information is used to identify the available resources to repay long-term debt, reduce property taxes, add new governmental programs, expand existing ones, or enhance the financial position of the City, in accordance with policies established by the Village Council. This Fund Balance Policy establishes: a) Fund balance policy for the general fund; b) Reservations of fimd balance for the general fund; C) The method of budgeting the amount of estimated unrestricted fund balance (also known as estimated beginning fiod balance) available for appropriation during the annual budget adoption process (prior to the actual, audited fund balance being known) and what actions may need to be taken if the actual fund balance is significantly different than the budgeted Rind balance; and d) Establish the spending order of fund balances. B. FUND BALANCE CLASSIFICATIONS Fund Balance - As defined by the Governmental Financial Reporting of the Government Finance balance is "The difference between assets and governmental fund." The following are the GASB Balance3 I of 6 Accounting, Auditing and Officers Association, fund liabilities reported in a 54 Classifications of Fund Page 514 of 537 �kgenda Item #28. NON -SPENDABLE FUND 13ALANCE Non -Spendable Fund Balance — Amounts that are (a) not in spendable form or (b) legally or contractually required to be maintained intact. Non -spendable fimd balance is established to report items that are not expected to be converted to cash such as inventory and prepaid items; items not curmtly in cash form such as the long-term amount of loans and notes receivable as well as property acquired for resale; and, items legally or contractually required to be maintained intact such as the corpus (or principal) of a permanent fimd. RESTRICTED FUND BALANCE Reshicted Fund Balance — Amounts that can be spent only for specific purposes stipulated by (a) external resource providers such as creditors (by debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Restricted fund balance includes amounts constramed for a specific purpose changed only with consent of the outside party and legally enforceable. Such restrictions typically are imposed by parties altogether outside the government such as; a. Creditors (e.g, through debt covenants); b. Grantors; c. Contributors; and d- Other governments (e.g., through laws and regulations) COMM=D FUND BALANCE Committed Fund Balance — Represents resources whose use is constrained by limitations did the government imposes upon itself at its highest level of decision mabn and that remain binding unless removed in the same manner. The underlying action that imposed the limitation would need to occur no later than the close of the reporting period. Commitment of fiind balance may be made for such purposes including, but not limited to, a) major maintenance and rqxdr projects; b) meeting fiture obligations resulting from a natural disaster; c) accumulating resources pursuant to stabilization arrangements; d) establishing reserves for disasters; and/or e) for setting aside amounts for specific projects Commitment of ftind balance may be made from time -to time by formal action of the Village Council limiting use of resources for only the specified purposes stipulated in the action. Commitments may be changed or lifted only by the Village Council taking the same formal action that imposed the constraint Ibe 2 of 6 Page 515 of 537 Agenda Item #28. formal action must occur prior to the end of the reporting period. The amount which will be subject to dw constraint may be determined in the subsequent period. The Village Council hereby establishes the following committed ftmd balance reserves in the General Fund: a) Disaster Reserve — ne disaster reserve fimd balance is committed by the Village Council as set forth in the annual budget (and any amendments thereto) to ensure the maintenance of services to the public during disaster situations such as, but not limited to, hurricanes. b) Insurance Deductible Reserve — The insurance deductible reserve fund bala= is committed by the Village Council as set forth in the annual budget (and any amendments thereto) to ensure coverage of the City's insurance deductible on its insured properties and equipment ASSIGNED FUND BALANCE Assigned Fund Balance — Compfised of amounts intended to be used for specific purposes that are neither restricted not committed. Intent can be expressed by the Village Council or delegate(s). The term assigned fund balance is used to describe the portion of fund balance that reflects a govermnent's intended use of resources. Such intent has to be established by either the Village Council or by a body or official(s) to which the Village Council delegates the authority. For this purposes the Village Council delegates this authority to the Village Manager and/or the Finance Di=tor. Assigned fund balance can be used to eliminate a projected budgetary deficit in the subsequent yeaes budget, not to exceed the excess of expected expenditures over expected revenues. Since a government cannot assign resources that it does not have, the amount reported as assigned fund balance shDuld not exceed total fund balance less its non -spendable, restricted, and committed components. The Village hereby establishes the following assigned fimd balance reserves in the General Fund: a) Assignment to Subsequent Year's Budget — The subsequent year's budget fund balance reserve is assigned by Village management as set forth in the annual budget (and any amendments therew) to appropriate a portion of existing unassigned fund balance to eliminate a projected deficit in the subsequent year's budget in an amount no greater am the projected excess of expected expenditures over expected revenues. 3 of 6 Page 516 of 537 �kgenda Item #28. 1 UNASSIGNED FUND—BALANCE Unamigned Fund Bahmee — Unassigned fund balance is the residual fund balance classification for the general fund after deducting non spendable, restricted, commiftd. and assigned fund balance. If, after the annual audit, prior committed or assigned fimd balance causes the unassigned fimd balance to fall below an amount equal to two months of operating expenditures, the Village Manager and/or the Finance Director will so advise Village Council in order for the necessary action to be taken to restore the unassigned fund balance to an amount equal to two months of General Fund operating expenditures. The Village Manager and/or the Finance Director will prepare and submit a plan for committed and/or assigned fund balance reduction, expenditure reductions and/or revenue increases to Village Council. The village shall take action necessary to restore the unassigned fund balance to acceptable levels within three years. C. BUDGETING OF UNREST1UCTED FUND BALANCE The actual amount of unrestricted fund balance (total of commilledfimd balance, assigned fimd balance and unassigned fimd balance) is not known until the completion of the annual audit which takes place between dizve to six months after the end of the fiscal year being audited. However, an estimate of unrestricted fund balance (also called estimated beginningfimd balance) must be made during the annual budget adoption process ��uly through September) which is prior to the end of the fiscal year, September 30 . ESTIMATED CE. In order to achieve the most accwate estimate possible, the Village Manager or Finance Director shall project both Sources of Funds (revenues, Prior Years unrestricted fund balances carried forward and other financing sources) and Uses of Funds (operating and non-OPeratng CxPenditm), including accruals, through September 30" of the then current fiscal Year. These projections will be shown in a separate column entitled "Estimated Actual". The difference between the estimated actual sources of fiinds and estimated actual uses of funds is the calculated estimated beginning fund balance for the subsequent fiscal year 4 of 6 Page 517 of 537 Agenda Item #28. ESTRAMED ENDING FUND BALANCE For the year being budgeted, a calculation of estimated ending fimd balance shall also be made. This calculation shall be the difference between the budgeted sources of funds and the budgeted uses of funds as described above. If, after the annual audit, the actual general fund massigned fund balance is greater than two months of operating expenditures in the general fund, the excess may be used in one or a combination of the following ways: a) Left in the general fund to earn mterest and roll forward into the subsequent yeaes beginning fund balance; b) Appropriated by resolution of Village Council for a one-time expenditure or opportunity that does not increase recurring operating costs; c) Committed to establish or increase a formal stabilization arrangement or reserve (mcluding bit not limited to economic stabilization, contingency reserves or disaster reserves); or d) Appropriated for start-up expenditures of new programs undertaken at mid -year. D. SPENDING ORDER OF FUND BALANCES This policy considers restricted amounts to be spent before unrestricted fund balance when an expenditure is incurred for purposes for which both restricted and unrestricted (committed, assigned and una signed) amounts are available. Similarly, within unrestricted fund balance, committed, assigned then unassigned amounts, in that order, will be spent when an expenditure is incurred for a purpose for which amounts in any of those unrestricted fund balance classifications could be used. K ANNUAL REVEEW AND DETERMINAIION OF FUND BALANCE POLICY Compliance with the provisions of this policy shall be reviewed as a part of the annual budget adoption process, and the amounts of restricted, committed, assigned, non -spendable and the minimum level of una signed fund balance shall be determined during this process - F. CLASSMCATION OF FUND —BALANCES AND ADDMONAL INFORMATION, RE SIRESPONSEBEWrIES The Finance Director is authorized to evaluate existing fund balance classifications (designations, reserves and unreserved/undesignated) and 5 of 6 Page 518 of 537 Agenda Item #28. reclassifv them in accordance with GASB Statement 54, for implementation effective the fiscal year ending September 30, 201 L It %vill be the responsibility of the Finance Director to keep this policy current. G. EFFECTIVE DATE This Policy shall take effect immediately upon adoption and will be applied beginning with the preparation of the Village's September '30, 2011 Comprehensive Annual Financial Report and adoption of the Village's Fiscal Year 2011-12 Budget. Original Issue Date: —� —I � — ( I Approved: 6 of 6 LA Page 519 of 537 Agenda Item #28. RESOLUTION NO. 29-19 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, ESTABLISHING THE COMMITED FUND BALANCE IN THE GENERAL FUND FOR THE DISASTER RESERVE PURSUANT TO THE VILLAGE COUNCIL'S FUND BALANCE POLICY ADOPTED THROUGH RESOLUTION 13-11; SETTING THE AMOUNT OF SAID DISASTER RESERVE AT $500,000.00; PROVIDING AN EFFECTIVE DATE, AND FOR OTHER PURPOSES. WHEREAS, the Village Council has previously adopted a "Fund Balance Policy" which provides for a "disaster reserve" committed fund balance, the amount of which is to be established by the Village Council; and WHEREAS, the Village currently designates $1,000,000.00 for a disaster reserve as an assigned fund balance; and WHEREAS, the Village Council desires to re-classify the aforementioned assigned fund balance disaster reserve by classifying $500,000.00 as disaster reserve committed fund balance in the general fund, and by placing the remaining $500,000.00 in the water utility fund as a committed disaster reserve; and WHEREAS, these designations and classifications will be in compliance with the Village's Fund Balance Policy and will be in the best interest of the Village and its residents. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1: The above recitals are true and correct and are hereby incorporated into this resolution. Section 2: The Village Council hereby directs that the currently established $1,000,000.00 designated as disaster reserve assigned fund balance be re-classified by Page 520 of 537 Agenda Item #28. designating $500,000.00 as disaster reserve committed fund balance in the general fund and by placing the remaining $500,000.00 in the water utility fund as a committed disaster reserve. Section 3: This Resolution shall become effective immediately upon adoption. Page 521 of 537 Agenda Item #28. RESOLUTION NO 13-11 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, ADOPTING A FUND BALANCE POLICY FOR THE VILLAGE OF TEQUESTA; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. WHEREAS, the Village Council of the Village of Tequesta, Florida, desires to adopt a Fund Balance Policy consistent with the Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Wnitions; and WHEREAS, such a policy has been prepared and a copy thereof is attached hereto; NOW, THEREFORE, BE 17F RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1: Tjje Village Council of the Village of Tequesta, Florida, hereby adopts the "Village of Tequesta Fund Balance Policy", attached hereto as "Exhibit A!, and hereby directs the village manager to implement said policy. Section 2: All resolutions or parts of resolutions in conflict herewith shall be and hereby are repealed. Section 3: This Resolution shall take effect immediately upon passage Page 522 of 537 �kgend, a Item #28. The foregoing Resolution was offered by Council Member Humpage who moved its adoption. The motion was seconded by Council Member Brennan and upon being put to a vote, the vote was as follows: Mayor Tom Paterno Vice -Mayor Vince Arena Council Member Abby Brennan Council Member Jim Humpage Council Member Calvin Turnquest For Adoption Against Adoption x x x x Absent The Mayor thereupon declared the Resolution duly passed and adopted this I I 1h day of August, 2011. MAYOR OF TEQUESTA ATTEST: Tom Paterrk� S /AfcoftEAL > PORA TPn Lori McWilliams, hS4C 4 Village Clerk Page 523 of 537 .,�gend. a Item #28. VILLAGE OF TEQUESTA, FLORIDDA FUND BALANCE POLICY EXHIBIT A A. PURPOSE The Village hereby establishes and will maintain Fund Balance, as defined herein, in accordance with Governmental Accounting and Financial Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund TYPe Dgfinitions. Fund Balance shall be composed of non -spendable, restricted, committed, assigned and unassigned amounts. A Fund Balance Policy is adopted in order to secure and maintain investment- grade credit ratings, meet seasonal shortfalls in cash flow, and reduce susceptibility to emergency or unanticipated expenditures and/or revenue shortfalls. Fund balance information is used to identify the available resources to repay long-term debt, reduce property taxes� add new governmental programs, expand existing ones, or enhance the financial position of the City, in accordance with policies established by the Village Council. This Fund Balance Policy establishes: a) Fund balance policy for the general fund; b) Reservations of fund balance for the general fund; c) The method of budgeting the amount of esbmaW =restricted fimd balance (also known as estimated beginrung fimd balance) available for appropriation during the annual budget adoption proms (prior to the actual, audited fund balance being known) and what actions may need to be taken if the actual fimd balance is significantly different than the budgeted fimd balance; and d) Establish the spending order of fund balances. B. FUND BALANCE CLASSMCATIONS Fund Balance - As defined by the Governmental Financial Reporting of the Government Finance balance is "The difference between assets and governmental fund." The following are the GASB Balance3 I of 6 Accounting, Auditing and Officers Association, fund liabilities reported in a 54 Classifications of Fund Page 524 of 537 .�kgenda Item #28. NON -SPENDABLE FUND BALANCE Non -Spendable Fund Balance - Amounts that are (a) not in spendable form or (b) legally or contractually required to be maintained intact. Non -Vendable fimd balance is established to report items that are not expected to be converted to cash such as inventory and prepaid items; items not currently in cash form such as the long-term amount of loam and notes receivable as well as property acquired for resale; and, items legally or contractually required to be maintained intact such as the corpus (or principal) of a permanent fund. RESTRICTED FUND BALANCE Reshicted Fund Balance - Amounts that can be spent only for specific purposes stipulated by (a) external resource providers such as creditors (by debt covenants), grantDrs, contnbutors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Restricted fund balance includes amounts constrained for a specific purpose changed only with consent of the outside party and legally enforceable. Such restrictions typically are imposed by parties attogether,outside the government such as; a. Creditors (e.g., through debt covenants); b. Grantors; c. Contributors; and d- Other governments (e.g., through laws and regulations) IV L -11613V I " 11 a -D] Committed Fund Balance - Represents resources whose use is constrained by limitations that the government imposes upon itself at its highest level of decision mabn and that remain binding unless removed in the same manner The underlying action that unposed the limitation would need to occur no later than the close of the reporting period. Commitment of fund balancie may be made for such purposes including, but not limited to, a) major maintenance and repair projects; b) meeting fiture obligations resulting from a natural disaster, c) accumulating resources pursuant to stabilization arrangements; d) establishing reserves for disasters; and/or e) for setting aside amounts for specific projects. Commitment of fund balance may be made from time -to time by formal action of the Village Council limiting use of resources for only the specified purposes stipulated in the action. Commitments may be changed or lifted only by the Village Council taldng the same formal action that imposed the constraint. The 2 of 6 Page 525 of 537 Agenda Item #28. formal action must occur prior to the end of the reporting period. The amount which will be subject to the constraint may be determined in the subsequent period. The Village Council hereby establishes the following committed fund balance reserves in the General Fund: a) Disaster Remve — The disaster reserve fund balance is committed by the village Council as set forth in the annual budget (and any amendments thereto) to ensure the maintenance of services to the public during disasiff situations such as, but not limited to, hurricanes. b) Insurance Deductible Reserve — The innirance deductible reserve fimd balance is committed by the Village Council as set forth in the annual budget (and any amendments thereto) to ensure coverage of the City's insaw= deductible on its insured properties and equipment ASSIGNED FUND BALANCE Assigned Fund Balance — Comprised of amounts intended to be used for specific purposes flW are neither restricted not committed. Intent can be expressed by the Village Council or delegate(s). The term assigned fund balance is used to describe the portion of fund balance that reflects a govermnent's intended use of resources. Such intent has to be established by either the Village Council or by a body or official(s) to which the Village Council delegates the authority. For this purposes the Village Council delegates this authority to the Village Manager and/or the Finance Director. Assigned fimd balance can be used to eliminate a projected budgetary deficit in the subsequent year's budget, not to exceed the excess of expected expenditures over expected revenues. Since a government cannot assign resources that it does not have, the amount reported as assigned fund balance should not exceed total fund balance less its non -spendable, restricted, and committed components. The Village hereby establishes the following assigned ftmd balance reserves in the General Fund: a) Assignment to Subsequent year,s Budget — The subsequent year's budget fund balance reserve is assigned by Village management as set forth in the annual budget (and any amendments tkTeto) to appropriate a portion of existing unassigned fund balance to eliminate a projected deficit in the subsequent year's budget in an amount no greater than the projected excess of expected expenditures over expected revenues. 3 of 6 Page 526 of 537 �kgenda Item #28. UNASSIGNM FUND —BALANCE UnawWned Fund Bahmee — Unassigned fund balance is the residual ftmd balance classification for the general fund after deducting non -spendable, restricted, committed and assigned fund balance. If, after the annual audit, prior committed or assigned finid balance causes the unassigned fund balance to fall below an amount equal to two months of operating expenditures, the Village Manager and/or the Finance Director will so advise Village Council in order for the necessary action to be taken to restore the unassigned fund balance to an amount equal to two months of General Fund operating expenditures. The Village Manager and/or the Finance Director will prepare and submit a plan for committed and/or assigned fimd balance reduction, expenditure reductions and/or revenue increases to Village Couned. The Village shall take action necessary to restore the unassigned fund balance to acceptable levels within three yews. C. BUMETING APPROPRIATION OF UNRESTRICTED FUND BALANCE The actual amount of unrestricted fund balance (total of committedfivid balance, assigned fimd balance and unassigned fimd balance) is not known until the completion of the annual audit which takes place between three to six months after the end of the fiscal year being auditeA However, an estimate of unrestricted Rind balance (also called estimated beginningfind balance) must be made during the annual budget adoption process guly through September) which is prior to the end of the fiscal year, September 30 - EST34ATED BEG114NING FUND BALANCE. In order to achieve the most accurate estimate possible, the Village Manager or Finance Director shall project both Sources of Funds (revenues, prior Years unrestricted fund balances carried forward and other financing sources) and Uses of Funds (operating and non-operating expenditures), including accruals, through September 3CP of the then current fiscal year. These projections will be shown in a separate column entitled "Estimated Actual". The difference between the estimated actual sources of finids and estimated actual uses of finids is the calculated estimated beginning fund balance for the subsequent fiscal year 4 of 6 Page 527 of 537 Agenja Item #28. ESTWATED ENDING FUND BALANCE For the year being budgeted, a calculation of estimated ending fimd balance shall also be made. This calculation shall be the difference between the budgeted sources of funds and the budgeted uses of funds as described above. If , after the annual audit, the actual general fund unassigned fund balance is greater than two months of operating expenditures in the general firrid, the excess may be used in one or a combination of the following ways: a) Left in the general fund to earn interest and roll forward into the subsequent year's beginnin fimd balance; b) Appropfiated by resolution of Village Council for a one-time expenditure or opportunity that does not increase recurring operating costs; c) Committed to establish or increase a formal stabilization arrangement or reserve (including but not limited to economic stabilization, contingency reserves or disaster reserves); or d) Appropriated for start-up expenditures of new programs undertaken at mid -year. A SPENDING ORDER OF FUND BALANCES T1iis policy considers restricted amounts to be spent before unrestricted firrid balance when an expenditure is incurred for purposes for which both restricted and unrestricted (committed, assigned and imassigned) amounts are available. Similarly, within unrestricted fund balance, committed, assigned then unassigned amounts, in that order, will be spent when an expenditure is incurred for a purpose for which amounts in any of those unrestricted firrid balance classifications could be used. E. ANNUAL REVEEW AND DEITIMMATION OF FUND BALANCE POLICY Compliance with the provisions of this policy shall be reviewed as a part of the annual budget adoption process, and the amounts of restricted, committed, assigned, non -spendable and the minimum level of una signed fund balance shall be determined during this process. F. CLASSMCATION OF FUND BALANCES AND ADDMQNAL INFORAUTION, REQUIREM —]ENTS/RESPONSEBH,=S The Finance Director is authorized to evaluate existing fund balance classifications (designations, reserves and unrewrved/undesignated) and 5 of 6 Page 528 of 537 Agenda Item #28. reclassify them in accordance with GASB Statement 54, for implementation effective the fiscal year ending September 30, 2011. It Aril] be the responsibility of the Finance Director to keep this policy current. G. EFFECTIVE DATE This Policy shall take effect immediately upon adoption and will be applied beginning with the preparation of the Village's September '30, 2011 Comprehensive Annual Financial Report and adoption of the Village's Fiscal Year 2011-12 Budget. Original Issue Date: — � 11 � — � I Approved: 6 of 6 Page 529 of 537 Agenda Item #28. Regular Council tT% STAFF MEMO Meeting: Regular Council - 11 Jul 2019 Staff Contact: Tatiana Racanati, Assistant Finance Departme Finance Director nt: RESOLUTION NO. 29-19, ESTABLISHING THE COMMITTED FUND BALANCE IN THE GENERAL FUND FOR THE DISASTER RESERVE IN THE AMOUNT OF $500,000.00 SUMMARY: To re-classify the assigned fund balance disaster reserve previously established in the general fund in the amount of 1,000,000.00 by classifying $500,000.00 as disaster reserve committed fund balance in the general fund, and by placing the remaining $500,000.00 in the water utility fund as a committed disaster reserve. POTENTIAL MOTION / DIRECTION REQUESTED: To aprove the resolution ATTACHMENTS: RES ESTABLISHING COMMITED FUND BALANCE -HU RICAN E DISASTER -RESOLUTION Fund Balance Policy Village of Teguesta Page 530 of 537