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HomeMy WebLinkAboutDocumentation_Regular_Tab 09A_09/18/2003 � �► VILLAGE OF TEQUESTA VILLAGE COUNCIL MEETING AGENDA COVER/MEMORANDUM Date Prepared: 9/12/03 Meeting Date: 9/18103 CLASSIFICATION: Subject/Agenda Item/Summary: Designating various Village funds to guarantee the Fund will have the cash or investments to pay for a project at a specific point in time. STAFF RECOMMENDATION : restrict existing cash or investments for certain projects/dependent upon discussion. Reviewed by: Costs: Attachments: Advertised: Finance Director Depends upon (please list) JoAnn Forsythe discussion/action Date: Village Manager Brief overview Paper: [ ] Not required Funding Source: [ ] Operating Affected Parties: [ ] Other (explain) [ ] Notified (explain) [ ] None Budget Acct. # [ ] Not Required Submitted by: Originating Village Manager Council Action: Department: Approval: Village Manager [ ] Approved Finance [ ] Approved Finance Director w/conditions: JoAnn Forsythe [ ] Denied [ ] Tabled to: Agenda item Discussion and possible action to establish designations for the various Village Funds. Although restrictions on equity within the various Funds of a municipality are commonly referred to as "Reserves" or "reserving" equity or Fund Balance, it is strongly recommended that reserves only be reported in connection with restrictions imposed by parties OiJTSIDE of the financial reporting entity. Designations reflect management's intended use of resources and should reflect actual plans approved by either the government's legislative body or chief executive oi�icer. However, designations are only reported on the balance sheet of the governmental funds like the General Fund. In the case of the Water Utility (an enterprise fund) the designation would not be reported. Also, restricting equity within any of the Village's Funds would not guarantee that the Fund would have the cash or investments to pay for a project at a specific point in time. If the Council desires to assure that cash or investments are available to pay for a designated project, the Finance staff recommends that e�sting cash or investments be restricted for that project.