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Home My WebLink About2011 09 26 Consent 202 Resolution 2011-51 GASB-541 Page | COMMISSION AGENDA CONSENT X INFORMATIONAL ITEM 202 PUBLIC HEARING REGULAR MGR /DEPT September 26, 2011 Meeting Authorization REQUEST: The City Manager and Finance and Administrative Services Department are requesting the Commission consider adoption of Resolution 2011-51, to formalize the establishment of the Solid Waste Fund, Arbor Fund and purposed constraints imposed upon the uses of these funds, as necessitated by new GASB-54. SYSNOPSIS: This agenda item is needed to seek Commission approval to formalize the establishment of broad parameters for the use of Solid Waste and Arbor Fund. This formalization to recognize funds has been brought about by a new Governmental Accounting Standards Board (GASB) announcement #54. GASB 54 seeks to establish “enabling legislation” that authorizes a government to assess, levy, charge, or otherwise mandate payment of resources from external resource providers and that includes the uses of such funds collected. CONSIDERATIONS: In March of 2009, the GASB issued GASB-54 (Fund Balance Reporting and Governmental Fund Type Definitions) in an effort to improve the consistency in reporting fund balance components, enhance fund balance presentation, improve the usefulness of fund balance information, and clarify the definitions of governmental fund types. Fund balance information is used by tax-payers, bond analyst, research groups, oversight agencies, and government managers and legislators in key decision making regarding the government’s availability for repaying debt, reducing taxes, adding or expanding programs or projects. The concerns were raised by financial statement users when they recognized substantial variations in the information that governments were reporting about fund balance in their governmental funds, resulting primarily from differences in understanding among financial statement prepares as to the definitions of reserved and unreserved fund balances and the degree of restriction of the cash balances. The classification requirements in GASB-54 should improve financial reporting by providing fund balance categories and classifications that are more easily understood. In order to satisfy this new accounting requirement and maintain our excellent standings we will need to establish the following Funds: 2 Page | AND The consolidated Solid Waste Fund will include fund balance that is committed by the City Commission to hurricane and other natural disasters relief, as well as unconcluded past FEMA reimbursements for prior year storms and economic changes that may impact the City’s ability to continue operations and provide solid waste services. The delineation individual accounts between the old Funds and the new consolidated fund will be tracked using with-in the fund. The Arbor Fund will be formally established and continue to function in its current status. There will be additional GASB-54 requirements in the near future. Staff will bring the changes forward in the most expeditious manner for your consideration and review. Additional requirement will take the form of formal reserve statements, usage of fund balance policies and formal classification of fund balances. These Changes do not impact operations; these changes are for reporting purposes . FISCAL IMPACT: There is no impact on the City’s financials if this agenda item is adopted. COMMUNICATION EFFORTS: This Agenda Item Has Been Electronically Forwarded To The Mayor And City Commission, City Manager, City Attorney/Staff, And Is Available On The City’s Website, LaserFiche, And The City’s Server. Additionally, Portions Of This Agenda Item Are Typed Verbatim On The Respective Meeting Agenda Which Has Also Been Electronically Forwarded To The Individuals Noted Above, And Which Is Also Available On The City’s Website, LaserFiche, And The City’s Server; Has Been Sent To Applicable City Staff, eAlert/eCitizen Recipients, Media/Press Representatives Who Have Requested Agendas/Agenda Item Information, Homeowner’s Associations/Representatives On File With The City, And All Individuals Who Have Requested Such Information. This Information Has Also Been Posted Outside City Hall, Posted Inside City Hall With Additional Copies Available For The General Public, And Posted At Five (5) Different Locations Around The City. 3 Page | Furthermore, This Information Is Also Available To Any Individual Requestors. City Staff Is Always Willing To Discuss This Agenda Item Or Any Agenda Item With Any Interested Individuals. RECOMMENDATION: City Manager and Director of Finance and Administrative Services recommend the Commission adopt Resolution 2011-51 formally establishing the Arbor and Solid Waste Fund. ATTACHMENTS: Resolution 2011-51 RESOLUTION NO. 2011-51 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, FORMALLY ACKNOWLEDGING AND ESTABLISHING, PURSUANT TO GASB 54, THE SOLID WASTE FUND AND THE ARBOR FUND AS SPECIAL REVENUE FUNDS FOR THE CITY OF WINTER SPRINGS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL OF PRIOR INCONSISTENT RESOLUTIONS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS , the City Commission of Winter Springs desires to comply with the Government Accounting Standards Board Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions;and WHEREAS , the City Commission of Winter Springs deems that this Resolution is in the best interest of the public health, safety, and welfare of the citizens of Winter Springs. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS FOLLOWS: Section 1. Incorporation of Recitals . The foregoing recitals are deemed true and correct and are hereby fully incorporated by this reference. Section 2. Solid Waste Fund. The Winter Springs City Commission hereby formally establishes a Solid Waste Fund as a Special Revenue Fund, which shall combine and be comprised of the existing solid waste, storm reserve (casus fortuitus) and disaster recovery funds. Section 3. Establishment of Arbor Fund. The Winter Springs City Commission hereby formally acknowledges and establishes the Arbor Fund as a Special Revenue Fund. Section 4.Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of the conflict. Section 5.Severability. If any section, subsection, sentence, clause, phrase, word, or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. Section 6.Effective Date. This Resolution shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida. City of Winter Springs, Florida Resolution 2011-51 Page 1 of 2 RESOLVED by the City Commission of the City of Winter Springs, Florida, in a th public meeting assembled on this 26 day of September 2011. ________________________________ Charles Lacey , Mayor ATTEST: ______________________________ Andrea Lorenzo-Luaces , City Clerk Approved as to legal form and sufficiency for The City of Winter Springs only: ________________________________ Anthony A. Garganese ,City Attorney City of Winter Springs, Florida Resolution 2011-51 Page 2 of 2 RESOLUTION NO. 2011-51 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, FORMALLY ACKNOWLEDGING AND ESTABLISHING, PURSUANT TO GASB 54, THE SOLID WASTE FUND AND THE ARBOR FUND AS SPECIAL REVENUE FUNDS FOR THE CITY OF WINTER SPRINGS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL OF PRIOR INCONSISTENT RESOLUTIONS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Commission of Winter Springs desires to comply with the Government Accounting Standards Board Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions; and WHEREAS, the City Commission of Winter Springs deems that this Resolution is in the best interest of the public health, safety, and welfare of the citizens of Winter Springs. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS FOLLOWS: Section 1. Incorporation of Recitals. The foregoing recitals are deemed true and correct and are hereby fully incorporated by this reference. Section 2. Solid Waste Fund. The Winter Springs City Commission hereby formally establishes a Solid Waste Fund as a Special Revenue Fund, which shall combine and be comprised of the existing solid waste, storm reserve (casus fortuitus) and disaster recovery funds. Section 3. Establishment of Arbor Fund. The Winter Springs City Commission hereby formally acknowledges and establishes the Arbor Fund as a Special Revenue Fund. Section 4. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of the conflict. Section 5. Severability. If any section, subsection, sentence, clause, phrase, word, or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. Section 6. Effective Date. This Resolution shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida. City of Winter Springs, Florida Resolution 2011 -51 Page 1 of 2 RESOLVED by the City Commission of the City of Winter Springs, Florida, in a public meeting assembled on this 26 day of September 2011. Ch "' : s Lacey, rt' or Al'1EST: r Andrea ir' aces, City Clerk Approved legal form and sufficiency for The Ci ter Springs only: Anthony A. Garganese, City Attorney City of Winter Springs, Florida Resolution 2011 -51 Page2of2