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CC Resolution No. 2293 RESOLUTION NO. 2293 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,APPROVING THE CITY OF BAYTOWN'S FUND BALANCE POLICY; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS: Section 1: That the City Council of the City of Baytown,Texas,hereby approves the City of Baytown's Fund Balance Policy,which is attached hereto as Exhibit"A"and incorporated herein for all intents and purposes. Section 3: This resolution shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED,READ and PASSED,by the affirmative eofthe City Council of the City of Baytown this the 27s'day of February, 2014. ST HEN H. DONCARLOS, Mayor ATTEST: AE ICIA BRYSCH, Ci irk u• r� 0O .•/. APPROVED AS TO FO 441 5 zONACIO RAMIREZ, SR., Ci ttorney \\cobfs0l\IegaK=n\Files\City Counci1\Resoludons\2014\Febmary 27\ApproveFundBalancePolicyAm Exhibit "A" City of Baytown Fund Balance Policy Per GASB 54,the components of fund balance may consist of: • Unassigned(this is the category of fund balance utilized in Baytown and only in the General Fund) o Residual net resources ■ Total fund balance in the general fund in excess of non-spendable,restricted, committed,and assigned fund balance(i.e.,surplus) o The proposed fund balance policy recommended for adoption by City Council is to maintain General Fund unassigned fund balance at the equivalent of 60-90 days of operating expenditures. ■ The City will monitor unassigned fund balance to assure it is within target range • Remedial action may include deferral of non-recurring budgeted expenditures such as capital,contingencies and new initiatives • Non-spendable(all local governments have this category of fund balance shown in the CAFR,not in the budget) o Portion of net resources that cannot be spent because of their nature,such as: ■ Inventories ■ Prepaid items ■ Advances between funds • Restricted(for City of Baytown,this category applies to debt service,capital proiect and special revenue funds but not the general fund) o Externally enforceable limitations on use: ■ Limitations imposed by creditors,grantors,contributors or laws and regulations of other governments • Limitations imposed by law through constitutional provisions or enabling legislation • Committed(City of Baytown does not utilize this category of fund balance) o Self-imposed limitation at the highest level of decision making that requires formal action at the same level to remove the limitation • Assigned(City of Baytown does not utilize this category of fund balance) o Self-imposed limitation ■ Earmarked for an intended use established by a designated official