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GASB 54, <br />FUND <br />BALANCE <br />POLICY, <br />AND YEAR <br />END TRANSFERS <br />MINUTES OF THE WORKSHOP MEETING <br />CITY COUNCIL <br />LITTLE CANADA, MINNESOTA <br />DECEMBER 21, 2011 <br />Pursuant to due call and notice thereof a workshop meeting of the City Council <br />of Little Canada, Minnesota was convened on the 21st day of December, 2011 <br />in the Council Chambers of the City Center located at 515 Little Canada Road in <br />said City. <br />Mayor Bill Blesener called the meeting to order at 5:30 p.m. and the following <br />members of the City Council were present at roll call: <br />CITY COUNCIL: Mayor <br />Council Member <br />Council Member <br />Council Member <br />Council Member <br />ALSO PRESENT: <br />City Administrator <br />Finance Director <br />City Clerk <br />Mr. Bill Blesener <br />Ms. Shelly Boss <br />Mr. John Keis <br />Mr. Mike McGraw <br />Mr. Rick Montour <br />Mr. Joel R. Hanson <br />Ms. Shelly Rueckert <br />Ms. Kathy Glanzer <br />The Finance Director reviewed her report dated December 16, 2011 <br />outlining actions required by the City Council to comply with GASB 54 <br />requirements, the need to adopt a Fund Balance Policy, and approval of <br />year end transfers. <br />The Director reported that GASB 54 requires the reclassification of certain <br />funds for the City's Financial Statements, changing the name of some fund <br />categories and creating new fund categories. She noted that the first action will <br />be to close Fund 461, and reclassify Funds 462, and 463. These funds are <br />related to HIA improvement projects and under GASB 54 are no longer <br />considered capital funds. Fund 461 will be closed and re- established as a debt <br />service fund. Funds 462 and 463 will be reclassified as debt service funds for <br />years ending 1/1/2011 and 1/1/2012, respectively. These actions do not change <br />how the City manages these funds, only which section of the Annual Financial <br />Report they are presented in. <br />The second action that is required of the Council under GASB 54 is to pass a <br />resolution committing specific revenue sources for Special Revenue Funds. The <br />Director reported that under GASB 54, a Special Revenue Fund must have <br />"specific revenue sources that are restricted or committed to expenditures for <br />specific purposes ". The commitments made by the Council cannot change <br />