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Item No. 7.E. <br />Meeting Date: November 28, 2011 <br />Type of Business: Council Business <br />City Administrator Review: ______ <br /> <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Resolution 7860 Committing Community Center Special <br />Revenue Fund Balance for Future Building Maintenance <br /> <br /> <br />Background: <br />The Governmental Accounting Standards Board (GASB) passed GASB Statement 54 in <br />February, 2009. The effective date was for financial statement periods beginning after June 15, <br />2010. The City uses a calendar year and would need to implement statement 54 for the <br />financial statement period beginning January 1, 2011 and ending December 31, 2011. The new <br />standard changes fund balance reporting and increases restrictions on the different fund types <br />and what they can be used to account for. The City Council has previously taken steps to adopt <br />GASB Statement 54 by closing the Levy Reduction Fund and reclassifying the Vehicle and <br />Equipment Special Revenue Fund as a capital project fund. The City Council also committed a <br />portion of the General Fund Balance for future levy reduction. <br /> <br />Discussion: <br />The Community Center Fund is a special revenue fund and represents the activities of the <br />Community Center. The City has contracted with the YMCA to staff and operate the facility and <br />to provide community programming opportunities. The contract requires the City to budget and <br />provide resources for the maintenance of the Community Center and to maintain a five year <br />capital plan. If the City Council wishes to continue to maintain a separate fund for the <br />Community Center operations the City Council would need to commit the fund balance for future <br />building maintenance. The alternative is this activity would be moved into the General Fund. <br /> <br />The attached resolution will “Commit” fund balance for future building maintenance in the <br />Community Center Special Revenue Fund. <br /> <br />Conclusion <br />Staff recommends approval of resolution 7860 authorizing the commitment of fund balance. <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br /> <br />Mark Beer, Finance Director <br /> <br /> <br /> <br />