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55 Staff will add that the `Unrestricted- Assigned' classification will allow Staff to use available monies 56 to accommodate both operational and capital needs within each Fund, as prescribed by the Budget 57 and Capital Improvement Plan. In contrast, the `Unrestricted- Committed' classification is perhaps 58 best reserved for specific purchases or initiatives that have a strong commitment from the City 59 Council and may require long -term financial decision - making. 60 61 City Staff has reviewed the classifications defined under GASB Statement #54. The table shown in 62 Exhibit B of Attachment A depicts the City's General and special purpose funds along with the 63 recommended fund balance category. 64 65 It is further recommended that any ancillary revenues such as interest earnings should be categorized 66 in the same manner as the foundational revenue used to initially establish the fund. 67 68 GASB Statement #54 also prescribes the adoption of a Fund Balance Policy and Spending 69 Prioritization Policy. The City already has an existing Fund Balance Policy. Therefore, it is 70 suggested that a spending prioritization statement and corrective action statement simply be included 71 in that Policy to maintain compliance with GASB Statement #54. A revised Fund Balance Policy in 72 markup form is included in Exhibit A of Attachment A. 73 74 {End of Excerpt} 75 76 POLICY OBJECTIVE 77 Not applicable. 78 FINANCIAL IMPACTS 79 Not applicable. 80 STAFF RECOMMENDATION 81 Staff recommends the City Council adopt the attached resolution categorizing City Fund Balances. 82 REQUESTED COUNCIL ACTION 83 Adopt the attached resolution categorizing City Fund Balances in accordance with GASB Statement 84 #54. This resolution will supersede a similar resolution adopted on November 28, 2011. 85 Prepared by: Chris Miller, Finance Director Attachments: A: Resolution Categorizing City Fund Balances including Exhibits A & B. 86 Page 3 of 7