CC - 2021-55 - Approving the fund balance policy in accordance with Governmental Accounting Standards Board Statement No. 54RESOLUTION NO. 2021-55
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ROSEMEAD APPROVING THE FUND BALANCE POLICY
IN ACCORDANCE WITH GOVERNMENTAL ACCOUNTING
STANDARDS BOARD STATEMENT NO. 54
WHEREAS, the Governmental Accounting Standards Board (GASB) issued Statement
No. 54 — Fund Balance Reporting and Governmental Fund Type Definitions, which changed the
terminology used for fund balance reporting on balance sheets of Governmental Funds; and
WHEREAS, for financial statement reporting purposes, the GASB Statement defines
Restricted amounts as those that are constrained to specific purposes by their providers through
constitutional provisions or enabling legislation; and
WHEREAS, the City Council may commit General Fund balance for specific purposes by
taking formal action and these committed amounts cannot be used for any other purpose unless
the City Council removes or changes the specific use through the same formal action taken to
establish the commitment; and
WHEREAS, this policy delegates to the Finance Director the authority to assign
unrestricted (assigned or unassigned) fund balance amounts where the City's intent is for those
amounts to be used for specific purposes. This delegation of authority is for the sole purpose of
reporting these amounts in the annual financial statements; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemead,
California as follows:
SECTION 1. The City Council hereby approves the Fund Balance Policy for compliance
with Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and
Governmental Fund Type definitions in substantially the form submitted and attached hereto as
Exhibit A.
policy.
SECTION 2. The City Council hereby sets the reserve level as stated within the attached
PASSED, APPROVED, AND ADOPTED this 9th day of November, 2021.
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APPROVED AS TO FORM:
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Rachel Richman, City Attorney
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF ROSEMEAD
ATTEST:
Ericka Hernandez, City Clerk
I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California,
do hereby certify that the foregoing City Council Resolution No. 2021-55 was duly adopted
by the City Council of the City of Rosemead, California, at a regular meeting thereof held onj
the 9th day of November, 2021, by the following vote, to wit:
AYES: ARMENTA, CLARK, DANG, LOW, TANG
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Hernandez, City Clerk