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Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2009 -131 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING EARLY ADOPTION OF GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 54, ESTABLISHING NEW FUND BALANCE CLASSIFICATIONS, TO BE CONSISTENT WITH THE 2010/2011 BIENNIAL BUDGET WHEREAS, the Governmental Accounting Standards Board (GASB) issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, which substantially alters the focus, categories, and terminology used for fund balance reporting, while leaving unchanged the total amount reported as fund balance; and WHEREAS, the intent of the new Statement is to focus not on financial resources available for appropriation, but to focus instead on "the extent to which the government is bound to honor constraints on the specific purposes for which amounts in the fund can be spent"; and WHEREAS, GASB Statement No. 54 is effective for periods ending after June 30, 2011, which requires compliance by the City for its calendar year beginning January 1, 2011 and WI.. ending December 31, 2011, and since the City's new biennial budget will include this calendar year period, it is prudent to implement the new reporting classifications in time for inclusion in the 2010/2011 Biennial Budget document; and WHEREAS, GASB Statement No. 54 will affect the City's general fund, special revenue funds, capital project funds, and debt service funds, three total funds of which are included in the 2010/2011 Biennial Budget (General Fund, Hospital Debt Service, Seward Mountain Haven Debt Service); and WHEREAS, the new Statement No. 54 replaces the former fund balance classifications (reserved fund balance, unreserved fund balance, designated fund balance, and undesignatcd fund balance) with new classifications (nonspendable, restricted, committed, assigned, and unassigned). NOW, TIIEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Seward City Council hereby authorizes the early adoption of Governmental Accounting Standards Board Statement No. 54 in order to include the new required classifications in the 2010/2011 Biennial Budget.