RESOLUTION NO. R-24-28
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
MARINO, APPROVING COMMITMENT OF FUND BALANCES IN
THE DONATIONS FUND
WHEREAS, the Governmental Accounting Standards Board (GASB) has issued Statement No. 54 establishing a hierarchy of fund balances as follows:
• Non-Spendable Fund Balance – Amounts that are not in a spendable form or are required to be maintained intact. Examples are inventory, pre-paid expenses, and revolving cash fund amounts.
• Restricted Fund Balance – Amounts that can be spent only for the specific purposes stipulated by external resource providers (such as grantors), or enabling legislation.
Restrictions may be changed or lifted only with the consent of the resource providers. • Committed Fund Balance – Amounts subject to internal constraints self-imposed by the City’s highest level of decision-making authority. Commitments may be changed or lifted only by the City Council taking the same formal action that imposed the constraint originally.
• Assigned Fund Balance – Amounts the City intends to use for a specific purpose.
Assignments may be established by the City Manager or by a designee of the City Manager.
• Unassigned Fund Balance – Amounts representing the residual balance in the General Fund that has not been assigned to other funds and that are not in the other classifications.; and
WHEREAS, GASB Statement No. 54 further clarifies the constraints that govern how a governmental entity can use and designate amounts reported as fund balance and stipulates that the Fund Balance can only be Committed by action of the highest level of decision-making authority of the governmental entity; and
WHEREAS, the City Council is the highest level of decision-making authority, and has the authority to commit, assign, or evaluate existing fund balance classifications and identify the intended uses of committed or assigned funds pursuant to City Policy; and WHEREAS, the committed fund balance classification reflects amounts subject to internal constraints self-imposed by the City Council; and
WHEREAS, once the committed fund balance constraints are imposed it requires the constraint to be removed by the City Council prior to redirecting the funds for other purposes; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MARINO, CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE THAT in accordance with the provisions of GASB 54, hereby commits the following portions of fund balances, as indicated by the Committed Fund Balance classification, and funds cannot be used for CITY OF SAN MARINO RESOLUTION NO. R-24-28
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any purpose other than directed below, unless the City Council adopts another resolution to remove or change the constraint:
• The ending balance in the Donations Fund (Fund 281) at June 30, 2024, in the amount of $321,603.
PASSED, APPROVED, AND ADOPTED, at a Regular Meeting of the City Council of the City of San Marino, California, on this 25th day of October, 2024. ______________________________________
STEVEN W. HUANG, DDS
MAYOR
ATTEST:
__________________________________
ALISON WALKER
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SAN MARINO )
I, ALISON WALKER, City Clerk of the City of San Marino, California, hereby certify that Resolution No R-24-28 was adopted by the City Council of the City of San Marino at a Regular Meeting held on the 25th day of October, 2024, and that the same was adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________________
ALISON WALKER
CITY CLERK