Minutes 01/10/2012 - Laserfiche WebLink

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January 10. 2012 Unassiqned Fund Balance is the residual classification for the general fund, which has not been restricted, committed, or assigned to specific purposes within the general fund. Unassigned residual deficits may apply to other governmental funds to the extent fund balances are insufficient to satisfy restricted and committed balances. II. Determination of Order of Expenditures on Fund Balance: In determining the classification of total spendable fund balance remaining at the end of the fiscal year when an expenditure is incurred for purposes for which both restricted and unrestricted amounts are available, expenditures will be applied first to restricted fund balance and then to unrestricted fund balance. Within unrestricted fund balance, the order in which the expenditures will be applied when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used is as follows: Committed, Assigned, Unassigned. III. Process for Classification of Fund Balance Restricted Fund Balance: The highest level of decision making authority for purposes of establishing restricted fund balance will be by Ordinance, Resolution or State Statute. In order to qualify as restricted fund balance, the legislation that creates the revenue stream must also stipulate the purposes for which that revenue stream can be used. Restriction legislation must take place prior to the end of the City of Portsmouth, Virginia fiscal year. Committed Fund Balance: Fund balance can be committed pursuant to constraints imposed by either an Ordinance or Resolution, which constitute the City of Portsmouth, Virginia highest level of decision-making authority, or there must be a valid agreement between the City of Portsmouth, Virginia and a counterparty, (for example, a contract, capital lease agreement or settlement) for which it is clearly documented that the City of Portsmouth, Virginia will use existing resources, rather than future revenues, to satisfy the contractual obligation. Amounts can be uncommitted using the same process as used to establish the commitment. Formal action to commit an amount to a specific purpose must be made prior to the end of the City of Portsmouth, Virginia fiscal year. The actual amount, however, may be computed after the year end as part of the preparation of the financial statements. Assiqned Fund Balance: Fund balance can be assiqned either by any action of the City Council, or by designees with authority to assign. Amounts can be unassigned by the same process. Assignment calculations may be made after the end of the fiscal year during the process of preparation of the financial statements. 2. That this resolution shall take effect on the date of its adoption." Ayes: Cherry, Edmonds, Heretick, Moody, Whitehurst, Wright Nays: None 12 - 18 - Adoption of a resolution authorizing the City Manager to use appropriated funds for the placement of sworn Fire and Police employees onto the public safety sworn personnel salary schedule in the City's Classification and Pay Plan beginning with the pay period ending January 20, 2012. Vision Principles: Bold New Directions and Pride of Past, Promise of Future. Background: . The City Council implemented the Public Safety Retention Plan, which included compression adjustments effective January 1, 2009, step placements effective July 1, 2009, and one-step increases on their continuous service dates beginning July 1, 2010.