G.10 Fund Balance Designation FY2020-21City of Grand Terrace
Fund Balance
Designation
JUNE 22, 2021
GASB 54
•(Governmental Accounting Standards Board) -
GASB issued Statement #64 which modified
fund balance reporting;
•Fund Balance refers to the difference between
assets (what the City owns) and liabilities
(what the City owes).
Designations
1.Non-spendable (ex: principal of an
endowment fund, developer deposits,
prepaids)
2.Restricted (ex: funds restricted for specific
purposes such as gas tax for roads,
development impact fees, Bond Proceeds)
Designations
3.Committed: only the highest decision-making
authority –City Council -can commit fund
balance
*Contingencies *Community Svcs
*Public Safety *Fixed Assets
Designations
4.Assigned (the City Manager and/or the
Finance Director can assign fund balance)
5.Unassigned
FUND TITLE #
General Fund 10
Community Benefits Fund 61
Light Up Grand Terrace Fund 62
Illegal Fireworks Enforcement Fund 63
Public Safety Fund 64
Community Day Fund 69
Equipment Replacement Reserve 70
Required Fund Balance
FY2020-21 Projected Revenues of:
$6,276,466
----------------X 2 = 1,046,078(16.7%)
12
Fund Balance
Description 2018-19 2019-20
Est. 2020-
21
Fund Bal,7/1 $3.3m $3.2m $3.6m
Revenue $5.9m $6.5m $6.3m
Expense ($6.0m)($6.1m)($6.2m)
Fund Bal,6/30 $3.2m $3.6m $3.7m
Fund balance DESIGNATION
Description 2019-20 2020-21
Restricted:
Public Works $2.0m $1.1m
Committed:
Contingencies $0.65m $1.05m
Community Svcs $3.1k $2.6k
TOTAL $2.6m $2.1m
Staff
RecommendationAdopt Resolution
2021-XX revising the
General Fund’s fund
balance commitments
for FY2020-21.
Questions?