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CITY COUNCIL FINANCE COMMITTEE <br />June 3, 2011 <br />8:15 a.m. — 9:45 p.m. <br />San Leandro City Hall <br />835 E. 14 Street <br />San Leandro, California <br />(Sister Cities Gallery) <br />HIGHLIGHTS <br />Committee Members: Mayor Cassidy, Councilmember Gregory, Councilmember Souza <br />City Staff Present: City Manager Hollister, Assistant City Manager Marshall, Finance <br />Director Vesely, Deputy Finance Director Rodriguez, Budget & <br />Compliance Manager Perini, Sr. Accountant Galvin <br />Public Present: Pauline Cutter <br />The meeting was called to order at 8:15 a.m. <br />1. Presentation and Discussion Regarding GASB 54 Fund Balance Policy & Designations <br />Finance Director Vesely and Deputy Finance Director Rodriguez provided a detailed explanation <br />of the mandatory requirement by the Governmental Accounting Standards Board (GASB) to <br />provide fund balance categories that will be more easily understood. GASB issued Statement <br />No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. Rodriguez <br />explained to the Committee that in lieu of Designated/Undesignated and Reserved/Unreserved, <br />there will be five fund balance designations: Non - spendable Fund Balance, Restricted Fund <br />Balance, Committed Fund Balance, Assigned Fund Balance, and Unassigned Fund Balance. <br />Rodriguez provided a detailed definition of each fund and explained exactly what would be <br />included in each fund, e.g. General Fund, Capital Improvement, Debt Service, and Special <br />Revenue Funds. Most of our reserves will be included in the Unassigned Fund Balance, <br />including Major Emergency and Economic Uncertainty balances. Vesely stated that this will not <br />have an impact in the budget since the amounts reported will not be altered and will only be used <br />on external formal financial reporting documents, such as the Comprehensive Annual Financial <br />Report (CAFR). <br />Recommendation to City Council <br />The Committee recommends City Council approval of the fund balance components as defined <br />and required in GASB Statement No. 54. <br />2. Discussion Regarding Annual Investment Policy <br />Assistant City Manager Marshall introduced the Budget & Compliance Manager Perini to <br />discuss the City of San Leandro's Investment Policy for fiscal year 2011 -12 and to provide an <br />explanation of any proposed amendments. Perini stated that there were eight recommended <br />1 <br />