village of ruidoso consent regular items ......2011/11/08 · village of ruidoso agenda index...

VILLAGE OF RUIDOSOAGENDA INDEX COUNCIL CHAMBERSREGULAR COUNCIL MEETING RUIDOSO VILLAGE HALLNOVEMBER 8, 2011 AT 3:00 P.M. 313 CREE MEADOWS DRIVE

CALL TO ORDER.

MOMENT OF SILENCE AND PLEDGE OF ALLEGIANCE.

ROLL CALL.

APPROVAL OF AGENDA.

CONSENT REGULAR ITEMS. PAGE

1. Approval of Governing Body Minutes. 1October 25, 2011 Regular Meeting

2. Adoption of Resolution 2011-31, a Resolution Amending Resolution 92011-21 Setting Forth Policy Regarding Lodgers Tax Expenditures forSpecial Events and Repealing all Other Resolutions and PoliciesConcerning the Expenditure of Lodgers Tax By the Village of Ruidoso.

MAYORAL REPORTS AND PRESENTATIONS.

REPORTS FROM MUNICIPAL OFFICIALS.

VILLAGE MANAGER REPORT. 15

Presentation by EcoServants on EcoRangers Program. 49

PUBLIC HEARINGS.

1. Ordinance 2011-17, an Ordinance Amending the Village of Ruidoso 51Municipal Code of Ordinances Chapter 12, Uniform Traffic Ordinance,Specifically Section 12-1-2.1 Access Aisle.

REGULAR ITEMS.

1. Discussion and Possible Action on Adoption of Resolution 2011-32, 55a Resolution Supporting the Filing of an Application to New MexicoDepartment of Transportation for Funding Assistance for Fiscal Year2012-2013.

2. Discussion and Possible Action on Adoption of Resolution 2011-33, 59Relating to the Village of Ruidoso, New Mexico Water SystemImprovement Revenue Bonds, Series 2011; Establishing the ExactAggregate Principal Amount of the Bonds of $570,000.00, MaturityDates, Rates of Interest, Redemption Features and Price with Respectto Such Bonds in Accordance with Village Ordinance No. 2011-12Adopted on September 27, 2011; Approving Documents Relating to theBonds; and Ratifying Action Previously Taken in Connection Therewith.

3. Discussion and Possible Action on Adoption of Resolution 2011-34, 71a Resolution to Adopt the Fund Balance Policy of the Village of Ruidoso.

4. Discussion and Possible Action on Adoption of Resolution 2011-35, 99First Quarter Budget Adjustment for Fiscal Year 2011-2012.

PUBLIC INPUT.

BOARD AND COMMISSION APPOINTMENTS.

CLOSED SESSION.

Discussion subject to the attorney-client privilege pertaining to threatened orpending litigation in which the Village of Ruidoso is or may become a participant.§10-15-1.H.7, NMSA 1978.

Anna Gail Grassie v. Village of Ruidoso, et al; Cause No. CIV-10-920;U.S. District Court for the District of New Mexico.Thomas Gavin v. Village of Ruidoso, et al; Cause No. 11-CV-00344CG/WPL; U.S District Court for the District of New Mexico.

Any action taken as a result of the closed session will be brought backinto open session.

ADJOURN.

I certify that notice has been given in compliance with Sections 10-15-1 through 10-15-4NMSA 1978 and Resolution 2011-01. If you are an individual with a disability who is inneed of a reader, amplifier, qualified sign language interpreter, or any other form ofauxiliary aid or service to attend or participate in the hearing or meeting, please contactthe Village Clerk at least one week prior to the meeting or as soon as possible. Publicdocuments, including the agenda and minutes, can be provided in various accessibleformats. Please contact the Village Clerk if a summary or other type of accessibleformat is needed.

_AL AGENDA MEMORANDUMRU1DOSO

Village of Ruidoso

To: Mayor Alborn andCouncilors

Presenter: Irma Devine, CMC?Regular Item

Municipal Clerk— Board and Commission Appointments— Informational

Meeting Date: November 8, 2011— Workshop ItemItems valued greater than $50,000.00 must be

Re: Approval of Council Meeting placed as a regular item.Minutes.

______________________________________

Item Summary:

Approval of Minutes from Council Meetings:

October 25, 2011 Regular Meeting

Fund: N/A Line N/A Budgeted N/A Available N/AItem: Amount: Balance:

Item Discussion:

N/A

Recommendations:

Approval of Minutes from Council Meetings:

October 25, 2011 Regular Meeting

AGENDA MEMORANDUMS, ALONG WITH BACK-UP DOCUMENTATION, ARE DUE IN THE VILLAGE CLERK’S OFFICE BY 8:30 A.M. ONWEDNESDAY PRIOR TO THE CORRESPONDING MEETING (PER COUNCIL’S ADOPTED RESOLUTION #2011.02).THISF4GENPA MEMORANDUM WAS RECEIVED IN THE VILLAGE CLERK’S OFFICE ON:I!7/’JI/ ‘? ,fl2 BY:

_

DME AN TIME

__

INITIALS

(Revised 1/11/11)

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_}11L. VILLAGE OF RUIDOSO=LzUll,OSO= 313 Cree Meadows Dnve RUIDOSO=

Ruicioso, NM 88345liii (877)700-4343 or (575)258-4343; Fax (575)258-5361 liii

PRE-AGENDA ITEM CHECKLIST

_____

Items for Village Manager’s Report must be turned in to the Deputy Manager by 5:00

p.m. on Friday prior to the pre-agenda meeting.

_____

Legal Review Completed (if applicable).

A) )I} Completed Task Order (All task orders for legal review must be approved by

Village Manager.

Received Finalized Document and/or Legal Written Opinion

_____

Agenda Memorandum Completed.

_____

Finalized Document Attached (i.e. Ordinances, Resolutions,

Agreements/Contracts).

_____

Back-up Documentation Attached*.

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All provided documents must be 8%” x 11”, unless it is impossible to do so.

Above items have been complied with and provided to the Village Clerk’s Office on or

before 5:00 p.m. on Monday prior to the pre-agenda meeting.

*Back..up Documentation could be, but is not limited to, any of the following corresponding items:

• For renewal and/or amended agreements/contracts, copies of all previous

agreements/contracts or any other information pertaining to the document being

presented. For Agreements/Contracts, 2 originals must be submitted.

• Any and all maps, charts, spreadsheets, and/or previous minutes pertaining to the

document being presented.

[‘ YOU RAVE ANY QuESTIONS, PLEASE CONTACT:ma Devine, CMC Bertha Randolph, CMC[unicipal Clerk Deputy ClerkmaDevineruidoso-nm.gov BerthaRando1phru.idoso-nm. gov

Eione Ext. 1002 Phone Ext. 1003

ssued Date: 7/16/10)

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VILLAGE OF RUIDOSOGOVERNING BODY, REGULAR MEETING

313 CREE MEADOWS DRIVERUIDOSO, NM 88345OCTOBER 25, 2011

Mayor Gus Raymond Alborn called the regular meeting of the Governing Body, Village ofRuidoso to order at 3:00 p.m. by calling for a moment of silence and the Pledge of Allegiance.Councilors Dean, Stoddard, Salas, Shaw, Sayers, and Hardeman were recorded present byroll call. Municipal employees present were Debra Lynne Lee, Village Manager; Irma Devine,Village Clerk; Bertha Randolph, Deputy Clerk; Randall Camp, Utilities Director; Shawn Fort,Building Inspector; and Joe S. Magill, Chief of Police. Village legal counsel present wasDaniel A. Bryant. There were approximately 32 visitors present.

APPROVAL OF AGENDA:

Councilor Salas moved to approve the agenda as presented. Councilor Shaw seconded andthe motion carried with all ayes.

CONSENT REGULAR ITEMS:

Councilor Salas moved to approve the consent regular items as followed:

1. Approval of Governing Body Minutes.October 11, 2011 Regular Meeting

2. Approval of Public Celebration Permit for “R & R Ruidoso Street Party”Special Event on Sudderth Drive on November 12, 2011.

3. Approval of Special Dispensers Permit for “Art Exhibit” Special Eventat 207 Eagle Drive on November 19, 2011.

4. Approval of Award of RFP 2012-005P to Postal Pros for AutomatedStatement Processing.

Councilor Shaw seconded and the motion carried with all ayes.

MAYORAL REPORTS AND PRESENTATIONS:

• Attended a Morale and Family Welfare and Recreation (MWR) meeting in Fort Bliss, whichworked in conjunction with the Village’s Tourism Department and would be participating inthe R & R Ruidoso Street Party on November 12, 2011.

• Attended a meeting with the New Mexico Film Office at the Spencer Theater, at which wasclarified that the 25% tax incentive was still in place.

• The Mountain High Fly In Event and Pine Top Car Show was a great success with over2,000 attendees.

• Received an invitation from the Red Feather Drama Club from the Ruidoso High School toattend a play called “Too Many Doctors” and encouraged attendance from the public.

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REPORTS FROM MUNICIPAL OFFICIALS:

Councilor Sayers stated the following: All the art, along with each artist’s name was installedin the Convention Center; spoke with Elizabeth Martinez, with the U.S. Attorney’s Office,regarding the White Fire investigation and was informed it was still ongoing and, whenconcluded, she would contact her and the appropriate people.

Councilor Salas stated the E-Waste Recycling Event would be held at the IGA parking lot onSaturday, November 5, 2011 from 9:00 a.m. to 1:00 p.m.

Councilor Stoddard inquired if a response had been received from the Attorney General’sOffice regarding the banning of firearms. Ms. Lee stated she spoke with Zach Cook, whoinformed her the response had not been received yet.

Councilor Dean stated the following: commended all those involved in the Eagle Bridgeproject; thanked the businesses that were in the area for their patience and tolerance; andthanked all those who assisted with the Mountain High Fly-In Event, along with members ofthe Pine Top Car Club.

VILLAGE MANAGER REPORT:

Randall Camp stated the following: Eagle Bridge was being paved and would be completedand opened for traffic tomorrow; the guardrails and signs would be installed tomorrowafternoon; the striping would be done the following day; and the bridge would be lighted.

Mr. Camp provided a presentation on Drought Preparedness covering the following: the 2011Drought; Alto/Cherokee/Grindstone Systems; Drought Contingency Plan; Water SystemMaps; Pressure Zones; Interconnection Investigations; Water Transfer — Cherokee toGrindstone; Water Transfer — Alto to Grindstone; Investigation of Increasing Flow of RiverRaw Water Pipeline to Grindstone Reservoir; Proceeding with the Eagle Creek Raw WaterBypass Line; Rehabilitating and Reusing the Town & Country and Mechem Water StorageReservoirs; and Community Awareness.

Mr. Camp stated the following: they were taking a proactive approach by beginningconstruction projects and plans now; not much snow was predicted for the upcoming year;Grindstone was 25% of Ruidoso’s water supply; there were several options on how to pumpin water; 200,000 gallons would be transferred from Cherokee Well to Grindstone inapproximately two months; were working on the Grindstone diversion line located in UpperCanyon, since it should be producing 2,700 gallons per minute and was only producing 400-600 gallons per minute; the line could be air-locked or filled with debris; Ruidoso’s watersystem was one of the most complicated water systems in the State; there were 43 subzonesand 3 different subsystems, which created a problem with balancing pressures; there wereareas of opportunity for interconnects; there were water tanks not being used and they weregoing to be inspected for repair and rehabilitation; would continue working on wells; would bepresenting draft Ordinances regarding drought contingency and irrigation practices toCouncil; would get businesses and schools involved in awareness; information would beprovided through utility billing; education would begin regarding irrigation practices; and theVillage would be evaluating and reviewing all water re-use options. Councilor Hardemanrecommended a monthly report be provided to Council on water conservation and waterconsumption showing comparisons to previous years.

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Debra Lynne Lee highlighted the following: the National Drug Take Back Initiative wasscheduled for October 29, 2011 from 9:00 am. to 3:00 p.m. where the Ruidoso PoliceDepartment would work in conjunction with the U.S. Drug Enforcement Administration (DEA)to provide a venue for people to safely dispose of unwanted or unneeded prescription drugs;commended Sean Parker for a job well done on the Mountain High Fly-In Event, along withall other participants; staff was reviewing all safety issues; the entrance to the UtilityDepartment and counters were redesigned; the Homeland Security Grant was completed;and Dick Cooke prepared a press release from the Forestry Department that would be placedon the website.

Ms. Lee stated the following: the Lincoln County Commission would be conducting a publichearing on November 15, 2011 regarding dissolving the ETZ and the County’s authority toissue building permits and conduct inspections; Shawn Fort would be preparing apresentation on the pros and cons of the ETZ area and encouraged Councilors to attend themeeting; the purpose of ETZ was to look for potential areas for annexation and growth; andCouncil had the option to petition an annexation. Shawn Fort stated the following: norevenue was generated from the ETZ, but it protected the potential for growth; and 70% ofthe land was State, Federal, or fully developed. Daniel A. Bryant stated the following: therewas not a joint process currently between the Village of Ruidoso and Lincoln County; theneed for communication was a must; the most stringent regulations had to be followed; theETZ did not fall under platting and planning but was considered land use; the ETZ balancedcompeting interests; ways needed to be sought to make the transition work; annexation wasan important tool; and encouraged everyone to attend the meeting. Councilor Sayers statedshe would like to see some sort of zoning or protection created by the people who lived there.Mr. Fort stated there were many restrictive covenants as well as other restrictions that couldbe reviewed in some cases. Mr. Bryant stated State Statute allowed for a petition to besigned by twenty-five percent of the people that lived in the ETZ requesting an ETZ and thatwould create a mandate that superseded the need for an agreement.

Councilor Shaw stated a Human Resource report was not included in the Village Manager’sReport and inquired about the position of the Deputy Village Manager. Ms. Lee stated theposition was closed to the public and she had authorized reissuance for an internal positionposting.

PUBLIC HEARINGS:

There were no Public Hearings.

REGULAR ITEMS:

Discussion and Possible Action on Award of RFP 201 2-003P to Stream Dynamics forBog Springs Drainage Restoration Project. Robert Decker stated the Request forProposal was to design and supervise the installation of stream channel improvements alongWarrior Drive in the vicinity of Ruidoso High School and the project was fully supported by theRuidoso School Board. Mr. Bryant stated the students would have to get permission to do thework and the school would be responsible for the liability of those students. Ms. Lee statedshe would review the liability issue. Councilor Sayers stated the project was identified in theevaluation to improve the quality of the river environment and assist with the drainage.

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Councilor Salas moved to Award RFP 2012-003P to Stream Dynamics for Bog SpringsDrainage Restoration Project. Councilor Shaw seconded and the motion carried with allayes.

Discussion and Possible Action on Second Renewal Agreement with the LincolnCounty Humane Society for Operation of the Animal Shelter. Police Chief Joe Magillstated the following: the second renewal was for the same amount as of last year, which was$63,000.00; they performed a great job; and recommended approval. The President of theLincoln County Humane Society Board stated Lincoln County contributed $30,000.00 and theAnimal Control Officers did a great job. Councilor Sayers stated the Ruidoso PoliceDepartment was able to place animals in the facility 24 hours a day seven days a week.

Councilor Shaw moved to approve Second Renewal Agreement with the Lincoln CountyHumane Society for Operation of the Animal Shelter in the amount of $63,000.00. CouncilorStoddard seconded and the motion carried with all ayes.

PUBLIC INPUT:

Nikki Murphy inquired if a committee had been appointed, as previously discussed, regardingthe five-year retention tax and to work on a method to save the community if the RuidosoDowns Racetrack would relocate. Mayor Alborn stated the Military 365 was one of thoseevents and that was the basis for all the tourism efforts. Councilor Hardeman statedeconomic development had never been a strength of our local government and the RuidosoValley Chamber of Commerce and business community needed to prepare a plan.

Kary Williams from Capitan inquired if twenty-five of those living in the ETZ area could sign apetition declining the ETZ. Mr. Bryant quoted State Statute 3-21-3(A) Procedure forExtraterritorial Zoning: “that in the absence of an agreement, a petition requesting the zoningof the ETZ area and signed by twenty-five percent of the qualified electors residing in the ETZarea and within the same County, may be filed with the County Clerk of the County of thepetitioners’ residence and upon the filing of such petition the Governing Body of themunicipality and the Board of County Commissioners shall enter into an agreement providingfor the zoning of that portion of the ETZ area lying within the County joining in the agreementand any agreement entered into pursuant to the provision of this subsection may besubsequently amended by agreement of both parties”.

BOARD AND COMMISSION APPOINTMENTS:

There were no Board and Commission Appointments.

Mayor Alborn moved to recess the regular session at 4:15 p.m. and reconvened at 4:27 p.m.

Councilor Shaw was excused from the regular session at 4:15 p.m.

Irma Devine was excused from the regular session at 4:15 p.m.

CLOSED SESSION:

Councilor Salas moved to recess into closed session for:. Discussion of the purchase, acquisition, and/or disposal of real property

and/or water rights by the Village of Ruidoso. §10-15-1 .H.8, NMSA 1978.Any action taken as a result of the closed session will be brought back into open session.Councilor Stoddard seconded and the motion carried with a roll call vote of all ayes.

Mayor Alborn recessed the regular session and convened the closed session at 4:28 p.m.

Present in closed session were members of the Governing Body. Others present includedDebra Lynne Lee, Bertha Randolph, Randall Camp, Daniel A. Bryant, Roger Peery, JackAtkins, and Judge Alvin Jones.

Mayor Alborn adjourned the closed session and reconvened the regular session at 6:40 p.m.

Councilor Salas moved to certify that matters discussed in the closed session were limitedonly to those specified in the motion for closure. Councilor Stoddard seconded and themotion carried with a roll call vote of all ayes.

Councilor Salas moved to approve the water team to proceed with finishing the previouslydiscussed settlement with the Bureau of Land Management (BLM), City of Capitan, the RioBonito Preserve and the Hondo Land and Cattle Company. Councilor Hardeman secondedand the motion carried with Councilors Salas, Hardeman, Dean, and Stoddard voting aye andCouncilor Sayers voting nay.

ADJOURNMENT:

There being no further business to come before the Governing Body, Mayor Albornadjourned the regular meeting at 6:44 p.m.

MINUTES ARE DRAFT UNTIL APPROVED ON:

Passed and approved this 8th day of November, 2011.

APPROVED:

___________________

Gus Raymond Alborn, Mayor

ATTEST:

________________________

Irma Devine, Village Clerk

57

AGENDA MEMORANDUM=Rurnoso=Village of Ruidoso

entItemTo: Mayor Alborn and Public HearingCounci lois Regular ItemPresenter: Cindi Clayton-Davis — Board and Commission Appointments

InformationalLodgers Tax Committee Chair— Worksho ItemItems valued greater than $50,000.00 must beMeeting Date: November 8, 2011 placed as a regular item.

Re: Adoption of Resolution 2011-31, aResolution Amending Resolution 2011-21Setting Forth Policy Regarding Lodgers Tax Expenditures forSpecial Events and Repealing all Other Resolutions and PoliciesConcerning the Expenditure of Lodgers Tax By the Village ofRuidoso.

Item Summary:Resolution 2011-31, Regarding Lodgers Tax Expenditures for Special Events.

Fund: 214 165-52068 Budgeted AvailableItem: Amount: Balance:

Item Discussion:The existing resolution specifies in section 6.A. that specialty advertising products: e.g.mugs, pens, pin (other than the official Ruidoso Pin approved by the Governing Body),hats, and T-shirts are ineligible for funds. As these items have the name “Ruidoso” onthem & promote our destination the committee agreed that the items should be madeeligible for funding. The New Mexico Tourism Department considers these eligible costsunder the Cooperative Marketing Grant Program with the provision that the cost is not toexceed 20% of the total amount funded. Many destinations in the state have adoptedthe NMTD guidelines for their own lodgers tax distribution guidelines.

Sunny Hirschfeld made a motion that specialty advertising products be made eligible forlodgers tax funds, with the provision that the cost of these items is not to exceed 20% ofthe total amount funded. Lynn Crawford seconded, motion approved unanimously.

Recommedations:The Lodgers Tax Committee recommends that the council adopt Resolution 2011-31 to deleteitem 6.A. and add to section 5:

F. Specialty advertising products: e.g. mugs, pens, pins, hats and t-shirts, not to exceed20% of the total amount funded.

AGENDA MEMORANDUMS, ALONG WITH BACK-UP DOCUMENTATION, ARE DUE IN THE VILLAGE CLERK’S OFFICE1BY 8:30 A.M. ON WEDNESDAY PRIOR TO THE CORRESPONDING MEETING (PER COUNCIL’S ADOPTED RESOLUTION

SENDEMOyNDUMp4S RECEIVED IN TE VILLAGE CLERK’S OFFICE ON:

DATE 414IME // c—INITIALS

(Revised 1/11/11)

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JIIJ VILLAGE OF RUIDOSO J)L=IzuIooSo= 313 Cree Meadows Drive RLIIDOSO

Ruidoso, NM 88345LIII (877)700-4343 or (575)258-4343; Fax (575)258-5361 liii





1J,1,4- Completed Task Order (All task orders for legal review must be approved by

Village Manager.






_____

All provided documents must be 8Y1” x 11”, unless it is impossible to do so.









‘ YOU HAVE ANY qUESTIONS, PLEASE CONTACT:ma Devine, CMC Bertha Randolph, CMC{unicipal Clerk Deputy ClerknaDevineruidoso-nm.gov [email protected] Ext. 1002 Phone Ext. 1003

;sued Date: 7/16/10)

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VILLAGE OF RUIDOSO

RESOLUTION 2011-31

A RESOLUTION AMENDING RESOLUTION 2011-21 SETTING FORTH POLICYREGARDING LODGERS TAX EXPENDITURES FOR SPECIAL EVENTS AND REPEALING

ALL OTHER RESOLUTIONS AND POLICIES CONCERNING THE EXPENDITURE OFLODGERS TAX BY THE VILLAGE OF RUIDOSO

PREAMBLE

A. The Village of Ruidoso Lodgers Tax Committee wishes to amend the criteria forrecommending Lodgers tax funds expenditures for Special Events.

B. The Village of Ruidoso Lodgers Tax Committee desires to expend these funds tobenefit the entire Village.

C. The expenditure of Lodgers Tax is governed by the New Mexico State Statutes 3-38-13et seq, 1978 compilation as amended and the Village of Ruidoso Chapter 78, Article II.

D. The Governing Body of the Village of Ruidoso and the Lodgers Tax Committee wish toadhere to these laws.

NOW THEREFORE BE IT RESOLVED BY THE GOVERNING BODY OF THE VILLAGE OFRUIDOSO AND THE LODGERS TAX COMMITTEE TO AMEND RESOLUTION 2011-21 ASFOLLOWS: (new material is underlined and deleted material is stricken.)

Allowable expenditures according to the New Mexico Statutes and Ruidoso MunicipalCode:

A. New Mexico State Statutes 3-38-15.E, requires that municipalities imposing anoccupancy tax of more than three percent shall use all of the proceeds derivedfrom the portion of the tax in excess of three percent in any manner authorized inSection 3-38-2 1 NMSA1 978.

B. The Ruidoso Municipal Code requires that tax proceeds shall be used to defraythe cost of the following;

(1) Collecting and otherwise administering the tax, including the performanceof audits required by the Lodgers’ Tax Act pursuant to guidelines issuedby the state department of finance and administration;

(2) Establishing, operating, purchasing, constructing, otherwise acquiring,reconstructing, extending, improving, equipping, furnishing or acquiringreal property or any interest in real property for the site or grounds fortourist-related facilities, attractions or transportation systems of the villageor the county;

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(3) The principal of and interest on any prior redemption premiums due inconnection with and any other charges pertaining to revenue bondsauthorized by NMSA 1978, §3-38-23 or 3-38-24;

(4) Advertising, publicizing and promoting tourist-r&ated attractions, facilitiesand events of the village or county and tourist facilities within the area;

(5) Providing police and fire protection and sanitation service for tourist-related events, facilities and attractions located in the village; or

(6) Any combination of the purposes or transactions stated in this section, butfor no other municipal purpose.

C. All expenditures of lodgers tax funds shall follow the Village of RuidosoProcurement Code that provides for the fair and equitable treatment of allpersons involved in public procurement and maximizes the purchasing value ofpublic funds.

2. Policy:

To assist and encourage marketing and advertising of the Ruidoso area that promotestourism, travel, and economic development.

3. Eligibility, Guidelines for Promotion and Tourism:

A. Agree to comply with any and all laws of the State of New Mexico and the Villageof Ruidoso.

B. Have an established organization that can demonstrate its ability to accomplish the proposed project in compliance with this policy and guidelines.

C. Complete all required forms and applications.

D. All print, tv and web/interactive media must include the Village Governing Bodyapproved Ruidoso branding Logo. Mention need not be made in radio media.

E. All applicants are recommended to coordinate with the contracted advertisingand marketing firm for the best possible marketing and promotions of their event.

F. Use of funds are restricted to an advertising matching basis.

1) First year organizations must match lodgers tax funding at the rate of20%, up to the first $5,000.00 dollars of lodgers tax funding.

2) Second and Subsequent Years: Organizations must expend dollar fordollar of the Lodgers Tax funds allocated, with a limit of up to $5,000.00per event, with strict stipulations as shown under sections 4 A, B, C, and Fbelow, (i.e.: $1,000.00 Lodgers Tax Funds, Match $1,000.00 minimum).

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C. Applications for recurring funded events, must be submitted prior to March 1 ofeach year.

H. Applications for new events must be submitted no later than sixty (60) days priorto the event.

4. Applications will be considered favorably which address events or festivals that enhancethe economy of the Village.

Criteria to assess the merits of a particular event will include, but not necessarily belimited to the following, (in no particular order):

A. The time of year - events will be considered more favorably at traditionally slowertimes of the year based on lodgers tax revenue; and,

B. Expected attendance; and,

C. Location - in Ruidoso or proximity to Ruidoso; and,

D. Promotion - how much are the organizers prepared to spend on advertising, willadvertising be local, regional, statewide, national, or international. This will beused in evaluation of the type of event and how funds are best expended toincrease the number of visitors; and,

E. Events will be considered favorably that are considered attractors rather thanattractions.

Attractors is defined as the specific special event(s) that is the primary reason forvisitors to travel to this area.

Attraction is a venue that is an established facility for the purpose ofentertainment and recreation.

F. Length of event - one day, two days, or several days; and,

G. Overall potential economic impact to Ruidoso, including lodgers tax revenue.

H. A higher percentage of media budget spent outside of Lincoln County.

I. Events that work with area lodgers for packaging opportunities.

J. Expand the use of electronic media- websites, etc.

5. Eligibility for funds:

A. Advertising placement: the cost of insertion of advertisements in media includingradio, TV, magazines, and newspapers, Internet, electronic media, advertising,directly related cost, or any reasonable production cost.

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B. Outdoor and indoor advertising: signs, billboard rentals.

C. Printing: cost of printing of promotional material, brochures, posters, billboards,color separation and layout.

D. Shipping, direct mailing and distribution of promotional material including directmail postage cost and list purchase.

E. Funds could be expended for other uses to attract new events to Ruidoso withapproval of the Governing Body.

6.

F. Specialty advertising products: e.g. mugs, pens, pins, hats and t-shirts,not to exceed 20% of the total amount funded.

Ineligibility for funds:

muu ocn. If ‘.,.IIL.,.JI- a. piTher than the ‘—-‘

‘erning Body), hats, and T-shirft

B A. Staff compensation.

G B. Meals, lodging, entertainment, or travel expenses.

D C. Telephone.

PASSED, ADOPTED AND APPROVED THIS 8TH DAY OF NOVEMBER, 2011.

SEAL

ATTEST:



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A. IiSpec’ty ac!:;,Ruidoso Pin approved by the G

“rr.tIr” orouuui;

Administration Departmental Memorandum

TO: Honorable Mayor and Village Council

FROM: Debi Lee, Village Manager

DATE: November 8, 2011

RE: Manager’s Report

ADMINISTRATION:

1. Water Drought Contingency Plan — is our priority and ensuring that we can deliverwater in this drought time is of utmost importance. Attached for your information is aWater System Drought Contingency Plan that calls for public cooperation throughconservation of our limited water resource. Randy Camp has listed four specificareas that we will be focusing on including: 1) Public Education; 2) Update andAdopt a water conservation Ordinance; and 3) Infrastructure improvements -

Reestablish connections between the three primary delivery systems: 4) IncreaseSupply Options. We began informing the public on the Monday morning radio show.We will be providing an update each Council meeting reflecting the status andprogress on each of these areas.

2. Eagle Bridge - has been completed with the exception of installing the hand rails.These hand rails are being ordered by FNF and staff expects them to be installed insoon. A final change order is also being prepared which will represent the finalcosts in each of the line items. Once this project is 100% complete, staff will be ableto submit for reimbursement from FEMA.

3. Safety Program — Staff is taking a new direction on ensuring a safe workplace forour employees. We have created a team of Directors that will conduct unannouncedsafety inspections. During this inspection, a review of the Job Hazard analysis willbe conducted where the team will look at the work area where the employees areperforming and compare the PPE’s in the job hazard analysis with the actual on-the-ground work. Tania Proctor has provided Staff with sample Job Hazard Analysis tobegin our efforts. We also decided to re-instate a safety panel that would reviewaccidents and accident reports. This panel would report to the Safety Committeequarterly and would make recommendations regarding each accident. This was inplace several years ago and resulted in fewer accidents. The goal of this newprogram would be to decrease the number of accidents as well as improve the workenvironment of all employees.

Manager’s Report Page 1 ‘‘ l November 8, 2011

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4. Solar PV Project — Staff is working with Jim Miller to explore the possible options fora Solar Project in Ruidoso. Mr. Miller is working with Sean Parker, Airport Directorto explore opportunities with private entities to install, own, operate and maintaincustomer-sited renewable equipment, i.e. a PV solar farm. Electricity generatedcould be partially used by the Village and/or sold through a purchase poweragreement. We will keep the Mayor and Council informed with the progress madeon this effort.

Ridoso5 M1JTARY3Ô5RUDOSO are finalizing their plans for the November 12 Military street fair in

celebration of Veteran’s Day. This event will have great food “A Taste of Ruidoso”,beer and wine gardens, a kid’s zone and other entertainment. The Lodgers inRuidoso have also jumped on the bandwagon and are offering great rates for theentire weekend. Military 365 have sent press releases to Ft Bliss, Kirtland Air ForceBase, Cannon Air Force Base and several military publications and PSA’s arepromoting this event. A letter from the Mayor was sent out to the bases invitingeveryone to come to Ruidoso for this fun event.

6. Bouncing Back: New Challenges — New Opportunities. The Village Managerreceived a scholarship and attended the New Mexico Infrastructure Conference inAlbuquerque on October 25-27. The theme of this conference is “Bouncing Back:New Challenges — New Opportunities”. This conference provided New Mexicoentities information about financing and technical assistance to facilitate the planningand implementation of needed capital projects in their communities. There werepresentations on planning, tourism, utilities, water and wastewater, economicdevelopment, transportation and other public infrastructure. The Manager attendedall of the session on financing utilities and was pleased to hear that Ruidoso wasidentified as a community who has utilized multiple resources to meet theirdemands. The Waste Water Treatment Plant along with the Flood was specificallydiscussed as examples of a community addressing challenge. This conference waswell worth the time and funding sources were identified to assist us.

7. Sanitary Sewer System Relocation - Staff has received six proposals in responseto RFP #2010-002P Sanitary Sewer System Relocation. Because this is a large andextensive project, we will be inviting four of these firms to make presentations inNovember that will include their approach to the project, qualifications and timeline.After hearing presentations, a recommendation will be prepared for Councilconsideration for the December Council meeting.

Manager’s Report Page ‘‘ November 8, 201116

8. Employee Holiday Gathering - Staff has assigned a committee that will beorganizing an employee holiday gathering. Typically an Employee Picnic is held inOctober but because of the hectic schedule we all thought a Holiday Gatheringwould be fun. We will keep you informed as to the date and time this will occur.

AIRPORT:

1. There have been 138 operations (landing & takeoffs) from October 17th, 2011 to

October 27th 2011 making our daily average operations 12.55. Compared to sametime last year of 149 operations, with a daily average of 13.55. That’s a decrease of7.4% over last year.

2. We have sold 2,297 gallons of Jet A fuel (208.82 gal/day average) from October2011 to October27th, 2011. Compared to same time last yearof 2,795 gallons

with a daily average of 254.09 gallons/day. That’s a loss of 17.82% of salescompared to last year.

3. We have sold 851.4 gallons of 100LL (77.4 gal/day average) from October 17th,

2011 to October 27th, 2011. Compared to same time last year of 1091.6 gallons witha daily average of 99.24 gallons/day. That’s a loss of 22% of sales compared to lastyear.

4. A meeting was held with the airport’s fuel contractor, AVFueI. Discussions coveredprice concerns local tenants and visitors voice to us when utilizing our airport, andthat we want to compete better with Eastern New Mexico and West Texas airportfuel prices. AVFueI was also reminded that this is their last year of the four yearcontract with our airport. I addressed my disappointment with their customer servicethus far. There was no ability for them to negotiate a better fuel price, so it wasagreed that we would further pursue getting a Contract Fuel agreement with them,and enter into the AVFuel Points Reward Program. Both are good programs givingpilots and aircraft owners incentives to buy larger quantities of fuel when they are atSierra Blanca Regional Airport.

5. On Friday, October 21st, we conducted job interviews for the open Airport LineService Tech. All background checks have been completed, and our recommendedhire has been submitted to Human Resources Department.

6. On Monday, October 24’, I met with Dr. Jim Miller with Placer Mountain Services.He is a renewable energy consultant. We discussed options for the airport to have asolar panel farm that could generate enough power for the airport, and give energy

Manager’s Report Page 1 iif 1 November 8, 2011

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credits back to Otero County Electric Cooperative and/or PNM toward Village ofRuidoso departments such as the Waste Water Treatment Plant. Initial discussiongave a general idea on how the airport could lease land to a solar energy company,which would sell the generated power at a very low cost back to the airport. Theremaining energy created would be sold to as credits toward the Village of Ruidoso.The airport would gain revenue from the long-term lease of the land, and have theutility costs drastically reduced. The solar energy company would make money offthe sales of energy produced, and from Federal Government Funds and taxincentives. The only cost to the airport would be Dr. Miller’s consulting fee. I will bespeaking with Debi Lee on procedures to lawfully and effectively move forward onthis project.

CLERKS:

1. 17 New Business Registrations were processed during October 2011.

2. 11 Requests for Public Information were processed during October 2011.

3. 37 Business Registrations were processed for termination during October 2011.

4. Staff attended the annual New Mexico Municipal Clerks Association Academyfrom October 12-14, 2011.

CONVENTION CENTER:

1. The week of October 16-22, 2011 we hosted an OSHA training, Lovington MunicipalSchools, Ft. Bliss single’s retreat and the Fall Fun Fest Carnival.

2. The week of October 23-29, 2011 we hosted the last day of the Ft. Bliss single’sretreat, RPD-training, Optical Systems Group and Lubbock Educators Assoc.

FINANCE:

1. On Monday, October 31, an auditor team of 6 will be arriving and will be here for 2weeks. They will be set up to work upstairs

2. The Utility Billing Department has begun the cash collection conversionimplementation into Incode. It has been going fairly smooth. The department has

Manager’s Report Page ‘ November 8,2011

18

also completed one batch of billings. By the end of the week, we will be caught upwith our monthly billing cycle. Victoria Chavez has done an exceptional job and hasbeen putting in a vast amount of hours to accomplish this monumental task. Nextweek we are on task to begin training remote departments on the cashiering module.

3. In order to streamline payments, the accounts payable department has implementeda bi-monthly check run.

FIRE:

1. We are working with the Police Department on the Reverse 911 initiative. We havealready met once and the next meeting we will have our plan in place to have asmany Citizens as we can sign up.

2. Finalized the Wildfire Evacuation plan and working with Police Department on themapping and getting them familiar with the plan.

FORESTRY:

Manager’s Report Page 5 of 21

19November 8, 2011

Forestry Current Activities Report Fiscal year This Period10/14/11-

Item: 7/1/2011 10/27/11

Hazard Tree Removal:

Private_Property

Village Property 8

Public Service Visits, Insects/Disease/Misc 16 6

Cost Share

Presentations 133 10

Acres Marked 549.356 7.106

Reimbursements $75,811.86 $0.00

Private Match Money $131,579.30 $0.OQ —

Properties Certified 105 10

Acres Completed(Cost Share + Minimum) 155.965

Permits issued for Tree Removal (16” plus) 23 4

Private Property Compliance:

Initial Inspection 2232 9

Properties Certified 218 17

New Construction Residential:

Initial Inspection and Fire Hazard Rating 8 1

Final_Inspection_and_Approval

New Construction Commercial:

Initial_Inspection_and_Fire_Hazard_Rating

Final Inspection and Approval

New Construction Permitting Fees:

Forestry $700.00 $100.00

Solid Waste $0.00

GENERAL SERVICES:

SOLID WASTE DEPARTMENT:

1. The free mulch for our residents is continuing at the White Mountain Sport Complex

2. All equipment is in service

3. CONTINUING: Our grapple truck crews have been pulled out of their areas toremove extensive contracted tree removal as directed by Forestry in the northernportion of the Village. The pine needle cast has begun and as soon as we haveremoved the contracted material in the aforementioned area the drivers will bereturning to their areas to attend to what we anticipate will be large volumes of pineneedles.

Information Technology (IT)

From Lori Carpenter — GIS Technician:

1. Making a spreadsheet for McClain & White Mtn. Development properties that showall accounts with legal descriptions, service address, acreage, etc...

2. 100 Dipalo Dr — customer thought it was only one lot because she only receives onetax bill but because both lots are vacant she is getting 2 yard waste bills. Sheargues that one lot is landlocked by the other. Advised customer that at this timeboth bills will remain but her information will be forwarded to Forestry Task Force forconsideration of combining bill

3. Much of the data that GIS & temporary staff entered into the AS400 was not broughtover to the new system. Lot, Block, Subdivision information, XY coordinateinformation and different status codes of CON(contiguous), DOT(NM Dept of

Manager’s Report Page’ November 8,201120

Transportation), VOR(Village Owned Property that does not have a water meter),DISC(discontinued service with no capital maint fees), INAC(inaccessible property)& LIEN(properties with a lien) were all changed to Inactive in the new system.These status codes make it easy to identify quickly why the account is not beingbilled & will allow us to pull reports to see how many lien accounts we have etc. Staffwill me meeting with Finance Dept. staff to develop a solution

Other GIS Requests:

1. Update: Met will Earl Bell to discuss a plan, he will be getting us a proposal withinthe next week. Spoke with Bob Decker and he said to do a requisition and turn intohim for line item #. This is for GIS server setup and training.

2. Update: County is sending out an updated copy of parcels & owners to me onNovember 1,2011.

3. Work on Land Use & Zoning database & map

4. Work on an ETZ map

5. Due to Forestry Database changes several address issues have cropped up. Aletter has been generated for each change, mailed and or faxed to all entities andcorrected in the 911 system. This week there have been around 10 addresschanges which take about 20-30 minutes each to complete.

6. Bob Decker requested information on VOR Parcels for sale, copy of ICIP chart that Idid for Randy & copy of information that Karen & Nancy requested.

7. Print 2 sets of copies of water, 33 pages, & sewer maps for Justin

8. Jamie Gibson requested map of water meter routes for future Firefly installation

9. Dick Sweanor requested map of Airport Facility/Property & Waste WaterFacility/Property map

10. Shawn Fort requested 4 different types of ETZ maps

11. Working on Fire Station District map for Harlan

12. Made more changes, added vendor names & changed booth locations, on SudderthBlock Party Map for Charles Meeks.

13. Scan 14 pages of house plans for Shawn Fort for public information request & putonCD

14.Scan & Print 2 sets of Water Plant 1 March 2010 maps for Carlos

Manager’s Report Page 7 of 21 November 8,2011

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15. Print 2 sets of scanned maps of Eagle Creek Raw Water By-Pass, 54 pages total

16. Randy, Bob & Carlos — requested map of waterlines 6” and bigger with pressurezones overlay, water tanks, valves, pry’s, wells and booster stations — Update:Received CAD drawing from Wilson & Co showing updated pressure zones, I havesome questions for Bob but will be incorporating new information into map.

From Penny Parks Systems Administrator/Coordinator:

1. The new dedicated mail server which we migrated to on October 8, 2011, appears tobe functioning appropriately. The majority of the issues experienced in the migrationwere due to users either failing to make the appropriate settings changes or notinputting the changes correctly. We continue to adjust spam setting and this willcontinue to be an ongoing process.

2. Staff has placed the order for some of the replacements servers and software whichwill replace aging servers and allow the capability of reducing downtime at the PoliceDepartment

3. Staff and Cofex are working to setup up help desk software, procedures and a helpdesk environment for better handling of computer problems. The goal is to have thisenvironment up and running the first week of December. More information andusage instructions will follow.

4. Staff is working to compile the information necessary to write a disaster recoveryplan for the RWWTP.

5. Staff continues to upgrade computer equipment for various departments, to assistusers with issues, update the website and make other changes.

6. Staff is refurbishing equipment for use in other areas of the Village as well as forKiosks for time entry for employees.

Cofex Consulting ReDort:

1. Help perform Inventory for outdated equipment.

2. Preformed EOC phone changes at the fire station.

3. Track it software installed.

4. MISC minor support issues.

Manager’s Report Page ° November 8, 2011

22

Building Maintenance:

Building Maintenance is operating satisfactorily with no noteworthy issues at this time.

HUMAN RESOURCES

1. Street Department received their additional computer for employee to input their owntime. Street is moving employees over to the Employee Self Service for time inputstarting on 10/31/11. These employees have been entering their time for the lastmonth with assistance from Sandy Shearin, since they had limited computers. Afterthis department transitions that leaves the Fire and Solid Waste Departments to gowith 4 employees from the RWWTP. Some hardware is still needed in some of theother departments before they switch to entering their own time.

2. Tyler Transition is ongoing. The Human Resources Department has had softwareissues with each of the payrolls that have been processed in the new system. Staffhas worked with Tyler to resolve these issues and write necessary programs to fixthe problems. We are anxious for the transition to be complete and everyone tounderstand the new system process.

3. The mandatory training for all employees on Workplace Harassment andDiscrimination Prevention has been scheduled for December 1, 2011. We areoffering 4 two-hour classes. This training is being provided by Clear Law Institute —

Michael Johnson presenter, and will address harassment and other forms ofdiscrimination on the basis of sex, race, national origin, religion, age, disabilitystatus, sexual orientation and all other characteristics protected by federal, state,and local law and organization policy. It will be highly interactive and is structuredaround a series of scenarios, many of which are based on actual cases. Thetraining is legally accurate and up-to-date, and teaches essential principles to applyto ambiguous “gray-area” situations.

4. The mandatory training for all first line supervisors, directors, and managers onEmployment Law has been scheduled for December 2, 2011. We are offering 2three-hour classes. This training is being provided by Clear Law Institute- MichaelJohnson presenter, this training teaches supervisors the practical information theyneed to comply with the complex web of EEO and other workplace laws. Thetraining consists of five (5) course topics, which in total take about three (3) hours todeliver. The course topics include:

• Interviewing and Hiring Lawfully• Effective Coaching and Discipline• Wage and Overtime Issues

Manager’s Report Page Q November 8, 2011

23

• Family and Medical Leave• Reasonable Accommodation of Disabilities and Religious Practices

Job Postings # of Closing StatusVacancies Date

Deputy Village 1 06/17/11 AcceptingManager Applications, 38

applicationsreceived.Decided not to fillat this time. On10/25/1 1 positionwas open to onlyVillageemployees.Manager toconductinterviews on11/01/11

Certified Patrol 2 08131/11 AcceptingOfficer Applications; 9

applicationsreceived; 8applications weresent to PD;testing will takeplace 10/1/11.PD is doing in-depthbackgroundcheck on theremainingapplicants

Heavy Equipment 1 09/02/11 AcceptingOperator Applications. 8

applicationsreceived. Ratingon 10/04/11.Interviews wereconducted theweek of 10/24/11

Water 1 09/07/11 AcceptingDistribution/Sewer Applications. 5Collection applications

received. 2applications

Manager’s Report Page 1 ‘ ‘ November 8, 2011

24

forwarded forinterviews

WWTP 1 09/02/11r

AcceptingInstrument & Applications. 6Electrical applicationsTechnician received. Rating

to be on10/04/11.Interviewconducted and Inew hire inprocess

Line Service 1 09/30/11 AcceptingTechnician Applications. 10

applicationsreceived. Ratingto be scheduled.Interviewscompeted and Inew hire inprocess

Water Production 1 09/30/11 AcceptingManager Applications. 7

applicationsreceived. 2applications wereforwarded to thedepartment forinterview

Administrative 1 09/20/11 AcceptingAssistant II Applications. 31

applicationsreceived. Ratingdone and 8applicationsforwarded forinterviews.Interviewscomplete and 1new hire inprocess

Truck Driver 2 10/26/11 AcceptingApplications. 9applicationsreceived and 6

I forwarded to

Manager’s Report Page 1

25November 8, 2011

department forinterview 1028/11

New Hires:New Employee Position Date of HireAlbert Mendez Water Plant 09/19/11

Operator IVTim Amodeo Water Plant 11/21/11

Operator IVStatus changes in employment:

Terminated Position Date of TerminationWilliam Sprout Temporary Parks 10/06/11

Maintenance WorkerJoe Cabe SW Mechanic 10/13/11Brad Nowell Heavy Equipment Retired 09/30/11

Operator

TRAINING OPPORTUNITIES SCHEDULED FOR NOVMER & DECEMBER

November 9, 2011

8:00am — 10:00am

10:00am — 12:00 pm

1:00 pm —5:00 pm

December 7, 2011

Winter Safety and Winter Driving

Uniform Traffic ControlAwareness

Supervisor Do’s and Don’t’s

CouncilChambers

CouncilChambers

CouncilChambers

8:00am — 10:00am

10:00am — 12:00 pm

1:00 pm —5:00 pm

Cell Phone Safety

Sexual Harassment Prevention inthe Workplace for Employees

Fall Protection Awareness

ConventionCenter

ConventionCenter

LIBRARY:

ConventionCenter

Manager’s Report Page November 8, 201126

1. Technology: The library is looking into alternative options for its public computingarea. We have received quotes from Userful Corporation for another 3 yearagreement replacing 16 computers. Their quote is $21,802.89. Bryan Grummon hasgiven the library a quote for buying computers, monitors, keyboards, and mice for494.33 per machine but his quote does not include multi use licenses for Microsoftsoftware, maintenance, and amounts to the library abandoning what it has had inplace for the last 6 years. Bryan Grummon’s costs $7,909.28 and we would have todo updates, and buy additional software to create a system that defaults or resetsevery evening. Userful’s maintenance takes the burden off the city’s IT departmentand our own staff in the library. We are looking at the costs of multiuse licensingfrom New Egg. A third option is still being streamlined from purchasing everythingfrom numerous online sites.

2. Grants: I have received letters of support from the Center for Peace Studies, TheCenter for Nonviolent Communication, both in Alburquerque, NM, author of theMeditative Path, John Cianciosi, and the library has purchased the film, Forgiveness:A Time to Love, A Time to Hate and the Book, 12 Steps to a Compassionate Life.The goal is to obtain a grant from the American Library Association and the FetzerInstitute to conduct programs involving all these people and ideas centered aroundbuilding community, civility and compassion. Andrea Reed has agreed to concludethe programming showcasing dances of the world. Building Community would takeplace March 2012.

3. I have received a verbal agreement from Kay Kuhlman to conduct two programscelebrating the centennial of New Mexico becoming a state—January 1912. Land ofEnchantment is her reenactment of Marion Russell’s life along the Santa Fe Trail.Camp Capitan is a play she has completed and will premiere at the library telling thestory of a women’s work camp during the Depression (1930’s). I have nearlycompleted a grant from the New Mexico Library Foundation which would help fundthese two January 2012 events.

4. I have just begun reading through the information for the National Endowment forthe Arts Big Read Program. The grant awards money to encourage literacy.

5. Programs in November:

• Charles and Diane Stallings book talk, Death in a Red Desert. Nov 4 @ 10am

• Let’s get Technical: introduction to online self service on Nov 10 @ lOamand again Nov 29 @ 3 pm

Manager’s Report Page F November 8, 201127

• Movie: Let’s Go to Galapagos Nov 18 @ 10 am• Find It at Your Library: How to search for books Nov 22 @ 3 pm

6. Children’s Library:• Nov 2 Stories about Fall• Nov 9 Stories about Scarecrows• Nov 16 Thanksgiving• Nov 23 Movie: Nanny McPhee Returns• Nov30 Christmas• Second graders will visit the library throughout November

7. Friends of the Library meet Nov 1@ 4 pm

& Library Board meeting Nov 2 @ Noon

9. Library will be closed Nov 11, Veterans Day and Nov 24,25,26,27 ThanksgivingHoliday

PARKS & REC:

1. MAIN STREET TRICK OR TREAT — Parks and Recreation Department participatedin the annual event by having a Jurassic Park themed van. Thanks to Eddie Fowlerfor providing us the parking lot to hand out healthy treats to our community kids.

2. RUIDOSO NOON LIONS & BASS BROTHER ROOFING COMMUNITY PROJECT— Staff met with a member of Ruidoso Noon Lions Club an associate of BassBrothers Roofing who is donating the metal roof, material and labor to replace thewood shingles on Pavilion #1 at Two Rivers Park (the one closest to the road by thepony rides and the oldest pavilion on the park). When completed a small ceremonywill be held to thank them, date TBD.

3. PICKLEBALL COURT — Debbie Jo met with Andy Carter member of the club todiscuss options. She is waiting to hear back him.

4. PARK MAINTENANCE — Crew will begin putting up Holiday Decorations on lightpoles on November 15th to be completed by Thanksgiving Day and trees at SchoolHouse Park will also be completed for the Christmas in the Park event on Decemberst

5. THE LINKS WALKING TRAIL — Staff has followed up on seeking options andestimates to repair the trail and improve safety along White Mountain Drive.

Manager’s Report Page 1 November 8, 201128

6. KEEP RUIDOSO BEAUTIFUL — E-Waste Day electronic waste recycling was heldon November 5, 2011 at IGA parking lot from 9am — 12 noon.

7. CEMETERY — Staff continues to work with the Cemetery Board and Council onsecuring property for a new cemetery. Council has met in closed session to consideracquisition of property for new cemetery.

8. GRINDSTONE BIKE TRAIL — Staff is working with Bicycle Ruidoso and USFS tocomplete the scope of work for the construction of the trail and go out for bid on theproject.

9. RIVERWALK TRAIL. This project continues, thanks to Laura Doth for an excellentjob and persistence with this long awaited project. Staff provided Laura with a fewgrant leads.

10.OPEN GYM & ADULT LEAGUES. Open Gym for Volleyball on Monday &Wednesday and Basketball on Tuesday & Thursday will continue from 7:30 —

9:30p.m. Leagues for both basketball and volleyball will begin in January.

11.PARKS AND RECREATION COMMISSION (PARC). The next Board meeting isscheduled on November 21st at 5:30 p.m. Agenda items: Recreation NeedsAssessment, possible policy on feeding wildlife and creation of a Friends of Parks &Recreation to help with fund raising for small projects needed by the department.

12. SPECIAL EVENT APPLICATIONS SUBMITTED - (Permits Pending or Approvedas of 1012712011)

• Oct. 1 & 2 — Ruidoso Gymnastics Center Art Festival — School House Park(Approved)

• Artisan Mercado — First National Bank Parking Lot — (Approved)• Aspenfest Parade — Mechem/Sudderth to Two River’s Park (Approved)• Food for Marching Bands — Two River’s Park (Approved)• October 15 — Fly In/Car Show — Airport (Approved)• School Garage Sale — School House Park Pavilion (Approved)• Oct. 29 — Ski Run Road Challenge (Approved)• Oct. 31 — Church by Church Music during Main Street Trick or Treat Event

(Approved)• November 6- Joy for Kids Toy Run (Approved)• Nov. 12 — R, R & R Block Party — Military 365 (Pending Vendor List)• Dec. 3 — Festival of Lights Parade (Pending)

PLANNING & ZONING:

Building Inspections for October, 2011. — As of October 28th

Manager’s Report Page i ““ November 8,2011

29

Inspections135—Building :.

80 — Electrical82 — Plumbing/Mechanical

297-Total

Building permit activity report for October, 2011, is as follows:Total number of permits: 113Total Fees: $20,506.32

BUILDING TOTAL VALUATION $1,806,916.52

1. As expected October has continued to remain steady for new construction with 6new single family homes permitted.

2. The Short Term Rental Program has 610 STR’s all are in compliance or in theprocess of gaining compliance. Staff has begun to pursue some online companieswith STR’s that have failed to register.

3. Lincoln County has notified staff that they have scheduled a public hearing onNovember 1 5th, 2011 at 2:00 pm with the intent to rescind the ETZ ordinance.

4. The Planning & Zoning Commission has cancelled its November 1st, the next

regular meeting will be on November 15. Items on the agenda will be a ConditionalUse Request for a property located at 108 Vision Dr. and discussion of possiblechanges to chapter 54 signs.

POLICE:

1. Enforcement:

During this past month the Ruidoso Criminal Investigation Division, led by SergeantProctor, has made significant arrests resulting in the recovery of large amounts ofcash, stolen flat screen TV’s, firearms and ammunition, On 10/20/11 members ofthe Ruidoso Criminal Investigation Division, along with Lincoln County NarcoticsEnforcement Unit, and Lincoln County Sheriff’s Office arrested Ross Sanders whowas in possession of approximately one pound of Methamphetamines. These typeof arrests result in getting a large amount of drugs off of our streets and has asignificant impact on the burglaries committed in our community.

During the week of October 23rd through 2gth the Patrol Officers have conductedcitation saturation in the Mid-Town area, concentrating on Seat Belt and Speedingviolations. This saturation, traffic enforcement effort has been initiated by Lt. Merritt.

Manager’s Report Page November 8, 2011

Three days of traffic enforcement has resulted in, approximately, 20-40 citationsissued each day.

In the month of October 2010 our Department wrote 127 citations and made 37arrests. At the time of this report, in the month of October 2011, the Department haswritten over 350 citations and made 57 arrests. There is one week still remaining inOctober 2011.

2. Training:

The Department is hosting a class entitled “Bloodstain Pattern Interpretation” onOctober 24-28, 2011, 0800-1 700 hours, at the Ruidoso Convention Center. Thiscourse will be taught by Steven McGibbon of the Mobile Crime Scene Academy.Steve is retired Special Agent with the Air Force Office of Special Investigations(AFOSI), holds a Master’s degree in Forensic Sciences from George WashingtonUniversity, and has conducted investigative training for law enforcement agenciesfrom across the country. This class includes at least 12 hands on individualexperiments, bloodstain history, scientific method, biohazards, behavior of liquidblood, terminology, stains and angles, case discussion and practical exercises.

The News Release below is an annual event that Special Agent Richard Swenor hasadministered in our Department.

PURCHASING:

STREETS:

During the past two week period, the following projects are in progress or have beencompleted by employees of the Street Department.

• Drainage Issues Addressed For the Following Streets & Areas:o Juniper Roado Del Mar Drive

• Equipment Maintenance:• General servicing of equipment in use• Hot Plant:

o Hot mix production for utility cuts and projects.o Maintenance Hot Plant

• Utility Cuts:o Grindstone Canyono Lost Mtn.Ct.o

1st Streeto D Streeto South Street

Manager’s Report Page 1 November 8,2011

31

o 2 Streeto High Loopo Porr Driveo Flume Canyono Main Rd.o Barcus Rd.o Sarah Laneo Kansas City Rd.o Harvard Placeo Paradise Cyn.o Hart Ave.o Bradley Driveo DufferDr.o Upper Decko Apache Hillso Rio Arribao Dona Ana Dr.o De Baca Circleo Old Lincoln Rd.o Flume Canyon

• Road Work with Motor Grader - Base Course:o Wigwam Laneo Geronimo Placeo River Trailo Kingwood Place

• Pot Holes:o Main Road @ 2nd Bridgeo White Mtn.Dr.o Sunny Slopeso SnowCap Courto McBride Drive

• Blade Patch with Hot Mix:o Rio Arriba Rd.o Nob Hill Driveo Dona Ana Dr.o Socorro Circle

• Village of Ruidoso — lntradepartmental Assistance:o Transport Fire Trucko Hauling debris and brush from Alto Dam.o Reinforced rebar for the Court House Parking Lot Barriers

• Trimming Trees from Roadway Obstruction:o Leon Farrar Dr.o Wingfield Streeto High Streeto Apache Trailo Rio Street

Manager’s Report Page 1” ‘. November 8, 201132

o Country Club Dr.Sweeping Streets:

o Mechem Driveo Sudderth Driveo Sandstone P1.o Bobby Laneo A Streeto

3rc Streeto B Street

• Stock Piling Aggregates: Hauling Base Course for General Street andDrainage Repair.

Future I Ongoing: Assignments and Projects are as follows:

• COOP Project— Country Club Area — SP-2-1I(972): Funds request letter(75% match) has been submitted to NMDOT for $54,816.

• MAP Project — Improvement 15t & 2nd Bridge Main Rd — MAP-I 223(900):Funds $175,000 has been received by The Village of Ruidoso from the State ofNew Mexico.

• MAP Project — Box Culverts Hull & Paradise — MAP-7627((903): Contractsigned by the State November 29th, 2010

• COOP Project 2011-2012 — Chip Seal Various Roads in Ponderosa HeightsArea: The Contract was presented to Council on September 27, 2011 and wasapproved. Four originals have been sent back to NM DOT by the StreetDepartment. Waiting for signed contract from the State, before chip seal projectmay begin.

• P.D. Gun Range at the Air Port: There was a temporary delay in theconstruction by the Street Department. This project is scheduled to resumeduring the second week of November.

• General Street Repair and Drainage Work Orders: The goal is to keep theseissues moving in a timely manner.

UTILITIES:

Staff continues to meet with various engineering companies regarding flood andfreeze issues.

2. Staff, engineering consultants and water team members continue to developstrategies for addressing a potential extended drought. There will be a DroughtContingency presentation during manager’s report to present plan and discussoptions. An REP for a Water System Master Plan/Model is being prepared tosupport the development of a fully redundant system in order to mitigate the effectsof drought. Staff is proceeding to self perform small but critical projects that willfacilitate redundancy immediately. (See Attached Drought Contingency Plan)

Manager’s Report Page 19 of 21 November 8,2011

33

3. Grindstone Dam —Currently awaiting OSE Dam Safety Bureau Chief’s review ofthe Final Report of Findings and Recommendations delivered to VOR March 7,2011. A workshop will be scheduled following Dam Safety’s acceptance. The O&MManuals for Alto and Grindstone were delivered to the Dam Safety Office onSeptember 23, 2011 per schedule. The EAP5 are currently under Staff Review withfinal copies expected to be delivered to the DSO by the end of October. Work isproceeding on mitigation of the issues outlined in the dam inspection conducted inMarch. Staff is proceeding with preparation of an RFP to design the repairs onGrindstone Dam in order to be better positioned for the next year’s Water TrustBoard funding. Requests for projects are due November 3rd. Staff anticipatesrequesting funding for Alto Dam Design, Grindstone Dam Repairs, and a Re-useProject.

4. FEMA —Staff is continuing to work with FEMA on flood and freeze issues in order tofacilitate the timely replacement of bridges and the RFP for engineering design ofthe Sewerline Relocation Project.

5. Eagle Bridge — Eagle Bridge project is Substantially Complete. It has been verysuccessful partnering between the contractor and the Village of Ruidoso. Thesidewalk has been installed on the east side of the bridge in accordance with ADAstandards. The new guard rail and signage has been installed. Striping shouldfollow in the next couple of weeks, and will be the final item completed on theproject. We are currently going through punch list items which includes drainageissues along the west side of the New Eagle Dr. This item will call for a drop inletand new storm water piping along that side terminating at the river. This will needto be done to protect the private property on the west side of the road. Thehandrails along the sidewalk have been ordered and are being fabricated.Engineer of record did his inspection on Friday of last week and was particularlypleased with the outcome. Please take some time to go down and look at thestructure.

6. RWWTP — Phase lb — Substantial Completion has been accepted as of May 27,2011. A meeting with Dr. Stensel and Jim Good from Parametrix was heldSeptember 20th and they reported that the new plant has had a significant positiveeffect on the river. Meeting was in preparation for the Surface Water Quality Boardhearing in March that will establish our final operating permit. Staff met withengineers and equipment supplier representatives on October 1gth to address finalpunch list items and problem areas.

7. Alto Water Plant (Plant 3) —the RFP for a PER and Pilot Project for upgrades toPlant 3 has been awarded to HDR Engineering of Albuquerque. Anticipate havingHDR’s contract before Council at the next meeting pending legal review.

Manager’s Report Page November 8,201134

8. Water System General — We are still experiencing line breaks; however, thevolume and severity seem to be reducing. Dry conditions and soil shrinkage seemto be the contributing factors in several areas.

9. Five Year Accounting Period End - according to the current trend, therequirements of the 5 year accounting period will be met with approximately 260acre-ft to spare. Unfortunately there has not been enough water available in theRio Ruidoso to allow the diversion of that quantity to Grindstone Dam. Finalnumbers on the 5 year accounting period will be available at the November CouncilMeeting.

10. Water Department — Staff continues to meet with the Village Manager in order tofacilitate the Departmental reorganization. Interviews are being scheduled for theWater Production Manager and the Distribution/Collection Manager. Goals are toreorganize in order to increase efficiencies and reduce costs. Water Departmentwill be split into two departments — Distribution/Collection and Production. TheProduction Department will follow the same structure as currently employed at theRWWTP. Staff continues to purchase Safety Equipment and Tools to facilitateproper work process. Staff has attended OSHA Trenching Safety training and willcontinue OSHA training in pertinent areas.

11. Sewerline Relocation Project — four respondents have been selected to makepresentations as part of the selection process for the design of the project (HDR,Moizen-Corbin, CH2M Hill, and Smith Engineering). Purchasing will be schedulingthe presentations.

F

Manager’s Report Page 21 f 21 November 8, 2011

35

MJFDI1A ]JELEASE

National Drag Take Back Initiative

SATUIRIDAYOctober 29, 2011

9AM to 3PM

The Ruidoso Police Department, in conjunction with the U.S. Drug EnforcementAdministration (DEA) has scheduled another National Prescription Drug Take Back Dayfor Saturday, October 29, 2011, from 9AM to 3PM to provide a venue for persons whowant to safely dispose of unwanted or unneeded prescription drugs.

According to a recent (10/16/2011) 60 Minutes TV doer’ entary, accidental overdosesand deaths from the misuse/abuse ofprescription drugs have reached epidemicproportions in the United States with as many as 7000 known overdoses and deaths permonth! Statistics show that as many as 7 million Americans misuse or abuse prescriptiondrugs and each day, an estimated 2500 teçns abuse prescription drugs to get high for thefirst time. Studies and investigations have also confirmed that the majority of abusedprescription drugs are obtained from family and friends, including the home medicinecabinet!

The Take Back Initiatives in September 2010 and April 2011 throughout the nation,including here in Ruidoso, resulted in the collection of “309 tons”, that’s 618,000 pounds,of unneeded prescription drugs! Due to these results, four days after the 2010 Take BackDays, Congress passed legislation amending the Controlled Substances Act to allow DEAto continue the process for people to safely and legally dispose of their unneededprescription drugs. These initiatives will continue nationwide every six months!

On Satarday, October 29,291!, between 9AM and 3PM, residents of Ruidoso,Ruidoso Downs and Uncola County are invited to bring unwanted or unneededprescription drugs (as well as any illicit substances with no questions asked) to theMain Entrance/Lobby of the Ruidoso Police Department, 1085 Meebein Drive(across from Enidoso’s Main Post Office) and drop them into the safeguarded DEAcontainer.

Contact Special Agent R.S. “Dick” Swenor, Support Services/Forensic EvidenceCustodian, Ruidoso Police Department, (0)575-258-7365 or © 575-973-0876 for anyquestions/additional information.

P.S. It is highly recommended that you do not flush prescription medications/drugs intoyour sewer or septic systems!

37

Ruidoso Water-

Production Department

Water Production Report

Date: Friday, October 28, 2011

Alto CrestProductionWells flows: 615 GPMEC / Alto flow: 0 GPMTotal Plant flow: 0.988 MGD

Tank Level:5 Million gallon tanks: 47 FEET

Alto Lake:Water level: 15 Feet below Spiliway

GrindstoneProductionTotal Plant Flow: 0.563 MGDTank Level:3 Million gallon tank: 46 FEETGrindstone Lake:Water level: 33.3 Feet below SpiliwayCurrent Capacity: 176 MG 36%Designed Capacity: 495 MGDiverting into Grindstone: I Cubic feet per second

Gaging StationsUpper Canyon station: Est 2 Cubic feet per secondHollywood station: 6 Cubic feet per second

Comments: Currently in Phase 4 Condition as ofPhase 4 Conservation Trigger conditions are as follows. (2 of 4 Conditions Must be met)1. Alto Lake Level 10’ below spiliway. Currently 15’ Feet from Spiliway. Meets One Condition2. Eagle Creek & Wells below 900 gpm. Meets One condition.3. Phase Trigger condition: 5 Miii Tanks Below 83% (46 ft) capacity for more than 24 hrs.Current capacity at 87%, 47 feet.4. Grindstone Lake level 20 ft below spiliway. Currently 33.3 ft from spiliway. Meets One Condition.Three Conditions to enter into Phase 4 Conservation are met. Requires 2 of 4 Conditions be met.

The Water Department recommends holding at Phase 4 Condition.Conservation Please

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10

Village of Ruidoso Water System Drought Contingency Plan

The Village is taking a 4 step approach to insuring that we can continue to deliver waterto our customers during a prolonged drought.

Success in continuing to deliver water during the drought is fullydependent upon public cooperation through conservation of limitedwater resources.

The Village will be taking the following measures to aid inConservation and Drought Awareness:

1. Conduct an intensive public education program based on water conservation anddrought related issues.

a. Engage the Chamber of Commerce, service clubs, hotels, restaurants andbusinesses in water conservation.

i. Provide information to motels and rental agencies to post in each roomor property.

ii. Encourage restaurants to offer water only on request and provideinformation in a format that can be placed on each table.

iii. Remind residents to WINTERIZE, especially those residents that arenot home on a regular basis and or! those second home residents thatare gone in the winter.

b. Use inserts to notify rate payers of drought contingency measures.c. Schedule presentations to the schools.

d. Provide news releases.

e. Talk on the radio.

2. Update ordinance language related to water conservation to give the Village clearauthority to limit water use when needed.

The Village will also take the following actions to insure infrastructurereliability and redundancy during the Drought:

3. Reestablish connections between the 3 primary delivery systems:a. Open valves that isolate the various zones.

47

b. Construct new connections between zones.

c. Install new or upgrade existing pressure regulating valves (PRV’s) to balancepressures between the zones.

4. Increase supply options:

a. Rehabilitate the Grindstone Reservoir raw water feed line to increase thecapability of capturing high flows in the Rio Ruidoso when they occur.

b. Rehabilitate or improve existing permitted wells to increase raw waterpumping rates.

c. Install a new raw water feed line from the Eagle Creek wells to the Alto WaterTreatment Plant (AWTP) in order to allow a higher raw water flow rate to theAWTP.

d. Rehabilitate existing potable water storage tanks that have been out ofservice for some time in order to inórease potable water storage (mid term).

e. Replace potable water with reclaimed water for turf irrigation (long term).f. Develop alternative sources of water to fill Grindstone Reservoir (long term).

Failure is not an option. We ask the Public’s support in successfullynavigating the Drought!

We would like to request that Part-Time residents turn off their water

when they leave for the winter in order to prevent a possible repeat of

the freeze of 2011. Also, any full time residents that will be gone over

the holidays, we recommend they shut off their water at their valve.

We do not want to waste water on unnecessary leaks.

48

eservants.P.O. Box 1723

Ruidoso NM 88355-1723505-808-1204

ecoservants.org

EcoServants would very much like to present our new program to the Village of

Ruidoso City Council on November 8th We have hired 8 young people for our

EcoRangers Program. This is an AmeriCorps project that will run 1 lmonths to fulfill

1,700 hours of service to our community. Their pay is quite small but they will receive a

scholarship over $5,000 at the end of their service.

This crew is afready planning an event on December 3’”to help improve the Skate

Park and create a local community volunteer group. Attached is the EcoRangers press

release that will better explain their goals.

Our presentation is in order to introduce these young people to you and our

community. We are not asking for any money or extra time from the cities resources, just

want to show that we are here and ready to make a difference.

Thanks for your Help!

Stephen Carter

Executive Director

EcoServants

49

ecoservants.P.O. Box 1723

Ruidoso NM 883 55-1723505-808-1204

ecoservants.org

EcoServants is a small non-profit organization based in Ruidoso, New Mexico.EcoServants has helped the U.S. Forest Service, Village of Ruioso and the BLM withrecreational trail building and restoration, provided education programs to grades 7-12,and helped numerous young people in the community through work experience andscholarships. To continue this mission, EcoRangers, a year long AmeriCorps communityoutreach program, will directly engage the community through services towards a moresustainable future. Many new and ongoing projects are in progress including improvinglocal parks, recycling programs, developing youth education, promoting eco-tourism, andvolunteering with White Mountain Search and Rescue.

Hi I am Nathaniel Mays from Ruidoso, NM. I have been a part of this communityfor some years, helping with land restoration, environmental restoration, and promotingecotourism within the community. I feel encouraged by the progress seen in thecommunity first hand, and this is also my reason for joining.

Alvin Smith from Chicago, IL. I joined this AmeriCorps program to get hands onexperience working with environmental issues and helping with communitydevelopment. I am excited to be joining this community and look forward to theoncoming year.

My name is Robert M. Eldred. I have lived in Ruidoso and the surrounding areasfor 12 years, helping local school projects throughout those years. I joined Eco-Rangersto work with the youth towards a positive outcome and give to the community.

My name is Shilaquay Carbajal; I’ve been living here in Ruidoso NM for most ofmy life. I am well known in this community and I would like to help and interact morewithin the community to bring it closer together and build a more sustainable future.

My name is Casey Stephenson and I’m from Bayfield, Colorado. I joinedAmeriCorps because I wanted to help protect the environment and gain experience inconservation work. I’m excited to be a part of this community and to see the work wecan accomplish this year.

Nicholas Giusti, been living in Ruidoso, NM since 2006 and graduated fromRuidoso High. I joined EcoServants and this AmeriCorps program seeing it is as the clearway to take direct action in serving the community.

My name is Tyler Jones and I have lived and been a part of the Ruidosocommunity for over 20 years. I joined AmeriCorps to become part of a program that willdirectly affect my own conununity in a positive way.

Molly Heuss from Hooksett, NH. Interested in a year of service with a group thatcombines natural resources and community outreach.

We wish to accomplish these goals using the talents and hopes of our owncommunity.

50

Item Summary:

Consent ItemX Public Hearing

Regular ItemBoard and Commission AppointmentsInformationalWorkshop Item

Items valued at $50,000.00 or greater mustbe placed as a regular item

The New Mexico Municipal League has recommended a modification to the language inthe Uniform Traffic Ordinance.

Fund: Line Budceted AvailableItem: Amount: Balance:

No direct financial impact.

Item Discussion:

The proposed change is a correction to the verbiage in a section of the UTO.

Recommendations:

Adopt the proposed ordinance.

EAGENDA MEMORANDUMS, ALONG WITH BACK.UP DOCUMENTATION, ARE DUE IN THE VILLAGE CLERK’S OFFICE BY 8:30 AM ONWEDNESDAY PRIOR TO THE PRE.AGENDA MEETING FOR THE CORRESPONDING COUNCIL MEETING (PER COUNCIL’S ADOPTEDRESOLUTION #20 1.02). ,

THIS AGEJflA 0 NIIM WAS RFCEIVED IN THE VILLAGE CLERK’S OFFICE ON:f/f BY:

_________

DATE AND Té,E INITIALS

AGENDA MEMORANDUM

Village of RuidosoRtIIDOSQ

1i’To: Mayor Alborn and

Cou nci lors

Presenter: Joe MagillPolice Chief

Meeting Date: November 8, 2011

Re: Conduct a Public Hearing on November 8, 2011 to consider adoptionof Ordinance 2011-17 amending the Village of Ruidoso MunicipalCode of Ordinances Chapter 12 Uniform Traffic Ordinance, specificallySection 12-1-2.1 Access Aisle.

(Revised 1/11/11)

51

_AL VILLAGE OF RUIDOSO=RuIDOSo 313 Cree Meadows Drive RUIDOSO

Rudoso, NM 88345(877)700-4343 or (575)258-4343; Fax (575)258-5361


Pc) J— Items for Village Manager’s Report must be turned in to the Deputy Manager by 5:00


_____


,&.) /4 Completed Task Order (All task orders for legal review must be approved by

Village Manager.


V Agena-Memorandum Completed.

_____



_____


_____

All provided documents must be 8%” x 11”, unless it is impossible to do so.

/

_____









[F YOU HAVE ANY QUESTIONS, PLEASE CONTACT:[rma Devine, CMC Bertha Randolph, CMCV[unicipal Clerk Deputy ClerklrrnaDevine@ruidoso-nm . gov BerthaRandolph@ruidoso-nm .gov

‘hone Ext. 1002 Phone Ext. 1003

:Issued Date: 7/16/10)

52

VILLAGE OF RUIDOSOORDINANCE 2011-17

AN ORDINANCE AMENDING THE VILLAGE OF RUIDOSOMUNICIPAL CODE OF ORDINANCES CHAPTER 12 UNIFORMTRAFFIC ORDINANCE, SPECIFICALLY SECTION 12-1-2.1ACCESS AISLE.

Whereas, the New Mexico Municipal League has provided a recommended amendment to theUniform Traffic Ordinance.

NOW, THEREFORE BE IT ORDAINED BY THE GOVERNING BODY OF THE VILLAGE OFRUIDOSO THAT Chapter 12 Uniform Traffic Ordinance, Section 12-1-2.1 Access Aisle ishereby amended by the addition of new text and modification of existing text as follows:

New Text is Underlined Deleted Text is Struck-out

Sec. 12-1. - Adoption by reference; modifications.The 2010 Compilation of the New Mexico Uniform Traffic Ordinance, comprising Sections 12-1-1 through 12-13-6 inclusive, and all changes through July 1, 2010, are herewith adopted byreference, pursuant to Section 3-17-6 NMSA 1978 with the following modifications:(1) No change.(2) No change.(3) No change.(4) No change.(5) No change.(6) No change.(7) No change.(8) No change.(9) 12-1-2.1 Access Aisle. “Access Aisle” means a space designed to allow a person with a

significant mobility limitation to safely exit and enter a motor vehicle that is immediately adjacentto a designated parking space for persons with significant mobility limitations and that may becommon to two such parking spaces of at least sixty inches in width or, if the parking space isdesignated for van accessibility, ninety-six inches in width, and clearly marked and maintainedwith blue striping, and after January 1, 2011 the words “NO PARKING” in capital letters, each ofwhich shall be at least one foot high and at least two inches wide, placed at the rear of theparking spaceaccess aisle so as to be close to where an adjacent vehicle’s rear tires would beplaced (66-1-4.1 NMSA 1978).

Passed, Approved and Adopted this 8th Day of November, 2011.


SEAL

ATTEST:


53

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54

AGENDA MEMORANDUM

To: Councilors

Village of Ruidoso

Presenter: Mayor Ray Alborn


Re: Adoption of Resolution 2011- 32, A ResolutionSupporting The Filing Of An Application To NewMexico Department Of Transportation For FundingAssistance For Lincoln County Transit ForFY 2012-2013

Item Summary: Adoption of Resolution 2011-32, a Resolution Supporting The Filing Of AnApplication To New Mexico Department Of Transportation For Funding Assistance For LincolnCounty Transit For FY 2012-2013

Item Discussion: The funding grant will cover the expenses of the transportation programwith a reimbursement of administrative cost at 80% and operational cost at 50%. The NMDOTwill provide partial funds to the City of Ruidoso Downs to cover expenses of the program asdescribed below.

The Resolution of Support is required by the 5311 Grant to show that the Village of Ruidoso isin support of continuing Public Transportation for the Fiscal Year 2012-2013.

5311 PROGRAM REQUESTED FEDERAL LOCAL MATCHAdministration (80/20) $118,217.85 $94,574.31 $ 23,643.57

Operating (50/50) $ 144,681.84 $ $ 72,340.9272,340.92

*Capital (80/20) $ 38,273.71 $ $ 7,654.7430,618.97

TOTAL $301,173.40 $197,534.20 $ 103,639.23

Recommendations: That Council approve the Resolution as presented.

AGENDA MEMORANDUMS, ALONG WITH BACK.UP DOCUMENTATION, ARE DUE IN THE VILLAGE CLERK’S OFFICE BY 8:30 AM. ONWEDNESDA PRI R TO THE CORRESPONDING MEETING (PER COUNCIL’S ADOPTED RESOLUTIOJP#i (.02rH)y4)5P/RA W VILLAGE CLERK’S OFFK?N:__INALS

(Revised 1/11/11)

= RUIDOSO

“*‘

— Consent Item— Public Hearing

Regular Item— Board and CommIssion Appointments

InformationalWorkshop Item

Items valued greater than $50,000.00 must beplaced as a regular item.

55

jilt. VILLAGE OF RUIDOSO313 Cree Meadows Drwe =EI1Iooso

Ruidoso, NM 88345(877)700-4343 or (575)258-4343; Fax (575)258-5361





_____

Completed Task Order (All task orders for legal review must be approved by

Village Manager.

_____


/ Agenda Memorandum Completed.

_____



_____


V All provided documents must be 84” x 11”, unless it is impossible to do so.



*Back..up Documentation could be but is not limited to, any of the following corresponding items:



presented. or Agreements/Contracts, 2 originals must be suhmtted.



IF YOU NAVE ANY QUESTIONS, PLEASE CONTACT:Irma Devine, CMC Bertha Randolph, CMCMunicipal Clerk Deputy Clerk

[email protected]

Phone Ext. 1002 Phone Ext. 1003

(Issued Date: 7/16/10)

56

VILLAGE OF RUIDOSORESOLUTION 2011-32

SUPPORTING THE FILING OF AN APPLICATIONTO NEW MEXICO DEPARTMENT

OF TRANSPORTATIONFOR FUNDING ASSISTANCE FOR FY 2012-2013

WHEREAS, the State of New Mexico received federal funding through the NewMexico Department of Transportation (NMDOT) from the Federal Transit Administration(FTA) under 49 U.S.C. 5311; and

WHEREAS, the New Mexico Department of Transportation authorized toadminister this program and provide funding assistance for local transportationprograms; and

WHEREAS, the Village of Ruidoso desires to continue transportation servicesand providing additional services as needed by residents of Lincoln County; and

WHEREAS, the Village of Ruidoso supports this program and supportsapplication for federal funding.

THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THEVILLAGE OF RUIDOSO, New Mexico that the filing of an application to the New MexicoHighway and Transportation Department for funding assistance for the continuation of alocal supplemental public transportation program for Fiscal Year 2012-2013, isauthorized. The Mayor is hereby authorized to act as the representative of the Villageof Ruidoso in the support of this program.

PASSED, ADOPTED, AND APPROVED this 8l day of November, 2011.


SEALATTEST:


57

_L AGENDA MEMORANDUMRtIiOSO

Village of Ruidoso

TO: Mayor Alborn andCouncilors

ent Item

FROM: Nancy Klingman, .1(111— Board and Commission Appointments

Chns Muirhead,— Informational

Modrall, Sperling,— Workshop Item

Roehl, Harris & Sisk, P.A. Items valued at $50,000.00 or greater must beLaw Firm placed as a regular item.


Re: Discussion and Possible Action on Adoption of Resolution 2011-33,Relating to the Village of Ruidoso, New Mexico Water SystemImprovement Revenue Bonds, Series 2011; Establishing the ExactAggregate Principal Amount of the Bonds of $570,000, MaturityDates, Rates of Interest, Redemption Features and Price withRespect to Such Bonds in Accordance with Village Ordinance No.2011-12 Adopted on September 27, 2011; Approving DocumentsRelating to the Bonds; and Ratifying Action Previously Taken inConnection Therewith.

Item Summary:

Attached is Sale Resolution 2011-33 that will finalize the sale of the Village’s WaterSystem Revenue Bonds issued to pay-off the Capitan water rights.

Fund: Utilities Line $108,635 @ Budgeted Amount: Purchase PriceItem: 10% interest Annual Payment $570,000502- $108,6354211- $70,00055002 3.2% interest

Item Discussion:

This Sale Resolution is presented pursuant to the Bond Ordinance in order to approvethe terms, sale price and other matters with respect to the Bonds. As previously stated,Capital One Public Funding has agreed to purchase the Bonds at the purchase price of$570,000 and has presented a final Bond Purchase Agreement setting out the terms

59

and conditions. The attached Resolution provides for those provisions.

Mr. Chris Muirhead will be present at the November 8 meeting to answer any questionsregarding this transaction and to execute the closing documents.

Recommendations:

Adopt Resolution 2011-33, Relating to the Village of Ruidoso, New Mexico WaterSystem Improvement Revenue Bonds, Series 2011; Establishing the Exact AggregatePrincipal Amount of the Bonds of $570,000, Maturity Dates, Rates of Interest,Redemption Features and Price with Respect to Such Bonds in Accordance with VillageOrdinance No. 2011-12 Adopted on September 27, 2011; Approving DocumentsRelating to the Bonds; and Ratifying Action Previously Taken in Connection Therewith.

AGENDA MEMORANDUMS, ALONG WITH BACK-UP DOCUMENTATION, ARE DUE IN THE VILLAGE CLERK’S OFFICEBY 8:30 A.M. ON WEDNESDAY PRIOR TO THE CORRESPONDING MEETING (PER COUNCIL’S ADOPTED RESOLUTION

VILLAGE CLERK’S OFFICEON

60

jI VILLAGEOFRUIDOSO=RUIDOSO 313 Cree Meadows Drive =IZU!DQSO=

Ruidoso, NM 88345(877)700-4343 or (575)258-4343; Fax (575)258-5361


/iJJ Items for Village Manager’s Report must be turned in to the Deputy Manager by 5:00


Legal Review Completed (if applicable). frXL-ecL

pJ )4. Completed Task Order (All task orders for legal review must be approved by

Village Manager.



_____




All provided documents must be 86” x 11”, unless it is impossible to do so.



*Back_up Documentation could be, but is not limited to, any of the following corresponding items:






YOU RAVE ANY QUESTIONS, PLEASE CONTACT:ma Devine, CMC Bertha RandoLph, CMCunicipal Clerk Deputy ClerknaDevmne@;ruidoso-nm.gy BerthaRandoIphruIdoso-nm.gov

one Ext. 1002 Phone Ext. 1003

sued Date: 7/16/10)

61

VILLAGE OF RUIDOSO, NEW MEXICORESOLUTION NO. 2011-33

RELATING TO THE VILLAGE OF RUIDOSO, NEW MEXICO WATER SYSTEMIMPROVEMENT REVENUE BONDS, SERIES 2011; ESTABLISHING THE EXACTAGGREGATE PRINCIPAL AMOINT OF THE BONDS OF $570,000, MATURITY DATES,RATES OF INTEREST, REDEMPTION FEATURES AND PRICE WITH RESPECT TOSUCH BONDS IN ACCORDANCE WITH VILLAGE ORDINANCE NO. 2011-12 ADOPTEDON SEPTEMBER 27, 2011; APPROVING DOCUMENTS RELATING TO THE BONDS;AND RATIFYING ACTION PREVIOUSLY TAKEN IN CONNECTION THEREWITH.

WHEREAS, unless otherwise defined in this Resolution (hereinafter the “SaleResolution”) or the context requires otherwise, capitalized terms in this Sale Resolution have thesame meaning assigned to those terms in Section 1 of Village Ordinance No. 2011-12 (the “BondOrdinance” and together with the Sale Resolution, the “Bond Legislation”) adopted by theVillage Council (the “Council”) on September 27, 2011; and

WHEREAS, the Sale Resolution is adopted pursuant to the Bond Ordinance in order toapprove the terms, sale price and other matters with respect to the Bonds; and

WHEREAS, the Council has adopted the Ordinance which authorizes the issuance of theBonds and provides for the adoption of the Sale Resolution by the Council to approve specifictenns and documents relating to the issuance, delivery, sale and administration of the Bonds, andthe Sale Resolution is adopted by the Council for those purposes; and

WHEREAS, it is in the best interests of the Village to sell the Bonds to the Purchaserupon the terms as set forth in the Bond Legislation and the Bond Purchase Agreement; and

WHEREAS, Capital One Public Funding, LLC has agreed to purchase the Bonds at apurchase price of $570,000 and has presented a final Bond Purchase Agreement to the Councilsetting out the terms with respect to the purchase and sale of the Bonds for approval by theCouncil in connection with adoption of this Sale Resolution; and

WHEREAS, the Bond Purchase Agreement is on deposit with the Village and arepresented to the Council; and

WHEREAS, all required authorizations, consents and approvals of any governmentalbody, agency or authority in connection with (i) the use and pledge of the Net Revenues for thepayment of the Bonds, and (ii) the authorization, execution and delivery of the Bonds, which arerequired to have been obtained by the date on which the Sale Resolution is adopted have been orwill have been obtained;

63

BE IT RESOLVED BY THE COUNCIL, THE GOVERNING BODY OF THEVILLAGE OF RUIDOSO, NEW MEXICO:

Section 1. Ratification of Prior Actions and Awarding the Bonds. All actionpreviously taken (not inconsistent with the provisions of this Sale Resolution or the BondOrdinance) by the Council and the officers of the Village, directed toward the authorization,pledge, collection and distribution of the Net Revenues and the authorization, issuance and saleof the Bonds is ratified, approved and confirmed, and the Bonds are awarded to Capital OnePublic Funding, LLC, at the interest rates as described below:

SERIES 2011 MATURITY SCHEDULE

MATURITY(JUNE 1) PRINCIPAL INTEREST

2012 $70,000 3.20%2013 75,000 3.20%2014 80,000 3.20%2015 80,000 3.20%2016 85,000 3.20%2017 90,000 3.20%2018 90,000 3.20%

Section 2. Findings. The Council declares that it has considered all relevantinformation and data and makes the following findings:

A. The issuance of the Bonds under the Act to provide funds for the Project isnecessary and in the interest of the public health, safety, morals and welfare of the residents ofthe Village.

B. The net effective interest rate of 3.20% on the Bonds is reasonable underexisting and anticipated bond market conditions.

C. The Village will complete the Project with the proceeds of the Bondstogether with other funds of the Village.

D. It is economically feasible to defray, in part, the cost of the Project by theissuance of the Bonds.

Section 3. Bond Details.

A. Principal Amount. The Bonds shall be issued in one series in theaggregate principal amount of $570,000 to provide funds, together with other available funds ofthe Village, if any, to finance the Project and to pay Expenses relating to the issuance of theBonds.

64

B. Series Date; Registration. The Bonds shall be dated as of the date oforiginal issuance and delivery (the “Series Date”), and shall be issued in fully registered formonly, without coupons, and when issued will be registered in the name of Capital One PublicFunding, LLC, as registered owner of the Bonds, all as provided in the Bond Ordinance.

C. Interest Payment Date; Interest Rates; Maturities; Price. The Bonds shallbear interest, payable on June 1 and December 1 of each year beginning June 1, 2012 (the“Interest Payment Date”). The interest rates on the Bonds shall be the rates provided in Section1 herein. The final maturity of Bonds shall be June 1, 2018.

D. Record Date. The Record Date shall be the 15th day of the calendarmonth preceding each scheduled Interest Payment Date.

E. Optional Redemption. The Bonds shall not be subject to optionalredemption prior to maturity.

Section 4. Parameters of Resolution. The net effective interest rate on the Bonds isless than 12% per annum. The maturity dates of the Bonds do not exceed fifty years. All otherterms and conditions relating to the Bonds and the sale of the Bonds to the Purchaser set forth inthis Sale Resolution are within the parameters established by the Bond Ordinance.

Section 5. Accounts and Funds. The Village shall establish such Funds andAccounts as required by the Bond Ordinance and the net proceeds from the sale of the Bondsshall be deposited or used as follows:

A. The accrued interest of $-0- received on the date of delivery of the Bondsshall be deposited into the Bond Fund.

B. $570,000 shall be deposited in the Acquisition Fund for the Project.

Section 6. Approval and Use of Documents. The form, terms and provisions of theBond Purchase Agreement is on file with the Village Clerk and presented to the Council isratified and approved. The Mayor is authorized and directed to execute and the Village Clerk isauthorized and directed to affix the seal of the Village to and attest where applicable, the BondPurchase Agreement in substantially the form presented at this meeting, or with such changestherein as are not inconsistent with the Bond Legislation and as shall be approved by the Mayor,his execution thereof to constitute conclusive evidence of his approval of any and all changes orrevisions thereof from the form presented to the Council. The officers of the Village, includingwithout limitation, the Mayor, Manager and Clerk be, and they hereby are, authorized anddirected to take all action necessary or appropriate to effectuate the provisions of this SaleResolution, including, without limiting the generality of the foregoing, the distribution ofmaterial relating to the Bonds, the printing of the Bonds, and the execution of the Bond PurchaseAgreement and such other certificates as may be required by the Purchaser or bond counsel.

Section 7. Sale of the Bonds. The Bonds are hereby sold to Capital One PublicFinance, LLC, in accordance with the Bond Purchase Agreement at the total purchase price forthe Bonds as set forth in the preambles of this Sale Resolution.

65

Section 8. Bond Ordinance. Except with respect to the terms set forth in this SaleResolution, the Bonds are governed by the Bond Ordinance. In the event of any conflict in theterms of this Sale Resolution and Bond Ordinance, the terms of the Bond Ordinance shallprevail. The adoption of this Resolution, and all procedures undertaken incident thereto, are infull compliance and conformity with all applicable requirements, provisions and limitationsprescribed by the Constitution and laws of the state of New Mexico.

Section 9. Repealer Clause. All bylaws, orders and resolutions, or parts thereof,inconsistent with this Sale Resolution are repealed to the extent of such inconsistency. Thisrepealer shall not be construed to revive any bylaw, order or resolution, or part thereofpreviously repealed.

Section 10. Effective Date and Publication. This Sale Resolution shall be in full forceand effect immediately upon adoption and approval by the Council and its execution andapproval by the Mayor. A title and general summary of the subject matter contained in this SaleResolution shall be published in substantially the following form after adoption of this SaleResolution.

[Form of Summary of Sale Resolution for Publication]

Village of Ruidoso, New Mexico

Notice of Adoption of Sale Resolution

Notice is hereby given of the title and of a general summary of the subject mattercontained in Village Resolution No. 570,000 duly adopted and approved by the Ruidoso VillageCouncil on November 8, 2011, relating to the details of the Village’s Water System ImprovementRevenue Bonds, Series 2011 as authorized pursuant to its Ordinance No. 201 1-12 duly adoptedby the Council on September 27, 2011. Complete copies of the Sale Resolution are available forpublic inspection during the normal and regular business hours of the Village Clerk, 313 CreeMeadows Drive, Ruidoso, New Mexico.

The title of the Resolution is:

RELATING TO THE VILLAGE OF RUIDOSO, NEW MEXICO WATER SYSTEMIMPROVEMENT REVENUE BONDS, SERIES 2011; ESTABLISHING THE EXACTAGGREGATE PRINCIPAL AMOUNT OF THE BONDS OF $570,000, MATURITY DATES,RATES OF INTEREST, REDEMPTION FEATURES AND PRICE WITH RESPECT TOSUCH BONDS IN ACCORDANCE WITH VILLAGE ORDINANCE NO. 2011-12 ADOPTEDON SEPTEMBER 27, 2011; APPROVING DOCUMENTS RELATING TO THE BONDS;AND RATIFYING ACTION PREVIOUSLY TAKEN IN CONNECTION THEREWITH.

The title sets forth a general summary of the subject matter contained in the Resolution.

[End of Form of Summary for Publication]

66

PASSED, APPROVED, AND ADOPTED this 8th day of November, 2011.

VILLAGE OF RUIDOSO, NEW MEXICO

[SEAL] By_____________________Gus Raymond Alborn. Mayor

ATTEST:

By___________________Irma Devine, Village Clerk

67

Councilor moved adoption of the foregoing resolution, duly seconded byCouncilor

The motion to adopt said resolution, upon being put to a vote, was passed and adopted onthe following recorded vote:

Those Voting Aye:

Those Voting Nay:

Those Absent:

_____

() Councilors having voted in favor of said motion, the Mayor declared saidmotion carried and said ordinance adopted, whereupon the Mayor and Village Clerk signed theordinance upon the records of the minutes of the Council.

68

After consideration of the matters not relating to the resolution, the meeting on motionduly made, seconded and unanimously carried, was adjourned.

VILLAGE OF RUIDOSO, NEW MEXICO

[SEAL] By____________________________Gus Raymond Alborn, Mayor

ATTEST:

By_______________________Irma Devine, Village Clerk

-7

69

STATE OF NEW MEXICO )

COUNTY OF LINCOLN ) ss.

VILLAGE OF RUIDOSO )

I, Irma Devine, the duly qualified and acting Clerk of Ruidoso, New Mexico (the“Village”), do hereby certify:

I. The foregoing pages are a true, perfect, and complete copy of the record of theproceedings of the Council of the Village (the “Council”), constituting the governing board ofthe Village, had and taken at a duly called, open, regular meeting held in the Village Hall, 313Cree Meadows Drive, Ruidoso, New Mexico, on November 8, 2011, at the hour of 3:00 p.m.insofar as the same relate to the proposed bond issue, a copy of which is set forth in the officialrecords of the proceedings of the Village kept in my office. None of the action taken has beenrescinded, repealed, or modified.

2. Said proceedings were duly had and taken as therein shown, the meeting thereinwas duly held, and the persons therein named were present at said meeting, as therein shown.

3. Notice of said meeting was given by publishing the notice in a newspaper ingeneral circulation within the Village. Such notice constitutes compliance with one of thepermitted methods of giving notice of regular meetings of the Council as required by the openmeetings standards presently in effect.

IN WITNESS WHEREOF, I have hereunto set my hand this 15th day of November, 2011.


[SEAL]

K:’dox’client\74435\1 17\W1578679DOC

70

Consent ItemTo: Mayor Alborn and Public HearingCouncilors X Regular ItemBoard and Commission Appointments

Presenter: Nancy Klingman InformationalFinance Director Workshop Item

Items valued at $50,000.00 or greater mustMeeting Date: November 8, 2011 be placed as a regular tern

Re: Discussion and Possible Action on Adoption of Resolution 2011-34, aResolution to Adopt the Fund Balance Policy of the Village of Ruidoso.

Item Summary:

To adopt the Fund Balance Policy of the Village of Ruidoso.

Fund: NA LJ NA Budgeted $NA Available NAItem: Amount: Balance:

Item Discussion:

The Governmental Accounting Standards Board (GASB) has approved GASBStatement 54, which is effective for fiscal year 2011. GASB Statement 54 provides forclearly defined and uniform fund balance categories, specifies the appropriate use ofthe various governmental funds, and requires certain disclosures regarding fundbalance in the notes to the financial statements. GASB Statement 54 also providesguidance on the criteria for a fund balance policy.

The purpose of the Fund Balance Policy is to establish a key element of the financialstability of the Village, and in particular as it relates to the General Fund. Within theGeneral Fund, the chief operating fund of the Village, the unassigned fund balance is animportant measure of economic stability. It is essential that the Village maintainadequate levels of unassigned fund balance in the General Fund to mitigate revenuefluctuations and unanticipated expenditures. The goal of the Village will be to maintainan unassigned fund balance in the General Fund of 8.33%, or 1/12 of the annualbudgeted expenditures.

In order to comply with GASB standards, it is necessary for the Village of Ruidoso toimplement GASB Statement 54 and adopt a Fund Balance Policy for the Village whichis required to complete the Fiscal Year 2011 Audit.

There are four options that can be taken:1. Vote “Yes”; this will enable the VilIr “ adopt the Fund Balance Policy and

comply with GASB Statement 54. 71

1rAGENDA MEMORANDUM

Village of Ruidoso

2. Vote “No”; this will not allow the Village to adopt the Fund Balance Policy and theVillage will not comply with GASB Statement 54.

3. Vote to “Amend”; this could delay adoption of the Fund Balance Policy ad leavethe Village in non-compliance with GASB Statement 54.

4. Vote to “Table”; this could delay adoption of the Fund Balance Policy and leavethe Village in non-compliance with GASB Statement 54.

Voting for options 2, 3, or 4 will not only leave the Village in non-compliance with GASBStatement 54 but will also prevent the Fiscal Year 2011 Audit from being completed.

Recommendations:

Vote of “Yes” to adopt Fund Balance Policy.

AGENDA MEMORANDUMS, ALONG WITH BACK-UP DOCUMENTATION, ARE DUE IN THE VILLAGE CLERK’S OFFICE BY 8:30 AM ONWEDNESDAY PRIOR TO THE PRE-AGENDA MEETING FOR THE CORRESPONDING COUNCIL MEETING (PER COUNCIL’S ADOPTEDRESOLUTION #2011.02).

____________________

OFFICE ON:

(Revised 1/1 1/11)

72

JL1L.. VILLAGE OF RUIDOSO _JL[ZUID0S0 313 Cree Meadows Drive RLIIDOSQRuidoso, NM 88345

liii (877)700-4343 or (575)258-4343; Fax (575)258-5361 liii




Legal Ryiew Completed (if applicable).

_____

Completed Task Order (All task orders for legal review must be approved by/ ,/ Village Manager.



_____


/ Agreements/Contracts).

_____





*Back_up Documentation could be, but is not limited to, any of the following corresponding items:



presented. For Agreements/Contracts, 2 originals must be. submitted.



VOU HAVE ANY QUESTIONS, PLEASE CONTACT:ia Devine, CMC Bertha Randolph, CMCnicipal Clerk Deputy [email protected] BerthaRando1ph(rui,doso-nm.govne Ext. 1002 Phone Ext. 1003

ied Date: 7/16/10)

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74


A RESOLUTION TO ADOPT THE FUND BALANCE POLICY OF THEVILLAGE OF RUIDOSO.

The Village Council is informed that:

WHEREAS, the purpose of this policy is to establish a key element of thefinancial stability of the Village; and

WHEREAS, the unassigned fund balance in the General Fund is an importantmeasure of the economic stability of the Village; and

WHEREAS, it is essential that the Village maintain adequate levels ofunassigned fund balance in the General Fund to mitigate revenue fluctuations andunanticipated expenditures; and

WHEREAS, the goal of the Village is to maintain an unassigned fund balance inthe General Fund of 3112th of the annual budgeted expenditures.

NOW, THEREFORE, Be it resolved by the governing body of the Village ofRuidoso:

(I)That the Village will adopt the Village of Ruidoso Fund Balance Policy, attached

as Exhibit “A”, effective beginning immediately.

(II)THAT Village staff is hereby authorized to do all deeds as necessary in the

accomplishment of the herein above.

PASSED, APPROVED AND ADOPED THIS 8th DAY OF NOVEMBER, 2011.


SEALATTEST:


75

Village of Ruidoso

Fund Balance Policy

AUTHORITY:

Government Accounting Standards Board (GASB) Statement 54

PURPOSE:

The purpose of this policy is to establish a key element of the financial stability of theVillage of Ruidoso by setting guidelines for fund balance.

The Unassigned Fund Balance in the General Fund is an important measure of theeconomic stability of the chief operating fund of the Village. It is essential that theVillage maintain adequate levels of Unassigned Fund Balance to mitigate financial riskthat can occur from unforeseen revenue fluctuations, unanticipated expenditures, andsimilar circumstances.

DEFINITIONS:

Fund Balance— Fund balance is generally the difference between a fund’s assets and itsliabilities. An accounting distinction is made between the portions of fund balance thatare restricted and unrestricted. In accordance with GASB 54, fund balance in theGeneral Fund is reported in five categories:

1) Non-spendable fund balance — includes amounts that are not in a spendableform or are required to be maintained intact. Examples are inventory or long-term receivables.

2) Restricted fund balance — includes amounts that can be spent only for thespecific purposes imposed by creditors, grantors, contributors, or laws andregulations of other governments. An example is grants. ‘

3) Committed fund balance — include self-imposed limitations on amounts thatcan be used only for a specific purpose, set in place prior to the end of theperiod by a formal action of the Village’s highest level of decision-makingauthority. Commitments established by the Village Council may be changed orlifted only by an action of the Village Council, taking the same formal action thatimposed the original constraint.

4) Assigned fund balance — comprises amounts intended to be used by theVillage for specific purposes. Intent can be expressed by the Village Council, orby an official or body to which the Village Council delegates the authority. Ingovernmental funds other than the General Fund, assigned fund balancerepresents the amount that is not restricted or committed. This indicates that

77

resources in other governmental funds are, at a minimum, intended to be usedfor the purpose of that fund.

5) Unassigned fund balance — is the residual classification of the General Fundand includes all amounts not contained in other classifications. Unassignedamounts are technically available for any purpose. Unassigned Fund Balance isonly reported in the General Fund.

POLICY:

CommItted Fund Balance

- The Village Council is the Village’s highest level of decision-making authority.The formal action that is required to establish, modify, or rescind a fundbalance commitment is a resolution approved by the Council at a VillageCouncil meeting. The resolution must either be approved or rescinded, asapplicable, prior to the last day of the fiscal year for which the commitment ismade.

Assigned Fund Balance

- As provided in this Fund Balance Policy, the Village Council has approved theVillage Manager as an authorized official to assign fund balance to a specificpurpose.

MINIMUM UNASSIGNED FUND BALANCE:

It is the goal of the Village to achieve and maintain an Unassigned Fund Balance in theGeneral Fund equal to 8.33% or 1112th of budgeted expenditures. The Village considersa balance of less that8.330!o or 1112th to be cause for concern, barring unusual ordeliberate circumstances. The Village has set a goal to achieve 25% or 3112th ofbudgeted expenditures as the Unassigned Fund Balance.

In the event that the Undesignated Fund Balance in the General Fund is calculated tobe less than the policy requires, the Village shall plan to control operating expendituresand use budget surpluses in subsequent fiscal years to restore the balance. Theminimum Unassigned Fund Balance shall be restored within one to three fiscal years, aseconomic conditions allow. Except in extraordinary circumstances, the minimumUndesignated Fund Balance should not be used to fund any portion of the ongoing androutine year-to-year operating expenditures of the Village. It should be used primarilyto insure adequate designated reserves, to respond to unforeseen emergencies, toprovide cash flow, and to provide overall financial stability.

ORDER OF EXPENDITURE OF FUNDS:

When multiple categories of fund balance are available for expenditure (for example, aconstruction project is being funded partly by a grant, funds set aside by the VillageCouncil, and unassigned fund balance), thc ViIIige will start with the most restricted

78

category and spend those funds first before moving down to the next category ofavailable funds.

ADMINISTRATIVE RESPONSIBILITIES:

The Finance Director shall be responsible for monitoring and reporting the Village’svarious reserves. The Village Manager may make recommendations to the VillageCouncil on the use of unassigned funds both as an element of the annual operatingbudget submission and from time to time throughout the year as needs may arise.

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ount

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peci

fic

purp

oses

.

14.

Bot

hth

eco

mm

itted

and

assi

gned

fund

bal

ance

clas

sifi

catio

nsin

clud

eam

ount

sth

atha

vebe

enco

nstr

aine

dto

bein

gus

edfo

rSpe

cific

pur

pose

Sby

actio

nsta

ken

byth

ego

vern

men

titse

lf.H

owev

er,

the

auth

ority

for

mak

ing

anas

sign

men

tIs

not

fequ

ired

tobe

the

gove

rnm

ent’

shi

ghes

tle

vel

ofde

cisi

on-m

akin

gau

thor

ity.

Fur

ther

mor

e,th

ena

ture

ofth

eac

tions

nece

ssar

yto

rem

ove

orm

odify

anas

sign

men

tIs

not

aspro

scri

ptiv

eas

itis

with

rega

rdto

the

com

mitt

edfu

ndba

lanc

ecl

assi

fica

tion

.C

onst

rain

tsim

pose

don

the

use

ofas

sign

edam

ount

sar

em

ore

easi

lyre

mov

edor

mod

ifie

dth

anth

ose

Impo

sed

onam

ount

sth

atar

ecl

assi

fied

asco

mm

itted

.S

ome

gove

rnm

ents

may

not

haye

both

com

mitt

edan

das

sign

edfu

ndba

lanc

es,

asno

tal

lgover

nm

ents

hav

em

ulti

ple

level

sof

deci

sion

-mak

ing

auth

ority

.

15.

Ass

igne

dfu

ndba

lanc

ein

clud

es(a

)al

lre

mai

ning

amou

nts

(exc

eptf

orn

eg

at

bala

nces

,as

disc

usse

dIn

para

grap

h19

)th

atar

ere

port

edin

gove

rnm

enta

lfu

nds,

othe

rth

anth

ege

nera

lfu

nd,

that

are

not

clas

sifi

edas

nons

pend

able

and

are

notif

ier

rest

rict

edno

rcom

mitt

edan

d(b

)

amou

nts

inth

ege

nera

l fun

dth

atar

ein

tend

edto

beus

edfo

ra

spec

ific

purp

ose

inac

cord

ance

with

the

prov

isio

nsin

para

grap

h13

.By

repo

rtin

gpa

rtic

ular

amou

nts

that

are

not

rest

rict

edor

com

mitt

edin

asp

ecia

l rev

enue

,cap

ital p

roje

cts,

debt

serv

ice,

orpe

rman

ent

fund

,th

ego

vern

men

tha

sas

sign

op’ t

tose

arno

unis

toth

ep

ur

pose

sof

the

resp

ecti

vefu

nds.

Ass

ignm

ent

with

inth

ege

nera

lfu

ndco

nvey

sth

atth

ein

tend

edus

eof

thos

eam

ount

sis

for

asp

ecif

icpu

rpos

eth

atis

narr

ower

than

the

gene

ral

pur

pose

sof

the

gove

rnm

ent

itsel

f.H

owev

er,

gov

ernm

ents

shou

ldno

tre

port

anas

sign

men

tfo

ran

amou

ntto

asp

edti

cpu

rpos

eif

the

assi

gn

men

twou

klre

suft

inad

efic

itin

unas

sign

edfu

ndba

lanc

e.

16.

An

appr

opri

atio

nof

exis

ting

fund

bala

nce

toel

imin

ate

apr

ojec

ted

budg

etar

yde

fici

tin

the

subs

eque

ntye

ar’s

budg

etin

anam

ount

nogr

eate

rth

anth

epr

ojec

ted

exce

ssof

expe

cted

expe

nditu

res

over

expe

cted

reve

nues

satis

fies

the

crite

ria

tobe

clas

sifi

edas

anas

sign

men

tof

fund

bala

nce.

As

disc

usse

din

para

grap

h15

,as

sIgn

men

tssh

ould

not

caus

ea

defic

itin

un

assl

9ned

fund

bala

nce

tooc

cur,

(Jna

s*lp

idf

uno’

bala

nce

17.

Una

ssig

ned

fund

bala

nce

isth

ere

sidu

alcl

assi

fica

tion

for

the

gene

ral

fund

.T

hisd

assi

fica

tion

repr

esen

tsfu

ndba

lanc

eth

atha

sno

tbe

enas

sign

edto

othe

rfu

nds

arid

that

has

not

been

rest

rict

ed,

com

mltl

ed,.o

ras

slgn

ed.f

osp

eci

ficpu

rpos

esw

ithiri

the

gene

ralf

und.

The

gen

eral

fund

Shou

ldbe

the

only

fund

that

repo

rts

apo

sitiv

eun

assi

gned

fund

bala

nce

amou

nt.

Inot

her

gove

rnm

enta

lhi

nds,

ifex

pend

itur

esin

curr

edfo

rsp

ecif

icpu

rpos

esex

ceed

edth

eam

ount

sre

stri

cted

,co

mm

itted

,or

assi

gned

toth

ose

purp

oses

,it m

aybe

nece

ssar

yto

repo

rta

nega

tive

unas

sign

edfu

ndba

lanc

e,as

dis

cuss

edin

para

grap

h19

.

cfas

afly

b,g

hind

bala

nce

amou

nts

18.

Fund

bala

nce

clas

sifi

catio

nssh

ould

depi

ctth

ena

ture

ofth

e.ne

tres

ourc

esth

atar

ere

port

edin

ago

vern

men

tal

fund

.A

n.in

divi

dual

gove

rnm

enta

lfu

ndco

uld

incl

ude

nonsp

endab

lere

sour

ces

and

amou

nts

that

are

rest

rict

ed,

com

mitt

ed,o

r ass

igne

d,or

any

com

bina

tion

ofth

ose

clas

sifi

catio

ns.

Typi

cally

,th

ege

nera

lfu

ndal

sow

ould

incl

ude

anun

assi

gned

amou

nt. A

gove

rnm

ent

shou

ldde

term

ine

the

com

posi

tion

ofits

FU

ndB

alan

ceR

epo

rtln

gan

dG

ov

ern

men

tal

Fun

d1,

Def

initi

ons

GA

SB

S54

1178

5

GA

SB

S54

G6ta

is,a

nt

olS

idW

ds

‘si’

.:“s

erdng

kind

bala

nce

byap

plyi

ngits

aunti

ng

polic

ies

reg

gwhe

thor

Itco

nsid

ers

rest

rict

edor

unre

stri

cted

amou

nts

toha

vebe

ensp

ent

whe

nan

expe

nditu

reIs

incu

rred

for p

urpo

ses

for

whi

chbo

thm

stiic

ted

and

unre

stri

cted

(cor

rwnl

tte

d,as

sign

ed,

orun

assi

gned

)am

ount

sar

eav

aila

ble.

Sim

liady

, with

inui

’wCs

bict

edfu

ndb

alan

ce,

the

dass

ilca

tion

shou

ldbe

base

don

the

gove

rnm

ent’

sac

coun

ting

polic

ies

rega

rdin

gw

heth

erit

cons

ider

sco

mm

itted

,as

sign

ed,

ortin

assi

gnad

amou

nts

toha

vebe

enSp

ent w

htlfl

anex

pend

itur

eIs

!ncu

rrO

dfo

rpu

rpos

esfo

rw

hich

amou

nts

inan

yof

thos

eL#

iresl

ncte

dfu

ndba

lanó

eda

ssif

icat

idns

dx%

d’be

used

.a

emm

ent d

oes

note

stab

lish

apo

licy

for I

tsu

éof

unre

stri

cted

fund

bala

nce

amou

nts,

itsh

ould

cons

ider

that

com

mitt

edam

ount

sw

ould

bere

chce

dfir

st,fo

llow

edby

assi

gned

amou

nts,

and

(hen

unas

sign

edam

ount

sw

hen

expe

ndit

ures

are

incu

rred

for

purp

oSes

icr

wi*

ham

ount

sin

any

ofth

ose

unre

stri

cted

fund

bala

nce

cias

sifi

catio

rie

coul

dbe

used

.

rho

amou

ntth

atsh

ould

bere

port

edas

pend

abie

fund

bala

nce,

asde

scri

bed

inC.

71gr

aph

6,sh

ould

bede

term

ined

befç

ireci

asg

amou

nts

inth

ere

stri

cted

,co

mm

itte

d.an

das

sign

edfu

ndba

lanc

ecl

assi

fica

tions

,as

disc

usse

din

para

grap

h18

.In

ago

vern

men

tal

fund

othe

rth

anth

ege

nera

lfu

nd,

expe

nditu

res

incu

rred

fora

spec

lfic

purp

ose

mig

htex

ceed

the

amou

nlel

,th

efu

nd.t

hat

are

rest

rict

ed, c

omm

itte

d,an

das

sign

edto

that

purp

ose

andafle

tive

resi

dual

bala

nce

for

that

purp

ose

may

resu

it.If

thato

ccur

s,am

ount

sas

sign

edto

Oth

erpu

rpos

esin

that

fund

shou

ldbe

rOuc

edto

elim

inat

eth

ede

fici

t Ift

here

mai

ning

dot ic

itel

imi

nate

sal

loth

eras

sign

edam

Oun

tsin

the

fund

, or

ifth

emar

eno

Smou

nts

assi

gned

tobt

her’

pur

pose

s,th

ene

gativ

Sre

sidu

alan

toun

tsh

ould

becl

assi

fied

asun

assi

gned

fund

bala

fice

.In

the

gene

ral f

und,

asim

ilar

nega

tive

resi

dual

amou

ntw

ould

have

been

elim

inat

edby

redu

cing

unas

sign

edfu

ndba

lanc

epu

rsua

ntto

the

polic

yd

osc

ribe

din

para

grap

h18

Ane

gati

vere

sidu

alam

ount

shou

ldho

tbe

repo

rted

for

rest

rict

ed,

com

mitt

ed,

oras

sign

edfu

ndba

lanc

esin

any

fund

.

Sta

bili

zati

onar

mn

g.m

ents

20.

Som

ego

vern

men

tsfo

rmal

lyse

tas

ide

amou

nts

for

use,

inem

erge

ncy

situ

atio

nsor

whe

nre

venu

esh

orta

ges

orbu

dget

a,y

imba

lan

ces

aris

e.T

hose

amou

nts

are

subj

ect t

oco

ntr

ols

that

dict

ate

the

circ

umst

ance

sun

der

whi

chth

eyca

nbe

spen

tM

any

gove

rnm

ents

have

for

mal

arra

ngem

ents

tom

aint

ain

amou

nts

for

budg

etor

reve

nue

stab

liiza

tlon,

1w

oddn

git

al

nee

ds.

cont

inge

ncie

sO

rem

ere

ndes,

and

othe

rsl

iNla

dytil

ted

purp

oses

. The

auth

ority

tose

tas

ide

thos

eam

ount

sge

nera

llyco

meS

from

stat

ute,

ordi

nanc

e,re

sohf

flon

, cha

rter

, oro

&ts

titu

tlon.

Sta

bza

tlon

amou

nts

may

beex

pend

edon

lyw

hen

cert

ain

sped

? Ic

curn

stan

ces

edst

.T

hefo

rmal

actio

nth

atim

pose

sth

epa

ram

eter

sfo

rsp

endi

ngSh

beld

iden

tify

and

déSC

iibS

the

spec

ific

circ

usis

tan

Os

unde

rw

hich

‘abe

for

stat

liza

tio

nar

ises

: Tho

seci

rcu

rrta

ncS

Ssh

ould

besu

chth

atth

eyw

ould

not b

eex

pect

edto

occu

rro

utin

ely.

For

exam

j2le

,a

st2bati

on

amou

ntth

atca

nbp

acce

sOd

‘11’

Win

er

genc

y”w

ould

not

qual

ityto

becl

assi

fied

with

inth

eco

mm

itle

dca

tego

rybe

caus

eth

eci

rcum

stan

ces

orco

nditi

ons

that

cons

titut

eap

emer

genc

yar

eho

tsu

ffic

ient

lyde

taile

d.an

dit

isno

tun

like

lyth

atan

“em

erge

ncy”

ofso

me

natu

rew

ould

rout

inel

yoc

cur.

Sim

ilarly

,a

stab

Wza

tion

amou

ntth

atca

nbe

acce

ssed

toof

fset

an“en

ticlp

ated

reve

nue

shor

tfal

l”w

ould

notq

ualit

yun

Iess

.the

shor

tfal

lw

asqu

anti

fied

and

was

ofa

mag

nitu

deth

atw

ould

dist

ingu

ish

itfr

omot

her

ortfaits

that

occu

rdu

ring

the

.ner

mal

cour

seof

gove

rnm

enta

l ope

ratio

ns.

21.

For t

hepu

rpos

esof

repo

rtin

glu

ridba

lanc

e,st

abili

zatio

nis

cons

ider

eda

sped

ttc

pulp

ose,

asdi

scus

sedi

npa

ragr

aphS

. Sta

biliz

atio

nam

ount

ssh

ould

b.

repo

rted

inth

ege

nera

l fun

das

rest

udie

dor

com

mitt

edif

they

mee

t the

ciut

eria

set

fort

hin

parr

ap

lis

8-11

,b

ased

on

ttie

sour

ceof

the

cofl

etra

int

onth

eir

use.

Stab

iliza

tion

ar

rang

emen

tsth

atdo

not

mee

tth

ecr

iteri

ato

bere

port

edw

ithin

the

rest

riCte

dor

com

mitt

edfu

ndba

lanc

ecl

assi

fica

tion

ssh

ould

bere

port

edas

unas

sign

edin

the

gene

ral

fund

.A

stab

iliza

tion

arra

ngem

ent

wou

ldsa

tisfy

the

crite

riato

bere

port

edas

ase

para

tesp

ecia

lre

venu

efu

ndon

ts

ifth

ere

sour

ces

deri

vefr

oma

spec

ific

rest

rict

edor

com

mitt

edre

venu

eso

urce

,as

requ

ired

bypa

ragr

aph

30.

Dis

play

ing

fund

bala

nce

clas

sifI

catI

ons

onth

efa

ceof

the

bala

nce

shee

ts

22.

Am

ount

sfo

rth

etw

oco

mpo

nent

sof

non

spen

dabl

efu

ndba

lanc

e—(a

)no

tin

spen

dabl

efo

rman

d0’

)leg

ally

orco

ntra

ctua

llyre

quir

edto

bem

aint

aine

dIn

tact

—as

desc

ribe

din

par

agr

aph

6,m

aybe

pres

ente

dse

para

tely

,or

non-

spen

dabl

efu

ndba

lanc

em

aybe

pres

ente

din

the

aggr

egat

e.R

estr

icte

dfu

ndba

lanc

em

aybe

disp

laye

din

am

anne

rth

atdi

stin

guis

hes

be

twee

nth

em

ajor

rest

rict

edpu

rpos

es,

orit

may

bedi

lspt

ayed

inth

eag

greg

ate.

Sim

ilarly

, Spe

cific

purp

oses

info

rmat

ion

for

com

mitt

edan

das

sign

edfu

ndba

lanc

esm

aybe

ctep

laye

din

suf I

tde

ntde

tail

soth

atth

em

ajor

com

mitm

ents

and

assi

gnm

ents

are

evid

ent t

oth

efi

nanc

ialst

ate

men

tus

er,

orea

chcl

assi

fica

tion

may

bed

ispl

ayed

inth

eag

greg

ate.

Fund

aala

nce

DIs

clo

sure

s

Fund

bala

nce

clas

sifi

catio

npo

licie

san

dpre

c.dw

es

23.

Gov

ernm

ents

shou

lddi

sclo

seth

efo

llow

ing

abou

tth

eir

fund

bala

nce

clas

sifi

catio

npo

licie

san

dpr

oced

ures

inth

eno

tes

toth

efi

nanc

ial

stat

emen

ts:

a.Fo

rco

mm

ifte

dfun

dba

lanc

e:(1

)th

ego

vern

men

t’s

high

est

leve

lof

deci

sion

-mak

ing

au

thor

ityan

d(2

)th

efo

rmal

actio

nth

atis

isqu

ired

tobe

take

nto

esta

blis

h(a

ndm

odif

yor

resc

ind)

afu

ndba

lanc

eco

mm

itmen

tb.

For

assi

gned

fund

bala

nce:

(1)

the

body

orof

ficia

lau

thor

ized

toas

sign

amou

nts

toa

spec

ific

pu

rpo

sean

d(2

)th

epo

licy

esta

bli

shed

byth

ego

vern

ing

body

purs

uant

tow

hich

that

auth

oriz

atio

nis

give

nc.

For t

hecl

assi

fica

tion

offu

ndba

lanc

esin

ac

cord

ance

with

para

grap

h18

:(1)

whe

ther

the

gove

rnm

ent

cons

ider

sre

stri

cted

orun

rest

rict

edam

ouri

tsto

have

been

spen

twhe

nan

expe

nditu

reIs

incu

rred

for

purp

oses

for

whi

chbo

thre

stri

cted

and

unre

stri

cted

fund

bala

nce

Isav

aila

ble

and

(2)w

heth

erco

mm

itte

d,as

sign

edor

unas

sign

edam

ount

sar

eco

nsid

ered

toha

vebe

ensp

entw

hen

anex

peri

citu

reis

incu

rred

for

purp

oses

for

whi

ch

Rep

ort

ing

ncu

mbra

nce

s

24.

For

gove

rnm

ents

that

use

encu

mbr

ance

acco

untin

g,si

gnif

ican

ten

cum

bran

ces

shou

ldbe

disc

lose

din

the

note

sto

the

finan

cial

stat

em

ents

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the

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29-3

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30.

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31.

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Cppic

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year

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port

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natu

reof

the

info

rm

atio

nan

dth

ere

port

ing

requ

irem

ents

with

inth

ege

nera

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cept

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coun

ting

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cipl

es(G

AA

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r sta

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over

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ts.

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rese

arch

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reve

aled

issu

es

,-%J

igot

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fect

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for m

eetin

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that

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rted

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the

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som

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iatl

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ayno

t be

suita

ble

for

41.

Bas

edon

thes

efl

edin

gs,

the

proj

ect

was

mov

edto

the

GA

SB’s

curr

ent a

gen

da

inD

ece

mbe

r20

03,

and

deli

bera

tion

sbe

gan

inJa

nu

sty

2004

.In

,Jun

e20

04,

the

GA

SS

deci

ded

topu

rsue

addi

tiona

lre

sear

cho

fund

bala

nce

repo

rtin

gan

dcr

eate

da

sepa

rate

proj

ect

onth

enet

asse

t Iss

uea.

The

net a

sset

repo

rtin

gpr

ojec

tul

timat

ely

led

toth

eis

suan

ce,

InD

ecem

ber

2004

,of

Sta

tem

ent

No.

46;

Net

Ass

ets

Re

scfe

db

yE

nab

thig

Le,

Jatj

o,

42.

The

obje

ctiv

esof

the

kind

bala

nce

repo

rtin

gpr

ojec

t wer

eto

cons

ider

whe

ther

repo

rtin

gre

quir

emen

tsre

late

dto

fund

bal

ance

ad

eqia

rtel

ym

etth

ene

eds

offi

nanc

ial

stat

emen

tus

ers

and

toco

ntem

plat

epo

tent

Ial c

hang

esth

atw

ould

impr

ove

the

usef

ulne

ssof

fund

bala

nce

info

rmat

ion.

Bec

ause

itw

asap

pare

ntth

atth

equ

ality

offu

ndba

lanc

ein

form

atio

nis

affe

cted

byth

ety

pes

offu

nds

inw

hich

reso

urce

sar

ere

port

edan

dby

the

circ

umst

ance

sun

der

whi

chre

sour

ces

flow

betw

een

hind

s,th

epr

ojec

tal

soco

nsid

ered

clar

ific

atio

nsto

the

defi

nitio

nsof

gove

rnm

enta

l fun

dty

pes.

43.

Fort

yin

terv

iew

sw

itha

mbc

twe

ofty

pes

ofus

ers

wer

eco

nchj

c*ed

onfu

ndba

lanc

eis

sues

Inth

ela

tterh

afl o

f 200

4.T

hein

teM

ows

soug

htan

swer

sto

fund

amen

tal

ques

tion

ssu

chas

wha

tfu

ndba

lanc

ein

form

atio

nw

asus

edto

rw

hat

part

sof

fund

bala

nce

wer

em

ost

impo

rtan

t,w

hat t

hepe

rcei

ved

prob

lem

s wer

ein

usin

gfu

ndba

lanc

èlnf

omia

tion,

and

wha

t pre

fere

nces

exis

tre

gard

ing

how

Mid

bala

nce

shou

ldbe

repo

rted

.A

lthou

ghth

ein

terv

iew

subj

ects

offe

red

ava

riet

yof

reas

ons

why

they

use

fund

bala

nce

info

rma

tion,

thei

ran

swer

sm

aybe

dist

illed

asfo

llow

s:U

sers

wan

tto

asse

ssa

gove

rnm

ent’

sfi

nanc

ial

flexi

bhut

yor

liqu

idly

spec

ific

ally

asit

rela

tes

toth

eav

aila

bilit

yof

curr

ent

fina

ncia

lre

sour

ces.

How

ever

,man

yex

pres

sed

frus

trat

ion

inth

eire

tfo

rts

tom

ake

that

asse

ssm

ent

for

seve

ral

rea

sons

,ind

udin

gdi

ffer

ence

sin

the

fund

sth

atgo

ver

nm

ents

Cho

ose

tore

port

and

impe

rfec

tun

ders

tand

ing

amon

gus

ers

offu

ndba

lanc

ete

rmin

olog

y

44.

Follo

win

gco

mpl

etio

nof

this

ph

ase

ofre

sear

ch,

disc

ussi

ons

offu

ndba

lanc

eIs

sués

fesu

med

inJu

ly20

05.

Ove

rth

een

suin

g15

mon

ths,

the

GA

SSex

amin

edth

ein

form

atio

nan

dfe

edba

ckco

llect

edfr

omits

rese

arch

and

deve

lope

dan

Invi

tatio

nto

Com

men

t,F

und

Bal

ance

Rep

ortin

gan

dG

over

nmen

tal

FUnd

Type

Def

initi

ons,

toso

licit

cons

titu

ents

’vle

ws

and

pref

eren

ces

ona

vari

ety

ofIs

sues

.E

adin

the

GA

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disc

ussi

ons

lead

ing

toth

eIn

vIta

tion

to

Ccm

me

the

Boa

rdde

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ikie

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atad

dre

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gfu

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wou

ldre

quir

eno

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prov

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cate

gori

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chfu

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ew

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esh

eet

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ndty

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vern

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hat

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urce

sar

ere

port

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the

vari

ous

type

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gove

rnm

enta

lfu

nds.

As

are

sult,

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Invi

tatio

nto

Com

men

tco

nsid

ered

two

dist

inct

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ompl

emen

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ap

proa

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nce

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nitio

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ive

met

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ngan

dre

port

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com

pone

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offu

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e.

45.

Ata

skfo

rce

was

asse

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mpr

isIn

g13

pers

ons

broa

dly

repr

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veof

the

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cons

titue

ncy.

The

task

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dco

mm

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rth

eB

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ent

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sequ

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Exp

osur

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raft,

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Bal

ance

Rep

ort

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dTy

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efin

ition

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addi

tion,

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vera

lst

ages

ofth

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t,In

put

was

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htfr

omth

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over

nmen

talA

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ards

Adv

isor

yC

ounc

il.

46.

The

Invi

tatio

nto

Com

men

twas

mad

eav

ail

able

inO

ctba

r20

06.

Nin

ety-

five

resp

onse

sw

ere’

reca

ived

.The

com

men

tsan

dsu

gges

tions

fràm

the

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and

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als

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resp

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Invi

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but

edto

the

Boa

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erat

ions

lead

ing

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eis

suan

ceof

anE

xpos

ure

Dra

ftof

prop

osed

stan

dard

sIn

4prM

2006

.

47;

FB

iati

ette

isw

ere

aica

ived

inre

spor

we

toth

eE

xpos

ure

Dra

ftan

deI

giit

irdv

kkja

isor

Org

aniz

atio

nste

ittlff

edat

apu

blic

hear

ing

held

inK

ansa

sCi

ty,

Mis

sour

iin

July

2008

.Tw

enty

-sIx

gove

rn-

man

ia,c

ompo

sed

of5ses,

8co

untie

S,10

dtie

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d3

spec

ialc

hstri

osvo

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cled

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BA

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FOR

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ND

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AR

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EMB

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NT

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49.

Thr

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the

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oris

lead

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tion

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omm

ent,

the

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rdw

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term

ined

tolim

itth

esc

ope

ofth

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ojec

tto

only

fund

bala

nce

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sifi

catio

nan

ddi

spla

yis

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ltim

atel

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er,

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aspe

rsua

ded

that

apa

thfo

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dto

war

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gth

efu

ndba

lanc

ere

port

ing

issu

esm

ight

in-

dude

impr

ovin

gth

eco

nsis

tenc

yin

how

gove

rnm

enta

lfu

ndty

pos

wer

ere

port

ed.

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ever

,ra

ther

than

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nga

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per’

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ct,

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ecia

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tal

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ects

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type

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nce

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cope

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pede

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.

50.

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hof

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ive

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ific

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tions

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ede

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ego

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men

talf

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type

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opos

edin

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Invi

tatio

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tw

ould

have

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lted

inso

me

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lof

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ts,

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fund

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heB

oard

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ider

edth

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nce

rns

expr

esse

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out

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proj

ect

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eto

get

her

with

oth

erco

mm

ents

from

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ause

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51.

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tion

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4,as

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52.

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appr

oach

wou

ldbe

tocl

arify

the

mea

ning

sof

the

exis

ting

com

pone

nts

offu

ndba

lanc

ean

ded

ucat

eco

nstit

uent

sab

out

thos

ene

wly

clar

ifie

dco

mpo

nent

san

d)t

hey

belie

veth

atit

wou

ldbe

adva

ntag

eous

tore

tain

fam

iliar

term

inol

ogy

and

that

the

intr

oduc

tion

ofne

wte

rms

wou

ldse

rve

mor

eto

conf

use

than

clar

ify.H

owev

er,s

uppo

rter

sof

Mod

elB

appr

eci

ated

itsus

eof

“und

erst

anda

ble”

term

s,as

did

prop

onen

tsof

Mod

elC.

The

Boa

rdfo

und

itin

for

mat

ive

toco

ntr

ast

the

sent

imen

tsof

the

sup

port

ers

ofM

odel

Bor

Cto

the

view

sex

pres

sed

byth

ose

pro

ponen

tsof

Mod

el’A

who

favo

red

that

appr

oach

beca

use

ituse

dfa

mili

arte

rms.

Sim

ilarl

y,th

eB

oard

com

pare

dth

eco

nten

tion

that

Mod

elB

empl

oys

un

der

stan

dab

lete

rms

with

the

com

men

tsby

som

eM

odel

Asu

ppot

-ter

sth

atth

ete

rms

inth

eot

her

appr

oach

es(B

and

C)w

ould

beco

nfus

ing

tous

ers.

53.

The

char

acte

rist

icof

the

Mod

elC

appr

oach

that

was

mos

tcom

mon

lyem

brac

edby

the

Invi

tatio

nto

Com

men

tre

spon

dent

sw

asits

per

ceiv

edco

nsis

tenc

y;th

atis

,th

eyfa

vore

dth

eco

nsis

tent

use

ofth

esa

me

clas

sifi

catio

nre

gard

less

ofth

efu

ndor

colu

mn

inw

hich

Itis

’use

d,

asw

ell

asth

eco

nsi

sten

cyw

ith

the

res*

ricte

dAsi

rest

rlcte

ddi

atin

ctio

nine

dein

pro

pri

etai

yhi

nds

and

the

gove

mm

ent-

wid

esta

tem

ent

ofne

tass

ets.

54.

Alth

ough

InV

itatio

nto

Com

men

tre

spond

ents

may

have

expr

esse

da

p?ef

erei

icef

ora

part

icul

arm

odel

, man

yal

sore

ferr

edto

aspe

cts

ofth

eot

her

mod

els

that

they

belie

vem

aypro

vide

Impo

rtan

tIn

fOrm

atio

n.T

hus,

rath

erth

anpu

rsui

ngan

yof

the

thre

eaf

tem

atrv

es,

asse

tfo

rth

inth

eIn

vita

tion

toC

omm

ent,

the

Boa

rdcö

hdlu

ded

that

the

mos

tef

fect

ive

ap),

roac

hw

ould

beto

sh’n

ulta

neou

sly

cons

ider

(a)w

hatI

nfo

rmat

ion

Isim

port

ant t

ou

&s

and

(b)

theh

atu

reor

char

acte

rof

the

reso

te’c

esre

port

edin

gove

rnm

enta

lfun

ds.

55,

The

mos

tfr

eque

ntly

arti

cula

ted

need

(pni

man

lyfrO

mcr

edit

mar

ketu

sers

)Is

toac

hiev

ean

unde

rsta

ndin

gab

out

avai

labi

lity

orliq

uidi

tyof

the

net

curr

entf

inan

cial

reso

urce

sth

atco

nst

itin

efu

ndba

lanc

e.T

hose

user

sw

antt

okn

owab

out

the

char

acte

rdl

‘res

idua

lam

aunt

s.T

hey

wan

tto

know

the

exte

ntfo

whI

chth

eus

eof

amou

nts

repo

rted

Ingo

vem

men

talf

unds

Is-c

onst

rain

edan

dho

wbi

ndin

gth

ose

cons

frai

nts

are.

Are

they

enfo

rcea

ble

bypa

rtie

sex

tern

W,to

the

gove

rnm

ent?

Doe

sth

ego

vern

men

tits

elf

have

the

abili

tyth

roug

hso

me

spec

ifie

dle

vel

ofdu

epr

oces

sto

rem

ove

orm

odify

the

cons

trai

nts?

Or

are

they

less

-bin

ding

orev

enno

nbin

ding

con

stra

ints

that

are

sim

ply

indi

catio

nsof

man

age

men

t’s

inte

ntto

use

reso

urce

sfo

r’sp

ecif

icp

ur

pose

s,w

ithm

anag

emen

tha

ving

the

pow

erto

chan

geth

eir

Inte

ntio

nsth

roug

ha

less

dlgc

xous

pro

cess

?T

hat

info

rmat

ion,

the

Boa

rdcon

chid

ed,

wou

ldpr

obab

lybe

stbe

depi

cted

byus

ing

term

inol

ogy

that

isap

plie

dco

nsIs

tent

lyin

each

ofth

ego

vern

men

talf

unds

..

5T

heB

oar

dac

keI

edged

wt-

the

gehe

iW,

sped

ahev

anue

,cap

italp

nple

cts,

andd

ebts

erv

ice

fund

type

sat

ceul

din

dudd

amou

nts

that

are

rest

rict

edto

asp

ecif

icus

e(a

sde

fine

dby

Sta

tem

ent3

4,as

’am

ende

d),c

omm

itted

toa

spec

ific

use

byth

ego

vern

men

t’s

own

actio

ns,a

ssig

ned

toa

spec

ific

use

byth

ego

vern

men

t,or

any

com

bina

tion

ofth

eth

ree

clas

sifi

catio

ns.A

ccor

din

gly,

the

Boa

rdco

ndüd

edth

atto

resp

ond

toth

ene

edfo

rin

form

atio

nab

out’

avaI

Iabi

ll4fu

ndba

lanc

esh

ould

becl

assi

fied

and

disp

laye

din

am

anner

that

will

reve

alto

read

ers

whe

ream

ount

sIn

thos

ecl

assi

fica

tions

are

repo

rted

.B

ecau

seth

ose

fund

type

sha

veso

me

flexi

bilit

yw

ithre

gard

toth

eam

ount

sth

atca

nbe

repo

rted

inth

em,

sim

ply

know

ing

that

amou

nts

are

repo

rted

ins

part

icul

artu

ndty

peor

cduf

nn’m

ayno

the

lpre

ader

sin

thei

ras

sess

men

tof

avai

labi

lity

57.

Tald

nig

into

cons

ider

atio

nth

ein

put r

ecei

ved

from

the

Invi

tatio

nto

Com

men

tre

spon

dent

san

dth

eco

mm

ents

and

pref

eren

ces

expr

esse

dby

Inte

rvie

wee

san

dsu

rvey

part

icip

ants

,th

eB

oard

conc

lude

dth

atth

ere

quir

edco

mpo

nent

sof

fund

bala

nce

shou

idcl

earl

ydi

stin

guis

hth

eva

riou

sle

vels

ofco

nstr

aint

s tha

tare

impo

sed

onits

use.

Inde

velo

ping

the

Exp

osur

eDr

aft,’

the

Boa

rdag

reed

that

the

appr

oach

shou

ldfir

stdis

tingu

ish

betw

een

amou

nts

that

are

nons

pend

able

and

those

that

are

spen

dabl

e,an

dth

enpr

ovid

ea

furt

herb

reak

dow

nba

sed

onth

edi

ffer

ent

leve

lsof

cons

trai

nts.

Fun

dba

lanc

ecl

assi

fica

tions

58.

Som

eE

xpos

ure

Dra

ft’r

espo

nden

tsco

rnm

ente

dth

atfi

nanc

ial

stat

emen

tus

ers

unde

rst

and

the

exis

ting

fund

bala

nce

cate

gofl

ésan

dth

atsh

arpe

ning

those

defi

niti

ons

and

reed

ucat

ing

use

rsw

ould

bea

pref

erab

leap

proa

chto

the

chan

ges

prop

osed

inth

eE

xpo

sure

Dra

ft.

The

GA

SB’s

subs

tant

ial

body

ofre

sear

ch,t

here

sults

ofw

tiicl

i wer

esu

mm

ariz

edin

both

the

invi

tatio

nto

Com

men

tand

the

Exp

osu

reD

raft,

char

acte

rize

dth

est

atus

ofus

erco

mpr

ehen

sion

offu

ndba

lanc

ein

form

atio

nun

der

the

exis

ting

stan

dard

sto

besu

chth

atch

ange

wou

ldbe

adva

ntag

eous

The

argu

men

tfro

mre

spon

dent

sth

atus

ers

unde

rsta

ndth

eex

istin

gfu

ndba

lanc

eca

tego

ries

may

beac

cura

tein

thei

rsp

ecif

icca

ses;

how

ever

that

gene

rali

ze-

lion

Isno

tbo

rne

out

byth

eB

oard

’sre

sear

chre

sults

.

59.

Oth

erre

spon

dent

sar

gued

that

rest

ruct

urin

gth

epr

esen

tati

onof

fund

bala

nce

isin

consi

ste

ntw

ithst

ated

user

s’n

eed

sin

oth

erG

AS

8

stan

dard

s,T

hey

refe

rred

todi

scus

sion

sin

par

agr

aphs

417

and

418

ofth

eB

asis

for

Concl

usi

ons

sect

ion

ofS

tate

men

t34

toill

ustr

ate

thei

rpo

int.

Tho

sepa

ragr

aphs

stat

eth

atth

eB

oard

belie

ves

that

the

dist

inct

ion

betw

een

rese

rved

and

unre

serv

edfu

ndba

lanc

e“p

rovi

des

info

rm

atio

nth

atus

ers

nave

cons

iste

ntly

deem

edim

port

ent

and

usef

ul”

and

that

‘inf

orm

atio

nab

out

amou

nts

that

are

‘ava

ilabl

efo

rap

prop

riat

ion’

has

alw

ays

been

rega

rded

asve

ryus

eful

bygo

vern

men

tal f

inah

clal

stat

emen

t ufi

ers”

Dur

ing

the

deve

lopm

ento

fSta

tem

ent3

4,th

eB

oard

did

not

have

the

bene

fit

ofth

efu

ndba

lanc

eus

erne

eds

rese

arch

that

was

subs

eque

ntly

con

duct

edin

conn

ect i

onit

hth

isS

tatm

ent.

The

refo

re,

the

refe

renc

esto

user

nøed

san

dto

the

impo

rtan

cean

dus

eful

ness

ofth

eex

istin

gfu

ndba

lanc

edi

spla

ym

etho

dsin

Stat

emen

t34

wer

eba

sed

onlo

ng-s

tand

ing

impr

essi

ons

and

gene

ral

rese

arch

disc

ussi

ons

with

fina

ncia

lst

atem

entu

sers

that

wer

ehe

lddu

nng

the

deve

lop

men

tof

Sta

tem

ent

34.T

heB

oard

’sm

ore

rece

ntre

sear

chfo

und

that

the

info

rmat

ion

that

us

ers

“ccn

slst

enlly

deem

edim

port

ant a

ndus

eful

”w

asno

tw

haf

was

-act

ually

bein

gde

liver

edto

them

inm

any

inst

ance

s.,T

here

sear

chre

sults

high

light

edin

para

grap

h39

inth

eB

ackg

roun

dse

ctio

nof

this

Sta

tem

ent

reaf

firm

sth

eno

tion

that

fund

bala

nce

info

rmat

ion

isve

ryim

port

ant

but

conc

lude

sth

at“t

here

are

cons

ider

able

dif

fere

nces

inth

ew

ayth

atus

ers

inte

rpre

tfun

dbal

ance

info

rmat

ion

and

wid

espr

ead

conf

usio

nab

out

the

natu

reof

the

info

rmat

ion

and

the

repo

rtin

gre

quir

emen

tsw

ithin

the

gene

rally

ac

cept

edac

coun

ting

prin

cipl

esfo

rst

ate

and

loca

lgo

vern

men

ts.”

60.

Inls

cuss

ion

sle

adin

gto

the

Exp

osur

eD

raft,

theB

oard

cons

ider

edth

esi

gnif

ican

ceof

jhe

stat

emen

tfr

ompar

agra

ph417

ofS

tate

mon

t34

that

“inf

orm

atio

nab

outa

mou

nts

‘ava

ilab

lefo

rap

prop

riat

ion’

has

alw

ays

been

rega

rded

asve

ryus

eful

bygo

vern

men

talf

inan

cial

stat

emen

tus

ers.

”lt

was

dete

rmin

edth

atto

rega

rdun

rese

rved

fund

bala

nce

aseq

uiva

lent

toav

aila

ble

for

appr

opri

atio

nw

aspo

tent

laqy

mis

lead

ing

beca

use

rese

rved

amou

nts

are

alsO

“ava

ilabl

efo

rap

prop

niah

ot”

toth

eex

tent

that

they

can

beap

prop

riat

edfo

rth

epu

rpos

esfo

rW

hich

they

have

been

‘res

erve

d.W

hen

Sta

tem

ent

34w

asIs

sued

,th

eB

oard

did

not’

have

asu

ffic

ient

baSi

sfo

rpr

opos

ing

chan

ges

tofu

ndba

lanc

ere

port

ing

atth

attim

e,bu

tsi

nce

that

Fund

Bal

ance

Rep

ort

lng*nd

Gover

nm

enta

l Fund

Typ

eD

efin

itio

nsG

ASB

S54

1179

211

793

GA

SBS5

4

time,

rese

arch

hasp

rovl

dedc

ompe

flin

gre

ason

sfo

r the

noIt

och

ange

.

Con

flIc

wiw

g,ow

talg

sgag

ency

61.

Som

ere

spon

dent

sto

the

Exp

osur

eD

raft

poin

ted

out t

hat s

ome

gove

mro

pnts

are

subj

ect

tore

quir

emen

tsto

esta

blis

h‘p

eO,v

esor

toatt

im

itre

port

sth

atin

clud

eIn

form

atio

nba

sed

onex

istin

gfu

ndba

lanc

eda

sslil

catlo

ns, T

hey

are

Con

cern

edth

atre

port

ing

new

dass

iflc

atlo

nöof

fund

bala

nce

wou

ldco

nflic

tw

ithth

est

atut

ory

and

regu

lato

ryre

quir

emen

tsth

eyfo

llow

.T

heB

oard

isse

nsiti

veto

thes

eco

ncer

nsbu

tb

elo

ves

tilat

ifsp

ecif

ictis

pect

sof

GA

AP,

asm

aybe

inco

rpoi

pted

mst

auory

or r

dgul

atoi

yre

port

kig,

coti

dno

t be

chan

ged,

itW

ould

sign

ific

antly

unde

rmin

eef

fort

sto

Impr

ove

fina

ncia

lre

po

rtin

g;Fu

rthe

rmor

e,’t

heB

oard

dâes

nOt a

gree

thàt

the

new

fund

bala

nOe

clas

sifi

catio

nsca

nnO

tm

oot

mos

tcu

rren

tst

atut

ory

and

regu

lato

ryre

port

ing

need

s,Fo

r exa

mpl

e,a

stat

ute

that

reg

ola

tes

the

esta

blis

hmen

t,fu

ndin

g,an

dus

eof

ree

bylo

cal

gove

rnm

ents

wou

ld,

unde

rth

efi

catio

nap

pioa

chin

this

Stat

emen

t,lik

ely

l’esu

tted

inth

ere

port

ing

ofre

sbic

ted

fund

ce.

Thu

s,in

form

atio

nre

gard

ing

thos

ere

serv

esw

ould

only

bela

bele

ddi

ffer

ently

but

wou

ldbe

equa

llytr

ansp

aren

t.O

vern

ight

agen

des

that

curr

ently

requ

ire

info

rmat

ion

tobe

sub

mitt

edus

ing

prev

ious

fund

bala

nce

term

inol

ogy

wou

ldha

veth

eop

port

unity

toch

ange

thei

rre

quir

emen

tsfo

rco

nsis

tenc

yw

ithth

edas

sifl

catio

nsin

this

Stat

emen

t,If

such

aC

hang

ew

ere

not c

onsi

dere

dfe

asib

le, a

cros

swaf

lcto

the

reg

ula

tory

pres

enta

tion

coul

dbe

prov

ided

for

the

over

sigh

t bod

yT

heB

oard

reco

gniz

esth

atsu

chct

mng

esin

itial

lym

aybe

inco

nven

ient

togo

vern

-m

ontb

utIt

isco

nfid

hat t

he

Con

tiriL

Eig

valu

eof

the

revi

sad

fund

bala

nce

dass

ifle

alio

nsex

bas

ds

the

effo

rtre

quir

edto

inco

rpor

ate

the

chan

ges

62.

Som

ere

spon

dent

sto

the

Exp

osur

eD

raft

expre

ssed

árer

conc

erns

abou

tth

epo

tent

ial

diff

icul

ties

that

. new

kind

bala

nce

term

sw

ould

intr

oduc

ein

toth

eir

budg

etar

ypro

cess

es.

The

Boa

rdun

ders

tand

san

dre

spec

tsth

eco

ncer

nsof

thos

ew

hoco

nsid

erth

ebu

dget

and

the

exis

tin

gfu

ndbal

ance

clee

sifi

catl

ons

inex

tric

ably

linke

d,bu

tit

beli

eves

that

the

clas

sifI

cati

ons

inth

isS

tate

men

tco

nbe

equa

lty

ifno

t mor

e,p

erti

nei

lto

the

budg

etar

ypr

oces

s.F

orex

ampl

e,it

wou

ldbe

very

uSef

ulto

know

the

amountn

fre

souro

esth

atar

ere

stri

cted

,co

mm

itte

d,or

as

sign

edto

(and

thus

,av

aila

ble

tofi

nanc

e)a

pro

gram

orac

tMty

whe

nco

ntem

plat

ing

how

the

budg

etof

that

prog

ram

orac

tivity

Isto

befu

nded

.D

iffe

renc

esbe

twee

nbu

dget

ary

ac

coun

ting

and

GM

Pfin

anci

alre

port

ing

have

alw

ays

exis

ted

for

man

ygo

vern

men

t,s; b

udge

tary

term

inol

ogy

and

kind

stru

ctur

efo

r man

ygo

vern

men

tsdi

fler f

rom

wha

t is

repo

rted

inth

eir f

inan

delst

atem

ents

.T

heB

OaI

xtac

oep

tath

atth

efu

ndba

lanc

ecl

assi

fica

tions

Inth

isSt

atem

ent

may

not b

ring

finan

cial

repo

rtin

gerto

budg

etar

yco

ncep

ts, b

utit

does

not b

elie

veth

atth

ega

pw

inin

varia

bly

wid

enas

are

sr*c

f thi

sst

anda

ni

Nuofgjf

Icatl

o.

-

53S

ome

resp

onde

nts

toth

eE

xpos

ure

Dra

ftst

ated

that

itpr

opos

edto

om

ars)

clas

sifi

catio

nsof

fund

bala

nCe

and

wou

ldth

eref

ore

beto

oco

mpl

ex.

Aco

mm

onsu

gges

tion

was

tOco

mbi

neth

epr

opos

edcl

assi

fica

tion

sof

lim

ited

(com

mlt

teg

inth

isS

tate

men

t)an

das

sign

edfu

ndba

lanc

e.T

heB

oard

cons

ider

edth

atsu

gge

stio

nan

dot

her

appr

oach

esto

redu

cing

the

clas

sifi

cati

ons,

such

asrt

rquk

ing

adi

stin

ctio

non

lybe

twee

nre

stri

cted

and

unre

shic

ted

fund

bala

nceS

.H

owev

eth

eB

oard

conc

lude

dth

atcl

assi

fica

tion

ssu

chas

unre

Otf

lcte

dfu

ndbal

ance

ora

com

bine

dC

ornm

itted

fass

lgne

dfu

ndba

lanc

ew

ere

too

broa

dto

suff

icIe

ntly

mee

tus

era’

need

sto

iden

tify

dilif

eren

ces

inth

ore

lativ

est

reng

ths

ofth

eco

nstr

aint

spl

aced

onho

wre

sour

ces

can

beus

ed.

Con

sequ

entl

yth

eB

oard

deci

ded

tore

tain

the

five

prop

osed

dass

ific

eho

ne;

how

ever

,gr

eate

rcl

arity

was

prov

ided

rega

rdln

gth

ena

ture

ofea

chcl

assi

fica

tion

and

how

they

diff

erfr

omea

chot

her

64.

The

budg

etar

yco

nnot

atio

nsof

the

term

ap

prcx

iati

on,

and

conc

erns

expr

esse

dby

seve

ral

ofth

eIn

vita

tion

toC

ornr

rten

j res

pond

ents

abou

tits

inap

plic

abili

tyIn

cera

ln.d

rcun

ista

nces

,ed

the

Boa

rdto

base

fund

bala

nce

clA

ssif

icat

ions

ona

notio

nof

spen

dabl

eam

ount

s,ra

ther

than

amou

nts

that

are

avai

labl

efo

rap

prpp

rlat

ion.

The

Boa

atbe

Hev

sth

isap

proa

chis

cons

iste

ntw

ithth

efa

ctth

atgo

vern

men

tal f

unds

hist

oric

ally

have

bee

ndia

iact

e&ed

asha

ving

afo

cus.

The

nonsp

endab

ieca

tege.

y’c

cmpnse

sth

ene

tcu

rran

tfin

anci

alre

sour

nes

that

cann

ot

besp

ent b

ecau

seth

eyar

eei

ther

not i

nsp

end

able

form

or. l

egal

lyor

cant

radu

aliy

requ

ired

tobe

mai

ntai

ned

inta

ct,

65.

Res

pond

ents

gene

rally

reac

ted

favo

rabl

yto

the

prop

osed

nons

pend

able

fund

bala

nce

cat

egor

ybu

tthe

rew

eres

ome

who

sugg

este

dth

atce

rtai

ncl

arif

icat

ions

wou

ldim

prov

eth

efin

alst

anda

rd.

Som

ere

spon

dent

sur

ged

the

Boa

rdto

expl

ain

mor

ecl

earl

yw

hat

spen

dabl

efo

rmm

eans

and

toof

fer m

ore

exam

ples

ofIt

ems

that

coul

dpo

ssib

lybe

mot

ided

with

inth

enc

nspe

ndab

lefu

ndba

lanc

ecl

assi

fica

tion.

The

Boa

rdre

spon

ded

bycl

arif

ying

that

,ge

nera

lly,

noti

nsp

endabm

imaais

that

anla

mIs

not

ox

pool

edto

beco

nver

ted

toca

sh(f

or’e

xam

ple,

inve

ntor

y).

Als

o,pa

ragr

aph

6w

asex

pand

edto

disc

uss

how

the

Iong

’ter

mam

ount

oflo

ans

and

flot.

OS

rOC

AJy

thle

,an

dpr

oper

tyaö

quim

dfo

rre

sale

shou

ldbe

clas

sifi

ed.

Tha

tpa

ragr

aph

fur

ther

expl

ains

thai

ltth

epr

ocee

dsho

rnth

eir c

ol

lect

ion

orsa

le,

resp

ecti

vely

,ar

ere

stri

cted

,co

mm

itted

,or

assi

gned

,th

ose

cons

trai

nts

take

prec

eden

ceov

erth

eno

nspe

ndab

leii

atur

eof

the

reso

urce

sw

hen

clas

sify

ing

the

amou

nts.

—(a

ndba

lanc

e

66.

The

Exp

osur

eD

mit

prop

osed

that

the

rem

aini

ngda

ssif

icat

ions

offu

ndba

lanc

ebe

repo

rted

unde

rth

ege

nera

lhe

adin

gof

spen

dabl

efu

ndba

lanc

e.T

hela

bel

was

pnm

artiy

inte

nded

toco

mm

unic

ate

that

allf

und

bala

nce

notc

lass

ifi

edas

nons

pend

able

wou

ld,

byde

faul

t,be

spen

dabl

e,an

dfu

rthe

rto

conv

eyth

atth

ere

sour

ces

are

spen

dabl

efo

rth

epu

rpos

esto

whi

chth

eyha

vebe

enre

stri

cted

,co

mm

itte

d,or

assi

gned

.N

ever

thel

ess,

man

yE

xpos

ure

Dra

ftre

spo

nd

ents

belie

ved

that

the

term

wou

ldbe

mis

unde

rsto

od.

Aco

ncem

shar

edby

seve

ral

ofth

ere

sponden

tsis

that

bec

ause

the

term

spen

dabl

eIs

com

mon

lyus

edin

othe

rco

ntex

ts,

itm

ayca

rry

aco

nnot

atio

nth

atth

ere

sour

ces

insu

cha

cate

gory

may

besp

ent f

oran

ypu

rpos

e,w

hen

Infa

ctth

eym

aybe

subj

ect

tosi

gnif

ican

tex

tern

alor

Inte

rnal

cons

trai

nts

cont

rolli

ngth

epu

rpos

esfo

rw

hich

thos

ere

sour

ces

may

beus

ed.i

nre

spon

seto

thos

eco

ncer

ns,

the

Boa

rdde

cide

dih

at,

bec

ause

the

Exp

osur

eD

raft

only

used

the

term

asa

title

for

aca

tego

ryof

othe

rfu

ndba

lanc

ecl

assi

fica

tions

,el

imin

atin

gre

fer

enC

eS4o

itIn

ther

fiha

l Sta

tem

ent w

ould

have

nosu

bsta

have

sUed

er

the

spec

ific

hind

bal

ance

amou

nts

that

are

requ

ired

tobe

repo

rted

.

Res

frlc

f ad

ftm

dba

lanc

e

67.

Res

earc

hsh

ows

that

’cne

ofth

edi

ffici

jitie

sth

atus

ers

have

enco

unte

red

sinc

eth

eim

ple

men

tatio

nof

Stat

emen

t 34.

isun

ders

tand

ing

the

rela

tion

ship

betw

een

rese

rved

fund

bala

nce

and

rest

rict

edno

tass

da

The

sim

liarit

yin

term

ino

logy

has

caus

edm

any

user

sto

infe

r am

orn

dire

ctco

nnec

tion

than

wou

ldno

rmal

lyex

istp

ursu

antto

ast

rict a

pplic

atio

nof

the

two’

defln

ition

s.T

heB

oard

agre

edth

atth

ead

vant

ages

ofus

ing

aco

nsis

tent

term

thro

ugho

utth

efin

anci

alst

ate

men

tsw

ould

outw

eigh

the

disa

dvan

tage

sth

atco

me

with

repl

acin

ga

fam

iliar

term

.T

here

fore

,th

eB

oard

cond

uded

that

the

term

used

toid

entif

yth

em

ost

bind

ing

leve

lof

cons

trai

nton

the

use

offu

ndba

lanc

efri

the

fund

finan

cial

stat

em

ets

shou

ldbe

the

sam

ete

rmus

edto

de

scri

beth

eeq

uiva

lent

leve

lof

cons

trai

nt.o

nthe

use

ofne

tas

sets

inpr

oprie

tary

, fun

dsan

dth

ego

vern

men

twid

est

atem

ents

.T

heB

oard

be

lieve

sth

atth

ere

Isa.

dist

inct

adva

ntag

eto

usin

gth

esa

me

term

toch

arac

teri

zeth

est

atus

ofth

ese

bala

nces

rega

rdle

ssof

the

cont

ext

inW

hich

they

are

repo

rted

.By

doin

gso

,the

Boa

rdbe

lieve

sth

atth

eco

ntus

ion

that

aris

esw

hen

anam

ount

can

bere

port

edas

rese

rved

inon

epar

ticul

arfu

ndbu

tun

rese

rved

inan

othe

rw

illbe

elim

inat

ed.

68.

Exp

osur

eD

raft

resp

onde

nts

also

poin

ted

out

apo

tent

ial i

ncon

sist

ency

betw

een

rest

rict

edne

t ass

ets

and

rest

rict

edfu

ndba

lanc

es.

Par

agr

aph

35of

Sta

tem

ent 3

4in

dica

tes

that

perm

ane

ntfu

ndpr

inci

pal s

houl

dbe

incl

uded

inth

ere

stri

cted

neta

sset

sda

ssif

icat

ion.

How

ever

, in

the

Exp

osur

eD

raft,

perm

anen

t fun

dpr

inci

palw

ould

have

been

rega

rded

asno

nspe

ndab

lera

ther

than

rest

rict

edfu

ndba

lanc

e,re

sulti

ngin

adis

cont

inui

tybe

twee

nm

sthd

ed.f

und

bala

nce

and

rest

rict

edne

t ass

ets.

The

Boa

rd’s

gene

rali

nten

tion

was

that

the

defin

ition

ofre

stri

cted

fund

bal

ance

beid

entic

alto

that

ofre

stri

cted

neta

sset

s.In

deli

bera

ting

Sta

tem

ent3

4th

eB

oard

co

nd

ud

edth

atpe

rman

ent

fund

prin

cipa

lsh

ould

becl

assi

fied

asre

stri

cted

bec

ause

itco

uld

not

be

spen

tand

wou

ldbe

mis

cast

asu

nre

sfli

cted

,an

da

net

asse

tcl

assi

fica

tion

anal

ogous

tono

n-sp

endab

lew

asno

tun

der

cons

ider

atio

n.T

heB

oard

beli

eves

that

the

nons

pend

able

clas

sifi

cati

onm

ore

clos

ely

defi

nes

perm

anen

tfu

ndpr

inci

pala

ndsh

ould

beus

edto

repo

rtper

ma

nent

fund

eorp

usin

gove

rnm

enta

lfu

nds.

Fu

rth

er,

that

clas

sifi

catio

nin

cons

iste

ncy

will

notb

e

bahR

epond

Govem

men

Fund

Typ

eD

ofin

Won

s

1179

41.

1795

GA

SB

S64

the

sole

sour

ceof

diff

eren

ces

betw

een

rest

rict

odfu

ndba

lanc

ean

dre

stri

cted

net a

sset

s,in

mar

tyin

stan

ces,

diff

eren

ces

will

aris

efr

omth

edi

ffer

ent m

easu

rem

ent f

ocus

esan

dba

ses

ofac

coun

ting

empl

oyed

inre

port

ing

net

asse

tsan

dfu

ndba

lanc

e. fond

bat

anc.

69.

The

invi

tatio

nto

Com

men

tin

clud

eda

deft

ritio

nof

the

term

rasi

ted,

asit

nigh

t hav

ebe

enus

edin

the

defi

nitio

nof

spec

ial r

even

uehi

nds,

as“r

esou

rces

that

are

lega

llylim

ited

toa

part

icul

arpu

rpos

eby

ago

vern

men

t tha

t can

not

beus

edfo

ran

yot

her

purp

ose

unle

ssth

ego

ver

nmen

tre

mov

esor

chan

ges

the

limita

tion

byta

king

the

sam

eac

tion

item

ploy

edto

Impo

seth

elim

itatio

nor

byta

king

ahi

gher

auth

ority

antio

n.”

Man

yof

the

Invi

tatio

nto

Com

men

tre

spon

dent

ssu

ppor

ted

the

prop

osed

defin

ition

.Fo

rthe

Exp

osur

eD

raft,

the

Boa

rdus

eda

mod

ifie

dve

rsio

nof

that

defin

ition

tode

scrl

oeth

e1k

wlie

dfu

ndba

lanc

ecl

assi

fica

tion.

The

defi

nitio

nw

asm

odifi

edby

ánin

atin

gth

ew

ord

lega

ffyb

eim

plie

sa

rest

rictio

nth

atis

enfo

rcea

ble

CD

and

may

over

stat

eth

est

reng

thof

the

Otin

tsth

atca

nbe

impo

sed

bya

gove

rnx

nits

elf.

70.

Num

erou

sre

spon

dent

sto

the

Exp

osur

eD

raft

expr

esse

dco

ncer

nab

out

the

use

ofth

ete

rmlim

ited

for

this

port

ion

offu

ndba

lanc

e.A

mon

gth

eal

tern

ativ

eti

tles

sugg

este

d,th

eB

oard

sele

cted

the

term

com

mitt

edlu

rid

bal

ance

.T

heB

oard

had

prev

ious

lyco

nsid

ered

tilli

ngth

ispo

rtio

nof

fund

bala

nco

mm

itted

, but

itha

dop

ted

for

limite

dbe

caus

eth

eno

tion

ofco

mm

itmen

tsha

sot

her

mea

ning

sin

GM

RU

ltim

atel

y,th

eB

oard

conc

lude

dth

atco

mm

itted

had

few

erob

ject

iona

ble

conn

otat

ions

than

othe

rpo

ssib

leti

tles

.T

his

chan

ge,

how

ever

,sh

ould

not

be

const

rued

asa

subs

tant

ive

chan

geto

this

clas

sifi

catio

nof

hind

bala

nce

asit

was

prop

osed

inth

eE

xpos

ure

Dm

11

71.

Som

ere

spon

dent

sto

the

Exp

osur

eD

raft

sugg

este

dth

atth

ede

finiti

onof

com

mitt

ed,

and

how

itIs

dist

ingu

ishe

dfr

omre

stri

cted

and

as

signed

shou

ldbe

clar

ifie

dfo

rth

efin

alS

tate

men

t.In

resp

onse

,th

eB

oard

adde

dan

expla

nat

ion

ofhow

the

acti

on

sta

ken

bya

gover

nm

ent

toco

mm

itre

sou

rces

diff

erfr

omth

ose

take

nto

rest

rict

reso

urc

esth

roug

hen

atr1

kig

legi

slat

ion,

even

thou

ghbo

thki

nds

ofac

bori

sar

eta

ken

byth

ego

vern

men

tits

elf.

Inre

spon

seto

anot

her

conc

ern

byre

spon

dent

S,th

eB

oard

also

clar

ified

the

mea

ning

ofco

imni

Une

ntas

itap

plie

sto

fund

bala

nce

clas

sifi

cati

onby

prov

idin

gth

atco

ntra

ctua

l obl

igat

ions

that

will

besa

tisf l

edw

ithex

istin

gfu

ndre

scur

ces

shou

ldbe

repo

rted

asco

uwri

tted

fund

bala

nce.

Aut

hori

tyth

corn

mft

sseo

urce

s

72.

The

Boa

rdco

nsid

ered

whe

ther

this

Sta

tem

ent

shou

ldsp

ecif

yw

hich

form

alac

tion

sof

ago

vern

men

t’s

high

est

leve

lof

deci

sion

-mak

ing

auth

ority

are

requ

ired

toco

mm

itfu

ndba

lanc

eto

asp

ecif

icpu

rpos

e,bu

tit

dete

rmin

edth

atit

wou

ldno

t be

prac

tical

todo

sobe

caus

eof

dlff

enen

ces

Inth

epo

wer

sac

cord

edto

-gov

ernm

ents

.Fo

r exa

mpl

e,so

me

gove

rnm

ents

may

esta

blis

hst

atut

esor

ordn

ance

sai

dre

solu

tions

, whe

reas

som

em

ayon

lybe

able

topa

ssre

solu

tions

, and

othe

rgo

vern

men

ts—

such

asso

me

spec

ial-

purp

ose

gove

rnm

ents

—m

ayha

veno

legi

slat

ive

auth

ority

atal

l.Fu

rthe

rmor

e,th

ele

gal s

tand

ing

ofth

eac

tion

sav

alla

ble

toa

gove

rnm

ent

may

diffe

r.Fo

rso

me

gove

rnm

ents

,a

reso

lutio

nm

ayca

rry

the

forc

eof

law

, but

for o

ther

s,a

reso

lutio

nm

aybe

only

cere

mon

ial

inna

ture

.-In

resp

onse

toco

nce

rns

abou

tla

ckof

cons

iste

ncy,

this

Sta

tem

ent

ieqt

ims

cisd

asur

esth

atsh

ould

give

user

sa

clea

rtin

ders

tand

ing

ofth

eau

thor

ityb

ehi

ndth

eco

mm

itmen

tsof

fund

bala

nce

arid

the

spec

ific

acti

ons

take

nto

impo

seth

em.

73.

Bec

ause

the

over

all c

lass

ific

atio

nap

proa

chin

clud

estw

oca

tego

ries

ofse

lf-i

mpo

sed

con

stra

ints

(com

mitt

edan

das

sign

ed),

the

Boa

rdag

reed

that

itw

ould

beap

prop

riat

eto

star

twith

the

assu

mpt

ion

that

the

leve

lof

auth

orIt

yre

quir

edto

esta

blis

hco

nstr

aint

ssu

ffic

ient

toin

voic

edi

spla

yIn

the

canm

itte

dtun

dba

lanc

eca

teg

ory

shou

ldbe

high

enou

ghto

repr

esen

tth

eco

nsen

sus

obie

cliv

eof

the

gove

rnin

gbo

dyas

aw

hole

.In

othe

rw

ords

,th

epu

rpos

eco

nstr

aint

sim

pose

don

amou

nts

Inth

atca

tego

rysh

ould

com

efr

omth

eso

urce

that

poss

esse

sth

ehi

ghes

tlev

elOf

deci

sion

-mak

ing

auth

orlL

y

74.

The

leve

lof a

utho

rity

nec

essa

ryto

esta

blis

hfu

ndba

lanc

eco

mm

itmen

tsis

sim

itar

toth

atre

qulr

edin

the

rest

rict

ed(t

hrou

ghen

abli

ngle

gisl

atio

n)ca

tego

ry.

Ena

blin

gle

gisl

atio

nex

dusl

vely

invo

lves

leve

nues

auth

oitz

edby

the

rest

rict

ing

legi

slat

ion.

Itis

notu

ncom

mon

totg

over

nmen

tsto

pass

legi

slat

ion

tora

ise

new

reve

nues

for

a

spec

ific

purp

ose.

For

fund

bala

nce

clas

s Wic

atio

n,en

ablin

gle

gisl

atio

nIs

cons

ider

eda

com

pact

with

the

reso

urde

prov

ider

sth

atth

ere

ven

ues

rais

edpu

isua

litt

oth

atle

gisl

atio

nw

ould

beus

edc*

’,, f

orth

ero

mIe

edpu

rpos

e.In

con

tras

t,th

eco

tnrt

iltta

dfu

ndba

lafi

cecl

assi

fica

tion

indu

des

arn

ou

nge

fier

tited

frot

hex

istin

gre

ven

ueso

i.m3e

s tha

t are

form

ally

cons

trai

ned

tobO

used

for-

aSp

ecifi

cpu

rpos

e,bu

t the

reIs

noco

rnpar

dle

com

patt

with

the

prov

ider

sOf

thos

ere

sour

ces

abou

thow

they

can

beus

ed. T

hus,

the

subs

tant

ive

diff

eren

cebe

twee

nam

ount

sth

atar

ere

stri

cted

byen

abli

ngle

gisl

atio

nan

dam

ount

sth

atar

ein

the

com

mitt

edfu

ndba

lanc

eci

ttego

lyis

the

lela

tive

inab

ility

ofth

ego

vern

men

tto

iede

ploy

rSst

rict

edam

ount

sfo

rot

her

purp

oses

.

75.

this

Sta

tem

ent

requ

ires

,fo

rfi

nanc

ial

repo

rtin

gpu

rpos

es,

that

the

form

alac

tion

that

es

tabl

ishe

sco

mm

itted

fund

bala

nce

occu

rbe

fore

the

end

ofth

ere

port

ing

peri

od. T

heB

oard

rec

ogni

zes,

how

ever

,th

atev

enif

the

spec

ific

pur

pose

ofth

eco

mm

itmen

tis

esta

blis

hed

befo

reye

ar-e

nd, a

mec

hani

smor

form

ula

for d

eter

min

ing

the.

amou

nt. s

ubje

ctto

the

com

mitm

ent

isso

met

imes

base

don

even

tsco

nditi

ons,

orre

sults

that

are-

not k

now

nor

fina

lized

atth

attim

e.A

sa

resu

lt,-.,

this

Sta

tem

ent

allo

ws

that

the

amou

ntsr

Aia

dto

the

com

mitm

ent m

aybe

de

tem

ined

inth

esu

bseq

uent

peri

odbe

fore

firi

ande

lsta

tem

ents

are

issu

ed.

Ass

igne

dfu

ndba

lanc

e

76.

Thr

ough

out

itsd

eler

atio

ns

abou

t def

inin

gth

efu

ndba

lanc

ecl

assi

fica

tions

,th

eB

oard

gen

eral

lysu

ppor

ted

the

notio

nth

atth

ere

was

ane

edfo

ra

clas

sifi

catio

nre

pres

entin

ga

leve

lof

cons

trai

ntth

atw

asle

ssbi

ndin

gth

anth

atas

soci

ated

with

the

Ilei

ted

(com

m*t

edun

dba

lanc

ecl

assi

fica

tion

but

not

soav

aila

ble

asto

beco

nsi

dere

dun

assi

gned

.T

heB

oard

also

con

sid

ered

,an

dul

timat

ely

reje

cted

,al

tern

ativ

esth

atw

ould

have

repo

rted

thos

eam

ount

sin

the

corn

-m

iffed

orun

assi

gned

clas

sifi

catio

ns. T

hedec

isi

onto

esta

blIs

hth

eas

sign

edcl

assi

fica

tion

es

sen

tial

lydep

ended

on

whet

her

amounts

clas

sifi

edas

assi

gned

wou

ldbe

suff

icie

ntly

dis

ting

uish

able

from

those

oth

ertw

ocl

assi

fica

tions

.T

heB

oard

beli

eves

that

the

defin

ition

ofas

sign

edfu

ndba

lanc

ein

this

Sta

tem

ent a

pp

ropr

iate

lypr

ovid

esfo

r tha

tdis

tinct

ion.

GA

SBS

54

77.

The

Boa

rdvi

ews

anas

sign

men

t as

anex

pres

sion

of.a

gove

rnm

ent’

sin

tent

,co

mpa

rabl

eto

desi

gnat

ions

inth

epr

evio

usfu

ndba

lanc

ecl

assi

fica

tion

iand

disp

lay

mod

el.

Byac

cept

ing

the

valid

ityof

that

anal

ogy,

the

Boa

rdha

dth

ebe

nefi

tof

the

inpu

tob

tain

edfr

omIts

past

rese

arch

effo

rts

and

from

the

resp

onse

sto

the

Invi

tatio

nto

Com

men

t rel

ativ

eto

ques

tions

aske

dab

out

desi

gnat

ions

offu

ndba

lanc

es.

Tho

seso

urce

sde

arly

Indi

cate

dth

atin

form

atio

nab

out

man

agem

ent’

spl

ans

orin

tent

ions

isco

nsid

ered

impo

rtan

t.T

here

was

cons

ider

able

inte

rest

inin

form

atio

nab

out

the

desi

gnat

ions

them

selv

es:

thre

e-qu

arte

rsof

the.

surv

pyre

spon

dent

ssa

idth

atth

eyco

nsid

erin

form

atio

nab

out

the

pu

rpo

ses

ofde

sign

atio

ns“i

mpo

rtan

t”or

“ver

yim

port

ant”

Furt

herm

ore,

over

70pe

rcen

t oft

here

spondei

ts. t

oth

e20

03us

ersu

rvey

rate

din

form

atio

nab

out

unre

serv

ed-u

ndes

igna

ted

fund

ban

ceto

be‘v

ery

impo

rtan

t’to

the

deci

sion

sth

eym

ake

orto

thei

ras

sess

men

tsof

ago

vern

men

t’s

finan

cial

heal

th.

78.

Bot

hth

eco

mm

itted

and

assi

gned

fund

bal

ance

clas

sifi

catio

nsin

clud

eam

ount

sth

atha

vebe

enco

nstr

aine

dto

bein

gus

edfo

rspe

cifi

cpur

pose

sby

actio

nsta

ken

byth

ego

vern

men

t its

elf.

As

note

dea

rlie

rin

para

grap

h72

, thi

sSt

atem

ent

does

nots

peci

fyw

hich

acti

ons

ofa

gove

rnm

ent

wou

ldbe

requ

Wed

toes

tabl

ish

com

mitt

edfu

ndba

lanc

e,la

rgel

ybe

caus

eof

the

diff

eren

ces

inab

ilitie

san

dst

ruct

ures

from

gove

rnm

ent t

ogov

emin

ent.

Tho

sedi

ffer

ence

sle

dth

eB

oard

tore

ach

the

sam

eco

nclu

sion

with

rega

rdto

iden

tif4

ngpa

rtic

ular

actio

nsth

atsh

ould

bere

quir

edto

assi

gnam

ount

s.Se

vera

lre

spon

dent

sto

the

Exp

osur

eD

raft

com

men

ted

that

itw

ould

bedi

ffi

cult

todi

stin

guis

hbe

twee

nth

eac

tions

take

nto

com

mit

fund

bala

nce

amou

nts

and

acti

ons

take

nto

ssit

gi f

und

balS

nos

amou

nts.

Oth

erre

spon

dent

sin

dica

ted

conc

ern

that

som

ego

vern

men

tsm

ayno

tha

vede

cisi

on-m

akin

gpro

ces

ses

inpla

ceto

oom

mit

oras

sign

reso

urce

s,as

desc

ribe

din

the

Exp

osur

eD

raft

.T

hose

resp

onde

nts

urge

dth

eB

oard

topr

ovid

ecl

arit

ica

tion

ofth

ere

quir

emen

ts.

Inre

spon

se, t

heB

oard

adde

d-pa

ragr

aph

15-to

high

iight

the

diff

eren

ces

betw

een

the

com

mitt

edan

das

sign

edfu

ndbaI

ance

clas

sIfI

catio

nsem

phas

Izin

g(a

)the

leve

lof

auth

ority

requ

ired

,(b

)th

ena

ture

ofth

eac

tions

nece

ssar

yto

nullI

fya

com

mitm

ent

oras

sig

nm

ent o

ffun

dba

lanc

e,ad

c)

the

degr

eeof

ditf

icu

ltyw

ithw

hich

they

may

bere

trer

sed.

-The

GA

SB

-Sta

tem

ent c

liS

tandar

ds

Fund

Bal

ance

R.p

a.Y

big

and

Gover

nm

enta

l Fun

dT

ype

Def

init

ions

I’ 1’

-J11

796

1179

7

GA

SBS

64G

ASB

Sta

tem

ent o

f Sta

ndar

dsG

AS

BS

54

Boa

rdal

socl

arifi

edin

othe

rpl

aces

inth

isS

tate

men

tth

atso

me.

gove

mm

ents

may

not

repo

rtbo

thco

mm

itte

dar

idas

sign

edfu

ndba

lanc

esbe

caus

eno

t all

gove

rnm

ents

have

mul

tiple

lev

els

ofde

dsio

n-rn

aldn

gau

thor

ity.

79.

The

assi

gned

cate

gory

shou

ldin

clud

eam

ount

sth

atha

vebe

ense

t asi

defo

r asp

ecif

icpu

rpos

eby

anau

thor

ized

gove

rnm

ent

body

oroW

ida

butt

heco

nstr

aint

knpo

sed

does

not s

at.

sly

the

crite

ria

tobe

clas

sifi

edas

rest

rict

edor

com

mitt

ed.

How

the

gove

rnm

ent’

sIn

tent

shou

ldbe

expr

esse

dan

dco

mm

unic

ated

isno

tspe

cifi

cally

pres

crib

ed;

how

ever

,th

eSt

atem

ent

does

danf

yth

atan

auth

oriz

edgo

vern

men

tbo

dyor

offic

ial

shou

ldbe

char

acte

rize

das

“the

gove

rnin

gbo

dyits

elf

ora

body

(abu

dget

orfi

nanc

eco

mm

ittee

,fo

rex

ampl

e)or

offic

ial t

ow

hich

the

gove

rnin

gbo

dyha

sde

lega

ted

the

auth

ority

toas

sign

amou

nts

tobe

used

for

spec

ific

pu

rpo

ses.

”T

heB

oard

belie

ves

that

the

disc

losu

res

requ

ired

inpa

ragr

aph

23(b

)sh

ould

prov

ide

us

ers

with

acl

earu

nder

etan

ding

ofw

hois

empo

wto

mak

eas

signm

ents

and

byw

hat

-

1arag

raph

12in

this

Sta

tem

ent

prov

ides

that

the

spec

ific

purp

ose

for

afu

ndba

lanc

eco

mm

itmen

tsh

ould

bees

tabl

ishe

dpr

ior

toth

een

dof

the

repo

rtin

gpe

riod

but t

hatt

hesp

ecif

icam

ount

ofth

atco

mm

itmen

tcan

bede

term

ined

inth

efo

llow

ing

peri

od.T

heba

sis

for t

hatc

oncl

usi

onis

disc

usse

din

para

grap

h75

.S

ome

Exp

osu

reD

raft

resp

onde

nts

asite

dw

hysu

cha

prov

isi

onw

asno

tal

som

ade

for

fund

bal

ance

assi

gnm

ents

.The

Boa

rddo

esno

tbel

ieve

that

asi

mila

rtim

ing

requ

irem

ent

isne

cess

ary

orap

prop

riat

efo

rfu

ndba

lanc

eas

sign

men

tsla

rgel

yfo

rtw

ore

ason

s.Fi

rst,

the

proc

ess

ofas

sign

ing

amou

nts

tosp

ecif

icpu

rpos

esIs

less

bind

ing

than

the

proc

edur

esfo

rfu

ndba

lanc

eco

mm

itm

ents

,an

dse

cond

,as

sign

men

tsar

eof

ten

not

cons

ider

edun

tilaf

tert

heam

ount

ofun

rest

rict

edan

dun

com

mit

ted

fund

bala

nce

isqu

antif

ied.

Tha

tis

,it

isco

mm

onfo

rgo

vern

men

tsto

ex

pres

san

inte

ntto

use

accu

mul

ated

reso

urce

sfo

r spe

cifi

edpu

rpos

eson

lyaf

tert

heam

ount

that

Isav

aila

ble

for

assi

gnm

ent

has

bee

nd

ete

rm

ined

.P

aia

grh

15cl

arif

ies

that

gove

rnm

ents

cann

otas

sign

anam

ount

tea

spec

ific

purp

ose

ifth

atas

sign

men

twou

ldca

use

ade

fici

tto

occu

rin

unas

sign

edfu

ndba

lanc

e.

Una

ssig

ned

fund

baL

ance

81.

lnth

eExp

osur

eDra

ft,t

heB

oart

ipm

pose

dth

at,

base

don

the

defi

nitio

nsof

the

rest

rict

ed,

com

mitt

ed,

and

assi

gned

fund

bala

nce

clas

sifi

catio

ns,

unas

sign

edam

ount

sco

uld

exis

t onl

yin

the

gene

ral

fund

.E

vçn

thou

ghso

me

cont

end

that

amou

nts

inot

her

gove

rnm

enta

lfu

nds

coul

d,in

actu

ality

, be

just

asac

cess

ible

asu

nas

sign

edam

ount

sin

the

gene

ral

fund

,th

eB

oard

belie

ves

that

gove

rnm

ents

,th

roug

hth

efo

rmal

proc

ess

ofre

port

ing

amou

nts

inot

her

fund

s,ha

veas

sign

edth

ose

amou

nts

toth

epu

rpos

esof

the

resp

ectiv

efu

nds.

Thi

sS

tate

men

t pro

vide

sth

atun

assi

gned

fund

bala

nce

Isth

ere

sidu

alcl

assi

fica

tion

inth

ege

nera

lfu

ndan

din

clud

esam

ount

sth

atha

veno

tbe

enas

sign

edto

othe

rfu

nds.

Acc

ordi

ngly

,as

signed

fund

bala

nce

shou

ldbe

the

leas

t con

stra

inin

gcl

assi

fica

tion

ingo

vern

men

tal

fund

sot

her

than

the

gene

ral

fund

.

Rep

ort

ing

nega

tive

bala

nces

82.

Fie

spon

dent

sto

the

Exp

osur

eD

raft

and

part

icip

ants

inth

efie

ldte

stra

ised

ques

tion

sab

out

the

appr

opri

ate

fund

bala

nce

clas

sifi

catio

nfo

rre

port

ing

nega

tive

fund

bala

nces

.A

nega

tive

bala

nce

com

mun

icat

esth

atm

ore

reso

urce

sw

ere

spen

tfor

asp

ecif

icpu

rpos

eth

anha

dbe

enre

stri

cted

,co

mm

itted

,or

assi

gned

toth

atpu

rpos

e.A

proh

ibiti

onag

ains

tre

port

ing

nega

tive

rest

rict

edfu

ndba

lanc

esal

read

yex

ists

byex

tens

ion

ofth

ere

quir

emen

tsfo

rre

port

ing

rest

rict

edne

tas

sets

.Ite

m7.

24.1

3in

the

Cor

npr

ehen

sive

Impl

emen

tatio

nG

uide

stat

esth

atre

stri

cted

net

asse

tsis

inte

nded

topo

rtra

y,at

the

date

ofth

est

atem

ent o

fne

tass

ets,

the

exte

ntto

whi

chth

ego

vern

men

tha

sas

sets

that

can

only

beus

edfo

ra

spec

ific

purp

ose.

ifth

ere

late

dII-

abili

ties

exce

edth

eas

sets

onha

nd,

then

the

“sho

rtfa

ll,”

byde

faul

t,is

cove

red

byun

rest

rict

edne

tas

sets

.E

xten

ding

that

logi

cto

the

un

rest

rict

edfu

ndba

lanc

ecl

assi

fica

tion

s,th

eB

oard

belie

ves

that

shor

tfal

lsin

any

ofth

ecl

assi

fica

tions

wou

ldbe

cove

red

byth

ene

xtcl

assi

fica

tion

for

that

spec

ific

purp

ose

inth

ego

vern

men

t’s

spen

ding

prio

dtiz

atio

npo

licy

(sto

ppin

gat

zero

inea

chcl

assi

fica

tion)

. Thu

s,If

fund

bala

nce

(exd

uslv

eof

nons

pend

able

amou

nts)

into

tal

isne

gati

ve,t

hen

the

nega

tive

amou

ntca

non

lybe

attr

ibut

edto

the

unas

sign

edfu

ndba

lanc

ede

s-si

tica

tion.

Sim

ilar t

oth

ene

tass

etco

nclu

sion

dis

cuss

edab

ove,

shor

tfal

lsul

timat

ely

are

cove

red

1179

8

byun

assi

gned

reso

urce

s.T

heB

oard

belie

ves

that

the

use

ofun

assi

gned

reso

urce

s“i

nsu

bst

ance

”sh

ould

bere

cogn

ized

inth

efu

ndbal

ance

clas

sifi

catio

ns.

Con

sequ

ently

,th

eB

oard

conC

lude

dth

atne

gativ

eba

lanc

essh

ould

bere

port

edon

lyin

the

unas

sign

edcl

assi

fica

tion.

Al

thou

ghth

ege

nera

l fun

dis

the

only

fund

inw

hich

apo

sitiv

eun

assi

gned

fund

bala

nce

may

bere

port

ed,

othe

rgo

vern

men

tal

fund

sm

aybe

requ

ired

tous

eth

eun

assi

gned

fund

bala

nce

clas

sifi

catio

nto

repo

rtne

gativ

eam

ount

s.

83.

Para

grap

h19

stat

esth

atif

expe

nditu

res

incu

rred

for

asp

ecif

icpurp

ose

exce

edth

eam

ount

sth

atha

vebe

enre

stri

cted

,co

mm

itted

,an

das

sign

edto

that

purp

ose

anct

ane

gati

veba

lanc

efo

rth

atpu

rpos

ere

sults

,th

enam

ount

sas

sign

edto

.oth

erpu

rpos

esin

that

fund

shou

ldbe

redu

ced

befo

rere

port

ing

ane

gativ

eu

nas

sign

edfu

ndba

lanc

eam

ount

.T

his

prov

isio

ndo

esno

tre

qoir

eth

ere

duct

ion

ofre

stri

cted

orco

mm

itted

fuild

bala

nce

amou

nts.

The

Boa

rdbe

liev

esth

atin

fund

sot

her

than

the

gene

ral

lurid

, the

expe

nditu

reof

reso

urce

sas

sign

edto

one

spec

ific

purp

ose

has

been

,in

subs

tanc

e,re

assi

gned

toth

eot

her

purp

ose

forw

hich

they

actu

ally

have

been

spen

tin

the

gene

ral

fund

,on

the

othe

rha

nd,

the

Boa

rdbe

liev

esth

atan

over

expe

ndit

ure

for

asp

ecif

Icpu

rpos

eis

first

cove

red

byun

assi

gned

reso

urce

s,to

the

exte

ntad

equa

teun

assi

gned

reso

urce

sex

ist.

Tha

tis

,th

ego

vern

men

tha

s,In

effe

ct,

assi

gned

the

amou

nts

toth

epu

rpos

efo

rw

hict

tth

eyw

ere

spen

t,th

ereb

yre

duci

ngun

assi

gned

fund

bal

ance

rath

erth

anat

tnbu

ting

the

over

expe

nditu

reto

amou

nts

assi

gned

toot

her

purp

oses

.T

hefu

ndba

lanc

ecl

assi

fica

tion

polic

yfo

rthe

gene

ral

fund

,di

scus

sed

inpa

ragr

aph

18,

wou

ldde

scri

beth

atre

sour

ceflo

was

sum

ptio

n.

Cla

ssIl

Ing

fund

bala

nde

alno

uhts

84.

Thi

sS

tate

men

tdo

esno

tre

quir

eth

epro

sent

atio

nof

ade

taile

dSt

atem

ent

ofch

ange

sin

fund

bala

nces

;ra

ther

, itp

rovi

des

that

anan

aly

sis

ofen

ding

fund

bala

nce

can.

bem

ade

tod

ete

rmin

eho

wre

sidu

al.b

alan

cess

houl

d.be

dead

fled

.in

deve

lopi

ngth

eE

xpos

uroD

raft

,th

eB

oard

disc

usse

dap

proa

ches

that

wou

ldha

vees

tabl

ishe

da

requ

ired

spen

ding

pnor

ftiz

atio

nsc

hem

e,bu

tit

reje

cted

them

bec

ause

they

wou

ldne

cess

arily

bear

bitr

ary

end

wO

uld

notb

ese

nsiti

veto

the

diff

eren

ces

inre

sour

cern

iage

men

tph

iloso

phie

sth

atex

ist

from

one

gove

rn-

mer

itto

anot

her.

Som

ere

spon

dent

sto

the

Ex

posu

reD

raft

indi

cate

dth

atth

eybe

liev

eth

est

anda

rdsh

ould

requ

ire

asp

ecif

icsp

endi

ngpf

lor

itiza

tion.

The

ybe

lieve

that

the

final

stan

dard

shou

ldel

ate

that

reso

urce

sar

eus

edin

the

sam

ede

soon

ding

orde

ras

the

fund

bala

nce

clas

sifi

catio

nsap

pear

inth

ehi

erar

chy,

and

one

Boa

rdrh

embe

rag

rees

with

that

posi

tion

(see

para

grap

hs13

5an

d13

6).T

heB

oard

rede

libe

rat

edth

eis

sue

and

reaf

firm

edth

eE

xpos

ure

Dra

ft’s

appr

oach

that

fund

bala

nce

atth

een

dof

are

po?t

ing

peri

odsh

ould

refl

ect

the

go

ver

nm

ent’

sac

coun

ting

polic

yth

atde

term

ines

whi

cham

ount

sin

the

vari

ous

clas

sIfi

catio

nsar

eco

nsi

dére

dto

have

been

spen

t.T

heB

oard

reco

gni

zes

that

afin

alde

term

inat

ion

ofw

heth

ersp

eci

ficre

sour

ces

are

rest

rict

edm

ayul

timat

ely

besu

bjec

tto

lega

l Int

erpr

etat

ion.

The

gove

rnm

ent’

spo

licy

shou

ldth

eref

ore

beco

nsis

tent

with

such

lega

ldet

erm

inat

ions

.FO

rex

ampl

e,if

ago

vern

men

t’s

polic

yis

tosp

end

unre

stri

cted

reso

urce

sbe

fore

cert

ain

rest

rict

edre

sour

ces,

the

repo

rted

rest

rict

edam

ount

sar

ere

quir

edto

bele

gally

cons

trai

ned

fora

spec

ifie

dpu

rpos

eat

the

end

ofth

ere

port

ing

peri

odto

bein

clud

edin

the

rest

iicte

dfu

ndba

lanc

ecl

assi

fica

tion.

Dis

clos

ure

ofth

ego

vern

men

t’s

polic

ies

shou

ldpr

ovid

eco

nte

xtw

ithin

whi

chre

ader

sca

nbe

tter

unde

rsta

ndth

efu

ndba

lanc

ein

form

atio

nbe

ing

repo

rted

.

85.

Sev

eral

resp

on

den

tsco

mm

ente

dth

atso

me

gove

rnm

ents

dono

tha

vefo

rmal

spen

din

gpr

iorl

tizat

ion

polic

ies

and

that

esta

blis

hing

thos

epo

licie

sm

aybe

diffi

cult

How

ever

, gov

ern

men

tsal

read

yar

ere

quir

edby

Stat

emen

t34

toha

vea

polic

yfo

rde

term

inin

gw

heth

erre

stri

cted

orun

rest

rict

edam

ount

sar

esp

ent.

Furt

her

mor

e,es

tabl

ishi

ngan

addi

tiona

lpol

icy

todet

erm

ine

whe

ther

com

mitt

ed,

assi

gned

,or

uri

assi

gned

amou

nts

have

been

spen

tis

expe

cted

tobe

aon

e-tim

eef

fort

atth

etim

eof

impl

emen

tatio

n.N

ever

thel

ess,

inre

spon

seth

ose

conc

erns

,th

eB

oard

deci

ded

that

this

Sta

tem

ent

shou

ldpr

ovid

ea

“def

ault’

polic

yfo

rgo

vern

men

tsth

atdo

note

stab

lish

apo

licy,

stip

ulat

ing

that

,co

mm

itted

amou

nts

wou

ldbe

redu

oed

first,

follo

wed

byas

sign

edam

ount

s,an

dth

enun

assi

gned

,w

hen

expe

ndit

ures

are

incu

rred

forp

urpo

ses

for

whi

cham

ount

sin

any

ofth

ose

unre

stri

cted

fund

bala

nce

clas

sifi

catio

nsco

uld

beus

ed.

Som

ere

spon

dent

sal

soco

nten

ded

that

thes

pend

ing

pri

oriti

zatio

npo

licy

disc

losu

res

requ

ired

inth

eE

xpo

sure

Dra

ftw

ould

beco

me

‘boi

lerp

late

”an

d

iV?9

9

-a

GA

SB

S54

thus

shou

ldno

tbe

requ

ired

. The

Boa

rdIs

sensi

twe

toco

ncer

nsab

out

exce

ssiv

edi

sclo

sure

but

cont

mue

sto

belie

veth

atth

ose

disc

losu

res

are

esse

ntia

lfo

ra

read

er’s

unde

rsta

ndin

gof

the

fund

bala

nce

clas

sifi

cati

ons

requ

ired

byth

isSt

atem

ent.

Bec

ause

the

proc

edur

esto

rcom

mit

ting

and

assi

gnin

gre

sour

ces

tosp

ecif

icp

ur

pose

sm

aydi

ffer

from

gover

nm

ent-

to-

gove

rnm

ent,

user

sne

edto

unde

rsta

ndth

epr

oces

sth

roug

hw

hich

the

cons

trai

nts

have

been

thip

osed

bya

part

icul

argo

vern

men

tto

help

asse

ssth

eav

aMT

ity

ofam

ount

sre

port

edin

gove

rnm

enta

l fun

ds.

86.

Som

eco

mm

enta

tors

poin

ted

out

that

gov

ernm

ents

may

have

diff

eren

tpo

licie

sfo

rdi

ffer

ent p

rogr

ams

orfu

nctio

nsan

dth

ata

sing

leflo

was

sum

ptio

nw

ould

not b

ere

pres

enta

tive

ofth

atm

anag

emen

tap

proa

ch.

Inre

spon

seto

thos

eco

mm

ents

,th

eB

oard

mod

ifie

dth

atpr

ovis

ion

from

the

Exp

osur

eD

raft

toeh

mrn

ate

the

unin

tend

edim

plic

atio

nth

ata

gove

rnm

ent w

ould

bere

quir

edto

appl

ya

sing

lecl

assi

fica

tion

polic

yto

allo

f its

prog

ram

sor

func

tions

.

ieE

xpos

ure

Dra

ftin

clud

eda

prov

isio

not

her

than

the

gene

ral

fund

,un

spen

t‘

tsth

atw

ere

assi

gned

toa

spec

ific

pu

r.h

atis

nolo

nger

appl

icab

lesh

ould

not

bere

port

edas

assi

gned

fund

bala

nce

but,

ra1h

esh

ould

bein

clud

edin

the

unas

sign

edlu

ridbal

ance

ofth

ege

nera

lfu

ndby

repo

rtin

gth

ose

amou

nts

asdu

eto

the

gene

ral

fund

.M

any

resp

onde

nts

obje

cted

toth

atpr

opos

al,

indi

catin

gth

atth

eybe

liev

eth

atam

ount

str

ansf

erre

dto

othe

rfu

nds

rem

ain

com

mitt

edor

assi

gned

toa

spec

ific

purp

ose

until

the

gove

rnm

entt

akes

ac

tion

toel

imin

ate

orm

odify

thos

eco

mm

itmen

tsor

assi

gnm

ents

Afte

rre

delib

erat

ing

the

Exp

osu

reD

raft’

sre

quir

emen

t,th

eB

oard

agre

edw

ithth

atno

tion.

Alth

ough

the

Boa

rdbe

liev

esth

atpr

epar

ers

have

am

spon

sd,lN

Iyto

peri

ocilc

ally

revi

ewth

est

atus

ofco

mm

itm

ents

and

assi

gn

men

ts,

the

Boa

rddo

esno

tbe

lieve

that

aca

utio

nary

prov

isio

nin

the

stan

dard

isne

cess

ary

toin

form

them

that

itw

ould

bein

appr

opri

ate

toco

ntin

ueto

repo

rtan

amou

ntas

com

mitt

ec!

oras

sign

edif

the

purp

ose

for

whi

chth

eco

mm

it-m

ento

ras

sign

men

tw

asIm

pose

dha

sex

pire

d.In

addi

tion,

the

Boa

rdun

ders

tand

sth

at, i

nm

any

case

s,th

ere

ason

that

afu

ndis

ina

defic

itpo

st-

lion

isbe

caus

eIt

has

ala

rge

bala

nce

“due

toth

ege

nera

lfu

nd”

repr

esen

ting

alo

anth

atw

asne

eded

toco

ver

curr

ent

expe

ndit

ures

inan

lici

patto

nof

othe

rre

sour

ces.

The

prov

isio

nin

the

Exp

osur

eD

raft

wou

ldha

veca

used

anam

ount

due

horn

the

gene

ral f

und

tobe

repo

rted

, off

set

ting

the

amou

ntdu

eto

.the

gene

ral

fund

and,

inef

fect

,re

clas

sify

ing

the

loan

asa

tran

sfer

. Afte

rco

nsid

erin

gth

eco

mm

ents

toth

e.E

xpos

ure

Dra

ftm

ade

byre

spon

dent

s,th

eB

oard

agre

edth

at,

inth

isin

stan

ce,

repo

rtin

ga

flow

offu

nds

that

likel

yw

illno

tta

kepl

ace

shou

ldno

tbe

requ

ired

.

Lev

elof

deta

ilof

fund

bala

nce

ela

ssth

c

88.

The

Exp

osur

eD

raft

prop

osed

that

the

two

com

pone

nts

ofno

nspe

ndab

lefu

ndba

lanc

e—re

sour

ces

that

are

not

insp

enda

ble

form

and

thos

eth

atar

ele

gally

orco

ntra

ctua

llyre

quir

edto

bem

aint

aine

din

tact

—be

pres

ente

dse

pam

tel

Res

tric

ted

fund

bala

nce

wou

ldb

ere

port

edat

the

sam

ele

vel o

fdet

ail a

sre

quir

edfo

r res

tric

ted

net

asse

tsin

para

grap

h32

ofS

tate

men

t34

.C

omm

itted

and

assi

gned

find

bala

nces

wou

ldbe

repo

rted

insu

ffic

ient

deta

ilso

that

the

maj

orpu

rpos

esfo

rwhi

cham

ount

sar

eco

mm

itted

and

assi

gned

can

beid

entif

ied

read

ity

89.

Seve

ral

Exp

osur

eD

raft

resp

onde

nts

urge

dth

eB

oard

tocl

arify

, tho

sere

quir

emen

tsin

the

fina

lSt

atem

ent.

Som

eco

nclu

ded

that

the

disc

losu

res

sugg

este

dby

the

Exp

osur

eD

raft

wou

ldbe

too

deta

iled

and

too

time-

cons

umin

gto

corn

pile

.O

ther

sre

com

men

ded

that

the

Boa

rdex

pres

sa

pref

eren

cefo

rei

ther

disp

lay

ordi

sclo

sure

.St

illot

hers

pref

erre

da

requ

irem

ent

that

calle

dfo

rdis

play

inth

eag

greg

ate

with

supp

ort

ing

deta

ils

disc

lose

din

the

note

s.M

any

user

sha

vetr

adit

iona

lly

bee

nam

biva

lent

abo

ut

whe

ther

thistr1pe

ofin

form

atio

nIs

disc

lose

din

the

note

sor

disp

laye

don

the

face

offi

nanc

ial

stat

emen

tsU

sers

that

expr

ess

apr

efer

ence

are

divi

ded—

som

epr

efer

mor

ede

tail

onth

efa

ceof

the

stat

emen

t,pr

ovid

edit

Isno

tso

volu

min

ous

asto

bedi

stra

ctin

g,w

here

asot

hers

pref

erno

tedi

sclo

sure

, as

they

beli

eve

itca

nbe

mor

ein

for

mat

ive

and

easi

erto

read

.C

onse

quen

tly,

the

Boa

rddo

esno

tbe

lieve

that

ther

eis

any

sing

leap

proa

chth

atof

fers

such

anad

vant

age

over

oth

ers

that

itsuse

shou

ldbe

requ

ired

ore

nco

ur

aged

. Thu

s,th

eno

npre

scri

ptiv

eap

proa

chIn

the

Exp

osur

eD

raft

was

reta

ined

for

the

fina

lS

tate

men

t,an

dgo

vern

men

tsar

epr

ovid

edw

Ithop

hone

for

mee

ting

thes

ere

qti

iem

ents

-4hre

ugh

dis

pIa

dls

closu

re,o

raco

mbi

nati

onof

both

.

t18

00

Stabl

anan

gem

.nts

90.

Sta

bili

zati

on(r

ainy

-day

)ar

rang

emen

tsw

ere

‘dew

ased

inth

eIn

vita

tion

toC

omm

ent

inco

nnec

tion

with

the

alte

rnat

ives

prop

osed

for

the

spec

ial

reve

nue

fund

defi

nitio

n.R

espo

nden

tsw

ere

aske

dth

eir

pref

eren

ces

for

repo

rtin

gst

abili

zatio

nam

ount

s(a

)as

aco

mpo

nent

offu

ndba

lanc

ein

the

gene

ral

fund

,(b

)in

ano

tedi

sclo

sure

orse

para

tesc

hedu

leth

atdi

lsag

gre

gate

sth

ege

nera

lfu

nd,

(c)

asa

new

fund

type

,or

(d)

bysn

otti

erap

proa

ch.

The

Boa

rdcO

nsid

ered

the

adva

ntag

esan

ddl

saóv

itnta

ges

ofea

chof

thos

e’al

tern

attv

esan

dth

eco

mm

ents

t,om

rOsp

orid

ents

toth

eIn

vita

tion

toC

omm

ent b

efor

ere

achi

ngth

eco

nclu

sion

prop

osed

inth

eE

xpo

sure

Dra

ft.

91.

Initi

ally

, the

Boa

rdco

nsid

ered

incl

udin

gst

abl

hzat

ion

amou

nts

asa

clas

sifi

catio

nw

ithin

the

nons

pend

able

fund

bala

nce

clas

sIfi

catio

nba

sed

onth

eco

ncep

tth

atst

abili

zatio

nam

ount

sar

eS

pend

able

only

whe

nce

rtai

nsp

ecif

icci

rcum

stan

ces

orco

ndit

ions

exis

t—if

thos

eci

rcum

stan

ces

orco

nditi

ons

dono

t exi

stat

the

end

ofth

efi

nanc

ial

repo

rtin

gpe

riod

,th

enth

ere

sour

ces

cann

otbe

spen

t.T

heB

oard

even

tual

lyre

ject

edth

atap

proa

chpr

imar

ilybe

caus

eth

eno

nspe

ndab

leca

ptio

nIm

plie

sa

leve

lof

con

stra

int

that

ov

erst

ates

mos

tst

abil

izat

ion

erra

ng

92.

The

Boa

rdco

nclu

ded

that

,ge

nera

lly,

the

mos

tap

prop

riat

epr

esen

tatio

nof

stab

iliza

tion

amou

nts

wou

ldb

ees

aco

mpo

nent

offu

ndb

alan

cein

the

gene

ral f

und.

The

Boa

rdag

reed

that

ecoi

xnio

slab

dhia

ifon

(ora

sim

ilar i

nten

tion

bya

diff

eren

tna

me)

cons

titut

eda

spec

ific

purp

ose

and,

ther

efor

e,am

ount

sco

nstr

aine

dto

stab

iliz

atio

nw

ould

usua

llym

eet

that

crite

rion

for

incl

usi

onin

the

com

mIt

ted

orre

stri

cted

fund

bala

nce

clas

sifi

catio

nsof

the

gene

ral

fund

.In

som

ein

stan

ces,

for

exam

ple,

Ifse

ttin

gas

ide

stab

iliz

atio

nre

sour

ces

isa

cons

titut

iona

lre

quir

emen

t,th

ose

amou

nts

may

mee

tone

orrn

ore

cith

eci

i-te

dsof

the

rest

rict

edfu

ndba

lanc

ecl

assi

feos

tlon.

The

Boa

rdbe

lieve

sth

atit

Isun

likel

yth

ata

stab

iliz

atio

nar

rang

emen

twou

ldsa

tisfy

the

crite

ria

tobe

repo

rted

asa

sepa

rate

spec

ial

reve

nue

fund

bec

ause

the

reso

urc

esus

uall

ydo

not

deri

veft

oma

spec

ific

rest

rict

edor

com

mit

ted

reve

nue

sour

ce,

asre

quir

edby

that

fund

type

defin

ition

.P

arag

raph

21of

this

Sta

tem

ent

was

amen

ded

tocl

lfy

that

po

lnt

GA

SBS6

4

93.

ThI

sS

tate

men

tre

quir

esth

atst

abili

zatio

nar

rang

erne

nts.

becl

assi

fied

with

inth

eco

mm

itte

dor

rest

rict

edfu

ndba

lanc

ecl

assi

fica

tions

itth

eysa

tisfy

the

resp

ectiv

ecr

iteria

ofth

ose

clas

sifi

catio

ns.

How

ever

, the

Boa

rdco

nclu

ded

that

,fo

rfi

nanc

ial

repo

rtin

gpu

rpos

es,

stab

iliza

tion

shou

lebe

rega

rded

asa

spec

ific

purp

ose

only

ifth

eci

rcum

stan

ces

orco

nditi

ons

that

sign

alth

ene

edfo

rst

aIlz

atio

nar

eid

entif

ied

insu

ffic

ient

deta

il.T

hegu

idan

cepr

ovid

edin

para

grap

h20

ofth

isS

tate

men

tw

asex

pand

edto

clar

ify

the

mea

ning

ofsp

ecif

icpu

rpos

e,in

the

cont

ext

ofst

abili

zatio

n.

94.

The

Boa

rdco

nsid

ered

and

reje

cted

the

no

tion

that

stab

iliza

tion

amou

nts

mig

htal

som

eet

the

assi

gned

fund

bala

nce

crite

ria

and

coul

dth

eref

ore

bere

port

edw

ithin

the

assi

gned

clas

sific

atio

n.T

heB

oard

belie

ves

that

stab

iliza

tion

isa

purp

ose

that

, rel

ativ

eto

spec

ific

activ

ityor

pro

gram

purp

oses

,ha

sin

here

ntfin

anci

alre

port

ing

sign

ific

ance

. Tha

tis,

awar

enes

sof

the

exis

tenc

ean

dco

nditi

ons

ofst

abili

zatio

nar

rang

emen

tsan

dam

ount

sca

nhe

lpus

ers

asse

ssa

gove

rnm

ent’

sfi

nanc

ialh

ealth

.Con

sequ

ently

,fo

rfin

ari

del

repo

rtin

gpu

rpos

es,

the

Boa

rdbe

lieve

sth

ata

gove

rnm

ent’

sab

ility

toes

tabl

ish

and

spen

dst

abili

zatio

nam

ount

ssh

ould

beth

epr

ovin

ce,a

ta

min

imum

,of

itshi

ghes

tle

vel

ofde

cisi

on-

mak

ing

auth

ority

,w

hich

Isco

nsis

tent

with

the

crit

eria

,fo

rth

eco

mm

itte

dfu

ndbal

ance

ion.

95,

The

GA

SB’s

rese

arch

foun

dth

atus

ers

o’t•

ten

cons

ider

stab

iliza

tion

arra

ngem

ents

tobe

apo

sitiv

ein

dica

tor

ofa

gove

rnm

ent’

sfis

calm

anag

emen

tph

iloso

phy;

that

is,go

vern

men

tsth

ates

tabl

ish

stab

iliza

tion

arra

ngem

ents

are

per

peiv

edby

man

yto

bere

spon

sibl

yse

tting

asid

ere

sour

ces

tow

iths

tand

unex

pect

edre

venu

esh

ortf

alls

orex

pend

iture

need

s.H

owev

er, s

ome

fina

ncia

lst

atem

ent

user

sin

terv

iew

edby

he

GA

SBex

pres

sed

conc

ern

abou

tthe

irin

abuy

tofin

dst

abili

zatio

nam

ount

sin

the

fina

ncia

lst

ate-

mer

itsof

cert

ain

gove

rnm

ents

.Thu

s,th

eB

oard

conc

lude

dth

atin

form

atio

nab

out

stab

iliza

t’ron

arra

ngem

ents

shou

ldbe

disc

lose

din

the

note

sto

fina

ncia

lst

atem

ents

,ev

enif

thos

ear

range

men

tsdo

not

mee

tth

ecr

iteri

afo

rdi

spla

yas

com

mitt

edor

rest

rict

edfu

ndba

lanc

e.

MIn

Imum

fund

bala

nce

poli

cydi

sclo

sure

s

96.

Man

ygo

vern

men

tscr

eate

dofa

cto

stab

ili

zati

onar

rang

emen

tsby

esta

bli

shin

gfo

rmal

GA

SB

.Ste

men

toS

tan

ds

Fw

idB

alan

ceR

epo

rtin

gA

ndG

ov

ern

men

tal F

und

Typ

eD

efin

itio

ns

1180

1

GA

SB

S54

GA

SB

Sta

tem

ent o

f Sta

ndar

ds

min

imum

fund

bal

ance

requ

irem

ents

.T

heB

oard

beli

eves

that

user

sar

esi

mila

rly

inte

res

ted

inin

form

atio

nab

out

thos

em

inim

umlu

ndba

lanc

ere

quir

emen

tsan

dho

wth

eyar

eco

mpl

ied

with

byth

ere

spec

tive

gove

rnm

ents

.T

here

fore

,th

isS

tate

men

tal

sore

quir

esth

atgo

vern

men

tsdi

sclo

seth

eir

min

imum

fund

bal

ance

polic

ies.

Som

eE

xpos

ure

Dra

ftre

spond

ents

and

field

test

par

tica

nts

aske

dth

atth

efi

nal S

tate

men

t mor

edea

rly

iden

tify

the

min

imum

bala

nce

arra

ngem

ents

that

are

inte

nded

tobe

the

focu

sof

the

disc

losu

rere

quir

emen

t.T

hey

poin

ted

out t

hat g

over

nmen

tsar

eof

ten

requ

ired

tom

aint

ain

min

imum

bala

nces

byor

dina

nce,

stat

ute,

inde

ntur

e,co

ntra

ct,

and

othe

rso

urce

san

das

ked

whe

ther

the

disc

losu

res

wou

ldbe

requ

ired

for a

llm

iwnu

mba

lanc

es,

rega

rdle

ssof

the

sour

ceof

the

requ

irem

ent o

rits

obje

ctiv

e.To

clar

ifyth

efo

cus

ofth

em

inim

umba

lanc

edi

sclo

sure

s,pa

ragr

aph

27re

fers

topo

licie

sra

ther

than

requ

irem

ents

and

emp

has

izes

that

those

poli

cies

are

ado

pte

dor

esta

Wis

hed

byth

egov

ernm

ent

todi

stin

guis

hth

emfr

omot

her

min

im

umba

lanc

ere

quir

emen

tsth

atar

eim

pose

dup

onth

ego

vern

men

tfr

omot

her

sour

ces

and

(i,)

rtln

gE

ncu

mbra

nce

s

tf.

hlde

velo

ping

the

Eq,

osur

eD

raft

the

Boa

rddi

scus

sed

the

ques

tion

ofw

heth

eren

cwt,

ance

sm

eet

the

crite

riato

bein

clud

edin

the

rest

rict

ed,

com

mitt

ed,

oras

sign

edfu

ndba

lanc

ecl

assi

fice

tions

.In

the

prev

ious

mod

el, e

ncun

bran

oes

wer

ein

clud

edin

the

rese

rved

fund

bala

nce

cate

gory

.H

er.

witl

Inth

ede

ssif

icat

ion

eppr

oach

inth

isSt

atem

ent,

the

Boa

rdco

nclu

ded

thata

encu

mbn

si

doesr

ther

cons

trai

rit o

nth

eus

eof

amou

nts

thai

isat

eady

corn

mui

cate

dby

clas

sifi

catio

nas

rest

rict

ed,

com

mIt

ted,

oras

s1éd

.T

here

stri

cted

,co

mm

itted

,an

das

sign

edof

itrid

tela

rice

amcl

atin

guis

hed

byth

ers

dent

tow

hich

purp

ose

1bl,

ons

have

been

esta

blis

hed

mga

l*ig

the

use

ofth

ose

amou

nts.

Non

eof

thoS

etirrre

amba

sed

onab

udg

etal

yav

alab

ility

notio

nin

the

way

elax

itre

rrce

sar

e.In

tact

,ano

urts

iianyott

hose

thie

e&

atio

risal

soco

uidb

ëen

birr

iber

edho

rna

budg

etal

ype

ispe

ctiv

e.B

ased

onth

ose

cons

ider

atio

ns, t

heB

oard

dste

m*r

edth

atre

porti

ngen

crxr

ibra

nces

asa

sepa

rate

clas

sific

atio

nis

Inco

mpa

tbe

wIth

the

focu

son

purp

ose

limita

tions

esta

blis

hed

inth

eft

,xib

alan

cehie

ra

clud

edth

at,

for

gove

rnm

ents

that

use

encu

mbr

ance

sin

thei

rbu

dget

ary

acco

untin

gsy

stem

,in

form

atio

nab

out

sign

ific

ant

encu

mbr

ance

ssh

ould

bedi

sclo

sed

inth

eno

tes

toth

efin

anci

alin

corj

kird

imw

ithod

1erc

orm

*nen

tsis

iher

then

depl

eyed

onth

eho

eof

the

tijd

fina

nd

ats

imerh

.

98.

The

com

men

tsof

resp

onde

nts

toth

eE

xpo

sure

Dra

ftan

dpa

rtlc

Ønt

sIn

the

field

test

mad

eit

evid

ent

that

man

ydi

sagr

eed

with

ordi

dno

tfu

llyun

ders

tand

that

encu

mbr

ance

ssh

ould

not

bedi

spla

yed

onth

efa

ceof

the

bala

nce

shee

tbu

tm

aybe

disc

lose

d.S

ome

resp

onde

nts

ar

gued

that

encu

mbr

ance

sre

pres

ent

lega

lco

mm

itmen

tsor

cont

ract

ual

obilg

atio

nsan

d,sh

ould

bere

port

edas

rest

rict

ed.

Oth

ers

expr

esse

dth

eir

belie

fth

aten

cum

bran

ces

are

nons

pend

able

and

shou

ldbe

incl

uded

inth

atfu

ndba

lanc

ecl

assi

fica

tion,

Som

eco

nten

ded

that

encu

mbr

ance

ssh

ould

beex

plic

itly

disp

laye

don

the

face

ofth

est

atem

ent.

Man

yar

gued

that

encu

mbr

ance

ssh

ould

becl

assi

fied

asco

mm

itted

oras

sign

ed, a

ndot

hers

reje

cted

the

poss

ibili

tyth

atth

eyco

uld

becl

assi

fied

asun

assf

tgne

d.T

heE

xpo

sure

Dra

ft’s

cont

enti

onth

aten

cum

bran

ces

are

abu

dget

ary

cons

ider

atio

n,ra

ther

than

afi

nanc

ial

repo

rtin

gm

atte

r,al

sow

asdi

sput

edby

som

ere

spon

dent

s

99.

The

Boa

rdre

cogn

ized

that

the

Exp

osur

eD

raft

did

not

suff

icie

ntly

com

mun

icat

eth

aten

cum

bere

dre

sour

ces

are

incl

uded

with

inth

ere

lev

ant

clas

sifi

catio

nsba

sed

onth

epu

rpos

esto

whi

chth

een

cum

bran

ces

rela

te.

For

exam

ple,

anam

ount

coul

dbe

clas

sifi

edas

rest

rict

edto

asp

ecif

icpu

rpos

e,so

me

oral

lofw

hich

also

may

been

cum

bere

d.T

hat f

urth

erde

linea

tion

ofth

een

cum

bere

dpo

rtio

nof

rest

rict

edfu

ndba

lanc

eIs

not

requ

ired

tob

.di

spla

yed

beca

use

the

en

cum

bran

cedo

esno

tfur

ther

rest

rict

the

purp

ose

for

whi

chth

ere

sour

ces

may

beus

ed.

Dis

play

ing

the

encu

mbe

red

port

ion

sepa

rate

lyon

the

face

ofth

efi

nanc

ial s

tate

men

tsw

ould

resu

ltin

ale

vel

ofde

tail

that

does

not a

ddto

the

deci

sion

-us

eful

ness

ofth

ein

form

atio

n.T

heB

oard

ther

efo

rede

cide

dto

add

dari

fyin

gla

ngua

gein

the

Stat

emen

t toex

plic

itly

stat

eth

aten

cum

bran

ces

shou

ldno

t be

repo

rted

sepa

rate

lyfr

omth

ecl

assi

fica

tions

offu

ndba

lanc

e—re

stri

cted

,co

mm

itte

d,an

das

sign

ed—

onth

efa

ceof

the

bala

nce

shee

t.

100.

Inre

spon

seto

the

cont

entio

nth

atan

en

cum

bran

ce(t

hrou

ghth

eis

suan

ceof

apu

rcha

se

orde

r’)

repr

esen

tsa

lega

lco

mm

itmen

tw

ithen

outs

ide

part

yan

dth

ussh

ould

bere

gard

edas

rest

rict

edfu

ndba

lanc

e,th

eB

oard

poin

tsou

tth

atsu

chan

inte

rpre

tatio

nIs

notc

onsi

sten

t with

the

defk

’dtla

nof

mst

rItte

din

Stat

emen

t 34

and

inth

isS

tate

men

tR

esbl

ctd,

asde

fine

d,ap

plie

sto

reso

urce

sth

atha

vebe

enpr

ovid

edby

cred

itors

(bon

dsa

les)

,gr

anto

rs,

ordo

nors

orha

vebe

enra

ised

purs

uant

toen

ablin

gle

gisl

atio

n.In

the

case

ofen

cum

bran

ces,

vend

ors

have

not

pro

vide

dre

sour

ces-

they

have

notp

rovi

ded

good

sor

serv

ices

andh

lsve

noin

flue

nce

over

how

ago

vern

men

tus

esIts

exis

ting

reso

urce

s.If

and

whe

na

purs

hasa

orde

rIs

fille

d,a

vend

orIs

en

title

dto

paym

ent

end

alia

blut

ywou

ldbe

reco

gni

zad,

buta

t no

poin

t doe

s tha

tven

dor h

ave

ally

Iega

lty’

enfo

rcea

ble

auth

ority

,as

outl

ined

inS

tate

men

t34

and

amen

ded

byS

tate

men

t46

,ov

erho

wth

ego

vern

men

t use

sits

reso

urce

s.

101.

The

Boa

rdal

sode

term

ined

that

the

Sta

tem

ent

shou

ldcl

arif

y,w

het

her

un

assi

gned

amou

nts

that

are

encu

mbe

red

for a

spec

ific

pur

pose

that

isno

tal

read

yin

clud

edw

ithin

the

rest

rict

ed,

com

mitt

ed,

oras

sign

edcl

assi

fica

tions

shou

ldco

ntin

ueto

bere

gard

edas

unas

sign

ed.

Tha

tIs

,do

esth

epro

cess

ofen

cum

beri

ngam

ount

seq

uate

toth

epr

oces

sth

atle

ads

‘toco

mm

itmen

tsor

assi

gnm

ents

?To

addr

ess

this

Issu

e,th

eB

oard

clar

ified

that

encu

mbr

ance

sof

othe

rwis

eun

assI

gned

amou

nts

shou

ldbe

repo

rted

inth

efu

ndba

lanc

ecl

assi

fica

tion

that

equa

tes

toth

epr

oces

sth

atth

ego

vern

men

tus

esin

encu

mbe

ring

amou

nts.

Thu

s,en

cum

bran

ces

ofun

assi

gned

amou

nts

couk

ibe

clas

sifi

edas

com

mIt

ted

oras

sign

edde

pend

ing

onth

epr

oces

sby

whi

cham

ount

sar

een

cum

bere

d.

App

ropr

iati

ons

ofex

isti

ngA

ind

bala

nce

102.

Inde

velo

ping

the

Exp

osur

eD

raft

,th

eB

oard

cons

ider

edth

eco

mm

onsi

tuat

ion

inw

hich

the

subs

eque

ntye

ar’s

budg

etin

clud

esa

spec

ific

prov

isio

nto

use

exis

ting

reso

urce

s(e

ndin

gfu

ndba

lanc

efr

omth

epr

ior

year

)fo

ra

spec

ific

purp

ose.

The

Boa

rddi

scus

sed

whe

ther

that

acti

onw

ould

mee

tth

ecr

iter

iato

bere

port

edas

anas

sign

men

tan

dco

nclu

ded

that

inso

me

circ

umst

ance

s,ap

prop

riat

ions

ofex

istin

gfu

ndba

lanc

e‘w

ould

cons

titu

tean

assi

gnm

ent,

arid

inot

hers

ituat

ions

, Itw

ould

not.

lbat

dls

tinc

tlon

shou

ldbe

base

don

whe

ther

the

appr

opri

atio

np

oss

esse

sth

ech

arac

teri

stic

sof

anas

sig

nm

ent;

that

Is, w

heth

erbo

thth

eam

ount

and

the

pwpo

seof

thtr

‘spp

r’op

dstio

nw

eap

eCil

llr

exam

ple,

age

nera

lfu

nftb

udge

t’co

utd

kis

ds

anap

prop

riat

ion

‘of

asp

ecif

icam

tfr

cm’t

hepr

ior y

ear’

sfu

ndba

lanc

eto

fina

nce

them

ra

don

ofan

athl

etic

field

.

103.

Inth

eE

xpos

ure

Dra

ft,th

eap

pllc

atio

not

the

fund

bala

nce

clas

sifi

catio

npr

ovis

ions

toan

appr

opri

atio

nof

exis

ting

fund

bala

nce

was

dis

cuss

edon

lyin

the

Bas

isfo

rC

oncl

usio

ns.R

esp

onde

nts

toth

eE

xpos

ure

Dra

ftso

ught

clar

ifi

cati

on

ofth

atap

plic

atio

nguid

ance

and

sugg

este

dth

atit

appe

arin

the

stan

dard

sse

ctio

nof

the

final

Sta

tem

ent

Inad

ditio

n,se

vera

lre

spon

dent

sar

gued

that

“bal

anci

ngth

ebu

dget

”by

appr

opri

atin

ga

port

ion

ofex

istin

gfu

ndb

alan

ceco

nstit

utes

the

setti

ngas

ide

ofre

sour

ces

for a

spec

ific

purp

ose

and

that

that

Inte

ntsh

ould

beco

mm

unic

ated

thro

ugh

the

fund

bala

nce

clas

sifi

catio

ns.

Som

eof

thos

ere

spon

dent

s.ar

gued

that

the

Exp

osur

eD

raft’

sre

quir

emen

tto

iden

tify

asp

ecif

icpu

rpos

e(t

hat l

sm

ore

spec

ific

than

bala

ncin

gth

ebu

dget

)w

asto

ore

stri

ctiv

ean

dar

bitr

ary—

they

sugg

este

dth

ata

gove

rnm

ent

coul

dsi

mpl

ych

oose

any

item

from

itsbu

dget

and

asse

rtth

atth

eex

istin

gre

sour

ces

wer

ein

tend

edto

fina

nce

that

purp

ose

The

Boa

rdge

nera

llyag

reed

and

resp

onde

d’to

thos

eco

ncer

nsby

addi

ngpa

ragr

aph

16to

this

Sta

tem

ent.

Tha

tpa

ragr

aph

Cla

rifi

esth

eci

rcum

stan

ces

unde

rw

hich

such

anap

prop

riat

ion

ofex

istin

gfu

ndba

lanc

eco

nsti

tute

san

assi

gn..

men

t.Sp

ecifi

cally

,the

Boa

rdag

reed

that

anap

prop

riat

lon

offu

ndba

lanc

ein

anam

ount

nogr

eate

rth

anth

epr

ojec

ted

exce

ssof

expe

cted

expe

nditu

res

over

expe

cted

reve

nues

satis

fies

the

crite

riato

becl

assi

fied

asan

assi

gnm

ent

offu

ndba

lanc

e.

104.

The

Boa

rdco

nsid

ered

whe

ther

anap

pro

pria

tion

ofex

istin

gfu

ndba

lanc

eco

uld

bedesi

fled

asa

com

mitm

ent

rath

er‘t

han

anas

sign

men

t.S

ome

asse

rtth

atan

appr

opri

atio

nof

exis

ting

fund

bala

nce

nece

ssar

yto

bala

nce

the

next

year

’sbu

dget

ista

ntam

ount

toa

tem

pora

ryst

abili

zatio

nar

rang

emen

t.T

hat

is,

that

-por

tion

of’e

xist

ing

fund

bala

nce

cons

titut

es’a

fl’a

rnou

ntth

atth

ego

vern

men

tin

tend

sto

use

for’

tfud

get

ary

stab

iliza

tion

inth

e‘s

ubse

quen

tye

ar.

I-low

-ev

er,

appr

opri

atio

nof

exis

ting

fund

‘bal

ance

ladc

s’th

eco

nstr

aint

san

dong

oing

natu

reof

the

form

alst

abili

zatio

nar

rang

emen

tsad

dres

sed

inth

isS

tate

men

t.T

here

fore

,ev

en‘t

houg

hth

esp

ecif

ied

use—

stab

iliza

tion—

-issi

mila

r ifl

thos

e

Fund

Bal

ance

Ropait

hIi

ffG

over

nmen

tal F

und

Ttp

eD

elln

ilIo

ns

chy

Giv

enth

atdi

ffer

ence

liifo

cus,

the

Boa

rdco

n- 1180

211

803

GA

SBS

.54

two

situ

atio

ns,t

hefa

ctth

atin

one

inst

ance

stab

iliz

atio

nis

anh

ifen

whi

lein

the

othe

rit

Isa

corn

mill

edpu

,pos

e,th

eB

oard

belie

ves,

lead

sto

the

appr

opri

ate

clas

sifi

catio

ndi

stin

ctio

n.T

heB

oard

also

beli

eves

that

anap

prop

riat

ion

ofex

istin

gfu

ndba

lanc

edo

esno

tm

eet

the

crite

ria

for

aco

mm

itmen

t bec

ause

the

gove

rnm

ent d

oes

not

have

tota

keac

tion

tore

mov

eth

eco

nstr

aint

—it

expi

res

atth

een

dof

the

budg

etar

ype

riod

.For

-m

elst

abili

zatio

nar

rang

emen

tsw

ould

gene

rally

resu

ltin

com

mitt

edfu

ndba

lanc

ecl

assi

fica

tion,

aspr

ovid

edfo

rin

para

grap

h21

,w

here

asth

eap

prop

riat

ion

ofex

istin

gfu

ndba

lanc

efo

rte

mpo

rary

budg

etar

yst

abili

zatio

nw

ould

resu

ltin

anas

sign

men

t,pr

ovid

edth

atth

eam

ount

Issp

ed-

fled

asa

budg

etar

yre

sour

cein

the

budg

etdo

cum

enta

ndth

epu

rpos

eof

the

appr

opri

atio

nis

specif

iod.

Gov

ernm

enta

l Fun

dT

ype

Def

initi

ons

105.

The

defi

nitio

nsof

the

Indi

vidu

algo

vern

men

tal

fund

type

spr

esen

ted

inth

isS

tate

men

tpr

ovid

eth

atfu

nds

ofa

part

icul

arty

peei

ther

beus

ed(t

hat

Is,

requ

ired

)or

are

use

ddi

scre

ltona

ry)

for a

llac

tiviti

esth

atm

eet

‘la.

lfuse

ofa

fundty

pel

sgen

eral

lydli

sar

y,sp

ecif

icsi

tuat

ions

unde

rw

hich

ath

atty

pesh

ould

beus

edar

eid

entif

ied

eith

erin

the

defi

nitio

nsin

this

Sta

tem

ent

(deb

tse

rvic

efu

nds)

orby

requ

irem

ents

esta

blis

hed

Inot

her

auth

orit

ativ

epr

onou

ncem

ents

(spe

cial

reve

nuea

ndca

pita

lpro

tect

sfu

nds)

.

Gen

eral

fUnd

106.

Forc

onsa

sten

cyw

lthcl

arif

icat

ions

mad

eto

the

term

inol

ogy

inth

ede

fini

tions

ofth

eot

her

gove

rnm

enta

lfu

ndty

pes

and

toac

know

ledg

eth

atot

herg

over

nmen

tal

fund

sar

ere

quir

edon

lyin

pres

crib

edsi

tuat

ions

,th

eB

oard

conc

lude

dth

atth

ede

fini

tion

ofge

nera

lfu

ndin

para

grap

h26

ofN

CG

AS

tate

men

t1

need

eda

con

form

ing

alte

ratio

n.T

hatd

efin

ition

stat

edth

atth

ege

nera

lfu

ndis

used

toac

coun

tfor

allf

inan

cial

reso

urc

esex

cept

tho

sere

quir

edto

be

ac

coun

ted

for

inan

othe

rfu

nd.”

Tore

cogn

ize

that

the

esta

blis

hmen

tof

othe

rfun

dsca

nb

edsO

retio

nary

ince

rtai

nci

rcum

stan

ces,

the

Boa

rdco

ndu

ded

that

the

defi

nitio

nsh

ould

bere

vise

dto

stat

eth

atth

ege

nera

lfu

ndsh

ould

beus

edac

coun

tfor

and

repo

rtal

l fin

anci

alre

sour

ces

not

acco

unte

d-fo

ran

dre

port

edin

anot

her

fund

,”T

hus,

the

unin

tend

edno

tion

that

noot

her

go

v

ernm

enta

lfun

dssh

ould

bere

port

edun

less

they

are

requ

ised

lsel

imin

ated

.

Spe

cial

reve

nue

fund

type

107.

Inth

ede

liber

atio

nsfo

r the

Exp

osur

eD

raft,

rega

rdin

gth

ede

fini

tion

ofth

esp

ecia

lre

venu

efu

ndty

pe,

the

Boa

rdac

know

ledg

edth

atth

edi

vers

ityin

the

repo

rtin

gof

thos

efu

nds

Inpr

actic

eco

uld

larg

ely

beat

trib

uted

toco

nfus

ion

that

de

rive

dfr

omse

vera

lpr

ovis

ions

in.th

epr

evio

usde

fini

tion.

Tho

sepr

ovis

ions

dete

rmin

edth

en

atu

reof

the

reve

nue

sour

cefo

rw

hich

asp

ecia

lre

venu

efu

ndm

aybe

crea

ted

tore

port

inex

ter

nal f

inan

cial

stat

emen

ts, a

sw

ella

sth

ena

ture

ofot

her

reso

urce

sth

atal

som

aybe

repo

rted

inth

ose

fund

s.T

hepr

ovis

ions

inth

ede

finiti

onth

atap

pear

edto

caus

eth

eco

nfus

ion

wer

epr

ocee

dsof

spec

ific

reve

nue

soui

ses,

lega

llyes

fdct

edan

dsp

ecifi

edpu

rpos

es. T

hein

vita

tion

toC

om

men

tin

clud

edal

tern

ativ

e., I

nter

pret

atio

nsof

those

par

tsof

the

defi

nitio

n,ea

chof

whi

chw

ould

have

,to

diff

eren

t deg

rees

,lim

ited

the

repo

rtin

gof

spec

ial

reve

nue

fund

sby

man

ygo

vern

men

ts.

108.

As

disc

usse

dea

rlier

,th

efu

ndba

lanc

ein

form

atio

nne

eds

ofus

ers

vary

—fr

omIn

form

atio

nab

out

com

plia

nce

with

rest

rict

ions

onth

eus

eof

reve

nues

,to

the

rela

tive

avai

labi

lity

ofre

sour

ces,

toth

ere

venu

esan

dex

pend

itur

esof

spec

ific

prog

ram

san

dac

tIvi

ties.

The

com

men

tsre

ceiv

edfr

omth

eIn

vIta

tion

toC

omm

ent

resp

onde

nts

abou

tth

eus

eof

spec

ial

reve

nue

fund

sva

lidat

edth

atno

tion

and

are

indi

cativ

eof

the

diff

eren

ces

Inth

ew

ayin

whi

chth

ose

fund

sha

vebe

enre

port

edin

prac

tice.

On

one

side

are

thos

eth

atbe

liev

eth

atsp

ecia

lre

venu

efu

nds

shou

ldbe

used

only

tore

port

the

use

and

avai

lab

ility

ofsp

ecif

icre

venu

es(a

mot

orfu

elta

xfu

nd,

for

exam

ple)

,w

hIle

onth

eot

her

side

’are

thos

eth

atbe

liev

eth

atsp

ecia

lre

venu

efu

nds

also

may

beus

edto

repo

rtth

ere

venu

esan

dex

pend

itur

esof

spec

ific

prog

ram

sor

actM

tles

(apu

blic

libra

ryfu

nd,f

orex

ampl

e).

109.

Inco

nnec

tion

with

the

inte

ntof

the

pro

ceed

sof

spec

ific

reve

nue

sour

ces

prov

isio

n,a

ques

tion

inth

ein

vita

tion

toC

omm

ent

aske

dw

hat

reso

urce

ssh

ould

beac

coun

ted

for

ina

spec

ial

reve

nue

fund

incl

uded

inex

tern

alfi

nan

cial

repo

rts.

The

alte

rnat

ives

wer

e(a

)on

lya

spec

ific

reve

nue

sour

ce,

(b)

asp

ecif

icre

venu

eso

urce

and

tran

sfer

red

mat

chin

gam

ount

s,or

(c)

11O

Fina

ncia

lre

port

ing

stan

dard

sdo

not

requ

ite-s

epar

ate

fund

usag

efo

reit

hers

peci

fic

rev

enue

sor

spec

ific

activ

ities

.Tha

tis,

GA

AP

does

not

requ

ire-

all

rest

rict

edro

adan

dbr

idge

taxe

sfo

rex

ampl

e,to

bere

port

edin

sepa

rate

spec

ial

reve

nue

fund

s,T

here

fore

,so

me

gove

rnm

ents

repo

rtth

ose

reve

nues

inth

eir

gene

ral

fund

and

othe

rsus

eon

eor

mor

efu

nds.

Sim

War

lyG

MP

does

not

requ

ire

gove

rnm

ents

tore

port

thei

rpu

blic

park

sac

tivi

ties

(or

any

othe

rsp

ecif

icfu

nctio

n,pr

ogra

m,o

ract

Mty

)In

asep

isra

tefu

nd.

Con

sequ

ently

,so

me-

gove

rnm

ents

acco

unt

for

oil

publ

icpa

rks

reve

nues

and

expe

ndIt

ures

inth

ege

nera

lfu

nd,

whi

leot

hers

use

ase

para

tefu

nd,-

ahds

tltlo

ther

sus

ebo

th.A

sa

resu

lt,so

me

have

asse

rted

that

anac

tMty

-bas

edap

proa

chis

not i

nac

cord

with

the

Inte

nded

use

ofsp

ecia

lre

venu

efu

nds

and

does

little

,if a

nyth

ing,

toen

hanc

eco

nsis

tenc

yB

ecau

sean

activ

ityco

uld

bere

port

edfri

a’va

riet

yof

way

s(in

the

gene

ral

fund

,in

asp

eola

lrev

enu

efu

nd,

orin

both

),th

ose

that

are

Inte

rest

edIn

activ

ityre

port

ing

may

not

find

the

info

rmat

ion

they

need

unle

ssth

esp

ecia

lre

venu

efu

ndde

finiti

onre

quire

si’s

port

ing

ofac

tiviti

esin

sepa

rate

spec

ial

reve

nue

fund

s.-.

111.

Pro

pone

nts

ofan

activ

ityfo

cus

sugg

est

that

IfIt

Ises

sent

ialf

orre

ader

sto

beab

leto

Iso

late

the

proc

eeds

and

uses

ofa

rest

rict

edre

ven

ue,

then

ase

para

tefu

ndsh

ould

bere

quIr

edfo

ral

lre

stri

cted

reve

nues

.T

hat

is,

ifgover

nm

ents

can

repo

rta

spec

ific

rest

rict

edre

venu

ein

112.

Apo

pula

rar

gum

ntfr

omth

ose

that

sup

port

limiti

ngth

eus

eof

spec

ial

reve

nue

fund

sto

repo

rtin

gth

eus

esof

rest

rict

edre

venu

esIs

that

itde

mon

stra

tes

com

plia

nce

with

spen

ding

rest

rict

ions

. Yet

,th

eB

oard

Isaw

are

that

gove

rnm

ents

can

repo

rtco

mpl

ianc

ese

lect

ivel

yw

ithw

hate

ver

rest

rict

edre

venu

esth

eych

oose

tore

-po

rt‘in

asep

arat

esp

ecia

lre

venu

efu

nd.

Re

stri

cted

reve

nues

for

whi

chth

eych

oose

nott

ode

mon

stra

teco

mpl

ianc

eca

nbe

repo

rted

inth

ege

nera

lfu

ndw

ithot

her

reve

nues

,bo

thre

stri

cted

and

unre

strI

cted

.T

hat

leve

l’of

flexi

bilit

yle

dth

eB

oard

toco

nclu

defo

rthe

Exp

osur

eD

raft

that

gene

ral

purp

ose

Oxt

erna

lfi

nanc

ialst

ate

mer

itsar

eno

tthe

mos

tap

prop

riat

em

ediu

mfo

rde

mon

stra

ting

this

form

ofco

mpl

ianc

e.

113.

Man

yus

ers

that

favo

rlim

iting

spec

ial

rev

enue

fund

usag

edo

nota

sser

ttha

tthe

yw

antt

qju

dge

com

plia

nce

but

rath

erth

atth

eyw

ant

tokn

owab

out

avai

labi

lity

ofre

sour

ces.

Gov

ern

men

tcom

plia

ioe

with

spen

ding

limita

tions

isno

ta

driv

ing

fact

orfo

rtho

seus

ers;

rath

er, t

hey

wan

tto

know

whe

reth

eav

aila

ble

amou

nts

are.

The

Boa

rdbe

liev

esth

atsu

chin

form

atio

nca

nbe

prov

ided

thro

ugh

disp

lay

and

clas

sifi

catio

nte

chni

ques

and

base

dth

eE

xpos

ure

Dra

ftcl

assi

fica

tion

appr

oach

onth

atno

tion.

114.

-S

ome

Invi

tatio

nto

Com

men

t res

pond

ents

poin

ted,

out

that

Sta

tem

ent

34pr

ovid

esfo

ran

activ

ityor

prog

ram

focu

sin

the

gove

rnm

ent-

wid

est

atem

ent’

ofac

tiviti

esan

d,th

eref

ore,

repo

rtin

gsi

mila

rin

form

atio

nin

gove

rnm

enta

lfu

nds

wou

ldbe

redu

ndan

tW

hile

that

asse

rtio

n,on

itsfa

ce,

may

seem

valid

,m

any

fina

ncia

l

GA

SB

Sta

tem

ento

f Sta

ndar

dsF

und

Rel

ance

Rep

otIi

1gie

ndG

over

nmen

tal F

und

‘l)p

eD

efin

ition

sG

AS

BS

asp

ecif

ic4-

even

ue’ s

ourc

e,tr

ansf

erre

dm

atch

ing

the

gene

ral

fund

com

min

gle

siw

lIh

’oth

eam

ount

s,an

dot

her

lega

llylim

ited

tran

sfer

red

stri

cted

and

unre

stri

cted

reve

nees

w’i

yeli

oukI

amou

nts

The

com

men

tsre

ceiv

edho

rnth

ere

-si

mila

rm

ixbe

proh

ibite

din

ale

ssco

inpr

ehen

’.sp

onde

nts

toth

eIn

vita

tion

toC

omm

ent

re-

51w

sepa

rate

spec

ial r

even

uefu

nd?

Tho

sew

hofl

ecte

dth

edi

ffer

ence

sin

prac

tice.

Bec

ause

dlf-

pref

era

reve

nue

focu

sw

ould

resp

ond

that

ifal

tfe

ren

tuse

rg

rou

ps

hav

edi

ffer

ent

nee

ds,

unre

stri

cted

amou

nts

wer

ere

quir

edto

bere

supp

orte

rsof

eith

era

reve

nue-

focu

sed

ap-

port

edin

the

gene

ral

fund

,a

user

’sse

arch

for

prea

chor

anac

tivity

-foc

used

appr

oach

coul

dav

aila

ble

amou

nts

issi

mpl

ifie

das

long

asre

decl

are

that

cons

ider

atio

nof

user

need

sm

di-

stri

cted

amou

nts

inth

atfu

ndar

ecl

early

iden

tica

tes

supp

ort

for

thei

rpr

efer

red

defi

nitio

n.O

nfie

d.A

fter

wei

ghin

gth

ear

gum

ents

from

both

the

one

hand

,m

any

user

sfr

omth

ein

vest

orl

pers

pect

ives

,th

eB

oard

conc

lude

dth

atth

ecr

edito

rgr

oup

gene

rally

cont

end

that

the

focu

sne

Od

for

Info

rmat

ion

rega

rdin

gav

aila

ble

ofsp

ecia

l rev

enue

fund

ssh

ould

beon

reve

nues

amou

nts

isan

impo

rtan

t con

side

ratio

n,bu

t iti

sso

they

can

easi

lyid

entI

fyre

sour

ces

that

are

not

the

only

user

need

that

shou

ldbe

ad-

avai

labl

e.O

nth

eot

her

hand

,se

vera

lpr

epar

erdr

esse

d,an

dit

shou

ldno

tbe

met

atth

eex

and

atte

stor

resp

onde

nts

beli

eve

that

user

sier

ofot

hers

.ot

her

than

cred

itm

arke

tpa

rtic

ipan

tsal

sow

ant

info

rmat

ion

abou

tpr

ogra

ms

orac

tiviti

esan

dth

atsp

ecia

lre

venu

efu

nds

have

been

anef

fec

tive

med

ium

inre

port

ing

that

Info

rmat

ion.

‘II8

04

1180

5

GA

SBS

54

stat

emen

tus

ers

cont

end

that

the

min

imum

requ

irem

ent

for

leve

lof

deta

il(t

otal

dire

ctex

pens

es.

for

exam

ple)

atth

ego

vern

men

t-w

ide

leve

l is

inad

equa

tefo

rass

esst

igth

eop

erat

ions

ofa

part

icul

arac

tivity

orpr

ogra

m.

Inot

her

wor

ds.w

ithou

tadd

ition

alde

tails

ofpr

ogra

mex

pens

es(p

erso

nnel

and

rela

ted

expe

ndit

ures

stpli

es,

mai

nten

ance

, and

soon

, by

prog

ram

),ac

tivity

repo

rtin

gin

spec

ialr

even

uefu

nds

isth

eon

lyw

ayta

rus

ers

toge

t the

leve

lcii

nfor

mat

ion

they

need

toas

sess

apa

rtic

ular

prog

ram

wit

hou

tpie

cing

itto

geth

erfro

mav

aile

tyof

loca

tions

.

115.

Inar

rMng

atth

eapP

reaC

hPm

Pos

edif

lthe

Exp

osur

eD

raft,

the

Boa

rdw

asfa

ced

with

the

ques

tion

ofw

heth

era

reve

nue

focu

sora

nac

tiv

itylo

cus

prow

des

bette

rin

form

atio

n.U

sers

inte

rest

edin

loca

ting

avai

labl

ere

sour

ces,

orin

de

term

Inin

gho

wre

stri

cted

reve

nues

wer

eus

ed,

coul

dea

sily

obta

inth

atin

form

atio

nfr

omre

venu

e-ba

sed

fund

s,w

hile

need

ing

addi

tiona

lin

form

atio

nto

asse

ssth

eus

esan

dav

aila

bilit

yof

reso

urce

sIf

sing

leac

tMty

-bas

edfu

nds

wer

ere

port

ed.

The

Boa

rdbe

liev

esth

atth

ose

user

“-‘

iar

ebe

tter

serv

edby

reve

nue-

base

dre

g.C

onve

rsel

y,us

ers

inte

rest

edin

prog

ram

tivity

info

rmat

ion

wou

ldge

nera

llyne

edto

inly

toth

esi

ngle

actM

ty-b

ased

fund

sto

ob

whi

teun

der

are

venu

e-ba

sed

appr

oach

,th

eyw

ould

have

toga

ther

the

infà

rmat

lon

from

ava

riet

yof

fund

sin

clud

ing

the

gene

ral

fund

.T

heB

oard

belie

ves

that

thos

eus

ers’

need

sar

ebe

stm

etby

actM

ty’b

ased

repo

rtin

g.B

ecau

seth

eB

oard

belie

ves

thos

eco

mpe

ting

user

need

sar

eof

equa

lw

porl

anoe

.the

Boa

rdag

reed

that

aso

lutio

nto

satis

fyon

ene

edat

the

expe

nse

ofth

eot

hers

houl

dbe

avoi

ded.

116.

Aft

erca

refu

llyev

alua

ting

the

stre

ngth

san

dw

eakn

esse

sof

the

alte

rnat

ives

,the

Boa

rdco

nclu

ded

for

the

Exp

osur

eD

raft

that

the

spe

cial

reve

nue

fund

type

defi

nitio

nsh

ould

not

bein

terp

rete

din

aw

ayth

atw

ould

pmhb

ltgo

vem

man

iafr

ompu

rsui

ngan

activ

ity-b

ased

repo

rtin

gob

ject

ive

ince

rtai

nca

ses.

The

Boa

rdbe

lieve

sth

atit

isea

sier

toun

ders

tand

info

rmat

ion

abou

lsp

ecif

icre

venu

esin

anac

tivity

-bas

edsp

ecia

lre

venu

ehi

ndth

anit

isto

unde

rsta

ndin

form

atio

nab

outs

peci

fic

activ

ities

ina

reve

nue-

base

dfu

ndfr

amew

oric

.In

addi

tion,

the

Boa

rdbe

liev

esth

atm

ore

effo

rtvA

ilbe

requ

ired

.an

dm

ore

con

tusi

onw

illre

sult,

InIn

form

ing

read

ers

abou

tac

tivitl

esif

the

spec

ialr

even

uefu

ndty

peIs

defi

ned

sona

rrow

lyas

toin

clud

eon

lysp

ecif

icco

mm

it-

ted

orre

stri

cted

reve

nues

.N

ever

thel

ess,

the

Boa

rdbe

lieve

sth

atit

isim

port

antt

ost

ress

that

the

defi

nitio

nre

quir

esth

ata

spec

ific

rest

rict

edor

com

mitt

edre

venu

eso

urce

beth

efo

unda

tion

ofa

spec

ial

reve

nue

fund

.Thi

sis

one

aspe

ctof

the

clar

ific

atio

nof

the

defi

nitio

nof

the

spec

ial

reve

nue

fund

type

for

whi

chth

eB

oard

belie

ves

ther

eap

pear

sto

belit

tleco

ntro

vers

y.

117.

Gov

ernm

ents

that

curr

ently

repo

rtsp

ecia

lre

ven

ue

funds

consi

sten

tw

ith

ana

rrow

reve

nue-

base

dap

proa

char

eno

tre

quir

edto

corw

ertt

hose

fund

sto

inco

rpor

ate

mor

eof

anac

tMty

focu

&In

cont

rast

,th

ose

gove

rnm

ents

that

repo

rtsp

ecia

lre

venu

efu

nds

ina

mar

iner

cons

iste

ntw

ithth

eap

proa

d’r

prov

ided

fori

nth

isS

tate

men

tw

ould

have

been

requ

ired

tom

ake

sign

ific

ant

chan

ges

toco

mpl

yw

itha

narr

ower

reve

nue-

base

dde

finiti

on.

118.

The

ques

tion

pose

din

the

Invi

tatio

nto

Com

men

tre

gain

ing

the

mea

ning

ofle

gally

iwst

rict

edw

asin

tend

edto

solic

itvi

ews

onho

wbi

nofn

gth

elim

itatio

nson

the

use

ofa

spec

ific

reve

nue

shou

ldbe

for

itto

form

the

foun

datio

nof

ase

para

tesp

ecia

lre

venu

etun

d.T

hati

s,sh

ould

itbe

nece

ssar

yfo

r the

cons

trIn

tsto

beim

pose

don

lyth

roug

hth

ele

gally

rest

rict

ing

chan

nels

de

fine

din

para

grap

h34

ofS

tate

men

t34

,as

amen

ded

(Opt

ion

1)?

Or

can

the

cons

trai

nts

also

beIm

pose

dby

the

repo

rtin

ggo

vern

men

tit

self

even

thou

ghth

ego

vern

men

t has

the

abili

ty,

thro

ugh

som

esp

ecif

ied

leve

lof

due

proc

ess,

tore

mov

eor

mod

ifyth

em(O

ptio

n2)

?

119.

Res

pond

ents

that

expr

esse

da

pref

eren

cefo

rO

ptio

nI

allu

ded

toco

nsis

tenc

yan

dco

mpa

rabi

lity

asre

ason

sfo

rth

eir

supp

ort.

Som

esu

gge

sted

that

the

Opt

ion

1ap

proa

chpa

ralle

led

thei

rbel

ieft

hata

llun

rest

rict

edre

sour

ces

shou

ldbe

repo

rted

inth

ege

nera

lfun

dan

dth

atth

eba

sis

fora

sepa

rate

fund

shou

ldbe

ale

gal

rest

ric

tion.

Oth

ers

stat

edth

atO

ptIo

n1

wou

ldhe

toke

epth

enu

mbe

rof

fund

sata

min

imum

,an

dth

eybe

liev

eth

atit

wou

ldel

imin

ate,

orat

leas

tsi

gnif

ican

tlyre

duce

,th

ere

port

ing

ofav

aila

ble

reso

urce

sin

spec

ial

reve

nue

fund

s.T

heB

oard

ackn

owle

dges

that

the

cons

iste

ncy

and

com

pa

rabi

lily

argu

men

thas

som

em

erit,

buti

tals

ore

aliz

esth

atth

ear

gum

entI

ssi

gnlf

ican

ltydi

lute

dby

the

fact

that

gove

rnm

ents

can

choose

tore

port

rest

rict

edre

venu

esin

ase

par

ate

fund

orco

mm

Ingl

eth

ose

reve

nues

with

othe

rre

stri

cted

and

unre

stri

cted

reso

urc

esin

the

gen

eral

fund

.

Thu

s,th

eB

oard

belie

ves

that

unde

rO

ptio

n1,

cons

iste

ncy

orco

mpa

rabi

lity

wou

ldbe

fully

achi

eved

only

toth

eex

tent

that

all

spec

ial

rev

enue

fund

spre

sente

dW

ould

incl

ude

only

rest

rict

edre

venu

es,

but

itw

ould

not

be

fully

achi

eved

inth

ese

nse

that

all

gove

rnm

ents

wou

ldre

port

the

sam

ere

stri

cted

reve

nues

inid

entic

alw

ays.

The

Boa

rdal

soag

reed

with

the

sugg

esti

onth

atO

ptio

n,1

wou

ldim

pede

agov

ernm

ent’

sab

ility

tore

port

unre

stri

cted

reso

urce

sin

spec

ial

reve

nue

fund

sto

mak

eth

ose

reso

urce

sap

pear

less

avai

labl

eth

anth

eyac

tual

lyar

ebu

tco

nclu

ded

that

the

conc

ern

coul

dbe

easi

lym

itiga

ted

by.c

lear

lyst

ated

and

wel

l-de

fine

dcl

assi

fica

tions

offu

ndba

làlc

e.

120.

Aco

mm

onar

gum

ent

mad

eby

thos

eth

atpr

efer

red

Opt

ion

2is

that

itgi

ves

gove

rnm

ents

the

flexi

bilit

yto

repo

rtin

am

anne

rth

atpo

rtra

ysho

wth

eyac

tual

lym

anag

eth

eir

reso

urce

san

dac

tivi

ties

The

yco

nten

dth

atso

me

deci

sion

mak

ers

(the

legi

slat

ive

and

over

sigh

tus

ers)

wou

ldfin

dfi

nanc

ial

stat

emen

tsth

atdo

not p

rovi

deth

isfle

xibi

lity

tobe

less

usef

ul.

Ano

ther

popu

lar

obse

rvat

ion

from

the

resp

onde

nts

that

supp

orte

dO

ptio

n2

was

that

the

subs

tanc

eof

the

cons

trai

nts

aris

ing

from

rest

rict

ions

and

com

mit

men

tsis

soco

mp

arab

leth

atal

low

ing

sepa

rate

fund

fapo

rlin

gof

one

but

nott

heot

her

was

not w

arra

nted

.Fi

nally

, man

yth

atpr

efer

red

Opt

ion

2po

inte

dou

tth

atIt

mor

ecl

osel

yre

sem

bles

curr

ent

prac

tice

and

that

adop

ting

the

defi

niti

onin

Opt

ion

1w

ould

caus

esi

gnif

ican

tch

anges

and

loss

ofus

eful

info

rmat

ion.

Aft

erco

nsid

erin

gth

etw

oal

tern

ativ

es,

the

Boa

rdde

term

ined

for t

heE

xpos

ure

Dra

ftth

atin

tent

ofth

ele

gally

rest

rict

edpr

ovis

ion

inth

ede

fini

tion

shou

ldno

tbe

the

equi

vale

ntof

rest

rict

edIn

Sta

tem

ent

34bu

t,ra

ther

,sh

ould

enco

mpa

ssco

mm

itted

reso

urce

sas

wel

l.A

ccor

ding

ly,

the

Boa

rdel

imin

ated

l6ga

lly1

rom

the

spec

ial

rev

enue

fund

type

defin

ition

beca

use

itim

plie

sa

resl

ridt

ion

that

Isen

forc

eabl

eby

law

and

over

stat

esth

est

reng

thof

the

cons

trai

nts t

hat c

anbe

impo

sed

bya

gove

rnm

ent t

inits

elf.

121.

The

resp

onse

sdi

scus

sed

abov

eto

the

ques

tion

sin

the

Invi

tatio

nto

Com

men

tab

out

posa

tele

alte

rnat

ive

inte

rpre

tatio

nsof

the

term

ino

logy

inth

esp

ecia

lre

venu

efu

ndty

pede

fini

tion

wer

eve

ryin

form

ativ

eto

the

Boa

rdan

dai

ded

the

deli

bera

tion

sth

atle

dto

the

spec

ial

reve

nue

fund

type

defi

nitio

nin

the

Exp

osur

eD

raft.

The

Boa

rdde

cide

dno

tto

prop

ose

sub-

stan

tive

mod

ific

atio

nsto

the

defi

nitio

nbu

t,in

stea

d,to

prop

ose

that

gove

rnm

ents

disc

lose

inth

eno

tes

tofi

nanc

ial

stat

emen

tsth

eki

nds

ofre

venu

esth

atar

ere

port

edin

spec

ial

reve

nue

fund

s.T

hat

is,t

hedi

sclo

sure

wou

ldre

veal

the

natu

rean

dex

tent

ofth

eco

nstr

aint

sim

pose

don

the

use

ofth

ose

reve

nues

.In

addi

tion

,th

eB

oard

conc

lude

dth

atra

ther

than

requ

irin

gw

hich

reve

nues

oram

ount

sca

nbe

repo

rted

insp

ecia

lre

venu

efu

nds,

this

Sta

tem

ent

wou

ldpr

ovid

efo

r afu

ndba

lanc

ecl

assi

fica

tion

and

dis

play

met

hodo

logy

that

wou

ldin

form

read

ers

abou

t the

leve

lsof

cons

trai

ntpl

aced

onth

eu

seof

the

amou

nts

actu

mul

atéd

insp

ecia

lre

venu

e

122.

Man

yre

spon

dent

sto

the

Exp

osur

eD

raft

expr

esse

dco

ncer

nab

out t

hech

ange

tram

cur

rent

prac

tice

that

wou

ldre

sult

ifth

epr

opos

edcl

arif

icat

ions

wer

eim

plem

ente

d.T

here

ap

pear

edtà

bem

uch

unce

rtai

nty

abou

tw

heth

ergo

vern

men

tsca

nas

sign

amou

nts

toth

epur

pose

sof

anin

divi

dual

spec

ial

reve

nue

fund

.O

nequ

estio

nth

atar

ose

was

whe

ther

asp

ecia

lre

venu

efu

ndca

nin

clud

ean

yam

ount

sth

atar

eno

tre

stri

cted

orco

mm

itted

.A

seco

ndqu

estio

nw

asw

heth

erth

efo

unda

tion

ofa

spec

ial

rev

enue

fund

can

bea

spec

ific

reve

nue

that

has

been

assi

gned

(rat

her t

han

rest

rict

edor

corn

mit.

ted)

toth

epu

rpos

eof

the

fund

. The

reas

onfo

rth

eun

cert

aint

yw

asth

ere

fere

nce

inpara

grap

h26

ofth

eE

xpos

ure

Dra

ftto

“spe

cifi

cre

ven

ues

that

are

rest

rict

edor

limite

d,”

whi

lepar

agr

aph

27of

the

Exp

osur

eD

raft

refe

rred

tore

sour

ces

that

have

been

assi

gned

toth

epur

pose

ofa

spec

ial

reve

nue

fund

.M

any

resp

ond

ents

albo

had

ques

tion

sab

out

the

incl

usio

nof

assi

gned

amou

nts

inth

edi

scus

sion

inon

epar

agr

aph

but

nott

heot

her.

The

Boa

rd’s

inte

ntw

asto

use

the

first

para

grap

hto

emph

asiz

eth

atas

sign

edre

sour

ces

shou

ldno

tbe

cons

ider

edan

appro

pri

ate

foun

datio

nfo

ra

sep

arat

esp

ecia

lre

venu

efu

nd.

The

follo

win

gpa

ragr

aph

mad

eth

epo

int

that

spec

ific

reve

nues

also

coul

dbe

assi

gned

toa

spec

ial

reve

nue

fund

(or

exis

ting

reso

urce

sfr

omot

her f

unds

coul

dbe

tran

sfer

red

in)

prov

ided

that

asu

bsta

ntia

lpor

tion

o(th

ere

sour

ces

inth

efu

ndar

eat

tnbu

tabl

eto

rest

rict

edor

com

mitt

edre

venu

es.

123.

The

Boa

rdad

dres

sed

the

ques

tion

ofw

heth

eras

sign

edam

ount

sca

nbe

repo

rted

insp

ecia

lre

venu

efu

nds

tosu

pple

men

tre

stri

cted

orco

inm

itted

reso

urce

sby

clar

ifyin

gth

atdi

scus

sion

inth

est

andar

d.

The

othe

ris

sue

was

GA

SBS

tate

men

tofS

tand

ards

Fund

Bal

ance

Rep

ort

ingan

dG

over

nmen

tal F

und

Typ

eD

efin

itio

nsG

ASB

S54

‘I

1180

6fl

807

GA

SBS

54

whe

ther

ago

vern

men

tcan

esta

blis

har

idm

awr

tama

sepa

rate

fund

with

assi

gned

reso

urce

sas

the

foun

datio

n,T

heB

oard

eval

uate

dth

epr

osan

dco

nsof

such

anap

proa

chan

dul

timat

ely

reje

cted

it,co

ndud

ing

that

itw

ould

beta

ntam

ount

toha

ving

nopa

ram

eter

sat

all f

orus

ing

spec

ial

reve

rsie

fund

s,an

dbe

caus

esu

cha

perm

issi

vede

finiti

onco

uld

ultim

atel

yun

derm

ine

the

sign

ifi

cano

eof

the

gene

ral f

und.

124.

Res

pond

ents

also

voic

edco

ncer

nsab

out

situ

atio

nsin

whi

chre

sour

ces

are

rece

ived

inon

efu

ndan

ddi

stnb

uted

toot

her

fund

sfo

rex

pend

itur

ein

acco

rdan

cew

ithsp

ecif

ied

pu

rpo

ses.

Som

ere

ferr

edto

thos

efu

nds

as“c

lear

ing

fund

s,”

and

they

surm

ised

that

the

Exp

osur

eD

raft

wou

ldal

low

for

acl

eari

ngfu

ndto

bere

port

edas

asp

ecia

l rev

enue

fund

butn

otan

ulti

mat

eex

pend

iture

fund

beca

use

thos

e“t

rans

ferr

ed”

reso

urce

sw

ould

not

beco

nsid

ered

reve

nues

ofth

atfu

nd. T

heB

oard

conc

lude

dth

atpe

rcep

tion

isa

mis

inte

rpre

tatio

nof

the

Expo

sure

Dra

Ws

inte

ntIn

thos

ein

sb

a,

the

foun

dati

onis

asp

ecif

icre

venu

ean

dif

thos

ere

‘,s

are

eith

erre

stri

cted

orco

mm

itte

d,it

esp

ecia

lre

venu

efu

nds

may

bere

,re

gard

less

ofth

efa

ctth

atth

ere

sour

ceho

llyre

ceiv

edin

anot

her f

und.

The

Boa

rd.

.._J

that

the

final

stan

dard

shou

ldcl

arify

that

,in

thos

esi

tuat

ions

the

inui

ows

shou

ldno

tbe

reco

gniz

edas

reve

nues

inth

efu

ndth

atin

itial

lyre

ceiv

esth

em.

125.

Ano

ther

recu

rrin

gco

ncer

nfr

omth

ere

spon

dent

sw

asth

atad

ditio

nal

clar

ific

atio

nis

need

edto

unde

rsta

ndw

hat

ism

eant

bysig

nitl.

.ca

ntpo

rtio

nhi

the

Exp

osur

eD

raft’

sde

fini

tion

ofsp

ecia

lre

venu

efu

nds,

wII

chst

ated

that

“re

stri

cted

orlim

ited

proc

eeds

ofsp

ecif

icre

venu

eso

urce

ssh

ould

com

pris

ea

afgn

ifrca

ntpo

rtion

ofth

ere

sour

ces

repo

rted

.”T

hefir

stcl

arIf

icat

ion

that

the

Boa

rdm

ade

was

tore

plac

eth

ete

rmsW

fcan

twith

srta

nti

alt

oel

in*r

ate

poss

ible

conf

usio

nw

ithot

her

ftia

nal

repo

rtin

gco

ñsl

dor

atio

ns.

Som

eas

ked

Wth

eald

on

appl

ies

Icre

ven

ues

orbal

ance

s.O

ther

sques

tioned

whet

her

gover

nm

ents

hav

eto

cont

inuo

usly

anal

yze

thei

rsp

ecia

lre

venu

efu

nds

tose

eit

the

rela

tive

leve

lsof

reso

urc

esw

ithin

apa

rtic

ular

fund

still

sati

sfy

the

sign

ific

ant

port

ion

requir

em

ent.

The

Boa

rdag

reed

with

those

resp

ond

ents

that

the

inte

ntof

that

prov

isio

nsh

ould

bem

ore

dear

lyex

plai

ned

inth

efi

nalS

tate

men

t.In

resp

on

seto

the

unce

rtai

nty

abou

tre

venu

esor

bala

nces

, par

agra

ph30

clar

ifIe

s tha

t the

eval

ua

tion

shou

ldbe

bas

edon

inflo

ws,

but

ital

sop

rovi

des

for

anad

ditio

nal

cons

ider

atio

nfo

rre

volv

ing

loan

fund

s.T

heB

oard

did

not

inte

ndfo

rgo

vern

men

tsto

mon

itor t

heco

nten

t oft

heir

spe

cial

reve

nue

fund

sus

ing

spec

ific

crite

ria

onan

annu

alba

sis.

The

refo

re,

the

Boa

rdcl

arifi

edin

para

grap

h31

that

the

subs

tant

ial

port

ion

as

sess

men

tsh

ould

beba

sed

ona

gove

rnm

ent’

sex

pect

aMn

abou

t whe

ther

asu

bsta

ntia

l por

tion

ofth

ein

flow

sw

illbe

from

spec

ific

rest

rict

edor

com

mit

ted

reve

nue

sour

ces.

Inad

ditio

n,th

eB

oard

agre

edth

atgo

vern

men

tssh

ould

repo

rtth

ene

tre

sour

ces

ofa

spec

ial

reve

nue

fund

inth

ege

nera

lfu

nd,

for

fina

ncia

lre

port

ing

pur

pose

s,if

itbe

com

esap

pare

ntth

atth

ego

vern

men

tno

long

erex

pect

sth

ata

subs

tant

ial

por

lion

ofth

ein

flow

sw

ilide

rive

from

rest

rict

edor

com

mitt

edre

venu

eso

urce

s.

Cap

ital p

t’ofa

cts

and

deb

tser

vice

fund

type

s

126.

The

Invi

tatio

nto

Com

men

t ask

edw

heth

erth

ede

fini

tions

ofca

pita

l pro

ject

san

dde

btse

rvic

efu

ndty

pes

shou

ldbe

mod

ifie

dto

limit

the

amou

nts

that

can

bere

port

edin

thos

efu

nds.

The

resp

onse

sw

ere

divi

ded

betw

een

thos

ew

hofa

vore

da

mor

ere

stri

ctiv

eap

proa

chto

incl

ude

rest

rict

edan

dco

mm

itte

dam

ount

son

lyan

dth

ose

who

pref

erth

efle

xibi

lity

impl

ied

inan

appr

oach

that

incl

udes

amou

nts

inte

nded

for

capi

tal

proj

ects

and

debt

serv

ice

asw

elM

arry

ofth

ose

that

sLçp

orte

dth

em

ore

rest

rict

ive

defi

nitio

ndi

dso

beca

use

they

belie

veth

atin

tent

isto

oim

prec

ise.

The

yal

soco

nten

ded

that

the

no

tion

ofin

tent

ispr

oble

mat

icbe

caus

eit

Istr

aris

ito

ryan

dth

ere

are

man

yw

ays

inw

hich

inte

ntca

nbe

man

ifes

ted.

Oth

ersu

ppor

ters

ofa

mor

ere

stri

ctiv

ede

fini

tion

com

men

ted

onth

eco

nsis

tenc

yan

dco

mpa

rabi

lity

they

beli

eve

that

ap

proa

chpr

omot

es.

Som

eof

thos

ere

spon

dent

sfo

cuse

don

cons

iste

ncy

from

year

toye

aran

dcom

paly

amon

gg

ovem

men

whi

leot

hers

belie

vesu

chan

appr

oach

Isco

nsis

tent

with

the

hist

oric

alna

ture

ofth

ose

fund

type

s.

127.

Those

that

supp

orte

da

broa

der

appr

oach

(inc

ludi

ngas

signed

amou

nts)

offe

red

ava

riet

yof

reas

ons

for

thei

rp

refe

rence

.M

any

com

men

ted

that

are

stri

ctiv

ede

finiti

onw

ould

affe

ctth

ew

aygo

vern

men

tsuse

fund

acco

unti

ngto

man

age

reso

urc

esan

dsu

gg

este

dth

atth

ebro

ader

defi

niti

onbe

ttor

refl

ects

the

way

that

man

ygover

nm

ents

oper

ate.

Sev

eral

ofth

at

met

hod’

ssu

ppor

ters

like

the

flexi

bilit

yit

pro

vide

s,an

dot

hers

favo

rit

beca

use

ital

low

sfo

r

the

accu

mul

atio

nof

amou

nts

for ‘

apa

rtic

ular

capi

tal

proj

ect

and

coul

dsh

owth

efi

nanc

ial

stat

emen

tus

eral

lof

the

amou

nts

used

for

aco

mm

onpu

rpos

e.

128.

As

was

true

for

the

spec

ial

reve

nue

fund

type

,the

Boa

rdbe

lieve

sth

aith

eco

nsis

tenc

yw

grzn

enls

wou

ldbe

mor

eco

mpe

lling

ifth

eus

eat

capi

tal

proj

ede

and

debt

serv

ice

frxr

dsw

ere

requ

ired

inal

lins

tanc

es.T

hus,

the

Boa

rdac

lcno

wl

edge

sth

atw

hile

com

para

bilit

yke

rngo

vern

men

tto

gove

rnm

entc

anbe

enha

nced

,with

outs

igni

frca

ntre

stru

ctur

ing

offu

ndty

pede

fini

tions

,an

y

high

erle

velo

fcom

para

bilit

yw

llbe

elus

ive.

Un

der

the

mor

ere

stri

ctiv

ede

fini

tions

,a

high

erle

velo

fcom

para

bilit

yco

uld

beob

tain

edif

agov

ernm

entr

epor

ted

aca

pita

lpro

ject

sor

debt

serv

ice

fund

,be

caus

eth

ena

read

erw

ould

beas

sure

dth

atth

eam

ount

sin

thos

efu

nds

coul

dno

t

beus

edfo

ran

yot

her

purp

ose.

Nev

erth

eles

s,th

ose

read

ers

wou

ldno

tbe

assu

red

that

’oth

ersi

nila

rly

rest

rict

edar

hoin

tsw

ere

not

repo

rted

else

whe

re.

129.

The

Boa

rddo

esno

tbe

have

that

the

con

tent

ion

that

ana

rrow

er,

mor

ere

stri

ctiv

ede

fini

tion

isco

nsis

tent

with

the

natu

reof

the

fund

sis

supp

orte

dby

the

liter

atur

e.Fo

rexa

mpl

oth

ear

gum

entt

hatc

apita

lpr

ojec

tsfu

nds

are

inte

nded

toac

coun

tfo

ron

lyre

stri

cted

orco

mm

itted

re

sour

ces

isco

ntra

dict

edby

the

lang

uage

mnp

ara

grap

h28

ofN

CG

ASt

atem

ent

1,w

hich

char

ac

teri

zes

tho

sefu

nds

aspro

ject

-onen

ted

and

furt

her

Sta

tes

that

fund

acco

unti

ngre

cord

ssh

ould

refl

ect

tota

lpro

ject

fina

ncia

lre

sour

ces.

Thu

s,on

eco

uld

conc

lude

that

aca

pito

lpro

ject

sfu

ndsh

ould

repo

rta

com

plet

epnct,

notj

ust

the

port

ion

that

Isfi

nanc

edw

ithre

stri

cted

orco

mm

itted

reso

urce

s.Si

mi%

erly

para

grap

h30

ofth

atSt

atem

ent,

aSam

ende

d,pr

ovid

esth

atde

bt

serv

ice

fund

ssh

ould

bet*

edw

hen

finan

cial

reso

urce

sar

ebe

ing

accu

mul

ated

forf

utur

eye

ars’

mat

uriti

es.

The

reis

nost

ipul

atio

nth

atth

ere

-so

urce

sbe

ing

accu

mul

ated

are

requ

ired

tobe

rest

rict

edor

-com

mit

ted

toth

atpurp

ose

.T

he

Boa

rdbe

liev

esth

atth

ose

prov

isio

nsof

NC

GA

Sta

tem

entI

sup

po

rtth

eco

nten

tion

that

broa

der

defi

niti

ons

bett

erre

flec

tthe

way

that

man

ygov

ernm

ents

curr

entl

yuse

thos

efu

nds

tom

anag

eth

eir

reso

urce

s

twoap

pro

sb

yre

spon

dent

sto

the

Irw

itatlo

rito

Com

men

t,th

eB

oard

ptop

osed

bro

ader

def

ini

tions

,inc

ludi

ngas

sign

edam

ount

sfo

rthe

Ex

posu

reD

raft

The

Boa

rdbe

liev

esth

atin

terp

ret

ing

the

fund

defi

niti

ons

asim

posi

ngre

stra

ints

that

man

ygo

vetn

men

tsha

veno

tpre

viou

sly

ob

serv

edw

ould

not

nece

ssar

ily

mee

tfi

nanc

ial

stat

emen

tu

ser

need

sT

heB

oard

conc

lude

dth

atth

eus

erne

eds

inte

nded

tobe

addr

esse

din

this

Sta

tem

ent

can

bem

etth

roug

hef

fect

ive

fund

bala

nce

clas

sifi

catio

nan

ddi

spla

yre

quir

em

e(ts

,an

dth

atsu

chan

appr

oach

ism

ore

con

sist

enIw

ithth

ebr

oade

rde

finiti

onal

appr

oach

—pr

ovid

edth

atw

hat.l

sm

eant

byin

tent

Isde

arly

expl

aine

d.‘T

here

quir

emen

tin

para

grap

h23

to

disc

lose

a:go

vern

men

t’S

assi

gnm

entp

roce

ssis

expe

cted

topr

ovid

eth

atda

ily.

131.

Inde

liber

atio

nsle

adin

gto

the

Exp

osur

eD

raft,

the

Boa

rddi

scus

sed

the

term

map

capi

talf

acili

tiesi

nth

eca

pita

lpr

ojec

tslu

ndde

finiti

onfr

omth

epe

rspe

ctiv

eof

whe

ther

the

term

issu

ffi

cien

tlyde

scri

ptiv

eto

prov

ide

forc

onsi

sten

tapp

lica

tion.

The

Boa

rdis

awar

eth

atso

me

gove

rnm

ents

use

capi

tal

proj

ects

fund

sto

repo

rteq

uipm

enta

ndot

herp

erso

nal

prop

erty

acq

uis

i

tions

,w

hile

othe

rslim

itth

eir

use

tore

port

ing

the

acqu

isiti

onor

cons

truc

tion

ofst

ruct

ures

and

an

cilla

njca

pita

lite

ms.

The

Boa

rdco

nsid

ered

expa

ndin

gth

edi

scus

sion

offa

cilit

ies

inth

epro

pose

dde

finiti

onto

clar

ityan

dlim

itth

esc

ope

of

actM

ties.

that

coul

dbe

repo

rted

inth

ose

fund

s,

buti

trec

ogni

zed

that

vari

ous

gove

rnm

ents

have

diff

eren

tvie

ws

abou

twha

tcon

stitu

tes

capi

talfa

cIlit

ies T

heB

asis

forC

oncl

usio

nsse

ctio

nof

the

Exp

osur

eD

rajt,

incl

uded

ast

atem

ent

that

the

Boa

rdbe

llevO

stha

tcap

italp

roje

cts

fund

sar

ein

tend

edlo

be

used

tore

port

the

acqu

isiti

onor

cons

tnrc

tiono

fca

pita

lass

ets

that

,der

Iyar

eIa

dutie

s(b

uild

ings

,bu

ildin

gim

prov

emen

ts,

infr

a

stru

ctur

eas

sets

,ind

uØln

gnc

iNar

yite

ms,

fore

xam

ple)

rath

erth

anth

ose

that

clea

rly

are

not

(bus

es,

fire

truc

ks,

and

com

pute

rw

orks

tati

on

equi

pmen

t,fo

rexa

mpl

e).

Eve

nth

ough

the

cap

i

talp

roje

cts

fund

defi

nitio

npr

opos

edNi

the

Ex

po

sure

Dra

ftus

edth

esa

me

term

inol

ogy

from

the

prev

ious

defi

nitio

n,(

‘fqu

iSit

ion

orco

nstr

ucti

on

ofm

ajor

.cap

ital

faci

litie

s”),

man

yre

spon

dent

sre

acte

dto

the

disc

ussi

onof

the

Boa

rd’s

perc

eptio

nof

inte

ntas

ifth

ede

fini

tion

was

sign

ifica

ntLy

mor

ere

stri

ctiv

eth

anth

epr

evio

uson

e.

GA

SB

Sta

tem

ent a

t Sta

ndar

ds

Fu

nd

Baf

ance

Rep

ort

lng

tdG

owem

men

tal F

und

Typ

eD

efin

itio

ns

130.

Aft

erco

nsid

erin

gth

est

reng

ths

and

wea

k-13

2.M

any

resp

on

den

tsob

ject

edto

the

pro-

.

mes

ses

ofth

eco

mm

ents

mad

ein

supp

ort

ofth

epo

sed

clar

ific

atio

n

GA

SBS

54

the

appl

icat

ion

ofth

ede

fini

tion

wou

ldre

sult

insi

gnif

ican

tch

ange

sto

thei

rcu

rren

tpr

acti

ces.

The

rew

asm

uch

conc

ern

expr

esse

dab

out

the

fact

that

the

clar

ified

defin

ition

inth

eE

xpos

ure

Dre

ftdi

dno

tap

pear

toad

equa

tely

prov

ide

for

the

appr

opri

ate

repo

rtin

gof

the

proc

eeds

ofde

btis

suan

ces

that

are

used

tofi

nanc

eca

pita

lpr

ojec

ts.

Sev

eral

resp

onde

nts

sugg

este

dth

atth

ede

finiti

onof

acap

ital

proj

ects

fund

shou

ldre

flect

curr

ent

pac

tke

asit

has

evol

ved.

Tha

tis

,th

eybe

lieve

that

the

term

inol

ogy

inth

ede

fini

tion

(or

the

title

ofth

efu

ndits

elf)

shou

ldbe

al

tere

dto

bem

ore

repr

esen

tativ

eof

curr

ent p

rac

tice

.S

ome

sug

ges

ted

that

the

term

maj

orca

pita

lfac

thife

sbe

defi

ned

toin

clud

eite

ms

that

clea

rly

wou

ldno

tm

eet

mos

tde

fini

tions

offa

de-

ties

(equ

ipm

ent,

for

exam

ple)

,an

dot

hers

rec

omm

ende

dth

atth

ere

fere

nce

beto

capi

tal

proj

ects

raid

erth

afl

capi

tal

facil

ities

.Oth

erre

spon

dent

ssu

gges

ted

limiti

ngth

eac

tivity

inth

efu

ndty

peto

all

capi

tal

expe

ndit

ures

requ

irin

gde

btor

the

accu

mul

atio

nof

reso

urce

s,or

the

cons

trdc

tion

orac

quis

ition

ofal

l“G

MP

capi

tal

asse

ts.”

The

obse

rvat

ion

also

was

mad

eth

at“n

tMty

repo

rted

ina

capi

tal

proj

ects

fund

Irel

ate

toa

gove

rnm

ent’

sca

pita

lbu

dget

i-ra

nge

plan

.

•.

rhoB

oard

cons

ider

edth

eco

mm

ents

from

the

Exp

osur

eD

raft

resp

onde

nts

inlig

htof

the

fact

that

the

prop

osed

defin

ition

did

nots

ubst

antiv

ely

mod

ifyth

eex

istin

gon

isar

idev

alua

ted

al

tern

ativ

e.C

ours

esof

actio

nth

atco

uld

beta

ken.

UftW

nate

ltth

eB

oard

agre

edto

mod

ifyth

ede

fini

tion

tofo

cus

ona

broa

der,

mor

eco

nsis

tent

lyun

dett

ood

notio

nof

capi

talo

utla

ys,r

athe

rtha

nth

ein

cons

iste

ntly

inte

rpre

ted

refe

renc

eto

cap

ita

lfac

ilitie

sin

the

prev

ious

defin

ition

.The

Boa

rdco

ndud

edth

atus

eof

the

term

capi

talo

utla

ysal

low

sfoe

’the

incl

usio

nof

expe

nditu

res

for

item

sth

atar

eca

pita

lin

natu

rebu

tm

ayno

tqua

lity

for

fina

ncia

lre

port

ing

asca

pita

las

sets

unde

ra

gove

rnm

ent’

sca

pita

lizat

ion

polic

yM

any

Exp

osu

reD

raft

resp

onde

nts

wer

eco

ncer

ned

abou

tpr

ojec

tre

sour

ces

that

are

spen

tfo

rIt

ems

that

may

not

beca

pita

lized

.T

heB

oard

reco

gniz

esth

atth

ede

fini

tion

inth

isS

tate

men

tem

brac

escu

rren

tpr

actic

em

ore

soth

anth

ein

tent

ofth

eon

giha

ldot

initi

ori.

How

ever

,th

eB

awd

does

not

belie

veth

atlim

iting

theiv

ity

inca

pita

lpro

ject

sfu

nds

toac

quis

itio

nan

dco

nstr

ucti

onof

maj

or

capi

tal f

acili

ties,

asde

fine

din

the

narr

owse

nse,

adeq

uate

lyca

ptur

esth

ebr

eadt

hof

capi

talac

tiviti

esco

mm

onirt

toda

y’s

envi

ronm

ent,

orth

atit

prov

ides

esse

ntia

l,de

cisi

on-u

sefu

linf

orm

atio

n.

Per

man

entf

un

dty

pe

134.

The

defi

nitio

nof

the

perm

anen

tfu

ndty

peis

incl

uded

inth

isS

tate

men

tonl

yto

inco

rpor

ate

min

orw

ordi

ngch

ange

sin

the

inte

rest

ofco

nes-

lenn

yw

ithth

eot

her

defi

nitio

nsin

this

Sta

tem

ent.

Thi

sS

tate

men

tdo

esno

taf

fect

the

requ

irem

ent

tore

port

perm

anen

tfu

nds

purs

uant

toth

ede

finiti

on.

Bas

isfo

rB

oard

Mem

ber

Dis

sent

135.

Mr.

Will

iam

sdi

ssen

tsb

ecau

sehe

dis

agre

esw

ithth

epr

ovis

ion

inpa

ragr

aph

18fo

ral

low

ing

the

use

ofa

spen

ding

prio

dtlz

atio

npd

lcy

tode

term

ine

the

com

posi

tien

offu

ndba

lanc

e(r

estr

icte

d,co

mm

itte

d,as

sign

ed,

and

unas

sign

ed)

whe

nan

expç

ndit

ure

Isin

curr

edfo

ra

purp

ose

fccw

hich

som

eor

any

ofth

ose

dass

ifi

cati

ons

coul

dbe

appl

ied.

Inst

ead,

hebe

liev

esqu

alif

ying

amou

nts

shou

ldbe

cons

ider

edex

pend

edin

the

hier

arch

y’s

desc

endi

ngor

der,

whi

Ch

isco

nsis

tent

with

the

u1da

nce

inpar

agr

aph

18fo

rgo

vern

men

tsth

atha

veno

tes

tab

lishe

dth

eir

own

spen

ding

prio

ritiz

atio

npo

licie

s.H

ebe

liev

esun

less

thes

ehi

gher

leve

lcon

stra

irits

are

redu

ced

first

byqu

aHl6

ngam

ount

s,a

gove

rnm

ent’

sfu

ndba

lanc

ew

ould

show

con

stra

ined

amou

nts

whe

nex

pend

itur

esha

veal

read

ysa

tisfi

edth

ose

cons

trai

nts.

He

ther

efor

eco

nsid

ers

the

appl

icat

ion

ofa

sper

icig

prio

riti

zati

onpo

licy

othe

rth

anth

ehi

erar

chy’

sd

esc

endi

ngor

dert

obe

arbi

tran

lyap

plie

dfo

rmov

ersu

bsta

nce.

136.

Mr.

Will

iam

sbe

lieve

sa

maj

orpu

rpos

eof

the

Boa

rd’s

chan

ges

infu

ndba

lanc

ecl

assi

fica

tion

sis

toin

crea

setr

ansp

aren

cyab

out

appl

ica

ble

cons

trai

nts.

Ho

belie

ves

allo

win

ggo

vern

-m

erits

toap

ply

the

spen

ding

prio

ritiz

atio

npo

licy

appr

oach

redu

ces

tran

spar

ency

byre

port

ing

cons

trai

nts

onfu

ndba

lanc

ew

hen

such

con

stra

ints

have

alre

ady

been

met

.H

eal

sob

eli

eves

thes

pen

din

gpr

iori

tiza

tion

poli

cyap

pro

ach

will

resu

ltin

unduly

com

pli

cate

ddi

sclo

sure

sar

idle

ssco

nsis

tenc

y,co

mpa

rabi

lity,

and

usef

ulne

ssof

fund

bala

nce

info

rmat

ion.

App

endi

xC

ILL

USI

flA

TIO

N

137.

The

fact

sas

sum

edin

this

exam

ple

are

illu

stra

tive

only

and

are

not

inte

nded

tom

odify

orlim

itth

ere

quir

emen

tsof

this

Stat

emen

tor t

oin

dica

teth

eB

awd’

sen

dors

emen

t of t

heap

proa

chIl

lust

rate

d.A

pplic

atio

nof

the

prov

isio

nsof

this

Sta

tem

ent m

ayre

quir

eas

sess

men

tof f

acts

and

circ

umst

ance

sot

her t

han

thos

eIl

ustr

ated

here

.T

hedi

sclo

sure

sre

quir

edby

this

Stat

emen

tar

ege

nera

llyof

a“p

olic

ies

and

proc

edur

es”

natu

re,

whi

chsh

ould

besp

ecif

icto

each

gove

rnm

ent.

Con

sequ

ently

,to

avoi

dra

*ite

nbon

oty

infl

uenc

ing

the

cont

erito

f tho

sedi

sclo

sure

s,th

eyar

eno

tIll

ustra

ted

inth

isap

pend

ix.

Illu

stra

tive

Fun

dB

alan

ceS

ecti

onGA

SB

S54

Exhi

bit

Ide

pict

sth

efu

ndba

lanc

ese

ctio

nof

the

bala

nce

shee

tfr

omth

ego

vern

men

tal

fund

sfi

nanc

ial

stat

emen

tsof

ahy

poth

etic

alg

ov

ern

men

t.In

this

Exhi

bit,

the

gove

rnm

ent

has

cho

sen

topr

esen

tth

esp

ecif

icpu

rpos

ede

tail

sre

quir

edby

para

grap

h22

onth

efa

ceof

the

bal

ance

shee

tEx

hibI

t2

llhs

trat

esth

esa

me

fund

bala

nce

info

rmat

ion,

but

inth

isca

se,

the

gov

emni

ent h

asch

osen

todi

spla

yth

efu

ndba

lanc

ecl

assi

fica

tion

sin

the

aggr

egat

e.T

hesp

ecif

icpu

rpos

ede

tails

, in

the

latte

r cas

e,w

ould

bed

iscl

osed

inth

eno

tes

toth

efin

anci

alst

atem

ents

.A

ltern

ativ

ely,

the

gove

rnm

ent c

ould

have

used

aco

mbi

natio

nof

both

appr

oach

es--

disp

iay

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1181

011

811

Fund balanc.s:Nonsp.Iidsbl.

InventoryPermanent fund prindpel

Resblct.d forSocat seivssParka and iwcraationEducationHigllweysRoad suilacs repairsDebt se,vice reserveSchod onnonLaw enforcenlerilOther —Other pxpcees

Commltt,d to:Zoning boardEcencndc atsbtzailonHomeland aeoMyEducationHealth and wdfare

AssIgned to:Parka arid reuaationLibrary acqulmorisHighway reaurtacgDebt servicePut6c podCity Hal renovationOther cepkslprOther purposes

Unassigned:To fund balances

— — — $ 249.000— — $ 164,000 - 164.000— — 240000— — 80.000

— — 55.000$ 444.000 — 444.000

— — 24.000— — 208.000

301,000 — 301.000— 214,000 214.000

51,000 — 51,000— — 30,000

— — — 15,000— — — 210.000— — 110.000— — — 153,000— — — 75,000

Fund balances:N9nsperidabieRestrictedCommittedAssignedUnassigned

Total fund balances

‘MaJor ‘ Major MajorSpcIai R.v.nue Funds Debt Capital

General Highway School Aid ServIce Proj.cts OtherFund Fund Fund ‘ Fund Fund Funds Total

ExhIbit ‘I

Majorspttal -

Proects OtherFund Funds Total

Major MajorSpecial R.r.nus Funds Debt

General Highway School Aid ServiceFund Fund Fund Fund

$ 125,000 5 108.000 $ 16,000

240.000 — — —60.000 — — —

55.000 — — —

— 24,000 — —

— — — $206,000

30.000 — — —

16.000 — —210.000 — —

110,000 — —

50.000 — 103,00075,000 — —

I

.1I

50.000 — — — — — 50,00050.000 — — — — — 50.000— 258,000 — — — — 258,000

— — — 306.000 — — 306,000— — — — 121.000 — 121,00Q- — - — 50,000 - 50.000

50,000 — — — . 471,000 — 521.00060,000 —. 73.000 — — 176,000 329,900

525,000 — — — — — 525,000$1,746,000 $ 390,000 $ 192,000 $512,000 $ 1.4400O S 554000 $4,842,000

This level of detail Ii not requked fer daplay on the face of the balance sheet. Fund balance cegeiiá end cllsamcasor* may bepresented in detail or in the aggregate if aJ5lcient detail is provided in the notes to the ñnsncial idatement..

ExhIbit 2

-‘5,

69

C.)

$ 125OOO $ 1pS,000 ‘ S. 16,000 —— $ 164.000 $ 413,000

4O5000 4,00O . — $ 206,000 S 796,000 214,000 1,645,000461,000 - 103000 — — — 564,000230,000 256,000 73,000 306,000 652,000 176.000 1,695,000525,000 . “—i . . — — —

— 525,000S 1,746,000. 5 390,000 5 192.000 S 512,000 5 1,448,000 S 564,000 $ 4,642,000

Iip

98

AGENDA MEMORANDUM1Zt1100S0

Village of RuidosoTo: Mayor Alborn and

Councilors X Regular ItBoard and Commission AppointmentsPresenter: Nancy Klingman Informational

Finance Director Workshop ItemItems valued at $50,000.00 or greater must

Meeting Date: November 8, 2011 be placed as a regular item

Re: Discussion and Possible Action on Adoption of Resolution 2011-35,1st Quarter Budget Adjustment for Fiscal Year 2011-2012.

Item Summary:

1st Quarter Budget Adjustment for the period covering July 2011 through September2011.

Fund: N/A Line Budgeted $ Available NAItem: Amount: Balance:

Item Discussion:

Attached is the schedule of budget adjustments. The form is required by theDepartment of Financial Administration. The detail is also attached with commentsrelated to each budget adjustment.

Recommendations:

The Finance Department is requesting Council approval of these Budget Adjustments inorder to comply with New Mexico State Statute 6-6-6, Approved budgets, as interpretedby the Local Government Division of the Department of Finance and Administration.

AGENDA MEMORANDUMS, ALONG WITH BACK-UP DOCUMENTATION, ARE DUE IN THE VILLAGE CLERK’S OFFI7BY 8:30 AM ON WEDNESDAY PRIOR TO THE PRE-AGENDA MEETING FOR THE CORRESPONDING COUNCIL MEETING(PER COUNCIL’ ADOPTED RESOLUTION #2011-02).

DATE

R/NiiILLAGE CLERK’S

(Revised 1/11/11)

99

JUi VILLAGE OF RUIDOSO iUi313 Cree Meadows Drive = Tub =

Ruidoso, NM 88345(877)700-4343 or (575)258-4343; Fax (575)258-5361


_____




Completed Task Order (All task orders for legal review must be approved by

Village Manager.


_____


V” Finalized Document Attached (i.e. Ordinances, Resolutions,


1” Back-up Documentation Attached*.



before 5:00 p.m. on Monday prior to the pre-agenda meeting







IF YOU HAVE ANY OUESTIONS, PLEAECONTACT:Irma Devine, CMC Bertha Randolph, CMCMunicipal Clerk Deputy ClerklrmaDevine(ruidoso-nm.gov BerthaRandolph@ruidoso-nm,gçw

Phone Ext. 1002 Phone Ext. 1003

(Issued Date: 7/16/10) 100


1ST QUARTER BUDGET ADJUSTMENT FOR FISCAL YEAR 2011-2012

WHEREAS, the Governing Body in and for the Village of Ruidoso, State of New Mexico,developed and approved a budget for Fiscal Year 2011-2012; and

WHEREAS, said budget has gone through review with input from the Village Council,Department Directors, Finance Director and Village Manager; and

WHEREAS, the Finance Director and Village Manager have reviewed the changes tothe budget and recommend that the Governing Body of the Village of Ruidoso adoptthis Resolution with the attachment made a part of the Resolution.

NOW, THEREFORE, BE IT RESOLVED by the Governing Body of the Village ofRuidoso, State of New Mexico, that:

1. The Village has done a review of the 2011-2012 budget; and2. The attached changes are hereby adopted as part of this Resolution (see

attachment).3. The Village respectfully requests approval from the Local Government Division of

the Department of Finance and Administration for the State of New Mexico.

PASSED, APPROVED AND ADOPED THIS 8TH DAY OF NOVEMBER, 2011.


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