14-11006r RESOLUTION NO. 11006
RESOLUTION AUTHORIZING ACCOUNTING CHANGE FROM AN ENTERPRISE
(PROPRIETARY) FUND TO THREE SPECIAL REVENUE FUNDS — ICE ARENA,
SWIMMING POOL, AND SPECIAL FACILITIES
WHEREAS, Generally Accepted Accounting Principles (GAAP) allow for reporting
Business type activities as either Enterprise funds or Special Revenue funds, and
WHEREAS, reporting the operations of the Recreation Enterprise Fund, Ice Arena,
Swimming Pool, and Special Facility operations as Special Revenue fund activity would
increase the clarity/transparency of the City commitment to these ventures, and
WHEREAS, the City Council of the City of Richfield beginning with the current
(January 1, - December 31, 2014) fiscal year wishes to change the method by which it
accounts for the Recreation Enterprise Fund operations; Ice Arena, Swimming Pool, and
Special Facilities, and
WHEREAS, GASB 54 requires the governing body to formalize the commitment of
the specific revenue sources to specified purposes.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Richfield
that effective January 1, 2014, the Recreation Enterprise Fund operations; Ice Arena,
Swimming Pool, and Special Facilities, will be accounted for in three Special Revenue
Funds.
BE IT FURTHER RESOLVED that the specific revenue source of the special
revenue funds and the specific purposes for which they are committed are as follows:
Fund Specific Revenue Source Committed For
Ice Arena User Fees and Charges Ice Arena Operations
Swimming Pool User Fees and Charges Swimming Pool Operations
Special Facilities User Fees and Charges Special Facility Operations
AND BE IT FURTHER RESOLVED that any unrestricted fund balance in these
special revenue funds is committed by the Council to the specific purpose of the funds.
Adopted by the City Council of the City of Richfield, Minnesota this 25th day of November,
2014
Pat Elliott, Mayor Pro Tempore
ATTEST:
alLit gn;
Elizabeth VanHoose, City Clerk