Knowledgebase-Committed Fund Ordinance


Information Product

Title:Committed Fund Ordinance
Summary:A model ordinance based on GASB 54 requirements that creates a committed fund balance in order to ensure fund availability for the purchase of a specific item.
Original Author:Jaeckel, Gary
Co-Author:
Product Create Date:06/15/2012
Last Reviewed on::03/06/2017
Subject:Accounting--Fund balance; Municipal government--Finance
Type:Ordinance
Original Document: committed fund ordinance.pdfcommitted fund ordinance.pdf

Reference Documents:

Text of Document: ORDINANCE NO. ______


AN ORDINANCE OF THE CITY OF _________________, A MUNICIPAL CORPORATION OF THE STATE OF TENNESSEE, CREATING THE “_____________________________ COMMITTED FUND BALANCE” IN ORDER TO ENSURE FUND AVAILABILITY FOR THE PURCHASE OF _______________________;


WHEREAS, Pursuant to the rules of the Governmental Accounting Standards Board
(GASB), specifically GASB-54, a “committed fund balance” contains funds that are constrained for a specific purpose, imposed by formal action of the governing body’s highest level of decision-making authority;

WHEREAS, The Board of Mayor and Alderman of ________________, wishes to segregate funds currently reflected in the fund balance of the General Fund, and allocate those funds to the purchase of _________________ as Committed Funds in the amount of $__________;

WHEREAS, These funds shall be spent only for the intended purpose of specific purchases approved by the Board of Mayor and Aldermen of __________________, Tennessee.


NOW, THEREFORE, BE IT ORDAINED by the Board of Mayor and Aldermen of the City of
______________________, Tennessee that:

Section 1: The City of _______________ hereby creates a Committed Fund Balance for the purchase of __________________________.

Section 2: Severability: Should any provision of this Ordinance be deemed unlawful or unconstitutional, such finding shall not affect the remaining provisions of this Ordinance.

Section 3: Effective Date: This Ordinance shall be in full force and effect from and after its passage, approval, and publication according to law.


PASSED BY THE BOARD OF MAYOR AND ALDERMEN as an ordinance of the City of _________________________ on this ____day of_______, 20__.


_______________________________
Mayor
City of __________________
                                  Attest:
                                        _________________, City Recorder

Please remember that this ordinance was drafted based upon the drafting requirements and authority granted to a particular city or town in its charter and in general law. These drafting requirements and the authority exercised in this ordinance might not apply to your city or town.

Please confer with your city attorney or an MTAS legal consultant, or both, before using this ordinance as a model.