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COUNTY OF HAWAII y OF f� •f OF�M�� ORDINANCE NO. STATE OF HAWAII BILL NO. 2 AN ORDINANCE AMENDING CHAPTER 2 OF THE HAWAII COUNTY CODE 1983 (2005 EDITION, AS AMENDED) BY ADDING A NEW SECTION RELATING TO THE FUND BALANCE. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. In accordance with Section 10 -10 of the Hawaii County Charter, general appropriations shall lapse at the close of the fiscal year to the extent that the same has not been expended or encumbered. In March 2009 the Governmental Accounting Standards Board issued Statement 54, Fund balance Reporting and Governmental Fund Type Definitions, which establishes definitions for the different types of fund balances and the requirements of the government for reporting those balances beginning June 30, 2011. The purpose of this ordinance is to establish a policy regarding the dates on which the department of finance shall deliver information to the Council relating to the unaudited and audited, unassigned fund balances. Provision of the unassigned fund balance on these dates allows the council the time to evaluate, facilitate recommendations by suggestion, and potentially make policy decisions regarding the annual budget. SECTION 2. Chapter 2, article 4 of the Hawaii County Code 1983 (2005 Edition, as amended) is amended by adding a new section to be appropriately designated and to read as follows: " Section 2 -12. Fund Balance. (a) Definitions. "Unassigned fund balance" means the residual classification for the general fund and includes all amounts not contained in the other classifications such as non- spendable, restricted, committed, and assigned fund balances. Unassigned amounts are technically available for any purpose. If a governmental fund has a fund balance deficit, then it shall be reported as a negative amount in the unassigned classification in that fund. Positive unassigned amounts will be reported only in the general fund.