AGENDA ITEM REPORT
TITLE:
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A MOTION AUTHORIZING A BUDGET TRANSFER FOR FISCAL YEAR 2025 IN THE AMOUNT OF $6,800,000 FOR THE PURPOSE OF RECORDING OFFICER SAFETY PROGRAM SUBSCRIPTION ENTRIES IN ACCORDANCE WITH GASB STATEMENT NO. 96 FROM GENERAL FUND ACCOUNT 0199-9903, FUND BALANCE RESERVE, TO GENERAL FUND ACCOUNT 0161-6407, CAPITAL SUBSCRIPTION, AND TO APPROPRIATE AN OFFSETTING REVENUE BUDGET OF $6,800,000 FROM ACCOUNT 01-V38000, PRIOR YEAR SURPLUS, TO ACCOUNT 01-V38311, OTHER FINANCING SOURCE - SBITA. (NEW ITEM)
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BACKGROUND:
Governmental Accounting Standards Board Statement No. 96 (GASB 96) requires state and local governments to recognize subscription-based information technology arrangements (SBITAs), such as software and cloud-based officer safety programs, as reportable assets and liabilities. This standard does not change how the City operates or pays for services; instead, it ensures these long-term subscription agreements are recorded in a consistent, transparent manner for financial reporting. To properly record the multi-year officer safety program under GASB 96, the City must establish budget capacity in the Subscriptions Account and record an offsetting revenue budget. This allows the required accounting entries to be made without creating new spending or impacting available resources.
DISCUSSION:
This action provides the budget authority needed to record the GASB 96 subscription asset and related liability. It transfers $6,800,000 from Account 0199-9903 (Fund Balance Reserve) to Account 0161-6407 (Capital Subscription) and simultaneously records an offsetting revenue budget of $6,800,000 from Account 01-V38000 (Prior Year Surplus) to Account 01-V38311 (Other Financing Source - SBITA).
This is strictly an accounting requirement.
• It does not authorize new expenditures.
• It does not increase taxes or fees.
• It does not reduce available resources or change operational plans.
The entry ensures compliance with GASB 96 and improves the accuracy and transparency of the City’s financial statements by properly reflecting long-term subscription commitments for officer safety systems.
RECOMMENDATION:
Staff recommends approval of this motion.
FISCAL IMPACT:
REVENUES: $ 6,800,000
EXPENDITURES: $ 6,800,000
BUDGETED: No
NOTES: There is no net fiscal impact to the City. Although the motion reflects a $6,800,000 budget transfer and an equivalent revenue appropriation, these entries are entirely accounting-based and do not represent additional costs or the use of new funds. They simply allow the City to properly record the officer safety subscription arrangement in accordance with GASB 96. The City’s fund balance, cash position, and operational budgets remain unchanged.