HomeMy WebLinkAbout10261RESOLUTION NO. 10261
A RESOLUTION ESTABLISHING RESERVE INCREASES WITH RESPECT TO FISCAL YEAR
SPENDING FOR FISCAL YEAR 2004
WHEREAS, Article X, Section 20(2)(e) of the Colorado Constitution defines "Fiscal Year
Spending" to include "Reserve Increases," and:
WHEREAS, it would be in the best interest of the City to establish by action of the City
Council that any and all 2004 Reserve Increases be considered a part of the City's 2004 "Fiscal
Year Spending" and that all year -end fund balances be considered as a "Reserve." NOW,
THERFORE;
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that:
SECTION 1.
Any and all increases to net fund balances shall constitute and be considered "Reserve
Increases," and therefore a part of 2004 "Fiscal Year Spending" within the meaning of Article X,
Section 20(2)(e) of the Colorado Constitution.
SECTION 2.
Any and all 2004 year -end balances shall constitute and be considered "Reserves" and all
subsequent expenditures and transfers from such "Reserves" shall be excluded from "Fiscal Year
Spending" within the meaning of Article X, section 20(2)(e) of the Colorado Constitution.
INTRODUCED November 22. 2004
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Background Paper for Proposed
RESOLUTION
AGENDA ITEM #
DATE: NOVEMBER 22, 2004
DEPARTMENT: FINANCE DEPARTMENT
BOB HAIN, DIRECTOR OF FINANCE
TITLE
A RESOLUTION ESTABLISHING RESERVE INCREASES WITH RESPECT TO
FISCAL YEAR SPENDING FOR FISCAL YEAR 2004
ISSUE
Should the City of Pueblo designate any and all 2004 increases to net fund balances as
"Reserve Increases" and therefore a part of 2004 "Fiscal Year Spending" within the
meaning of Article X, Section 20(2)(e) of the Colorado Constitution?
RECOMMENDATION
Approval of the Resolution.
BACKGROUND
The Taxpayers Bill of Rights (TABOR) sets limits upon governments for fiscal year
spending. This resolution will designate any and all net increases to the fund balance at
December 31, 2004 as "reserve increases" within the meaning of TABOR and will deem
said increases to be a part of 2004 "fiscal year spending." This resolution will also
designate any and all 2004 year -end balances, including any net increase to fund balance
during the year 2004, to be "reserves." Any subsequent transfer and expenditure of these
"reserves" shall be excluded from future fiscal year spending as calculated under the
provisions of TABOR.
FINANCIAL IMPACT
Denial of the resolution may result in a requirement that the City refund all or a portion
of said increases to taxpayers in the year 2005.