HomeMy WebLinkAbout11481RESOLUTION NO. 11481
A RESOLUTION ESTABLISHING RESERVE INCREASES WITH
RESPECT TO FISCAL YEAR SPENDING FOR FISCAL YEAR 2008
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 2008 Reserve Increases be considered a part of the
City's 2008 "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 2008 "Fiscal Year Spending" within the
meaning of Article X, Section 20(2)(e) of the Colorado Constitution.
SECTION 2.
Any and all 2008 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.
BY: Randy Thurston
Councilperson
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INTRODUCED: December 22. 2008
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Background Paper for Proposed
RESOLUTION
AGENDA ITEM # 4
DATE: DECEMBER 22, 2008
DEPARTMENT: FINANCE DEPARTMENT
ROBERT F. HAIN, DIRECTOR OF FINANCE
TITLE
A RESOLUTION ESTABLISHING RESERVE INCREASES WITH RESPECT TO FISCAL
YEAR SPENDING FOR FISCAL YEAR 2008
ISSUE
Should the City of Pueblo designate any and all 2008 increases to net fund balances as "Reserve
Increases" and therefore a part of 2008 "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, 2008
as "reserve increases" within the meaning of TABOR and will deem said increases to be a part of
2008 "fiscal year spending." This resolution will also designate any and all 2008 year -end
balances, including any net increase to fund balance during the year 2008, 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 2009.