HomeMy WebLinkAbout11774RESOLUTION NO. 11774
A RESOLUTION ESTABLISHING RESERVE INCREASES WITH
RESPECT TO FISCAL YEAR SPENDING FOR FISCAL YEAR 2009
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 2009 Reserve Increases be considered
a part of the City's 2009 "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:
SGrTlr)NI 1
Any and all increases to net fund balances shall constitute and be
considered "Reserve Increases," and therefore a part of 2009 "Fiscal Year
Spending" within the meaning of Article X, Section 20(2)(e) of the Colorado
Constitution.
SGrTlr)NI 7
Any and all 2009 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: December 28. 2009
AT7ESTDD SY:
CITY CLERK
BY: Michael Occhiato
C
APPR 0' } �.
PRESIDENTaf Cfty Council
4
Background Paper for Proposed
RESOLUTION
AGENDA ITEM # M -1
DATE: DECEMBER 28, 2009
DEPARTMENT: FINANCE DEPARTMENT
JERRY M. PACHECO, ACTING DIRECTOR OF FINANCE
TITLE
A RESOLUTION ESTABLISHING RESERVE INCREASES WITH RESPECT TO
FISCAL YEAR SPENDING FOR FISCAL YEAR 2009
ISSUE
Should the City of Pueblo designate any and all 2009 increases to net fund balances as
"Reserve Increases" and therefore a part of 2009 "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, 2009 as "reserve increases" within the meaning of TABOR and will deem
said increases to be a part of 2009 "fiscal year spending." This resolution will also
designate any and all 2009 year -end balances, including any net increase to fund balance
during the year 2009, 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 future years.