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RESOLUTION NO. 12281
A RESOLUTION ESTABLISHING RESERVE INCREASES WITH
RESPECT TO FISCAL YEAR SPENDING FOR FISCAL YEAR 2011
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 2011 Reserve Increases be considered a part of the
City’s 2011 “Fiscal Year Spending” and that all year-end fund balances be considered
as a “Reserve”; NOW, THEREFORE,
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 2011 “Fiscal Year Spending” within the
meaning of Article X, Section 20(2)(e) of the Colorado Constitution.
SECTION 2.
Any and all 2011 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 27, 2011
BY: Leroy Garcia
COUNCILPERSON
Background Paper for Proposed
R
ESOLUTION
DATE: DECEMBER 27, 2011 AGENDA ITEM # M-1
DEPARTMENT: FINANCE DEPARTMENT
SAM AZAD, DIRECTOR OF FINANCE
TITLE
A RESOLUTION ESTABLISHING RESERVE INCREASES WITH RESPECT TO
FISCAL YEAR SPENDING FOR FISCAL YEAR 2011
ISSUE
Should the City of Pueblo designate any and all 2011 increases to net fund balances as
"Reserve Increases" and therefore a part of 2011 "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 balances
at December 31, 2011 as "reserve increases" within the meaning of TABOR and will
deem said increases to be a part of 2011 “fiscal year spending.” This Resolution will
also designate any and all 2011 year-end balances, including any net increase to fund
balance during the year 2011, 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. In addition, denial of this Resolution will
impact the 2012 balanced budget.