HomeMy WebLinkAbout08433ORDINANCE NO. 8433
AN ORDINANCE ADOPTING A POLICY FOR ESTABLISHING
COMMITTED AND ASSIGNED FUND BALANCES FOR ALL
GOVERNMENTAL FUNDS OF THE CITY OF PUEBLO
WHEREAS, the Governmental Accounting Standards Board (GASB) is the accepted standard
setting body for establishing accounting principals for state and local governments and the GASB
adopted statement #54 ‘Fund balance reporting and Governmental fund type definitions,” in February,
2009; and
WHEREAS, the effective date of the standard for the City of Pueblo, Colorado (the City) is the
year ended December 31, 2011; and
WHEREAS, the City finance department recommend the adoption of a fund balance policy that
will assist in implementation of this standard. NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City Council can establish and set committed fund balances of any governmental fund
operated by the City through the passage of an Ordinance. As used herein, the phrase “Committed fund
balance” shall have the meaning defined in GASB Statement 54 or required by City Charter whichever is
more restrictive.
SECTION 2.
Any committed fund balance approved by City Council can only be modified or changed by the
passage of a new Ordinance approved by City Council.
SECTION 3.
It is the policy of City Council of the City of Pueblo, Colorado to allow the City Manager and the
Finance Director to assign fund balance in any governmental fund operated by the City.
SECTION 4.
This Ordinance shall become effective upon final passage.
INTRODUCED December 12, 2011
BY: Leroy Garcia
COUNCILPERSON
PASSED AND APPROVED: December 27, 2011
Background Paper for Proposed
ORDINANCE
DATE: AGENDA ITEM # R-11
DECEMBER 12, 2011
DEPARTMENT:
OFFICE OF THE CITY MANAGER
JERRY M. PACHECO, CITY MANAGER
JENNY M. EICKELMAN, INTERIM DEPUTY CITY MANAGER
TITLE
AN ORDINANCE ADOPTING A POLICY FOR ESTABLISHING COMMITTED AND ASSIGNED
FUND BALANCES FOR ALL GOVERNMENTAL FUNDS OF THE CITY OF PUEBLO
ISSUE
Should the proposed Ordinance be passed and approved?
RECOMMENDATION
Approval of the Ordinance.
BACKGROUND
The City of Pueblo’s financial statements, including its Comprehensive Annual Financial Report
(CAFR) is structured and prepared in accordance with standards of accounting and financial
reporting for U.S. state and local governments established by the Governmental Accounting
Standards Board (GASB). In February, 2009, GASB issued Statement 54. Statement 54
changes the required method for reporting the fund balance within each of the Reported Funds
from two general categories of funds (reserved and unreserved) to an allocation of each
Reported Fund balance among five or fewer, as appropriate components, including
“Nonspendable fund balance,” “Restricted fund balance,” “Committed fund balance,” “Assigned
fund balance,” and “Unassigned fund balance.”
FINANCIAL IMPACT
The adoption of GASB Statement 54 has no financial impact.