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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.