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HomeMy WebLinkAbout12556RESOLUTION NO. 12556 A RESOLUTION ESTABLISHING RESERVE INCREASES WITH RESPECT TO FISCAL YEAR SPENDING FOR FISCAL YEAR 2012 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 2012 Reserve Increases be considered a part of the City’s 2012 “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 2012 “Fiscal Year Spending” within the meaning of Article X, Section 20(2)(e) of the Colorado Constitution. SECTION 2. Any and all 2012 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 26, 2012 BY: Stetve Nawrocki COUNCIL PERSON Background Paper for Proposed R ESOLUTION DATE:AGENDA ITEM # M-1 DECEMBER 26, 2012 DEPARTMENT: FINANCE DEPARTMENT SAM AZAD, DIRECTOR OF FINANCE TITLE A RESOLUTION ESTABLISHING RESERVE INCREASES WITH RESPECT TO FISCAL YEAR SPENDING FOR FISCAL YEAR 2012 ISSUE Should the City of Pueblo designate any and all 2012 increases to net fund balances as "Reserve Increases" and therefore a part of 2012 "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, 2012 as "reserve increases" within the meaning of TABOR and will deem said increases to be a part of 2012 “fiscal year spending.” This Resolution will also designate any and all 2012 year-end balances, including any net increase to fund balance during the year 2012, 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.