Loading...
HomeMy WebLinkAbout08552ORDINANCE NO. 8552 AN ORDINANCE ESTABLISHING COMMITTED FUND BALANCES FOR GOVERNMENTAL FUNDS OF THE CITY OF PUEBLO WHEREAS, the City Council passed and approved Ordinance No. 8433 on December 27, 2011, adopting a policy for committed and assigned fund balances for all governmental funds of the City; and WHEREAS, said policy states that committed fund balances shall be approved by the City Council, by Ordinance; and WHEREAS, said policy further states that such commitments shall only be modified or changed by the passage of a new Ordinance approved by the City Council; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. There is hereby established a Committed Fund Balance within the General Fund in an amount equal to 10% of the annual general fund expenditures and transfers. SECTION 2. There is hereby established a Committed Fund Balance within the Public Improvement Fund of the City of Pueblo in an amount equal to the remaining unexpended PEG monies received for use in satisfying contractual obligations, plus funds previously received and unexpended from developers in lieu of park land dedications with the City. SECTION 3. This Ordinance is effective December 31, 2011, nunc pro tunc. INTRODUCED: December 10, 2012 BY: Leroy Garcia COUNCIL PERSON PASSED AND APPROVED: December 26, 2012 Background Paper for Proposed O RDINANCE DATE: AGENDA ITEM # R-1 DECEMBER 10, 2012 DEPARTMENT: DEPARTMENT OF FINANCE SAM AZAD, DIRECTOR TITLE AN ORDINANCE ESTABLISHING COMMITTED FUND BALANCES FOR GOVERNMENTAL FUNDS OF THE CITY OF PUEBLO ISSUE Should the City Council establish committed fund balances with the governmental funds of the City? RECOMMENDATION Approval of this 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 No. 54. This Statement set forth the required method for reporting the fund balance within each of the Reported Funds into five categories, as appropriate. The fund balance categories are Nonspendable, Restricted, Committed, Assigned, and Unassigned. On December 27, 2011, the Council passed and approved Ordinance No. 8433, adopting a Policy for committed and assigned fund balances for all governmental funds of the City of Pueblo. This Policy states that Committed fund balances shall be approved by the City Council, by Ordinance, and said commitments shall only be modified or changed by the passage of a new Ordinance approved by City Council. This Ordinance establishes a committed fund balance within the General Fund in an amount equal to 10% of the annual general fund expenditures and transfers. In addition, the amount of remaining unexpended PEG monies previously received from Comcast for use in satisfying contractual obligations, as well as funds previously received and unexpended from developers in lieu of park land dedication are also specifically committed within the Public Improvement Fund of the City of Pueblo. FINANCIAL IMPACT None