HomeMy WebLinkAbout12855
Background Paper for Proposed
R
ESOLUTION
DATEAGENDA ITEM # M-4
: DECEMBER 23, 2013
DEPARTMENT:
FINANCE DEPARTMENT
DEBORAH MORTON, INTERIM DIRECTOR OF FINANCE
TITLE
A RESOLUTION ESTABLISHING RESERVE INCREASES WITH RESPECT TO
FISCAL YEAR SPENDING FOR FISCAL YEAR 2013
ISSUE
Should the City of Pueblo designate any and all 2013 increases to net fund balances as
"Reserve Increases" and therefore a part of 2013 "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, 2013 as "reserve increases" within the meaning of TABOR and will
deem said increases to be a part of 2013 “fiscal year spending.” This resolution will
also designate any and all 2013 year-end balances, including any net increase to fund
balance during the year 2013, 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.
RESOLUTION NO. 12855
A RESOLUTION ESTABLISHING RESERVE INCREASES
WITH RESPECT TO FISCAL YEAR SPENDING FOR
FISCAL YEAR 2013
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 2013 Reserve Increases be considered a part of the
City’s 2013 “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 2013 “Fiscal Year Spending” within the
meaning of Article X, Section 20(2)(e) of the Colorado Constitution.
SECTION 2.
The officers and the staff of the City are directed and authorized to perform any
and all acts consistent with the intent of this Resolution to effectuate the policies and
procedures described herein.
SECTION 3.
Any and all 2013 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 23, 2013
BY: Chris Nicoll