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HomeMy WebLinkAbout08822ORDINANCE NO. 8822 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 funds previously received and unexpended from developers in lieu of park land dedications with the City. SECTION 3. The officers and the staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance to effectuate the policies and procedures described herein. SECTION 4. This Ordinance shall become effective December 31, 2014. INTRODUCED: December 22, 2014 BY: Ed Brown PASSED AND APPROVED: January 12, 2015 City Clerk’s Office Item # R-2 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: December 22, 2014 TO: President Stephen G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Deborah Morton, Finance Director SUBJECT: AN ORDINANCE ESTABLISHING COMMITTED FUND BALANCES FOR GOVERNMENTAL FUNDS OF THE CITY OF PUEBLO SUMMARY: Should the City Council approve committed fund balances within the governmental funds of the City? PREVIOUS COUNCIL ACTION: On December 23, 2013 City Council approved Ordinance No. 8683 establishing a Committed Fund Balance within the General Fund in an amount equal to 9.6% of the annual general fund expenditures and transfers. BACKGROUND: The City of Pueblo’s financial statements, including its Comprehensive Annual Financial Report (CAFR), are 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 City 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 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 IMPLICATIONS: None BOARD/COMMISSION RECOMMENDATION: None STAKEHOLDER PROCESS: None ALTERNATIVES: Council can choose to not commit fund balance within the General Fund. RECOMMENDATION: Approval of the Ordinance.