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.