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HomeMy WebLinkAbout14105 City Clerk’s Office Item # M-1 Background Paper for Proposed RESOLUTION COUNCIL MEETING DATE: December 10, 2018 TO: President Christopher A. Nicoll and Members of City Council CC: Sam Azad, City Manager VIA: Brenda Armijo, Acting City Clerk FROM: Roni Kimbrel, Director of Finance SUBJECT: A RESOLUTION ESTABLISHING RESERVE INCREASES WITH RESPECT TO FISCAL YEAR SPENDING FOR FISCAL YEAR 2018 SUMMARY : Should the City Council designate any and all 2018 increases to net fund balances as “Reserve Increases” and therefore a part of 2018 “Fiscal Year Spending” within the meaning of Article X, Section 20(2)(e) of the Colorado Constitution? PREVIOUS COUNCIL ACTION: None 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, 2018 as "reserve increases" within the meaning of TABOR and will deem said increases to be a part of 2018 “fiscal year spending.” This resolution will also designate any and all 2018 year- end balances, including any net increase to fund balance during the year 2018, 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 IMPLICATIONS: 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. BOARD/COMMISSIONS RECOMMENDATION: None STAKEHOLDER PROCESS: None ALTERNATIVES: Denial of this Resolution may result in a requirement that the City refund all or a portion of said increases to taxpayers in future years. RECOMMENDATION: Approval of this Resolution. Attachments: Proposed Resolution RESOLUTION NO. 14105 A RESOLUTION ESTABLISHING RESERVE INCREASES WITH RESPECT TO FISCAL YEAR SPENDING FOR FISCAL YEAR 2018 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 2018 Reserve Increases be considered a part of the City’s 2018 “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, that: SECTION 1. Any and all increases to net fund balances shall constitute and be considered “Reserve Increases,” and therefore a part of 2018 “Fiscal Year Spending” within the meaning of Article X, Section 20(2)(e) of the Colorado Constitution. SECTION 2. Any and all 2018 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. 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 Resolution to effectuate the policies and procedures described herein. INTRODUCED December 10, 2018 BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: ACTING DEPUTY CITY CLERK