APPROVE A FUND STATEMENT OF PURPOSE FOR EACH CITY FUND AND RENAME THE SPECTATOR FACILITIES OPERATING FUND
Binding City Policy
Section 1. The Council finds:
1. City Comprehensive Financial Management Policy 2.04 states that each fund in the City shall have a statement of purpose, adopted by ordinance of the City Council, which contains several required elements (outlined in FIN 2.04.01).
2. Requirements stated in FIN 2.04.01 include the purpose of the fund, sources of significant revenues, managing bureau, size and purpose of required contingencies and/or reserves, and plans for disposition of funds if the fund is closed. Furthermore, internal service funds are required to include an indication of the level of purchases that are suitable for either direct cash payment or financing, equipment replacement policies, a method for clearly accounting for equipment reserves, a policy for protecting capital reserves from being used for operating purposes, and a method for testing the cost-effectiveness of providing services internally versus contracting out.
3. The Office of the City Auditor released an audit titled “Legal reserves meet requirements, but internal reserves need more accountability” in August 2012. The audit found that some fund creation ordinances did not include the level of detail required by City policy; and recommended that the Office of Management & Finance work with Council to ensure current and future funds have ordinances that meet City requirements.
4. Ordinance #173497 was passed by Council on June 23, 1999 renaming the Arena Project Operating Fund to the Spectator Facilities Operating Fund.
5. Renaming the Spectator Facilities Operating Fund to the Spectator Venues & Visitor Activities Fund better represents the purpose of the fund.
NOW, THEREFORE, the Council directs:
a. To ensure that all existing funds are in compliance with City Comprehensive Financial Management Policy 2.04.01, the fund statements included in Attachment F are hereby adopted.
b. The City Budget Office is hereby directed to review the fund statements on a yearly basis and return to Council if any necessary revisions are required.
c. Effective July 1, 2015, the Spectator Facilities Operating Fund will be renamed the Spectator Venues & Visitor Activities Fund.
d. The actions adopting the fund statements and renaming the Spectator Facilities Operating Fund to the Spectator Venues & Visitor Activities Fund contained in this ordinance are binding City policy.
Section 2. The Council declares that an emergency exists because it is necessary to rename the fund before the beginning of next fiscal year in order to properly prepare financial statements for the year beginning July 1, 2015; therefore this ordinance shall be in full force and effect upon passage.
Link to Attachment F (PDF Document, 4.3 MB)
Emergency Ordinance No. 187200, passed by City Council and effective June 18, 2015.