City Council Minutes 2001 05 02 - Laserfiche WebLink

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Louisville City Council Meeting May 2, 2001 Page 4 Higgins concurred that the report did not include Superior's special districts. Higgins highlighted several areas of positive financial performance accomplished by the City during the year. She also reviewed the recommendations for further improvements. The recommendations were as follows: GASB 34, (a new acCounting standard adopted by the Governmental Accounting Standards Board). Bondi suggests restating year 2000 financial information and implementing GASB 34 for the 2001 financial statements. 2. Home Rule consideration. Bondi encouraged the City to continue discussions on various components of becoming a home rule city. 3. Tabor calculations. Bondi suggested recalculating the TABOR restrictions, excluding the exempt interest income to determine if the refund is necessary. In summary, Higgins stated that the City of Louisville had an extremely good year, noting that the City's equities and assets have increased, and that liabilities are down. She stated that the report reflects a positive balance sheet. Higgins thanked the City of Louisville management and City Council for allowing Bondi & Co. LLP to assist in the City's financial consulting and auditing needs. She also thanked Finance Director Dianne Ray and her staff. Keany stated that the Finance committee has discussed the expense of the GASB 34. He asked Higgins why the City should pursue GASB 34 until it is required. Higgins stated that it has been established by the Governmental Accounting Standards Board through Statement GASB 34, that Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments is the standard for governmental entities. She noted that GASB 34 gives smaller cities a longer amount of time, and will not be implemented until 2003. She stated that Bondi is recommending that the City start the process because it is a very lengthy process. Sisk suggested that Council contact State Representative Udall and Senators Allard and Campbell and request that they look into this issue. He stated that GASB 34 would be a liability to the City of Louisville. He noted that the implementation of GASB 34 would be extremely costly for the City. Higgins stated that Finance Director Dianne Ray has already begun the process of putting an implementation plan in place. She suggested that Ray share the implementation plan with Council and attach figures for the costs. She stated that there are consultants that will help municipalities through the process. She estimated the cost of an implementation plan between $4,500 and $10,000, depending on the size of the city. 4