GFOA is always on the lookout for news items that will be useful for finance professionals, research that might help you do your job better, and legal and regulatory updates you need to know about. Check the GFOA news page for the updates and any relevant GFOA announcements, and see the GFOA Newsletter archive for back issues of our weekly electronic newsletter.
In June 2015, the City Council of Portland, Oregon, began exploring alternative financing options for environmentally responsible capital projects. The city aims to make use of a rapidly evolving market for green bonds to supplement its traditional financing methods. Portland and other issuers are defining their own policies and procedures, following the lead of the International Finance Corporation and World Bank.
In an effort to expand broadband connectivity statewide, the Commonwealth of Kentucky is in working out a partnership with a consortium of private firms to design and build a 3,200-mile fiber-optic system. The Kentucky Economic Development Finance Authority, acting as a conduit issuer, sold $230.05 million of 30-year tax exempt bonds for the project in August 2015. Fitch assigned the issuance a rating of BBB+ and Moody’s Investors Service gave it a Baa2.
The Government Finance Officers Association (GFOA) will offer an encore presentation of its 20th Annual Governmental GAAP Update live-streaming training event on
On November 3, 2015, the House Financial Services Committee approved HR 2209, bipartisan legislation that would require federal regulators to classify all investment grade municipal securities as high quality liquid assets (HQLA).
On November 2, 2015, the president signed into law a two-year budget agreement that raises spending caps by $80 billion above the levels agreed to under federal sequestration in 2011. The cap increases – $50 billion in FY 2016 and $30 billion in FY 2017 – were split evenly between defense and non-defense accounts.
One of the changes the City of Minneapolis made after its 2013 mayoral election was adding a new strategic goal: creating a better connection to the community it served. To this end, the city increased its financial transparency, moving beyond the 500-page budget document it had published in PDF format to online tools that presented information in a clear, user-friendly way.
As part of the mayor’s Back to Basics program, the City of Los Angeles, California, embarked on an open data initiative aimed at providing up-to-date information about the city’s performance on key initiatives and progress toward city-wide goals. The open data portion of the Back to Basics program sought to provide residents and employees with information that would help them better understand the city’s challenges, creating greater visibility that would lead to solutions.
Governments have long focused on developing efficient procurement processes, and creating modern procurement systems that make use of technological advances create their own challenges. The City of Raleigh, North Carolina, was grappling with these challenges and had grown frustrated with its traditional procurement process, which relied heavily on a paper-based system and made spending difficult to track. In an effort to modernize its approach to procurement and take advantage of the technology now available, Raleigh’s finance department started work on an electronic purchasing system.
Green bond issuance has generated significant recent attention as this market continues to expand. In 2014, there were 35 issuers of green bonds worldwide, totaling $36.6 billion in par amount, which is more than three times the 2013 volume of $10 billion. In the first quarter of calendar 2015, the global volume reported by the World Bank was $8 million. Green bond issuance by U.S. state and local governments represents less than 10% of these amounts.
Alliance for Excellence in School Budgeting members met last week at GFOA’s office in Chicago to develop a set of guiding principles for the budget process, based on GFOA’s new best practices. These guidelines center on aligning district resources with the areas that will have greatest impact on student achievement. The Alliance members are from 35 school districts across the country, from the largest to some of the smallest, and from urban, suburban, and rural areas.
The Governmental Accounting Standards Board (GASB) has invited GFOA members to participate in an important survey regarding the activities that you engage in when preparing and publishing your audited annual financial reports in conformity with generally accepted accounting principles (GAAP).
On September 25, 2015, GFOA’s Executive Board approved five new best practices and seven revised best practices, providing recommendations to government finance officers in the areas of accounting, budget, retirement benefits administration, capital planning, and debt issuance.
Solidifying its position in the conversation on national health-care policy, GFOA’s Executive Board unanimously ratified a policy statement on the 40% excise tax on health plan premiums – the so-called Cadillac tax. This issue is vitally important to states and municipalities, which continue to work diligently within sometimes severe budget constraints to provide benefit plans that will help them attract and retain a quality workforce, in competition with private-sector wages and salaries.
The Supreme Court decided a number of important cases against local governments in its last term. The most notable of these was Reed v. Town of Gilbert, Arizona, which held that strict scrutiny applies to content-based sign ordinances. The October 2015 term will also be one to watch, not just because the Court has accepted numerous cases on controversial topics affecting local governments, but also because many of the court’s decisions this term are likely to be discussed by the 2016 presidential candidates up.
Managing a community’s fees and charges can be time consuming; in some cases, just keeping track of each department’s fees can be a major undertaking. The City of Sacramento, California, made an initial effort to address these challenges in 2006 by developing a database of the permits, fees, fines, and license charges the city collected. But while it was a good first step, this initial attempt to create a central repository for all city related fees was incomplete.
The Government Finance Officers Association of the United States and Canada (GFOA) announced the members of its Alliance for Excellence in School Budgeting. The Alliance is composed of 35 school districts working with the GFOA to implement the Best Practices in School Budgeting. Alliance members include districts from 21 states across the US serving anywhere from a thousand students up to several hundred thousand students. Memers includes:
Like many other communities, the City of Shoreline, Washington, faced significant economic pressure as a result of the nation’s recent recession.
GFOA’s 20th Annual Governmental GAAP Update will take place on November 5, 2015, with an encore presentation on December 3, from 1-5 p.m. (Eastern), both days. This four-hour presentation will bring you and your staff up-to-date on a year’s worth of developments in accounting and financial reporting, including the latest GASB statements, exposure drafts, and implementation guidance. Receive 4 CPE credits.
Specific topics to be covered include:
Harford County (Maryland) Public Schools (HCPS) faced a number of serious challenges – class sizes were increasing, employees hadn’t received pay increases in six years, and employees and the community generally felt that resources were not well managed. Faced with the likelihood of additional cuts, the superintendent of HCPS decided to take a new approach to the district’s budget development process, consulting the community to determine the district’s priorities.
On March 13, 2014, President Obama signed a presidential memorandum directing the Department of Labor to modernize and streamline existing overtime regulations. The memorandum directs the DOL to propose specific regulations defining which white collar workers are protected by the Fair Labor Standards Act governing “white collar” exemption from overtime pay for executive, administrative and professional employees.
A recent $550 million debt issuance by Denver, Colorado, included an interesting twist – the tail end, some $12 million, was set aside to be sold exclusively to residents. This portion of the offering, referred to as the Mini-Bond Program, sold out within the first hour of availability. The bonds were available for purchase online, making citizen participation easier than past attempts, when the bonds were sold directly to residents.
State and local governments would have paid $714 billion in additional interest expenses between 2000 and 2014 without tax-exempt municipal bonds, according to a new white paper issued by GFOA and the International City/County Management Association (ICMA).
This week the State and Local Legal Center (SLLC) published summaries of this term’s U.S. Supreme Court cases that are important to State and Local Governments. In this guide, the SLLC highlights not only “The Big Cases” but also cases in which the GFOA and other members of the SLLC signed an amicus brief, directing the court to consider the broad legal effects of the court’s decision to state and local governments. The guide includes:
After finding success with other youth initiatives, the City of Boston, Massachusetts, chose to work with the Participatory Budgeting Project, a New York based citizen engagement organization, to involve young Bostonians in the city’s capital improvement planning process. They began by asking for one youth representative from each of the roughly 70 youth service organizations throughout the city, and 50 groups responded with volunteers to create a steering committee for the project.