HomeMy WebLinkAboutResolutions - No. 99-59RESOLUTION NO. 99-59
A RESOLUTION OF THE LODI CITY COUNCIL IN OPPOSITION TO
THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD'S
(GASB) PLAN TO MANDATE INFRASTRUCTURE REPORTING IN
FINANCIAL STATEMENTS
WHEREAS, the Governmental Accounting Standards Board (GASB) plans to promulgate a new
governmental financial reporting model for state and local governments in June 1999; and
WHEREAS, traditionally, state and local governments have not been required to report
infrastructure assets of the general government in their financial reports; and
WHEREAS, GASB now plans to require that infrastructure assets be reported and depreciated in
the financial statements of state and local governments, and the Government Financial Officer's
Association (GFOA) is greatly concerned about the potential costs involved with implementing
infrastructure reporting; and
WHEREAS, the GFOA has been guided in developing its position by the view that changes in
financial reporting should be justifiable on the basis of their anticipated practical benefits; and
WHEREAS, the GFOA does not feel that infrastructure reporting and depreciation meets this
criteria; and
WHEREAS, not only is the historical cost of an infrastructure asset irrelevant to decision making,
but the allocation of that cost to subsequent periods in the form of depreciation expense is at best
irrelevant, and at the worst misleading; and
WHEREAS, recently GFOA's Executive Board voted unanimously to oppose the mandatory
reporting of infrastructure assets on the statement of position and also to oppose the depreciation of those
assets.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi hereby opposes
the Governmental Accounting Standards Board's plan to require mandatory reporting of infrastructure
assets on the statement of position and further opposes the depreciation of those assets.
Dated: April 21, 1999
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I hereby certify that Resolution No. 99-59 was passed and adopted by the Lodi City Council in a
regular meeting held April 21, 1999 by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Mann, Nakanishi, Pennino and Land (Mayor)
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS — None
ALICE M. REI CHE
City Clerk
99-59