GASB77 – Are you Ready?

The Government Accounting Standards Board has issued a statement outlining the process required for local government to report tax abatement agreements entered into by the municipality. Statement 77 outlines the disclosure requirements of local governments for tax abatement agreements.

Local governments issue tax abatement agreements for a variety of reasons, including redevelopment of blighted areas, economic development, and job growth. By lowering the tax liability for certain businesses or activities, economic development can be spurred, thus creating prosperity in the community.

It is now incumbent upon cities and counties to properly track and report these abatement agreements to the federal government. Local governments must articulate in disclosures the tax being abated, the eligibility criteria used, the gross amount of tax dollars abated and a variety of other information items.

Cities working through this disclosure process will likely need to retain a professional familiar with the disclosure requirements and government accounting standards. The team at the Public Management Group of Urban Futures, Inc. (UFI) stands ready to serve clients as they work their way through this new disclosure process, providing strategic advise and precise disclosures.

Those interested in the government account standards reporting services of UFI should contact Vanessa Burke, Managing Principal, at vanessab@urbanfuturesinc.com or (714) 283-9334.

Urban Futures, Inc. has been providing services to local governmental agencies for over 43 years. Operating as five divisions – UFI Public Management Group, UFI Public Finance Group, UFI Economic Development Group, Analytics and Compliance Group and Isom Advisors – UFI offers clients a growing portfolio of services and industry expertise that might otherwise be out of reach. Over 300 public agencies have benefited from partnering with UFI. UFI is based in Orange, CA with offices in Walnut Creek and El Dorado Hills. Visit their website at www.urbanfuturesinc.com or call (714) 283-9334.

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