Costa Mesa Municipal Code Art. 6 Excess Proceeds of Taxes Reserve Accounts

There is hereby created and established in each and every fund now existing and in each and every fund subsequently created and established in which proceeds of taxes are now on hand or will be received and deposited, a reserve account entitled reserve for proceeds of taxes for budget adjustment," pursuant to section 5 of Article XIII-B of the Constitution of the State of California.

(Ord. No. 81-10, § 2, 6-15-81)

There is hereby appropriated to each and every reserve for proceeds of taxes for budget adjustment in each and every fund any and all amounts of revenues which constitute proceeds of taxes which are in excess of the total expenditures of proceeds of taxes as of the close of each fiscal year. Such appropriations shall occur annually and be effective as of the close of the last day of the fiscal year, and shall constitute appropriations subject to limitation only for the fiscal year in which they are appropriated to the reserve account.

(Ord. No. 81-10, § 2, 6-15-81)

At no time, by operation of this article, shall the appropriation of revenues which constitute proceeds of taxes cause the appropriations limit to be exceeded for the fiscal year in which they were received. Any revenues which constitute proceeds of taxes which cannot be appropriated to the reserve for proceeds of taxes for budget adjustment accounts because of the foregoing prohibition, pursuant to section 1 of Article XIII-B of the Constitution of the State of California, shall be deemed to be excess revenues and shall be disposed of in accordance with section 2 of Article XIIIB of the Constitution of the State of California.

(Ord. No. 81-10, § 2, 6-15-81)

Moneys in the reserve for proceeds of taxes for budget adjustment [accounts] in each and every fund may be expended or authorized for expenditure or transferred in the same manner and for the same purposes as moneys not in such accounts. Such expenditures, authorizations to expend, or transfers from such accounts shall not constitute appropriations subject to limitation.

(Ord. No. 81-10, § 2, 6-15-81)

The director of finance is authorized and directed to establish accounts and accounting procedures which clearly distinguish between expenditures of, or authorizations to expend, money in the reserve for proceeds of taxes for budget adjustment accounts and expenditures of, or authorizations to expend moneys not in such accounts.

(Ord. No. 81-10, § 2, 6-15-81)

As used herein, the terms "proceeds of taxes," "appropriations subject to limitation" and "appropriations limit" shall have the meaning defined in Sections 8(b), (c) and (h) of Article XIII-B of the Constitution of the State of California.

(Ord. No. 81-10, § 2, 6-15-81)