Fontana Municipal Code Div. 3 Sewer Funds

It is the policy of the city council that the sewer service be operated as a utility, and that it shall be operated in a prudent manner with adequate reserves to meet emergencies and to replace parts of the system.

(Code 1968, § 26-68; Ord. No. 1984, § 2(Exh. A), 3-10-26)

The following sewer funds are to be created and maintained:

(1) Maintenance and operating fund. The sewer maintenance and operating fund is to be created and maintained for the purpose of paying for the expenses associated with the maintenance and operation of the sewer system. Such expenses are to include direct sewage treatment costs, direct accounting and billing costs, and direct preventative and emergency sewage collection system maintenance costs, as well as general and departmental overhead as defined in section 23-1. be sewer permit fees, interest earnings and sewer service charges. Refundable sewer deposits provided by property owners are accounted for within this fund, and the amount of such deposits shall not be reflected in the fund balance.

(2) Sewer replacement fund. The sewer replacement fund is to be created and maintained for the purpose of paying for replacing parts of the sewer system as they wear out, deteriorate or become obsolete. All items deemed to be replacement of existing facilities shall be paid for from this fund. The source of the money for this fund is to be through city council authorized transfers from the sewer maintenance and operating fund. Such transfers are to be authorized so that funds will be available to pay for future replacement of parts of the sewer system. The determination as to the amount of money to be held in this fund will be made by taking into consideration the estimated life and replacement cost of the various parts of the sewer system using the summation of the following formula:

The summation of the following:

(Replacement cost of sewer system facility additions) × (0.10) × (Age of sewer system facilities) ° (75 years)

(3) Sewer capital fund. The sewer capital fund is to be created and maintained for the purpose of paying for new sewer facilities found necessary because of the development of the city. Such facilities could include, but are not limited to, pumping stations, sewer laterals, manholes, cleanouts, sewer mains, treatment facilities, interceptors, monitoring stations, and equipment. An annual appropriation shall be made from this fund for general and department overhead. The source of the money for this fund is to be sewer connection charges, interest earnings, sewer installation charges, property assessments, and government grants.

(4) Sewerage facilities expansion fund. The sewerage facilities expansion fund is to be created and maintained for the purpose of paying for sewer facilities needed for the expansion of the city including, but not limited to, treatment plants and sewer interceptor lines. The source of the money for this fund is to be the sewerage facilities expansion fee collected pursuant to section 23-477. This fund is to be used for those expansion fees and funds collected and held pursuant to contract with the Inland Empire Utilities Agency and the City of Rialto.

(Code 1968, § 26-69; Ord. No. 1034, § 2, 10-1-91; Ord. No. 1984, § 2(Exh. A), 3-10-26)

Appropriations from the various funds provided for in this article shall be pursuant to authorization in the annual budget or by special action of the city council.

(Code 1968, § 26-70; Ord. No. 1984, § 2(Exh. A), 3-10-26)

Moneys in the sewer funds may be commingled with moneys in other funds for cash management and interest earnings purposes, but each sewer fund shall be credited with its pro rata share of all interest earnings based on the fund's average balance.

(Code 1968, § 26-71; Ord. No. 1984, § 2(Exh. A), 3-10-26)

To the extent allowed by law, loans between sewer funds or to other funds may only be made pursuant to the authorization of the city council and shall be for a specific time period not to exceed five years. During such time that monies are on loan from any fund, interest shall be paid annually to the fund. The interest rate during this loan period shall be at least the average rate for the city's interest-bearing deposits during the loan duration. No loans shall be made from the maintenance and operating fund and the sewer replacement fund. Existing loans shall be brought into compliance with this section within five years.

(Code 1968, § 26-72; Ord. No. 1984, § 2(Exh. A), 3-10-26)

(a) Personnel. The total number of employees in the sewer maintenance and operating budget shall be determined using the following formula:

(Total number actual hours proposed to be charged to the sewer maintenance and operating fund for permanent employees for the proposed operating budget) ° (2,080 hours)

Personnel costs will be charged on the actual number of hours worked. Personnel costs include salaries and related benefits.

(b) Equipment. The original purchase cost charged to the sewer capital fund shall be no more than its pro rata share of time used in sewer activities. The motor pool rental charges shall also be based on the actual hours used; the motor pool shall be responsible for the replacement of these capital items.

(Code 1968, § 26-73; Ord. No. 1984, § 2(Exh. A), 3-10-26)