Fresno Municipal Code Art. XII Fiscal Administration

For the purpose of municipal property taxation, the City may continue to use the County system of assessment, tax collection and deposit as such system is now in effect or may hereafter be amended and insofar as such provision is not in conflict with this Charter.

Should there arise any reason whatsoever that prevents the City from using the County system, the Council shall provide by ordinance a system for the assessment, collection and deposit of municipal property taxes.

The fiscal year of the City shall begin on the first day of July of each year and end on the thirtieth day of June of the following year.

At such date as the Mayor shall determine, each department head shall furnish to the Mayor through the Chief Administrative Officer, estimates of revenue and expenditures for his or her department, detailed in such manner as may be prescribed by the mayor. In preparing the proposed budget, the Mayor shall review the estimates, hold conferences thereon with the Chief Administrative Officer and respective department heads and may revise the estimates as he or she may deem advisable.

(Amendment ratified 1993 General Municipal Election, April 27, 1993.)

At least thirty days prior to the beginning of each fiscal year, the Mayor shall submit to the Council the proposed budget as prepared for him or her. The Council may review the proposed budget and make such revisions as it may deem advisable. At the time he or she submits the proposed budget to the Council the Mayor shall determine, and shall advise the Council of, the time for holding of a public hearing thereon, and shall cause notice to be given of the time and place of such hearing, not less than ten days prior to the time fixed therefor, by publication of such notice at least once in a newspaper of general circulation in the City. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten days prior to the hearing.

(Amendment ratified 1993 General Municipal Election, April 27, 1993.)

At the time so advertised or at any time to which such public hearing shall from time to time be adjourned, the Council shall hold a public hearing on the proposed budget, at which interested persons desiring to be heard shall be given such opportunity.

After the conclusion of the public hearing the Council shall further consider the proposed budget and make any revisions thereof that it may deem advisable and on or before June 30, it shall adopt a balanced budget. A copy thereof, certified by the City Clerk, shall be filed with the person retained by the Council to perform auditing functions for the Council and a further copy shall be placed and shall remain on file in the office of the City Clerk, where it shall be available for public inspection. The budget so certified shall be reproduced and copies made available for the use of departments, offices and agencies of the City.

(Amendment ratified 1971 General Municipal Election; approved, Assembly Concurrent Resolution No. 130, filed with Secretary of State on June 18, 1971, Res. Ch. 77, Stat. 1971; amendment ratified 2018 General Election, November 6, 2018)

From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several departments, offices and agencies for the respective objects and purposes therein named. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered.

At any meeting after the adoption of the budget, the Council may amend or supplement the budget by motion adopted by the affirmative votes of at least five members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose or to appropriate available funds not included in the budget.

On or before the last Tuesday in August in each year, the Council shall, by ordinance, levy such tax as may be necessary to meet the appropriations made (less the estimated amount of revenue from other sources), and all sums required by law to be raised on account of the City debt and interest thereon, together with such addition, not exceeding five per cent, as may be deemed necessary to meet commissions, fees and deficiencies from the estimates in the amount of taxes collected.

(a) Every contract involving an expenditure of city moneys of more than one hundred thousand dollars ($100,000), adjusted annually on the first of July to the nearest one thousand dollars ($1,000) in response to changes in the National Consumer Price Index (United States City Average For All Products), for materials, supplies, equipment or for any public work of improvement, shall be let to the lowest responsive and responsible bidder after notice by publication in a newspaper of general circulation within the city or on the internet, which shall be at least seven days before time for opening bids. For purposes of this subsection, Council shall by ordinance define "public work of improvement."

(1) All bids hereunder shall be accompanied by either a certified, or cashier's check, an irrevocable letter of credit, or a bidder's bond executed by a corporate surety admitted by the California Insurance Commissioner to do business in California, payable and acceptable to the city. Such security shall be in an amount not less than that specified in the notice inviting bids or in the specifications referred to therein, or if no amount be so specified, then in an amount not less than ten percent of the aggregate amount of the bid. A certificate of deposit or other instrument approved by Council may be accepted by the city in lieu of a bidder's bond. If the successful bidder neglects or refuses to enter into the contract within the time specified in the notice inviting bids or specifications referred to therein, the amount of the bidder's security may be declared forfeited to the city and may be collected and paid into a lawful, available city fund, and all bonds so forfeited shall be prosecuted and the amount thereof collected and paid into such fund.

(2) All bids hereunder shall be submitted in a sealed envelope or electronically through the internet. Bids submitted in a sealed envelope or electronically shall be filed with the officer in charge of the purchasing function prior to the opening time specified in the notice inviting bids. Such officer shall receive and be custodian of such bids and keep the same confidential until they are opened and declared. The City reserves the right to specify that bids be filed only in a sealed envelope or only electronically on any procurement.

(3) All bids received hereunder shall be publicly opened and declared at the time and at the place fixed in the notice inviting bids. Thereafter, the bids shall be tabulated and analyzed by the officer in charge of the purchasing function, who shall submit them, together with recommendations thereon, to the Chief Administrative Officer. The Chief Administrative Officer shall review the bids and submit them to the Council, along with his/her recommendations, at a duly scheduled meeting of the Council.

(4) The Council shall have the right to waive any informality or minor irregularity in a bid. The Council may reject any and all bids presented and may readvertise in its discretion.

(5) The provisions of this subsection (a) shall not apply to any of the following:

(i) A work of improvement obtained through a design build process if authorized pursuant to subsection (c) herein.

(ii) Work done by the city with its own personnel and/or equipment.

(iii) Materials, supplies, equipment or any public work of improvement obtained from or through any governmental agency.

(iv) When Council determines that the work to be done or the goods to be supplied can only be provided by one source, and the purchase is authorized by resolution of the Council containing a declaration of the facts constituting the sole source.

(v) When the purchase is deemed by Council to be of urgent necessity for the preservation of life, health or property, and such purchase is authorized by resolution passed by at least five affirmative votes of the Council and containing a declaration of the facts constituting the urgency.

(6) For those instances when alternative bid forms, or additive or deductive items are included in bid specifications, Council may establish by ordinance the method that will be used to determine the lowest bid. The establishment of any such method by the Council will not preclude the city from adding to or deducting from the contract any of the additive or deductive items after the lowest responsive and responsible bidder has been determined. Nothing in this subsection (a) shall preclude the Council from establishing a method reserving to the Council the right to award, after consideration of the amount of the bids and the combination of work to be performed, to the lowest responsive and responsible bidder of any alternative bid form or any combination of bid prices on the base contract and additive and/or deductive items identified in the city specifications, when in Council's discretion it determines such award to be either in the best interests of the city or obtains for the public the best economic result. Notwithstanding subdivisions (2) and (3) of this subsection (a), Council may establish by ordinance a method whereby the identity of the bidder is kept confidential until following Council's determination of the lowest bid.

(7) The Council may by resolution or ordinance establish procedures and requirements for hearing appeals by any bidder who has been determined by the Chief Administrative Officer to be nonresponsive or nonresponsible. The Council may also by resolution or ordinance establish procedures and requirements for the debarment of any bidder who has been determined by the Council to be nonresponsible.

(b) Notwithstanding subsection (a) above, the Council may by ordinance authorize the officer in charge of the purchasing function, in the evaluation of any or all sealed bids for the purchase of materials, supplies, equipment and/or any public work of improvement, to extend up to a five percent preference for a local business in award of all contracts except for those contracts funded by the federal or state government when such funding would be jeopardized because of this preference. For purposes of this section, "local business" shall be as defined by Council within such ordinance.

(1) The amount of the preference shall be equal to the amount of the percentage applied to the lowest responsive and responsible bid.

(2) If the bidder submitting the lowest responsive and responsible bid is not a local business, and if a local business has also submitted a responsive and responsible bid, and, with the benefit of the preference, the local business's bid is equal to or less than the original lowest responsive and responsible bid, the city shall award the contract to the local business at its submitted bid price.

(3) The bidder shall certify, under penalty of perjury, that the bidder qualifies as a local business. The preference is waived if the certification does not appear on the bid.

(c) Council may by ordinance establish a "design build process" which may be utilized in lieu of a competitive bid process as required by this section for construction of any public work of improvement.

(d) To be valid hereunder, any contract with the city for property, goods, services, materials, supplies, equipment or work shall be in writing and approved as to form by the City Attorney.

(e) The city shall not be subject to the California Public Contract Code, in whole or in part, unless Council agrees by ordinance.

(Amendment ratified 1971 General Municipal Election; approved, Assembly Concurrent Resolution No. 130, filed with Secretary of State on June 18, 1971, Res. Ch. 77, Stat. 1971.)

(Amendment ratified 1979 General Municipal Election, March 6, 1979.)

(Amendment ratified 1988 General Election, November 8, 1988.)

(Amendment ratified 1992 General Election, November 3, 1992.)

(Amendment ratified 1996 Primary Election, March 26, 1996.)

(Amendment ratified 2002 Consolidated Direct Primary Election, March 5, 2002.)

(Amendment ratified 2016 General Election, November 8, 2016.)

The Council may maintain a revolving fund, to be known as the "Cash Basis Fund", for the purpose of placing the payment of the running expenses of the City on a cash basis when so maintained. A reserve shall be built up in this fund from any available sources in an amount which the Council deems sufficient with which to meet all lawful demands against the city for the first five months, or other necessary period, of the succeeding fiscal year prior to the receipt of ad valorem tax revenues. Transfers may be made by the Council from such fund to any other fund or funds of such sum or sums as may be required for the purpose of placing such funds, as nearly as possible, on a cash basis. All moneys so transferred from the Cash Basis Fund shall be returned thereto before the end of the fiscal year.

Money may be borrowed in anticipation of the receipts from taxes during any fiscal year, by the issue of notes, certificates of indebtedness or revenue bonds; but the aggregate amount of such loans at any time outstanding shall not exceed twenty-five percent of the receipts from taxes during the preceding fiscal year; and all such loans shall be paid out of the receipts from taxes for the fiscal year in which they are issued.

A fund for capital outlays, generally is hereby created, to be known as the "Capital Outlays Fund". The Council may create by ordinance a special fund or funds for a special capital outlay purpose. The Council may levy and collect taxes for capital outlays and may include in the annual tax levy a levy for such purposes in which event it must apportion and appropriate to any such fund or funds the moneys derived from such levy; provided, however, that the tax rate for capital outlay purposes does not exceed twenty cents (20¢) in any one year.

Once created, such fund shall remain inviolate for the purpose for which it was created; if for capital outlays generally, then for any such purposes, and if for a special capital outlay, then for such purpose only, unless the use of such fund for some other purpose is authorized by the affirmative votes of a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted.

If the purpose for which any capital outlay fund has been created has been accomplished, the Council may transfer any unexpended or unencumbered surplus remaining in such fund to the fund for capital outlays generally, established by this Charter.

The Council shall establish a specific reserve management policy to control future spending, enhance the City's credit rating, and establish reserve policies to meet the City's debt obligations. An affirmative vote of at least five members of the Council shall be required for amendment to the policy.

The Council shall establish a fund known as the "Unappropriated Reserve Fund" for the purpose of meeting unforeseen contingencies and emergencies of the City for such amount as established by the Council. Said fund shall remain intact except by the affirmative vote of at least five members of the Council with a statement declaring the reason for its use.

(Amendment ratified 2012 General Municipal Election, 11-6-12.)

The City shall not incur indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of twenty percent of the total assessed valuation for purposes of City taxation of all the real and personal property within the City, exclusive of any indebtedness that has been or may hereafter be incurred for the purposes of acquiring, constructing, extending, or maintaining municipal utilities for which purpose a further indebtedness may be incurred by the issuance of bonds, subject only to the provisions of the State Constitution and of this Charter.

No bonded indebtedness which shall constitute a general obligation of the City may be created unless authorized by the affirmative votes of a majority of the electors voting on such proposition at any election at which the question is submitted to the electors and unless in substantial compliance with the provisions of the State Constitution and of this Charter.

(Amendment ratified 1971 General Municipal Election; approved, Assembly Concurrent Resolution No. 130; filed with Secretary of State on June 18, 1971, Res. Ch. 77, Stat. 1971.)

The Council shall establish a debt management policy for the purpose of issuing and managing the City's debt consistent with sound financial management practices. The Controller shall certify prior to each issuance decision the specific funding source(s) for the repayment of the debt and the reliability of the funding for the life of the debt. An affirmative vote of at least five members of the Council shall be required to amend the debt management policy, or to authorize debt other than as a part of the adoption of the annual budget.

(Amendment ratified 2012 General Municipal Election, 11-6-12.)

The Council shall establish a policy regarding the procedures and scope for conducting a due diligence process for any proposed project that includes a request for direct or indirect financial assistance, including extensions(s) or renewals(s) of assistance, but excluding City requests for proposal(s), that exceeds one million dollars ($1,000,000). The due diligence process shall include any material financial, legal, business, legislative, and regulatory issues associated with the proposed project. Any amendments to the policy describing this due diligence process or approval of a proposed project that requires this due diligence process shall require an affirmative vote of at least five members of the Council.

(Amendment ratified 2012 General Municipal Election, 11-6-12.)

The Council shall employ at the beginning of each fiscal year a public accountant who shall, at such time or times as may be specified by the Council, and at such other times as he shall determine, examine the books, records, inventories and reports of all officers and employees who receive, handle or disburse public funds and of all such other officers, employees or departments as the Council may direct. As soon as practicable after the end of the fiscal year, a final audit and report shall be submitted by such accountant to the Council, one copy thereof to be distributed to each member, one to the Chief Administrative Officer, Controller, Treasurer, and City Attorney, respectively, and three additional copies to be placed on file in the office of the City Clerk where they shall be available for inspection by the general public.

Warrants on the City Treasurer which are not paid for lack of funds shall be registered. All registered warrants shall be paid in the order of their registration when funds therefor are available and shall bear interest from the date of registration at such rate as shall be fixed by the Council by resolution.

The Council through the Chief Administrative Officer shall endeavor to make each municipally owned utility financially self-sustaining. After providing for depreciation reserves and amortization of general obligation and revenue bonds issued for such utility and for reasonable accumulation of reserves for improvement and expansion, and for deposits into special funds created to secure revenue bonds issued for such utility, each utility shall apply all annual profits thereafter remaining to rate reductions, subject to any limitations on the application of such profits or on rate reductions contained in any resolution of the Council relating to the issuance of revenue bonds for such utility. No municipally owned utility shall be operated for the benefit of other municipal functions nor be used directly or indirectly as a general revenue-producing agency for the City, but may pay to the City such amounts of money, in lieu of property and other taxes normally placed upon private business enterprises, as the Council may provide by ordinance and may also pay to the City for any lawful purpose such amounts of surplus annual profits as may be permitted by the provisions of any resolution of the Council relating to the issuance of revenue bonds.

That the City of Fresno, in addition to all other powers elsewhere enumerated in this Charter, shall have the power to acquire (whether by purchase, lease, eminent domain or otherwise) construct, establish, improve, extend, maintain, operate, administer, lease, sublease and let off-street vehicular parking facilities and places within the City of Fresno in order to relieve traffic congestion and promote the welfare of the citizens and inhabitants thereof.

Without limiting the generality of the next preceding paragraph, the City shall have the power:

(a) To acquire lands and property and rights-of-way necessary and convenient for use as parking places;

(b) To acquire lands and property and rights-of-way necessary and convenient for the opening, widening, straightening and extending of streets or alleys necessary or convenient for ingress or egress from any parking place herein established;

(c) To acquire by condemnation, purchase, or gift any property or any interest therein. Any lands or property necessary or convenient for off-street vehicular parking places may be acquired in fee simple by condemnation or otherwise;

(d) To improve any lands acquired by the construction thereon of garages or other buildings or improvements necessary or convenient for off-street vehicular parking purposes;

(e) To collect fees or charges to pay all or any part of purchasing, improving, repairing or operating off-street vehicular parking. To establish and regulate rates and charges for all services provided the users of such facilities;

(f) To establish funds for such system or systems and place limitations upon the use of moneys therefrom;

(g) To establish off-street vehicular parking places only within the City of Fresno;

(h) To make all necessary rules and regulations regarding the operation and maintenance of off-street vehicular parking facilities;

(i) To issue revenue bonds and refunding revenue bonds for the purchase, acquisition, construction, improvement, operation and maintenance of any and all off-street vehicular parking facilities so acquired and to evidence such obligation for payment, discharge and retirement of the cost of such facilities, improvements and projects by the issuance of revenue bonds therefor, including refunding revenue bonds, in negotiable or non-negotiable form and payable solely out of the revenue derived from the operation, and control of such off-street vehicular parking facilities, in accordance with the procedure established by Section 1222 of this Charter;

(j) To bind, allocate, pledge and authorize payment of all or any part of the net revenues collected from the establishment and operation of parking meters within this city for periods of years for the payment of operation and maintenance costs of such off-street vehicular parking facilities and principal and interest on all revenue bonds issued and outstanding, until all of such bonds have been fully paid;

(k) To do any and all acts or things necessary or appropriate to carry out the purpose of this section.

The City of Fresno shall have the power to acquire (whether by lease, purchase, eminent domain or otherwise), construct, establish, improve, extend, maintain, operate, administer, lease, sub-lease and let airport facilities, including but not limited to runways, hangars, warehouses, buildings for the repair or manufacture of airplanes or airplane parts, control towers, traffic control devices and administration facilities within or without the City of Fresno to promote and facilitate air traffic and promote the welfare of the citizens and inhabitants thereof.

Without limiting the generality of the next preceding paragraph, the City shall have the power:

(a) To acquire lands and property and rights-of-way necessary and convenient for use for airport purposes;

(b) To acquire by condemnation, purchase, or gift any property or any interest therein;

(c) To improve any lands acquired by the construction thereon of runways, hangars, warehouses, buildings for the repair or manufacture of airplanes or airplane parts, or other buildings or improvements necessary or convenient for airport purposes;

(d) To collect fees, rentals or charges to pay all or any part of purchasing, improving, repairing or operating airport facilities; to establish and regulate rentals, rates and charges for all services provided the users of such facilities;

(e) To establish funds for any or all such facilities and place limitations upon the uses of the money therefrom;

(f) To make all necessary rules and regulations regarding the operation and maintenance of airport facilities or properties;

(g) To issue revenue bonds and refunding revenue bonds for the purchase, acquisition, construction, improvement, extension, operation or maintenance of any and all airport facilities so acquired and to evidence such obligation for payment, discharge and retirement of the cost of such facilities, improvements and projects by the issuance of revenue bonds therefor, including refunding revenue bonds, in negotiable or non-negotiable form and payable solely out of the revenue derived from the operation, control or leasing of such airport facilities or properties or any part thereof, in accordance with the procedure established by Section 1222 of this Charter;

(h) To bind, allocate, pledge and authorize payment of all or any part of the gross revenues collected from airport operations or from lands owned or held for airport purposes of every kind and nature for periods of years, for the payment of operation and maintenance costs of such airport facilities and principal and interest on all revenue bonds or refunding revenue bonds issued and outstanding until all such bonds have been fully paid;

(i) To do any and all acts or things necessary or appropriate to carry out the purposes of this section.

The City of Fresno shall have power to acquire (whether by lease, purchase, eminent domain or otherwise), construct, establish, improve, extend, maintain, operate, administer, lease, sublease and sublet any revenue-producing utility, including any and all improvements, buildings, systems, plants, works, facilities or undertakings used or useful in

(i) the obtaining, conserving, treating, and supplying of water for domestic use, irrigation, sanitation, industrial use, fire protection, recreation, or any other public or private uses;

(ii) the collection, treatment or disposal of garbage or other solid waste matter;

(iii) the collection, treatment or disposal of sewage, liquid industrial waste matter, or waste or storm water, including drainage.

Each such utility shall include all parts thereof, whether now in existence or hereafter constructed or acquired, and all improvements and extensions thereof hereafter acquired, and all lands, easements, rights-of-way, water rights, licenses, franchises, equipment, improvements or facilities whatsoever appurtenant or relating thereto, within or without the City of Fresno to promote the welfare of the citizens and inhabitants thereof.

Without limiting the generality of the next preceding paragraph, the City shall have power:

(a) To acquire lands and property and rights-of-way and any rights, licenses or franchises necessary or convenient for use for a revenue-producing utility;

(b) To acquire by condemnation, purchase or gift any property or interest therein;

(c) To improve any lands acquired by any construction necessary or convenient for the purposes of any such utility;

(d) To collect fees, rentals or charges to pay all or any part of purchasing, improving, or operating any such utility; and to establish and regulate rentals, rates and charges for all services provided the users of any such utility;

(e) To establish funds for any such utility and place limitations upon the uses of the money therefrom;

(f) To make all necessary rules and regulations regarding the use, operation and maintenance of any such utility;

(g) To issue revenue bonds and refunding revenue bonds for the purchase, acquisition, construction, improvement, extension, operation or maintenance of any such utility and to evidence such obligation for payment, discharge and retirement of the cost of such facilities, improvements and projects by the issuance of revenue bonds therefor, including refunding revenue bonds, in negotiable or non-negotiable form and payable solely out of the revenue derived from the operation, control or leasing of all or any part of any such utility, in accordance with the procedure established by Section 1222 of this Charter;

(h) To bind, allocate, pledge and authorize payment of all or any part of the gross revenues of any such utility or of any improvement or extension thereof for periods of years, for the payment of operation and maintenance costs of such utility and principal and interest on all revenue bonds or refunding revenue bonds issued and outstanding until all such bonds have been fully paid;

(i) To do any and all acts or things necessary or appropriate to carry out the purposes of this section.

(a) Revenue bonds may be authorized by the Council of the City of Fresno by resolution of five affirmative votes of the Council at a duly assembled meeting. All such revenue bonds so issued shall contain a recital on their face that neither the payment of the principal of or interest thereon constitutes a debt, liability, or obligation of the City of Fresno, except as provided in this section. All such revenue bonds shall be payable either

(1) exclusively from the revenues derived from the operation of off-street vehicular parking facilities and revenues from parking meters, or such specific portions thereof as may be allocated and pledged to the payment of such revenue bonds; or

(2) exclusively from the revenues derived from the operation of airport facilities or properties, or such specific portions thereof as may be allocated and pledged to the payment of such revenue bonds; or

(3) exclusively from the revenues derived from the operation of any revenue-producing utility referred to in Section 1221 of this Charter, or such specific portions thereof as may be allocated and pledged to the payment of such revenue bonds, in accordance with the terms of the resolution under which said revenue bonds are authorized to be issued.

Reference on the face of such revenue bonds to such resolution by its date of adoption shall be sufficient to incorporate all of the provisions thereof into the body of said revenue bonds and their appurtenant coupons. Each taker and subsequent holder of said revenue bonds or coupons, whether such coupons are attached to or detached from said revenue bonds, shall have recourse to all of the provisions of such resolution and shall be bound thereby.

(b) The Council of the City of Fresno shall have power and is hereby authorized:

(1) To fix the aggregate principal amount of all revenue bonds which may from time to time be issued for any purpose authorized by this section; to prescribe the purpose or purposes for which the same may be issued and to provide for the issuance of additional bonds and the security therefor;

(2) To prescribe the form and denomination of the revenue bonds and the terms and conditions upon which the same shall be issued, paid, and retired. Revenue bonds may be issued in one or more series; may bear such date or dates; may mature at such time or times not exceeding forty years from their respective dates (provided that if any authorized issue of revenue bonds is divided into two or more series or divisions, the maximum maturity date of each such series or division shall be calculated from the date on the face of each bond separately, irrespective of the fact that different dates may be prescribed for the bonds of each separate series or division of any authorized issue); may be in the form of serial bonds or sinking fund bonds with serial of term maturities; may bear interest at a rate or rates not exceeding nine percent per annum, payable annually or semi-annually; may be in such denomination or denominations and in such form, either coupon or registered; may carry such registration or conversion privileges; may be executed in such manner may be payable in such medium of payment and at such place or places within or without the State of California; may be subject to such terms of redemption with or without premium; may be subject to call or redemption prior to their fixed maturity date, provided the right to exercise such call is expressly stated on the face of the bonds; all as provided in such resolution or resolutions of said Council; provided further, that all revenue bonds maturing subsequent to five years from their date may be issued as callable bonds, subject to redemption at the option of the City upon such terms as the Council shall determine;

(3) To provide, in and by the resolution or resolutions authorizing the issuance, the terms and conditions upon which all such revenue bonds issued thereunder may be declared or become due and payable in the event of said defaults, if any, as may be specified in said resolution; may also provide for the replacement of mutilated, destroyed, stolen, or lost bonds;

(4) To provide in and by such resolution for the authentication and execution of revenue bonds by manual, lithographed, or mechanically reproduced facsimile signatures of any officers of the Council and also to provide for additional authentication of such revenue bonds by any trustee or fiscal agent appointed by said Council. If any of the officers whose signatures on bonds or coupons cease to be officers before the delivery of said revenue bonds or coupons to the purchasers thereof, their signatures or countersignatures shall nevertheless be valid and of the same force and effect as if such officers had remained in office until the delivery of the revenue bonds and coupons;

(5) To provide by resolution, pending the preparation of the definitive bonds, for the issuance of interim receipts or temporary bonds exchangeable for definitive bonds when such definitive bonds are ready for delivery in such form and with such provisions as may be provided in said resolution, and further to provide that notwithstanding the form or tenor of such interim receipts or temporary bonds that such interim receipts, temporary bonds, and also all revenue bonds shall at all times be, and be treated as, negotiable instruments for all purposes;

(6) To provide that the proceeds of the sale of said revenue bonds shall be applied to the payment of all costs and expenses to be incurred in connection with the issuance of said bonds, including fiscal agents, and legal expenses, working capital and interest, which it is estimated will accrue during the construction period and for not exceeding six months thereafter on money borrowed or which it is estimated will be borrowed through the issuance of such revenue bonds.

(c) Revenue bonds authorized hereby may be sold by the Council from time to time in such manner as the Council may determine and at a price below the par value thereof; provided that the maximum net interest cost on revenue bonds sold below par or face value shall not exceed an average of nine percent per annum, payable annually or semiannually, to the respective maturity dates of said revenue bonds as determined by standard tables of bond values.

(d) The Council shall have authority to provide for the issuance, sale, or exchange of refunding revenue bonds for the purpose of redeeming, retiring, or refunding any revenue bonds issued under this Charter subject to any limitations contained in the resolution providing for the issuance of such revenue bonds. All provisions of this section applicable to the issuance of revenue bonds are hereby made applicable to the issuance of refunding bonds and to the sale or exchange thereof. Refunding revenue bonds may be issued in the principal amount sufficient to provide funds for the payment of all revenue bonds to be refunded thereby and in addition for the payment of all expenses incident to the calling, retiring, or paying of such outstanding revenue bonds in the issuance of such refunding bonds. Such expenses may include any amount necessary to be made available for the payment of interest upon such refunding bonds from the date of sale thereof to the date of payment of the revenue bonds to be refunded and also the premium, if any, necessary to be paid in order to call and retire the outstanding revenue bonds and the interest accruing thereon to the call date.

(e) All revenue bonds issued by the Council shall be secured by a lien upon the gross revenue of the project for the acquisition, construction and completion of which said revenue bonds are to be issued, and

(1) In the case of revenue bonds for off-street vehicular parking facilities, revenues from parking meters, as shall be more fully described in the resolution of the Council authorizing the issuance of said bonds, and said Council shall have power in and by such resolution to pledge and assign as security for such revenue bonds all or any part of the gross revenues of any project for the acquisition or construction of which said revenue bonds are to be issued, including revenues from improvements and extensions thereof thereafter constructed or acquired, as well as the revenues of existing off-street vehicular parking project operated or controlled by said City of Fresno and also any sums allocated by the Council from the operation of parking meters to the revenue bond fund for payment of expenses, principal, and interest of the revenue bonds; or

(2) In the case of revenue bonds for airport facilities, revenues of any existing airport facilities or properties operated or controlled by the City of Fresno and of any improvements and extensions thereof thereafter constructed or acquired as shall be more fully described in the resolution of the Council authorizing the issuance of said bonds, said Council shall have power in and by such resolution to pledge and assign as security for such revenue bonds all or any part of the gross revenues of any project for the acquisition or construction of which said revenue bonds are to be issued, including revenues from improvements and extensions thereof thereafter constructed or acquired, and also any sums allocated by the Council from the gross revenues collected from any existing airport facilities or properties, including revenues from improvements and extensions thereof thereafter constructed or acquired, to the revenue bond fund for payment of expenses, or for the payment or security of the principal of and interest on the revenue bonds; or

(3) In the case of revenue bonds for any other revenue-producing utility, revenues of any existing portion or portions of such utility operated or controlled by the City of Fresno and of any improvements or extensions thereof thereafter constructed or acquired as shall be more fully described in the resolution of the Council authorizing the issuance of said bonds, and said Council shall have power in and by such resolution to pledge and assign as security for such revenue bonds all or any part of the gross revenues of any project for the acquisition or construction of which said revenue bonds are to be issued, including revenues from improvements and extensions thereof constructed or acquired, and also any sums allocated by the Council from the gross revenues collected from any existing portion or portions of such utility, including revenues from improvements and extensions thereof thereafter constructed or acquired, to the revenue bond fund for payment of expenses, or for the payment or security of the principal of and interest on the revenue bonds.

Sums required to meet the payment of interest on and principal of revenue bonds issued under this Charter shall be secured by a first, direct, and exclusive charge and lien upon all revenues described in the resolution authorizing the issuance of such revenue bonds and upon all sinking funds, reserve funds, or redemption funds created for the further security of said revenue bonds and the income therefrom, and all such revenues and funds and the income therefrom shall constitute a trust fund for the security and payment of such revenue bonds and shall not be used for any other purpose as long as such bonds, or any of them, and the interest thereon are outstanding and unpaid, except that in the resolution providing for the issuance of said revenue bonds, there may be apportioned, so long as the interest on and principal of such revenue bonds is paid as the same becomes due and payable, together with all other charges required by such resolution for the protection of or better securing of such revenue bonds, such sums as may be specified in such resolution for the payment of maintenance and operating costs of such projects and of any existing facilities or utility the revenues of which are pledged and assigned as security for such revenue bonds, or for any other lawful purpose of the City of Fresno, but only to the extent specified and described in said resolution.

(f) Any resolution of the Council providing for the issuance of revenue bonds may also, in addition to all other appropriate agreements deemed necessary or advisable by the Council, contain such covenants and agreements as it deems necessary or advisable for the better security of the revenue bonds issued thereunder. The Council is hereby authorized and empowered in and by the terms of any such resolution to covenant and agree with the holders of any of said revenue bonds so long as the same shall be outstanding as follows:

(1) That the proceeds of the sale of said revenue bonds shall be deposited in a fund separate and apart from all other funds of the City of Fresno and shall be applied solely and exclusively to the object and purpose for which said revenue bonds are herein authorized to be issued and that any proceeds remaining unexpended after the object and purpose for which said revenue bonds are authorized to be issued shall have been completed shall be applied to the payment of principal and interest of such revenue bonds and that none of said moneys shall be transferred to any other fund of the City of Fresno or used for any purpose other than as specified in said resolution;

(2) That the City of Fresno shall operate or cause to be operated, all projects and properties acquired from the proceeds of the sale of said revenue bonds continuously so long as said revenue bonds are outstanding in an efficient manner and in good working order and condition, and will make all needful and necessary repairs, improvements, and replacements;

(3) That the Council will establish and maintain reasonable rentals, rates, tolls, and/or charges for all properties maintained, owned, operated, leased, or controlled by it (including parking meters in the case of off-street parking projects), or acquired from the proceeds of the sale of revenue bonds and that such rentals, rates, tolls, and/or charges shall at all times be adequate to yield annual revenue equal to all redemption payments and interest charges on said revenue bonds as the same fall due, together with such additional sums as may be required for any sinking fund, reserve fund, or any other special fund provided for the security of revenue bonds or for any maintenance and operation, depreciation, reserve fund, or other charges in connection with the operation of any properties of the City of Fresno, and further that such rentals, rates, tolls, and/or charges shall not be reduced below an amount sufficient to provide funds to meet all obligations set forth in the resolution authorizing the issuance of such revenue bonds. No person shall be permitted to use or operate any of the facilities or properties of the City of Fresno or to make use thereof, except upon payment of the regularly established charge therefor, except only, as may be provided in the resolution authorizing the issuance of such revenue bonds, in the case of firemen, policemen, and other essential public employees, to be specifically set forth in such resolution. All such rentals, rates, tolls, and/or charges shall be paid only in such coin or currency as on the date of payment is legal payment for public or private debts, or in scrip or tokens issued only upon payment of the face value of such coin or currency. Any agreement contained in said resolution with respect to such rentals, rates, tolls, and/or charges shall be binding upon the City of Fresno and upon its officers, departments, and boards thereof;

(4) That accurate books and records of account showing all revenues received from the operation of all properties by the City of Fresno, and all expenditures thereof, will be kept and provided, and that all books and records of the City of Fresno pertaining to the operation of such off-street vehicular parking places or airport facilities or other revenue-producing utility shall be open at all times during business hours to the inspection of the holders of one or more of the revenue bonds, or of any percentage of such holders or their duly authorized representatives as may be provided in such resolution. That annual or other periodic statements of the condition of all such off-street vehicular parking properties or airport facilities or other revenue-producing utility operated by the City of Fresno will be furnished to the holders of such revenue bonds and that summaries thereof will be published at least annually in the official newspaper of the City of Fresno. The resolution providing for the issuance of revenue bonds may also provide that the books and records of the City of Fresno pertaining to the operation of such off-street vehicular parking places or airport facilities or other revenue-producing utility shall be audited by independent public accountants in such manner and under such circumstances as may be set forth in the resolution;

(5) That no part of the said properties in the City of Fresno shall be sold, leased, mortgaged, or otherwise encumbered or disposed of except upon such terms and conditions as may be defined in said resolution and that if any part of the properties of the City of Fresno shall be taken by eminent domain or other proceedings authorized by law, the proceeds therefrom shall be applied to the replacement of properties of like kind and character or to the payment and retirement of revenue bonds, or as may be set forth in said resolution;

(6) That said resolution may contain such other terms and conditions with respect to the payment of the bonds, the operation of said off-street vehicular parking facilities or airport facilities or other revenue-producing utility and properties by the City of Fresno, payment of claims, or the obtaining of insurance of any kind or character on any of said properties of the City of Fresno and the payment of the premium therefor, events of default and the rights of the holders of revenue bonds in the event thereof, the procedure under which the terms and conditions of the revenue bonds and of the resolution authorizing the issuance thereof may be amended at a meeting of the bondholders or by written assent of bondholders without a meeting and the manner in which such consent of the bondholders may be given, either with or without a meeting, and the effect of such an amendment or modification upon the rights of all holders of the bonds and coupons and also all other agreements deemed necessary or desirable in order to secure said revenue bonds or to make the same more marketable.

(g) The validity of any revenue bonds issued by the Council of the City of Fresno shall not be dependent on or affected in any way by any proceedings taken by the City of Fresno for acquisition, construction, or completion of any properties or projects for which said bonds are to be issued or any contracts made in connection with the acquisition, construction, or operation of any such properties. Said revenue bonds shall be incontestable and shall by their issuance and delivery conclusively establish the due performance of all conditions precedent to their issue.

(h) The City of Fresno may, at any time after the adoption of a resolution providing for the issuance of any revenue bonds under this Charter and prior to the actual delivery of such bonds to any purchaser thereof, bring an action in the Superior Court of Fresno County to determine the validity of any such bonds. Such action shall be in the nature of a proceeding in rem. The jurisdiction of all parties interested may be had by publication of summons for at least once a week for three weeks in some newspaper of general circulation published in Fresno County, such newspaper to be designated by the Judge of the Court having jurisdiction of the proceedings. The jurisdiction shall be completed within ten days after publication of the summons in the manner herein provided. Anyone interested may at any time before the expiration of said ten days appear and by proper proceedings contest the validity of such revenue bonds. Such action shall be speedily tried and judgment rendered declaring the bonds either valid or invalid. Either party shall have the right to appeal to the Supreme Court of the State of California at any time within thirty days after the entry of such judgment and such appeal shall be heard and determined by said Court within three months from the time of submission thereof to said Court.

(i) The provisions of this section constitute full and complete authority for the issuance of revenue bonds as herein provided by the Council of the City of Fresno and no other procedure or proceedings, consents, approvals, orders, or permission from any municipal officer or a board of the City of Fresno shall be required for the acquisition, construction, or completion of any properties or the issuance of any revenue bonds except as specifically provided in Section 1219, 1220, or 1221 of this Charter. The powers and authorities conferred by said sections of this Charter are in addition to and supplemental to all other powers and authorities conferred upon the City of Fresno. The method provided in said sections for the acquisition of properties and the issuance of revenue bonds shall be deemed an additional method for acquiring such properties and providing funds therefor, provided that the City of Fresno may, in its discretion, acquire any properties of a like or similar nature and issue general obligation bonds of the City of Fresno therefor, but subject to the conditions that the City of Fresno shall not, while any revenue bonds are issued or outstanding, acquire, construct, or complete any competing projects or properties similar to those maintained or operated through the issuance of revenue bonds by the Council. Revenue bonds issued under this Charter shall not be taken into consideration in determining the bonded indebtedness which the City of Fresno is authorized to incur pursuant to Section 1213 of this Charter.

(Amendment ratified 1971 General Municipal Election; approved, Assembly Concurrent Resolution No. 130, filed with Secretary of State on June 18, 1971, Res. Ch. 77, Stat. 1971.)

Notwithstanding anything contained in the preceding Sections 1218 to 1222, the Council may issue revenue bonds for any lawful purpose, in such manner and upon such terms and conditions as it may fix and establish by the provisions of a procedural ordinance. Such bonds shall be payable only out of revenues specified by the Council and shall not constitute an indebtedness of the City. This section shall be deemed to provide a complete, additional and alternative method for doing the things authorized by such preceding sections, and shall be regarded as supplemental and additional to the powers conferred thereby or by other laws.

(Amendment ratified 1981 Municipal Election, March 3, 1981.)

The city shall not tax any person for using any utility service, including but not limited to, intrastate telephone communication service, gas delivered through mains or pipes, and electrical energy. This prohibition shall take effect for the tax year beginning on July 1, following the passage of this amendment and shall also apply to each fiscal year thereafter.

(Amendment ratified 1981 Municipal Election, March 3, 1981.)

The City shall not, directly or indirectly (1) install or require the installation of water meters at single-family housing units; (2) bill or otherwise levy charges for single-family residential water consumption at a metered rate; or (3) charge the property owner or tenant for the cost of installing, maintaining, or removing residential water meters from single-family residents.

(Amendment ratified 1992 General Election, November 3, 1992.)