Fullerton Municipal Code Ch. 2.48 Funds

Separate funds are hereby designated to identify, separate and control the receipt and disbursement of city money, and shall be for the purpose, and use, as now or hereafter set forth in this chapter.

(Ord. 1669, passed - -1970)

For the purpose of this chapter, FUND means a sum of money or other resources set aside for the purpose of identifying certain income or expenditures or to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions or limitations, as hereinafter provided, and constituting an independent fiscal and accounting entity.

(Ord. 1669, passed - -1970)

(A) No fund shall be established or exist unless authorized by an ordinance or resolution of the Council.

(B) No fund shall be used for any purposes other than as designated by the ordinance or resolution by which it was established or by an amendment thereto; provided, however, that surplus moneys of any fund may be transferred to any other fund when consistent with state law and this chapter.

(C) No money may be transferred between funds except as authorized by an order of the Council entered in its minutes, or by its ordinance or resolution.

(D) All money or other resource received by the city shall be recorded in the fund most descriptive of the source thereof.

(E) For the purpose of administering funds established by the Council, subordinate accounts may be used to show receipts and expenditures therein.

(Ord. 1669, passed - -1970)

The General Fund shall be used to account for all city transactions as authorized in Cal. Gov’t Code § 43400.

(Ord. 1669, passed - -1970)

The Library Fund shall be used to account for the receipt and expenditures of federal, state and county library grants, library fines and fees and contributions and gifts. Expenditures therefrom shall be used exclusively for library purposes.

(Ord. 1669, passed - -1970; Ord. 2785, passed - -1991)

The Traffic Safety Fund shall be used to account for the receipt and expenditure of amounts received from fines and forfeitures from Cal. Vehicle Code misdemeanors as authorized by Cal. Vehicle Code § 42200.

(Ord. 1669, passed - -1970)

The Special Gas Tax Street Improvement Fund shall be used to account for the receipt and expenditure of gasoline tax apportionments, as authorized in Cal. Streets and Highways Code, Division 1, Chapter 1, Article 5 (commencing with § 181). Expenditures therefrom shall be used exclusively for street purposes.

(Ord. 1669, passed - -1970)

The Central Stores Revolving Fund shall be used to account for all transactions of the city’s central warehouse, including the acquisition and issuance of supplies and the maintenance and operation of the central warehouse.

(Ord. 1669, passed - -1970)

The Water Fund shall be used to account for the receipt and expenditure of the gross revenues received or derived from the waterworks system of the city. The Water Fund shall be used exclusively to finance, to the extent that moneys are available, the following in the order set forth:

(A) The necessary and reasonable maintenance and operation costs of the waterworks system;

(B) The principal of, and interest on, bonds issued for waterworks purposes;

(C) Any payments specifically authorized or required by the City Council in any ordinance or resolution providing for the issuance of the bonds; and

(D) Amounts, as the City Council may direct, for the payment of the costs and extensions and improvements of, or additions to, the waterworks system or for any other waterworks purpose.

(Ord. 1669, passed - -1970)

The Airport Fund may be used to account for the receipts and expenditures of amounts pertaining to the maintenance, operation and all capital outlays of the Municipal Airport, except for the airport transactions required in the Special Aviation Fund.

(Ord. 1669, passed - -1970)

The Special Aviation Fund shall be used to account for airport transactions from gas tax apportionments authorized in Cal. Public Utilities Code Division 9, Part 1, Chapter 4, Article 4, and shall be expended exclusively for the purposes so authorized.

(Ord. 1669, passed - -1970)

(A) The Plummer Parking Facility Fund shall be used to account for the transactions of the Plummer Parking Facility of the city.

(B) The Fund will account for all revenues from the Plummer parking structure and all related expenditures.

(Ord. 1669, passed - -1970; Ord. 2342, passed - -1981; Ord. 2709, passed - -1990)

The Debt Service Funds shall be used to account for the payment of interest and principal on all outstanding bond issues for the city and the City Redevelopment Agency.

(Ord. 1669, passed - -1970; Ord. 2548, passed - -1985; Ord. 2709, passed - -1990)

The Paramedic Service Fund shall be used to account for the revenues and expenditures related to the paramedic subscription program and billings for services provided to nonsubscribers.

(Ord. 2709, passed - -1990)

The Maintenance Service Fund shall be used to

account for those maintenance services as may be provided by the Maintenance and Operations Department to various departments or activities of the city.

(Ord. 2145, passed - -1977)

The Self-Insurance Administration Fund shall be used to account for city activities relating to self-insurance, including, but not limited to, payment of claims, legal fees, claims administration costs and insurance premiums. A loss reserve account shall be established in the fund and maintained in an amount based on estimated future costs of claims filed or incurred against the city as recommended by the Risk Manager and approved by the Director of Administrative Services. Said loss reserve account shall be used solely for the payment of claims incurred.

(Ord. 2146, passed - -1977; Ord. 2371, passed - -1981; Ord. 2709, passed - -1990)

The Capital Projects Fund shall be used to account for capital projects, major equipment purchases and related transactions pursuant to procedures as prescribed by this code.

(Ord. 2165, passed - -1977)

The Park Dwelling Fee Fund shall be used to account for the receipt and expenditure of the fees collected for parks pursuant to Chapter 21.12 of this code.

(Ord. 2146, passed - -1977; Ord. 2371, passed - -1981; Ord. 2709, passed - -1990)

The Brea Dam Recreational Area Fund shall be used to account for the revenues and expenditures of the various recreational activities that are revenue producing at the Brea Dam Recreational Area.

(Ord. 2243, passed - -1978)

(A) The Bicycle and Pedestrian Facilities Fund shall be used to account for the receipt of grant revenues under Cal. Public Utilities Code Division 10, Part 11, Chapter 4, Article 3, of the Transportation Development Act, pursuant to Cal. Public Utilities Code § 99234.

(B) Expenditures therefrom shall be used exclusively for facilities provided for the exclusive use of pedestrians and bicyclists.

(Ord. 2243, passed - -1978; Ord. 2785, passed - -1991)

The Grant Administration Fund shall be used to account for the receipt and expenditure of various grant funds received from agencies other than the city.

(Ord. 2371, passed - -1981)

The Refuse Collection Fund shall be used to account for the receipt and expenditure of the fees received for the provision of refuse collection services.

(Ord. 2371, passed - -1981)

The Equipment Replacement Fund shall be an internal service fund used to replace city equipment through interfund charges to using city departments.

(Ord. 2371, passed - -1981; Ord. 2548, passed - -1985)

The Data Processing Fund shall be an internal service fund used to collect costs for data processing services for interfund allocation to using city depart- ments and account for the revenue received therefrom.

(Ord. 2371, passed - -1981)

A Sewer and Drainage Capital Outlay Fund is established for the purpose of constructing and improving sewer and storm drain facilities in conformance with the city’s General Plan.

(Ord. 2116, passed - -1976; Ord. 2227, passed - -1978; Ord. 2371, passed - -1981; Ord. 2709, passed - -1990)

Trust funds may be established in two separate categories: nonexpendable trust funds where the principal must be preserved intact, and expendable trust funds whose principal and income may be expended in the course of their designated operations. Trust funds are for the purpose of safeguarding funds which must be returned intact to depositors or spent for specific city purposes. The following trust funds are established:

(A) Deposits Trust Fund. To account for a variety of deposits made with the city to guarantee city performance or some other purpose where the funds are normally returned to the depositor intact except to correct unsatisfactory performance of specified projects. This fund replaces the former Trust and Agency Fund established by resolution; and

(B) Contributions Trust Fund.

(1) To account for contributions from private individuals or nongovernment organizations to be used for specific city programs or projects; and

(2) Contributions for specific projects or programs will be accounted for in subaccounts under departmental categories. Interest will be allocated whenever an excess of $5,000 is held in specific subaccount for an entire fiscal quarter.

(Ord. 2548, passed - -1985)

A Variable Rate Debt Service Sinking Fund is established to accumulate revenues from the city and the City Redevelopment Agency to retire the debt and pay the interest on the 1987 Variable Rate Bond Issue through the Local Government Finance Authority, with interest to be allocated based upon the average monthly cash balance in said Fund.

(Ord. 2624, passed - -1987)

(A) To accumulate revenues from state and federal agencies as a result of criminal investigations to augment existing law enforcement activities, with interest to be allocated based upon the average monthly cash balance in said Fund.

(B) Any interest allocated to this Fund will also be used strictly for law enforcement purposes.

(Ord. 2658, passed - -1989)

(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

CITY. The City of Fullerton.

FEE ADMINISTRATOR. The Finance Director of the city.

MOBILE SOURCE AIR POLLUTION REDUCTION PROGRAMS. Any program or project implemented by the city to reduce air pollution from motor vehicles pursuant to the State Clean Air Act of 1988 (AB 2595, Chapter 1568, Statutes of 1988) or the plan proposed pursuant to Cal. Health and Safety Code Division 26, Part 3, Chapter 5.5, Article 5 (commencing with § 40460).

(B) Administration of vehicle registration fee.

(1) Receipt of fee. Vehicle registration fees due pursuant to this section disbursed by the South Coast Air Quality Management District and remitted to the city shall be accepted by the Fee Administrator.

(2) Transfer of funds. Upon receipt of vehicle registration fees, the Fee Administrator shall be responsible for placement of such funds into a separate account as hereinafter specified.

(3) Establishment of Air Quality Improvement Trust Fund. The Fee Administrator shall establish a separate interest-bearing trust fund account in a financial institution authorized to receive deposits of city funds. Interest earned by the account shall be credited to that account and shall be used to finance mobile source air pollution reduction programs.

(4) Audits. The city consents to audits, at least once every two years, of all programs and projects funded by vehicle registration fee revenues provided under Cal. Health and Safety Code § 44223. The audit shall be conducted by an independent auditor.

(Ord. 2755, passed - -1991)

A Sewer Surcharge Enterprise Fund shall be created; and revenues placed in this Fund shall be used solely for the maintenance, operation and capital improvement and repair to the city’s sewer system, for the creation and implementation of a fats, oils and grease control program established by city ordinance and other sewer-related expenses.

(Ord. 3052, passed - -2004)

(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

GENERAL FUND REVENUE BASELINE (BASELINE). The externally audited sales tax and secured property tax revenue as reported in the Comprehensive Annual Financial Report (CAFR) for fiscal year ending June 30, 2019. The Baseline may be adjusted by majority action of the City Council due to change in disbursement of taxes resulting from state or court action and, beginning with the fiscal year ended June 30, 2029 CAFR, and every ten years thereafter.

(a) The sales tax baseline shall be adjusted by the annual Consumer Price Index for All Urban Consumers, Los Angeles-Long Beach- Anaheim, CA Metropolitan Statistical Area (CPI), for the preceding fiscal year.

(b) The secured property tax baseline shall be adjusted by 2.5% annually.

INFRASTRUCTURE. Long-lived capital assets that are generally stationary in nature and can be preserved for a significant number of years. They include, but are not limited to, alleys, arterials, streets, highways, curbs and gutters, sidewalks, bridges, street trees, landscaped medians, traffic signals, streetlights, retaining walls along streets and arterials, public facilities and improvements within the public rights-of-way or on public property.

(B) Establishment of the Fund. There is hereby established an “Infrastructure Fund,” which shall be a fund within the city’s General Fund. The Infrastructure Fund shall be used to fund maintenance, repair and replacement of public infrastructure, as defined, which is not eligible for funding from enterprise or utility funds, with an emphasis on funding of local streets, arterials, alleys and sidewalks.

(C) Automatic transfers into and from the Infrastructure Revenue Fund.

(1) (a) No less than 50% of annual secured property tax revenue above the annual secured property tax baseline shall be transferred into the Infrastructure Fund commencing with fiscal year beginning July 1, 2021.

(b) No less than 50% of annual sales tax revenue above the annual sales tax baseline shall be transferred into the Infrastructure Fund commencing with fiscal year beginning July 1, 2021.

(2) Where any of the designated annual tax revenues required to be transferred to the Infrastructure Fund are below the General Fund Revenue Baseline, no transfer will be made to the Infrastructure Fund. Conversely, no transfer out of the Infrastructure Fund to the General Fund will be made.

(3) Nothing in this section shall prohibit the City Council, as part of the budgeting process, from contributing additional revenues to the Infrastructure Fund.

(4) Transfers from the Infrastructure Fund shall only be used for the maintenance, rehabilitation, replacement and construction of infrastructure as defined.

(D) Suspension of automatic transfer. The automatic transfer described in division (C) above shall be temporarily suspended by City Council resolution on a four-fifths vote of the membership when revenue projections underlying the adopted budget reflect a decline in actual revenues, as compared to the revenue forecasts underlying the adopted budget for the fiscal year immediately prior. Automatic transfers shall remain suspended until positive revenue growth is reflected in the revenue forecasts underlying the adopted budget.

(E) True-up of revenue transfer. At the end of each fiscal year, the secured property tax and the sales tax revenue amounts shall be reconciled to make true the correct amount(s) transferred into the Infrastructure Fund. Corrected amounts shall be made prior to the close of the fiscal year or as practicable.

(F) Annual report. An annual report of transfers and expenditures shall be provided to the Infrastructure and Natural Resources Advisory Committee within 90 days of the issuance of the CAFR for the applicable fiscal year.

(Ord. 3284, passed - -2020)