La Palma Municipal Code Art. I In General

(a) Special gas tax street improvement fund. There is created in the City treasury a special fund to be known as the "Special Gas Tax Street Improvement Fund." All moneys received by the City from the State under the provisions of Sections 2106 through 2116 of the Streets and Highways Code (Streets and Highways Code §§ 2106—2116) for the acquisition of real property or interest therein, or the construction, maintenance or improvement of streets or highways other than State highways, shall be paid into such fund. All moneys in such form shall be expended exclusively for the purposes authorized by and subject to all of the provisions of Sections 2106 through 2116 of the Streets and Highways Code (Streets and Highways Code §§ 2106—2116).

(b) Services operated as utilities. It is the policy of the City Council that the following services be operated as utilities, and that they shall be operated on a business-like basis without tax subsidy and with adequate reserves to meet emergencies and to replace parts of the system as they wear out or in reasonable anticipation of their failure:

(1) Water.

(2) Sewer.

(c) Utility funds. The following utility funds are hereby created:

(1) Water fund.

(2) Water capital reserve fund.

(3) Sewer fund.

(4) Sewer capital reserve fund.

Moneys in each such funds may be commingled with other moneys and other funds for investment interest-earnings purposes, but each fund shall be credited with its pro rata share of all interest earnings.

(d) Moneys credited to water and sewer funds. The water and sewer funds, as enumerated in subsection (c)(1) and (c)(3) shall be credited monthly with the calculated amount of moneys generated from the revenues of the utility which represent a fixed asset charge. Such amounts shall be estimated annually as part of the annual budget process, contained in and enumerated by the budget, and appropriated from such anticipated estimated revenues. Such moneys as are accumulated in each replacement fund shall be expended only under the following circumstances:

(1) By appropriation in the annual budget.

(2) By vote of four-fifths of the members of the City Council if at a time other than at the time of budget adoption.

(3) For specifically enumerated projects only.

(e) Reserve for replacement value of utility fixed assets.

(1) The combined total of the two water funds as enumerated in subsection (c)(1) and (c)(2) shall retain an amount equal to five percent of the replacement value of the fixed assets of the water utility as a reserve within the funds.

(2) The combined total of the two sewer funds as enumerated in subsection (c)(3) and (c)(4) shall retain an amount equal to ten percent of the replacement value of the fixed assets of the sewer utility as a reserve within the funds.

(3) The reserve amounts must be fully funded before moneys may be expended for projects, pursuant to subsection (d), except that moneys may be expended from either capital reserve fund account on four-fifths' vote of the City Council. Such appropriation action by the City Council shall enumerate the nature of the emergency, make the emergency appropriation, and appropriate moneys for publicity of said emergency and the situation surrounding such emergency.

(f) Annual updating of utility rates. The City Manager shall annually cause an updating of the fixed-asset values for each City utility, calculate the amount necessary to provide adequate cash flow to the funds enumerated in subsection (c) from rates, and make a written report and rate recommendation to the City Council. Said rates shall recover all costs reasonably borne in providing the utility service, including:

(1) All operating costs, including maintenance, billing, data processing and bad-debt costs.

(2) Departmental overhead.

(3) General City overhead.

(4) The computed fixed-asset charge.

(5) Necessary minor capital outlay for equipment necessary to operate the utility.

(6) All indirect costs of the utility, such as building occupancy charges, communications, insurance and the like, on a pro rata basis.

(Code 1975, § 8-1; Ord. No. 19, § 1; Ord. No. 82-26, § 1; Ord. No. 86-11, § 1; Ord. No. 90-04, § 1; Ord. No. 2014-01, § 1, 6-17-14; Ord. No. 2016-04, § 1, 2-2-2016)

(a) Whenever the term "lease-back" is used in this section, it shall mean that type of financing commonly involving the use of a nonprofit private corporation with power to issue revenue bonds and supported by a lease or financing agreement with the City. The term shall also include leases giving the City an option or options to purchase or making provision for automatic vesting of title within the City after a certain period of time has elapsed whereby the City is committed to make payments for periods in excess of one year and for total amounts in excess of the income and revenue of the City for the year in which the commitment is made.

(b) The City of La Palma hereby adopts as its policy that municipal improvements shall not be acquired through the use of the lease-back device.

(Code 1975, § 8-2; Ord. No. 172, §§ 1, 2)

(a) All the duties and functions of municipal tax assessment and collection and the treasury functions connected therewith, under Sections 51500 to 51521 of the State Government Code (Government Code §§ 51500—51521), are hereby transferred to the County Treasurer, Tax Collector and Assessor and Auditor.

(b) The assessment and collection of taxes for the City shall be done in the manner prescribed by State law and in the same manner and at the same time as are the taxes of the County. Payment of the collected taxes of the City to the City Treasurer shall be made by the County as soon as possible after receipt, or by agreement with the County.

(c) Compensation to the County for such services shall be fixed by an agreement between the City and the County and shall be the amount set forth in the State Government Code.

(Code 1975, § 8-3; Ord. No. 6, §§ 1—3)

State Law reference— Transfer of City tax functions generally, Government Code § 51500 et seq.

(a) There shall be charged and collected a service charge for checks made in payment of all City fees, charges and rates which are returned unpaid to the City by the bank against which the check is written.

(b) This charge shall be established by resolution.

(c) The charge shall be established in an amount sufficient to recover all actual costs incurred by the City to process and collect on such checks.

(Code 1975, § 8-3.1; Ord. No. 82-28, § 1)

State Law reference— Returned check charges generally, Government Code § 6157.

(a) All fees and charges levied for City services shall be due and payable upon presentation or as required by the appropriate section of this Code.

(b) All fees and charges for such services shall constitute a valid and subsisting debt in favor of the City and against the person to whom such services are rendered. If an amount remains unpaid after reasonable and practical attempts have been made by the City to obtain payment, a civil action may be filed with the court for the amount due and payable, together with any penalties, any related charges and fees accrued due to nonpayment, and all fees and charges required to file and pursue such civil action.

(c) Fees and charges shall be levied for recovering City costs for notification and collection of delinquent accounts and shall be established by resolution of the City Council. Such fees and charges are a part of the fees and charges established for the services rendered and shall be collected as such.

(d) No injunction, writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the City or an officer thereof to prevent or enjoin the collection of taxes or business license fee, or any such tax or fee that the City seeks to collect, pursuant to article V or article VIII of this chapter, or article I of chapter 22. Payment of all taxes, interest, and penalties shall be required as a condition precedent to seeking judicial review of any tax or business license fee liability under said articles.

(Code 1975, § 8-3.2; Ord. No. 83-2, § 1)