Article VI — FUNDS OF THE CITY 1

SECTION:

2-31: Reserve And Designated Funds

2-31.1: "Budget Stabilization" Reserve Fund

2-31.2: "Catastrophic/Emergency" Reserve Fund

2-31.3: "Facility Deferred Maintenance/Equipment Replacement" Designated Fund

2-31.4: "Capital Construction/Improvement" Designated Fund

2-31.5: "Infrastructure Deferred Maintenance/Improvement" Designated Fund

2-31.6: "Special Purposes" Reserve Fund

2-31.7: "Formal City Council Action" For Appropriations

2-32: Special Gas Tax Street Improvement Fund; Created

2-33: Special Gas Tax Street Improvement Fund; Created; Monies Paid Into Fund

2-34: Special Gas Tax Street Improvement Fund; Created; Expenditure Of Monies In Fund

Notes

1 1. See charter sections 46, 47, 48 and 53.

2-31: RESERVE AND DESIGNATED FUNDS:

2-31.1: "BUDGET STABILIZATION" RESERVE FUND:

It shall be the policy of the city of Porterville to establish reserve funds that shall be used for the purpose to mitigate, should it occur, onetime annual budget revenue shortfalls (actual revenues less than projected revenues) due to changes in the economic environment and/or actions by the county/state/federal government that have a material effect on the city's revenues; and/or expenditures that will result in future efficiencies and/or budgetary savings. The "budget stabilization" reserve fund shall be maintained at a minimum of fifteen percent (15%) of general fund annual budgeted operating expenditures (excluding onetime expenditures), and may only be appropriated by formal city council action with not less than four-fifths (4/5) of those voting in agreement. If the city council takes action due to making a finding(s) of material effects as stated above, it shall include findings of material effects as further specified in section 2-31.7 of this article. Should the fund's balance fall below ten percent (10%) of annual budgeted operating expenditures, then a plan will be established to replenish the fund to the required level within three (3) fiscal years. An initial balance shall be appropriated from the current unallocated reserve as of the date of adoption hereof in an amount equal to fifteen percent (15%) of the budgeted general fund expenditures for fiscal 2011-2012. (Ord. 1787, 4-3-2012)

2-31.2: "CATASTROPHIC/EMERGENCY" RESERVE FUND:

It shall be the policy of the city of Porterville to establish reserve funds that shall be used for the purpose to mitigate costs associated with unforeseen emergencies, including natural disasters or catastrophic events. Should unforeseen and unavoidable events occur that require the expenditure of city resources beyond those provided for in the annual budget, formal city council action with not less than four-fifths (4/5) of those voting in agreement, is required of a budget amendment confirming the nature of the emergency and authorizing the appropriation of reserve funds. The "catastrophic/emergency" reserve fund shall be maintained at a minimum of ten percent (10%) of general fund annual budgeted operating expenditures (less onetime expenditures). Should the fund's balance fall below ten percent (10%) of annual budgeted operating expenditures, then a plan will be established to replenish the fund to the required level within five (5) fiscal years. An initial balance shall be appropriated from the current unallocated reserve as of the date of adoption hereof in an amount equal to ten percent (10%) of the budgeted general fund expenditures for fiscal 2011-2012. (Ord. 1787, 4-3-2012)

2-31.3: "FACILITY DEFERRED MAINTENANCE/EQUIPMENT REPLACEMENT" DESIGNATED FUND:

It shall be the policy of the city of Porterville to establish designated funds that shall be used for the exclusive purpose of providing funds to support onetime city facility deferred maintenance and/or equipment replacement costs (excluding vehicles), such as, but not limited to, HVAC units, roofing, parking lot overlays, painting, plumbing, electrical, and doors/windows. The city council, by means of a resolution, may add, modify, or delete specific deferred maintenance or equipment replacement categories. The "facility deferred maintenance/equipment replacement" designated fund shall have no minimum balance, but shall accumulate funds until appropriated by formal city council action. The fund shall receive an allocation of one-third (1/3) of audited general fund unassigned fund balance (actual revenues more than actual expenditures). An initial balance shall be appropriated from the current unallocated reserve as of the date of adoption hereof in an amount equal to one-third (1/3) of the current unallocated reserve balance as of the date of adoption hereof after the funding of the budget stabilization reserve fund, the catastrophic/emergency reserve fund, and the initial funding of the special purpose reserve fund, have been deducted from the initial unallocated reserve fund balance. (Ord. 1787, 4-3-2012)

2-31.4: "CAPITAL CONSTRUCTION/IMPROVEMENT" DESIGNATED FUND:

It shall be the policy of the city of Porterville to establish designated funds that shall be used for the exclusive purpose of providing funds to support new capital construction and/or improvement projects as identified in the city's ten (10) year capital improvement plan. The "capital construction/improvement" designated fund shall have no minimum balance, but shall accumulate funds until appropriated by formal city council action. The fund shall receive an allocation of one-third (1/3) of audited general fund unassigned fund balance (actual revenues more than actual expenditures). An initial balance shall be appropriated from the current unallocated reserve as of the date of adoption hereof in an amount equal to one-third (1/3) of the current unallocated reserve balance as of the date of adoption hereof after the funding of the budget stabilization reserve fund, the catastrophic/emergency reserve fund, and the initial funding of the special purpose reserve fund, have been deducted from the initial unallocated reserve fund balance. (Ord. 1787, 4-3-2012)

2-31.5: "INFRASTRUCTURE DEFERRED MAINTENANCE/IMPROVEMENT" DESIGNATED FUND:

It shall be the policy of the city of Porterville to establish designated funds that shall be used for the exclusive purpose of providing funds to support onetime city infrastructure deferred maintenance and/or improvement costs, such as, but not limited to, streets/alleys, bridges, sewer, water, storm drain, and curb/gutter/sidewalk. The city council, by means of a resolution, may add, modify, or delete specific infrastructure deferred maintenance/improvement categories. The "infrastructure deferred maintenance/improvement" designated fund shall have no minimum balance, but shall accumulate funds until appropriated by formal city council action. The fund shall receive an allocation of one- third (1/3) of audited general fund unassigned fund balance (actual revenues more than actual expenditures). An initial balance shall be appropriated from the current unallocated reserve as of the date of adoption hereof in an amount equal to one-third (1/3) of the current unallocated reserve balance as of the date of adoption hereof after the funding of the budget stabilization reserve fund, the catastrophic/emergency reserve fund, and the initial funding of the special purpose reserve fund, have been deducted from the initial unallocated reserve fund balance. (Ord. 1787, 4-3-2012)

2-31.6: "SPECIAL PURPOSES" RESERVE FUND:

It shall be the policy of the city of Porterville to establish reserve funds as a line item of the annual city council budget that shall be used for the purpose of providing funds to support onetime city special events, projects, and/or purposes that benefit the community. The "special purposes" reserve fund shall be maintained at a minimum of one hundred thousand dollars ($100,000.00), and may only be appropriated by formal city council action with four-fifths (4/5) of those voting in agreement. Should the fund's balance fall below one hundred thousand dollars ($100,000.00) in a fiscal year, then the general fund will replenish the fund to the minimum required level at the beginning of the following fiscal year. An initial balance in the amount of one hundred thousand dollars ($100,000.00) shall be appropriated from the current unallocated reserve as of the date of adoption hereof. (Ord. 1787, 4-3-2012)

2-31.7: "FORMAL CITY COUNCIL ACTION" FOR APPROPRIATIONS:

For the purposes of sections 2-31.1 through 2-31.6 of this article, formal city council action shall require adoption of a resolution. Said resolution shall contain the basis for a finding (or findings) of materiality if required by any provision in this article. Additionally, said resolution shall include finding(s) that the appropriation is within the intent and purpose of the designated and reserve funds including, where appropriate, one or more findings that the purpose of the appropriation is within the defined purpose of the designated and reserve funds whether or not explicitly stated in this article. (Ord. 1787, 4-3-2012)

2-32: SPECIAL GAS TAX STREET IMPROVEMENT FUND; CREATED:

To comply with the provisions of sections 2100 through 2127 of the Streets And Highways Code of the state with particular reference to section 2113 thereof, there is hereby created in the city treasury a special fund to be known as the "special gas tax street improvement fund". (Ord. 1537 § B9, 8-6-1996)

2-33: SPECIAL GAS TAX STREET IMPROVEMENT FUND; CREATED; MONIES PAID INTO FUND:

All monies received by the city from the state under the provisions of sections 2100 through 2127 of the Streets And Highways Code for the acquisition of real property or interests therein for, or the construction, maintenance or improvement of streets or highways other than state highways shall be paid into the special gas tax street improvement fund. (Ord. 1537 § B10, 8-6-1996)

2-34: SPECIAL GAS TAX STREET IMPROVEMENT FUND; CREATED; EXPENDITURE OF MONIES IN FUND:

All monies in the special gas tax street improvement fund shall be expended exclusively for the purposes authorized by, and subject to all of the provisions of sections 2100 through 2127 of the Streets And Highways Code of the state. (Ord. 1537 § B11, 8-6-1996)