Chapter 3.24 — FUNDS

Sections:

• 3.24.010 Accounting funds generally.
• 3.24.020 General fund.
• 3.24.030 Capital outlay fund.
• 3.24.040 Library fund.
• 3.24.050 Traffic safety fund.
• 3.24.060 Motor vehicle license fee fund.
• 3.24.070 Special gas tax street improvement fund.
• 3.24.080 Trust and agency fund.
• 3.24.090 Water fund.
• 3.24.100 Transfers.
• 3.24.110 Receipt, deposit, and handling of moneys.
• 3.24.120 Disbursement of funds--Generally.
• 3.24.130 Disbursements of funds--Prenumbered warrants--Signatures.
• 3.24.140 Warrants--Types--Issuance.
• 3.24.150 Warrants--Register keeping.
• 3.24.160 Issuance of general warrants.
• 3.24.170 Issuance of payroll warrants.
• 3.24.180 Issuance of warrants prior to audit.
• 3.24.190 Payroll preparation.
• 3.24.200 Petty cash.
• 3.24.210 Accounting system.
• 3.24.220 Annual audit.

For accounting purposes the funds set forth in this chapter are created. (Prior code § 2.12.050 (Ord. 506 § 5 (part), 1961))

The purpose of the general fund shall be to provide for and reflect the general operations of the city. It shall be the

repository of all moneys which are not required by other provisions of this chapter or any law of the state to be placed in any other fund, and the moneys therein shall be used for payment of all expenditures which are not, by other provisions of this chapter or state law, made payable out of any other fund. (Prior code § 2.12.060 (Ord. 506 § 5(a), 1961))

The purpose of the capital outlay fund shall be to provide for the accumulation of funds for capital outlays. It shall be the repository of all moneys raised by tax levy for the designated purpose of financing capital outlays, and also moneys transferred thereto from other funds by order of the city council. Such fund shall be restricted in use to payment of capital outlays but, except for the city's waterworks and system, shall not be used for public utility acquisition or improvement. (Prior code § 2.12.070 (Ord. 506 § 5(b), 1961))

The purpose of the library fund shall be to provide for and reflect the operations of the city library. It shall be the repository of all money raised by tax levy for the designated purpose of maintaining and operating the city library, the proceeds of any gift, devise, or bequest which is not restricted by the donor to some other use, and any amounts transferred thereto from the city's general fund. It shall be restricted in use to the maintenance and operation of the city's public library. (Prior code § 2.12.080 (Ord. 506 § 5(c), 1961))

The purpose of the traffic safety fund shall be to provide for proper accountability of traffic fines. It shall be the repository of all amounts remitted to the city on account of fines and forfeitures imposed upon persons charged with the violation of provisions of the State Vehicle Code. It shall be restricted in use to the purposes for which such funds are authorized to be used under the provisions of Section 42200 of the Vehicle Code of the State of California or any other law of the state governing their use. (Prior code § 2.12.090 (Ord. 506 § 5(d), 1961))

The purpose of the motor vehicle license fee fund shall be to provide for proper accountability of motor vehicle license fees. It shall be the repository of all moneys remitted to the city by the state on account of motor vehicle license fees and ad valorem taxes levied by the state in lieu of local property taxes on motor vehicles. The fund shall be restricted in use to law enforcement, regulation and control of highway traffic, fire protection of highway traffic, and for general purposes of interest to the state at large. (Prior code § 2.12.100 (Ord. 506 § 5(e), 1961))

The purpose of the special gas tax street improvement fund shall be to provide for proper accountability of state gasoline taxes apportioned to the city. It shall be the repository of all moneys remitted to the city by the state or county on account of gasoline taxes levied by the state, and shall be restricted in use as provided by any law of the state. (Prior code § 2.12.110 (Ord. 506 § 5(f), 1961))

The purpose of the trust and agency fund shall be to provide proper accountability for trust and agency deposits. There shall be deposited in the fund all deposits of a trust or agency character. The moneys in the fund shall be restricted in use to the purpose for which the same were received by the city; provided, however, that after the purpose has been fulfilled and the period within which any claim may be asserted for repayment or disbursement of the fund has expired, the same shall be transferred upon order of the city council to the general fund. (Prior code § 2.12.120 (Ord. 506 § 5(g), 1961))

The purpose of the water fund shall be to provide for and reflect the operations of the city's water utilities system. It shall be the repository of moneys derived from the sale of water through the system and for water services, and shall be restricted in use to the maintenance and operation of the city's water utility system; provided, however, that as of the end of each year, the city council may order transferred to the capital outlay fund such amount as it deems necessary to provide an adequate reserve for replacements and any surplus therein may be transferred to the general fund.

(Prior code § 2.12.130 (Ord. 506 § 5(h), 1961))

The city council by order entered upon its minutes may transfer unencumbered and uncommitted moneys from any of the funds designated in this chapter to any other of the funds, except that it may not transfer moneys which have been received into any fund subject to a use restriction imposed by any law or the terms of any gift, bequest, devise, or contract to any other fund out of which expenditures may be made for a purpose which is inconsistent with such use restriction. (Prior code § 2.12.140 (Ord. 506 § 6, 1961))

A. The form of receipt to be issued to each payor of moneys to the city shall show the date of payment, the name of the payor, the amount received, and what the payment is for. The form of receipt shall be as prescribed by the director of finance and shall be appropriate for the nature of the collection. B. All moneys received by any individual for the account of the city shall be promptly delivered by him to the city treasurer, who shall issue to the payor therefor a receipt as provided in subsection A of this section. C. The city treasurer shall cause to be established and maintained in the name of the city accounts in such banks in the vicinity of the city as the city council shall designate. He shall deposit in the appropriate bank account all moneys of the city received by him and such deposits shall be made not less often than once each week. D. The city treasurer and his deputies shall be responsible for carefully safekeeping all moneys of the city. They shall cause all such moneys coming into their possession to be kept in locked cash drawers and to be placed in the city hall safe at all times when the city treasurer's office is not open for business. (Prior code § 2.12.150 (Ord. 506 § 7, 1961))

Funds of the city shall be disbursed only in the manner provided in this chapter. (Prior code § 2.12.170 (Ord. 506 § 9 (part), 1961))

A. All disbursements of city funds, except payments which are authorized to be made from petty cash, shall be made by means of prenumbered warrants drawn upon the city treasury for payment out of a bank account maintained in the name of the city as provided in subsection C of Section 3.24.110. B. All warrants must be manually signed by the city treasurer or his duly authorized alternate and also either manually or automatically signed by the director of finance or, in his absence, by the city administrative officer or by such other persons as the city council shall authorize to execute said warrants. (Ord. 77-9-773 § 1: Ord. 68-12-632 § 1: Ord. 68-5-624 § 1: prior code § 2.12.180 (Ord. 506 § 9(a), 1961))

A. Warrants shall be of two types, as follows:

1. Payroll, which shall be used for payment of compensation and salaries of officers and employees and also payroll taxes and other payments computed in connection with preparation of the payroll; and
2. General, which shall be used for payment of other demands against the city. B. Warrants shall only be issued upon proper supporting documents and when authorized in the manner provided in this chapter, and shall not be made payable to "bearer" or for "cash." Each warrant shall designate the fund out of which the payment is made. (Prior code § 2.12.190 (Ord. 506 § 9(b), 1961))

All warrants shall be entered in a register in numerical sequence. If a warrant is voided or cancelled, a notation of that fact shall be made in the register and the warrant shall be properly defaced. (Prior code § 2.12.200 (Ord. 506 § 9(c), 1961))

General warrants shall not be signed or delivered by the director of finance unless the demands in payments of which they are drawn have been approved for payment by the city council. Such approval may be given by the city council by any of the following methods: A. By designating in its budget, or by minute order subsequent to the adoption of the budget, specific budgeted items which may be paid without prior audit of the city council; provided, that the director of finance must in each instance attach to the demand his certificate that the demand conforms to the budget; B. By auditing and approving an individual demand for payment, in which case the approval shall be noted on the demand over the signature of the presiding officer of the meeting at which the approval is given; C. By auditing and approving for issuance the warrants listed upon a warrant register presented to the city council, in which case the approval shall be noted on the register over the signature of the presiding officer of the meeting at which the approval is given. (Prior code § 2.12.210 (Ord. 506 § 9(d), 1961))

Payroll warrants may be issued without the prior audit or approval of the city council. (Prior code § 2.12.220 (Ord. 506 § 9(e), 1961))

In any instance where a warrant, either general or payroll, is issued prior to audit by the city council, the demand and supporting documents shall be presented to the city council for audit and approval at the next meeting following the issuance of the warrant. The council's action thereon shall be noted on the demand in the manner provided in Section 3.24.160 with respect to warrants issued after audit. (Prior code § 2.12.230 (Ord. 506 § 9(f), 1961))

The director of finance shall be responsible for the preparation of the city's payroll. Time reports of all city employees shall be submitted to the administrative officer by, and over the signature of, the department heads, and the administrative officer shall in turn audit and transmit the reports to the director of finance. (Prior code § 2.12.240 (Ord. 506 § 10, 1961))

The city treasurer shall maintain a petty cash fund in such amount as may be determined from time to time by the director of finance but the maximum amount therein shall not exceed two hundred dollars. Such fund shall be operated on the imprest system and shall be reimbursed monthly from the appropriate fund or funds by a warrant payable to the city treasury. Such fund shall be used only for those disbursements which, because of smallness of amount or other reason, cannot conveniently be made by warrant. Disbursements will be made by the city treasurer from the petty cash fund only upon the receipt of a voucher signed by a department head or the director of finance. All such vouchers shall be prenumbered and issued by the director of finance. (Ord. 77-9-773 § 2: prior code § 2.12.250 (Ord. 506 § 11, 1961))

The director of finance shall adopt and maintain a system of records and accounts consistent with the provisions of this chapter and of any manual or chart of accounts which the city council shall approve and order adopted as the accounting manual of the city. (Prior code § 2.12.260 (Ord. 506 § 12, 1961))

The city council shall arrange for the making of an audit of the accounts and records of the city at the end of each fiscal year of the city. Such audit shall be made by a qualified accountant or accounting firm to be designated by the city council. (Prior code § 2.12.270 (Ord. 506 § 13, 1961)) Chapter 3.28

CLAIMS AGAINST CITY Sections:

• 3.28.010 Authority.
• 3.28.020 Claims required.
• 3.28.030 Form of claim.
• 3.28.040 Delivery of claims to finance director and administration.
• 3.28.050 Claim prerequisite to suit.
• 3.28.060 Actions for payment of taxes, fees or fines; payment required prior to commencement of
• legal action.
• 3.28.070 Settlement of claims.
• 3.28.080 Suit.
• 3.28.090 Warrant for payment.
• 3.28.100 Special claims procedures.

This chapter is enacted pursuant to Cal. Gov’t Code § 935. (Ord. 2013-11-1463 § 1)

All claims against the city for money or damages not otherwise governed by the Government Claims Act, Cal. Gov’t Code §§ 900 et seq., or another state law (hereinafter in this chapter, "claims") shall be presented within the time, and in the manner, prescribed by Cal. Gov’t Code Title 1, Division 3.6, Part 3(commencing with § 900 thereof) for the claims to which that part applies by its own terms, as those provisions now exist or shall hereafter be amended, and as further provided by this chapter. (Ord. 2013-11-1463 § 1)

All claims shall be made in writing and verified by the claimant or by the guardian, conservator, executor or administrator of claimant. In addition, all claims shall contain the information required by Cal. Gov’t Code §§ 910 through 915.4. The foregoing reference to Cal. Gov’t Code §§ 910 through 915.4 shall not be construed to authorize a class claim, and no claim may be filed on behalf of a class of persons unless verified by every member of that class. (Ord. 2013-11-1463 § 1)

All documents setting forth claims or demands against the City which may come into the hands of the City Clerk or any other officer of the City shall be forthwith delivered to the director of finance. The director shall audit each demand and investigate each claim for damages and shall cause the same to be promptly presented to the City Council with a recommendation as to the action which should be taken. Notwithstanding the foregoing, the director may delegate to a third- party administrator the general administration of claims under the continued supervision of the director of finance. (Ord. 2013-11-1463 § 1)

In accordance with Cal. Gov’t Code §§ 935(b) and 945.6, all claims shall be presented as provided in this section and acted upon by the city prior to the filing of any action on such claims and no such action may be maintained by a person who has not complied with the requirements contained in the sections of Chapter 3.28. (Ord. 2013-11-1463 § 1)

No injunction or 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, fees or fines sought to be collected pursuant to any provision or resolution ordinance of the city for the payment of all taxes, fees or fines. Payment of all taxes, fees or fines, interest and penalties shall be required as a condition precedent to seeking judicial review of the validity or application of any such tax, fees or fines. (Ord. 2013-11-1463 § 1)

The city manager or his/her designee is hereby authorized to allow, reject, compromise, or settle any tort claim for a sum not to exceed five thousand dollars ($5,000.00). Upon approval by the city manager or his/her designee, the director of finance shall cause a warrant to be issued upon the treasury of the city in the amount for which a claim has been allowed, compromised or settled. (Ord. 2013-11-1463 § 1)

Any action brought against the city upon any claim or demand shall conform to the requirements of Cal. Gov’t Code §§ 940 through 949. Any action brought against any employee of the city shall conform with the requirements of Cal. Gov’t Code §§ 950-951. (Ord. 2013-11-1463 § 1)

A. If a claim or demand against the city is presented to the city council and allowed and ordered paid by it, the mayor shall draw a warrant upon the treasurer for the amount allowed, which warrant shall be countersigned by the city clerk and shall have the seal of the city attached thereto. The warrant shall also specify for what purpose it is drawn and out of what fund it is to be paid. B. If the warrant statement referred to shows sufficient available funds in the treasury legally applicable to the payment of the same, and in case of a written contract that the condition under which the money would become due has been performed, the mayor shall cause a warrant to be drawn thereon, in the same manner as provided for the payment of other claims and demands. (Ord. 2013-11-1463 § 1)

Notwithstanding the general provisions of Section 3.28.020 with respect to claims, pursuant to the authority contained in Cal. Gov’t Code § 935, the following claims procedures are established for those claims against the city for money or damages not now governed by state or local laws: A. Employee claims. Notwithstanding the exceptions contained in Cal. Gov’t Code § 905, all claims by public officers or employees for fees, salaries, wages, overtime pay, holiday pay, compensating time off, or vacation pay, sick leave pay, and any other expenses or allowances claimed due from the city, when a procedure for processing such claims is not otherwise provided by state or local laws shall be presented within the time limitations and in the manner prescribed by Cal. Gov’t Code §§ 910 through 915.4 relating to the prohibition of suit in the absence of presentation of claims and action thereon by the city council. B. Contract and other claims. In addition to the requirements of this chapter, and notwithstanding the exemptions set forth in Cal. Gov’t Code § 905, all claims against the city for damages or money, when procedure for processing such claims is not otherwise provided by state or local laws, shall be presented within the time limitations and in the manner prescribed by Cal. Gov’t Code §§ 910 through 915.4 relating to the prohibition of suit in the absence of presentation of claims and action thereon by the City Council. (Ord. 2013-11-1463 § 1)