§ 6-201 — Operating Funds

Section 6-201. - Operating Funds.

(1) Except as otherwise provided in this Chapter, all moneys of the City held by the Director of Finance or other officers for the purpose of defraying any operating expense shall constitute "operating funds." (2) The Director of Finance shall establish and maintain the following operating funds: (a) The General Fund. Except as otherwise provided by this Charter or applicable state law, all taxes, licenses, fees, and other receipts, revenues and income of the City shall be deposited daily to the credit of the "General Fund of the City of New Orleans". (b) The Savings Fund. (i) Except as otherwise provided by this charter or applicable state law, a percentage of the City's annual general fund shall be appropriated by the City Council and deposited into the "Savings Fund of the City of New Orleans" pursuant to the following formula: (A) When none of the conditions in Section 6-201(2)(b)(ii)(A) through (C) has been met, the percentage required to be appropriated shall be the difference between the existing balance of the Savings Fund and 5% of the average of the previous five years of actual general fund expenditures as certified by the Revenue Estimating Conference at its first meeting after the submission of the independent audit as provided in Section 6-108. (B) When one or more of the conditions in Section 6-201(2)(b)(ii)(A) through (C) has been met, the percentage required to be appropriated shall be zero. (ii) Appropriations from the Savings Fund may only be made by the City Council upon an affirmative vote of two-thirds of all its members and only when one or more of the following conditions have been met: (A) a declaration by the City Council by a two-thirds vote of all of its members of the existence of an emergency due to act of God, riot, war, or a grave emergency which threatens widespread loss of life or grievous injury to health or property; (B) a determination by the City Council by a two-thirds vote of all of its members that a significant loss in city revenues due to an economic downturn of serious proportions has occurred or is occurring; and/or (C) a mandate by the United States Government that has been determined by the City Attorney to be in accordance with law. (c) Other Operating Funds. The Council shall by ordinance establish such other operating funds as are required to comply with the provisions of any law, contract or donation under which the City receives moneys or to comply with generally accepted accounting principles. (d) The Housing Trust Fund. (i) An amount not less than two percent of the general fund operating budget for that year, adopted pursuant to Section 3-115(2), shall be appropriated annually by the City Council and deposited into the "Housing Trust Fund"; provided, however, that the Council, by unanimous vote of a quorum, may appropriate less than two percent in the event of a declared state of emergency due to act of God, riot, war, or a grave emergency which threatens widespread loss of life or grievous injury to health or property. The minimum funding requirements under this Section may be satisfied from any revenue source other than funding received through federal and state housing-related grants and programs. (ii) All funds maintained in the Housing Trust Fund shall be used exclusively for the purposes of ensuring the availability of affordable housing for low- to moderate-income residents within the City. (iii) The Council may by ordinance establish restrictions on expenditures from the Housing Trust Fund that further the purposes thereof. (3) No moneys shall be disbursed from operating funds except in accordance with an appropriation made by the operating budget ordinance and allotments thereunder, the capital budget ordinance as provided for in this Charter, or applicable state and municipal law. No operating expense shall be paid from any fund other than an operating fund, except to the extent specifically authorized by ordinance to be paid from other funds. (4) The Council may authorize by ordinance the creation of petty cash accounts to permit payment for small purchases which are impractical to pay by check. No petty cash account shall be for a greater amount than is necessary to finance transactions for one month. Officers or employees having custody of petty cash accounts shall be bonded, shall use the funds only for public purposes, shall submit appropriate documentation for all expenditures, and shall comply with any requirements imposed by ordinance.

(M.C.S., Ord. No. 29864, § 4, 3-21-24, eff. 1-1-25)