§ 5.03 — Fund Structure

Section 5.03. - Fund Structure.

In this charter the word "fund" shall mean "a sum of money or other resources that is segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations, and that constitutes an independent fiscal and accounting entity." If and as needed, the following types of funds shall be established for the purposes and types of operations with which identified: (1) A single "General Fund" shall be established to account for all revenues and the activities financed by them which are not accounted for in some special fund. (2) "Special Revenue Funds" shall be established to account for taxes and other revenues, except special assessments, set aside for a particular purpose. (3) "Internal Service Funds" shall be established to account for the financing of activities carried on by one department or division for other departments and agencies of the city government and may be established for the control of inventories. (4) "Special Assessment Funds" shall be established to account for special assessments levied to finance improvements or services deemed to benefit the properties against which the assessments are levied. (5) "Capital Project Funds" shall be established to account for the receipt and disbursement of proceeds of bond issues, tax increment financing receipts and other financing services, except for those payable from special assessment, utility, and enterprise funds. (6) "Debt Service Funds" shall be established to account for the accumulation of resources for retiring bonds, including any administrative costs related thereto; such as, publication of notice, trustee, registrar, and paying agent fees. (7) "Fiduciary Funds" shall be established to account for cash or other assets held by the city as trustee, custodian, or agent. (8) "Proprietary Funds" shall be established to account for the financing of services rendered primarily to the general public for compensation where the intent is that the operation shall be self-supporting. (9) "Advance Acquisition Fund." There shall be established a Capital Project Fund to be known as the Advance Acquisition Fund, the purpose of which shall be to facilitate the orderly and timely acquisition of real estate for public purposes. Moneys in the fund may be used to option, purchase, make down payments, and take other actions necessary to acquire real estate for specific public purposes related to the development of the City as proposed in the master plan. No purchase of any real estate or any substantial expenditure in connection therewith shall be made unless reviewed and reported on by the Capital Improvement Priority Committee and approved by the Council. Any real estate purchased or otherwise acquired by the City through the workings of this fund may later be sold or otherwise disposed of by the City if it is found that such real estate is not needed for a public purpose. (10) "Cash Reserve Fund." There shall be established a reserve fund for the purpose of meeting emergencies arising from: (a) The loss or partial loss of a revenue source; or (b) An unanticipated expenditure demand due to a natural disaster, casualty loss or act of God; or (c) Expenditure demand for the satisfaction of judgments and litigation expenses when the Judgment Levy Fund balance is inadequate. (d) Conditions wherein serious loss of life, health or property is threatened or has occurred. The amount of funds to be held in this account, if any, shall not exceed 8% of General Appropriations. Interest earned on any such amount shall be retained in said account and shall be included in the calculation of the fund balance. In the event that the fund has reached the 8% maximum balance, then any interest accruing thereafter, until the balance is decreased by an expenditure, shall be transferred to the General Fund. Notwithstanding section 5.14 of the home rule charter, or any other provision to the contrary, any amount, or portion thereof, held as general fund surplus at the close of any fiscal year may be appropriated for the sole and limited purpose of increasing the balance of this reserve fund; provided, however, that some shall not be used to increase the balance beyond the 8% limitation stated herein. (11) Reserved.

(Amended by special election 5-14-74; amended by special election 11-6-84; amended by special election 5-11-93; Ord. No. 36653, § 1, special election of 5-9-05; Ord. No. 40092, § 1, 8-19-14, ref. of 11-4-14)