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COSTA MESA MUNICIPAL CODE
TITLE II
CHAPTER V
ARTIC'IT R
CAPITAL ASSET NEEDS ORDINANCE
ARTICLE 8
Section 2-210. - Definitions.
Section 2-211. - Reserve Requirement.
Section 2-212. - Limited Use.
Section 2-213. - Emergency Exception.
Sec. 2-210. - Definitions.
For the purpose of this article, the following terms shall have the following
meanings unless it is clear from the context that a different meaning is intended:
(1) Capital Expenditures are defined as expenditures on fixed assets with value
greater than $30,000.00 that are stationary in nature including, but not limited to,
publicly owned or operated streets, highways, bridges, sidewalks, curbs, gutters,
alleys, storm drains, trees and landscaping, medians, parks, playgrounds, traffic
signals, streetlights, fences, facilities and walls.
(2) Capital Facilities are defined as city owned or operated buildings including, but
not limited to, City Hall, Civic Center, Police Department, Old Corp Yard, New
Corp Yard, fire stations, libraries, and community centers.
Sec. 2-211. Reserve Requirement.
(1) The City shall allocate a minimum of five percent (5%) of the annual General
Fund revenue to the Capital Expenditures account.
(2) The City shall allocate a minimum of one and a half percent (11/2%) of the annual
General Fund revenue to the Capital Facilities account.
Sec. 2-212. - Limited use.
(1) Capital Expenditure funds shall only be used for the construction, replacement,
maintenance, improvement, or modification of city owned or operated Capital
Expenditure as defined in Section 2-210(1) including construction, design,
engineering, project management, inspection, and contract administration.
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(2) Capital Facilities funds shall only be used for the construction, replacement,
maintenance, improvement, or modification of city owned or operated buildings
Capital Facilities as defined in Section 2-210(2) including construction, design,
engineering, project management, inspection, contract administration and
property acquisition. Capital Facilities funds may be applied toward debt
obligations created to fund Capital Facilities where the indebtedness originated
after the date of this Ordinance.
(3) The use or loan of Capital Expenditures or Capital Facilities funds for a purpose
other than those referenced in this section shall require approval of a supermajority
vote of the entire City Council.
Sec. 2-213. - Emergency Exception.
(1) In the following circumstances, the City need not comply with the requirements
set forth in Section 2-211 subject to supermajority approval of the entire City
Council:
(a) General Fund Operating Reserve falls below the amount set by
resolution of the City Council as set forth in Section 2-205; [NOTE: Section 2-205
states "General fund operating reserve means those unappropriated cash funds from
the general fund which have been designated by resolution of the city council as
operating reserve." Since the resolution adopting the new GFOR changes, it makes
better sense to identify Section 2-205 which defines GFOR and also specifies that
the amount will be set via resolution.] or
(b) An economic downturn, natural disaster, emergency or other
unforeseen circumstances.
(2) The exception set forth herein shall require annual supermajority approval of
the entire City Council.
(3) In the event this provision is applied, the City shall develop a plan to replenish
the Capital Expenditures and/or Capital Facilities funds for the amount exempted.
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