HomeMy WebLinkAbout81-10 Urgency Ordinance Establishing Reserve AccountsORDINANCE NO. gl10
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA ESTABLISHING RESERVE ACCOUNTS AND MAKING
APPROPRIATIONS THERETO PURSUANT TO SECTION 5 OF
ARTICLE XIII -B OF THE CONSTITUTION OF THE STATE OF
CALIFORNIA.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS
FOLLOWS:
SECTION ONE: WHEREAS:
1. The recently adopted "Gann Initiative" enacted a constitutional
"appropriations" or spending limit that affects cities. The limitation is
applied against certain tax proceeds received each year. Funds that came
within the limit but are not actually spent during the year may be placed
into a reserve account and spent later.
2. The appropriation or transfer of these unexpended funds into the
reserve accounts can be done automatically on an annual basis if properly
authorized by the City Council.
3. The enactment of such authorization should be accomplished
immediately as an urgency ordinance to become effective before the close of
the current fiscal year to preserve City funds and man-hours and the public
peace, health and safety.
ACCORDINGLY, the City Council of the City of Costa Mesa hereby amends
Title 2, Chapter V of the Costa Mesa Municipal Code as follows:
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ARTICLE 5. EXCESS PROCEEDS OF TAXES RESERVE ACCOUNTS
Section 2-199. Creation of Reserve Accounts for Proceeds of Taxes for
Budget Adjustment.
There is hereby created and established in each and every fund now
existing and in each and every fund subsequently created and established in
which "proceeds of taxes" are now on hand or will be received and deposited,
a reserve account entitled "Reserve for Proceeds of Taxes for Budget Adjust-
ment",
djustment", pursuant to Section 5 of Article XIII -B of the Constitution of the
State of California.
Section 2-200. Automatic Annual Appropriation to Reserve Accounts.
There is hereby appropriated to each and every "Reserve for Proceeds
of Taxes for Budget Adjustment" in each and every fund any and all amounts of
revenues which constitute "proceeds of taxes" which are in excess of the total
expenditures of "proceeds of taxes" as of the close of each fiscal year. Such
appropriations shall occur annually and be effective as of the close of the
last day of the fiscal year, and shall constitute "appropriations subject to
limitation" only for the fiscal year in which they are appropriated to the
reserve account.
Section 2-201. Prohibition on Exceeding Limitation.
At no time, by operation of this ordinance, shall the appropriation of
revenues which constitute "proceeds of taxes" cause the "appropriations 1 imi t"
to be exceeded for the fiscal year in which they were received. Any revenues
which constitute "proceeds of taxes" which cannot be appropriated to the
"Reserve for Proceeds of Taxes for Budget Adjustment" accounts because of the
foregoing prohibition, pursuant to Section 1 of Article XIII -B of the Consti-
tution of the State of California, shall be deemed to be "excess revenues"
and shall be disposed of in accordance with Section 2 of Article XIII -B of
the Constitution of the State of California.
Section 2-202. Expenditures from Reserve Accounts.
Moneys in the "Reserve for Proceeds of Taxes for Budget Adjustment" in
each and every fund may be expended or authorized for expenditure or trans-
ferred in the same manner and for the same purposes as moneys not in such
accounts. Such expenditures, authorizations to expend, or transfers from such
accounts shall not constitute "appropriations subject to 1 imi to tion" .
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Section 2-203. Accounting Procedures.
The Director of Finance is authorized and directed to establish accounts
and accounting procedures which clearly distinguish between expenditures of,
or authorizations to expend, money in the "Reserve for Proceeds of Taxes for
Budget Adjustment" accounts and expenditures of, or authorizations to expend
moneys not in such accounts.
Section 2-204. Terminology.
As used herein, the terms "proceeds of taxes", "appropriations subject
to l imi to tion" and "appropriations limit" shall have the meaning defined in
Sections 8(b), (c) , and (h) of Article XI I I B of the Cons ti to tion of the
Stag of California.
SECTION THREE: This Ordinance shall take effect and be in full force
and effect immediately after its passage; and before the expiration of fifteen
(15) days after its passage, this Ordinance shall be published once in the
Orange Coast Daily Pilot, a newspaper of general circulation printed and
published in the City of Costa Mesa, together with the names of the members
of the City Council voting for and against same.
Mayor of the City of Costa Mesa
ATTEST:
�V� T '& -r, --
Ci ty Cler of the Ci ty o Cos Mesa
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
City Attorney
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF COSTA MESA )
I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City
Council of the City of Costa Mesa, hereby certify that the above and fore-
going Ordinance No. _ /D was introduced and considered section by section
at a regular meeting of said City Council held on the XtO- day of ,
1981, and thereafter passed adopted s a whole at a regular meeting of
said Council held on the day of _ 1981, by the following roll
call vote:
AYES: COUNCILMEMBERS: SOWAFEte #All t4E-RTza(r, (Y1cFAPe/AND, -TO 4V5oA)
I a
NOES: COUNCILMEMBERS: "A)1
ABSENT: COUNCILMEMBERS: NOIVC
IN WITNESS WHEREOF, I have hereby set my hand and affixed the Seal of
the City of Costa Mesa this __&& day of 1981.
O•
City Clerk and ex -off icio Clerk of th
City Council of the City of Costa Me
By:
Deputy City lerk
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