(a) There is hereby established a special revenue fund in the City Treasury which shall be designated and known as the City Sales and Use Tax Fund. The City Sales and Use Tax Fund shall consist of:
(1) All revenues received by the City from the State Tax Department from collection of the City's consumer sales and service tax and use tax as provided pursuant to this Article, including any interest, additions to tax and penalties deposited with the City Treasurer;
(2) All appropriations to the fund;
(3) All interest earned from investment of the fund; and
(4) Any gifts, grants, or contributions received and placed by the City into the City Sales and Use Tax Fund.
Monies in the City Sales and Use Tax Fund shall not be treated by any person to be a general revenue of the City. Revenues in the City Sales and Use Tax Fund shall be disbursed in the manner and consistent with the priorities set forth in subsection (c) below.
(b) There is hereby established a special revenue fund in the City Treasury which shall be designated and known as the City Pension Reserve. The City Pension Reserve shall consist of:
(1) Funds received by the City and deposited into the City Sales and Use Tax Fund and thereafter transferred by the City into the City Pension Reserve;
(2) All appropriations to the fund;
(3) All interest earned from investment of the fund; and
(4) Any gifts, grants, or contributions received and placed by the City into the City Pension Reserve.
Monies in the City Pension Reserve shall not be treated by any person to be a general revenue of the City. Monies in the City Pension Reserve shall be used only for the purpose of reducing the long term unfunded liabilities and ensuring the actuarial soundness of the City Police pension fund and Firefighter pension fund as described in Section 746.13(c) below.
(c) Revenues in the City Sales and Use Tax Fund shall be used:
(1) First, for the transfer of monies to the City Pension Reserve in order to make additional contributions to reduce the long term unfunded liabilities and ensure the actuarial soundness of the City Police pension fund and Firefighter pension fund;
(2) Second, to satisfy the debt service requirements and any prior debt service requirements deficit each fiscal year on, and to fund or replenish any required reserves in accordance with the bond documents for, any bonds or other obligations issued by, the City, from time to time, including any refunding bonds, to finance or refinance infrastructure improvements or economic development activities and projects within the City, including the funding or replenishing of any reserve funds relating to any such bonds or other obligations, and/or to make lease payments which repay the debt service or otherwise secure bonds or other obligations issued to finance or refinance infrastructure improvements or economic development activities and projects within the City.
(3) Third, for infrastructure improvements within the City;
(4) Fourth, for economic development activities and projects; and
(5) Fifth, after providing for payment of first and second priority items as provided above, any unencumbered revenue in the City Sales and Use Tax Fund may periodically be transferred as necessary or convenient to the City's General Revenue Account, upon approval by Council.
(Ord. 16-10. Passed 4-21-16.)