(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
CAPITAL IMPROVEMENT PROJECTS. Projects which are intended to acquire, construct, permanently modify or purchase assets of a long-term character which are intended to continue to be held or used, such as land, buildings and machinery.
EMERGENCY. An occurrence where the public health, safety and welfare is jeopardized, where immediate action is necessary and must be declared by a four-fifths’ vote of the entire Council.
ENTERPRISE FUND. A fund established to finance and account for the acquisition, operation and maintenance of governmental facilities which are entirely or predominantly self-supporting by user charges. Examples of ENTERPRISE FUNDS are those for water, sewer, gas and electric utilities, swimming pools, airports, parking garages and transmit systems.
EQUIPMENT. Tangible property of a more or less permanent nature, other than land, buildings or improvements, other than buildings, which is useful in carrying on operations. Examples are machinery, trucks, cars, furniture and furnishings.
GENERAL GOVERNMENT MAINTENANCE EXPENSES. Costs incurred for the upkeep of physical properties in condition for uses or occupancy which are used in the rendering of services traditionally associated with municipal government as distinguished from those provided by municipal enterprise operations.
GENERAL GOVERNMENT OPERATING EXPENSES. Costs which are necessary to the rendering of services traditionally associated with municipal government as distinguished from those provided by municipal enterprise operations.
PUBLIC IMPROVEMENT PROJECTS. Public improvement projects as defined in Ch. 37 of this code of ordinances.
SPECIAL ASSESSMENT FUND. A fund set up to finance and account for the construction of improvements or provision of services which are to be paid for, wholly or in part, from special assessments levied against benefitted property.
(B) Fund established. There is hereby established and created a separate and special fund designated as the “Special Projects Fund”, which the City Administrator and Finance Director shall maintain on the official accounting records and financial statements of the city and administer in accordance with this section.
(C) Use of fund.
(1) This fund may be used to make interest-bearing loans to finance public improvement projects authorized pursuant to Ch. 37 of this code of ordinances or to make interest-bearing loans to finance equipment purchases and/or capital improvement projects, which have been included in the long-term financial plan, of any city enterprise fund.
(2) This fund may also be used to make permanent transfers for the purchase of equipment and/or to finance capital improvement projects, which have been included in the long-term financial plan, of any city fund, except special assessment and enterprise funds.
(3) In no event shall this fund be used to finance current and recurring general government operations and maintenance expenses.
(4) This fund may be used to make permanent transfers to the fund balance of the general fund to ensure that there exists a cash flow reserve and a reserve for contingencies. The amounts of the reserves shall be determined by the City Council.
(5) This fund may also be used to make emergency repairs to the public utility system, city streets and highways, municipal buildings and machinery and equipment in the event that moneys for said repairs have not been previously budgeted and/or that sufficient moneys are not available for said repairs from other sources. In the event that the emergency repairs needed are to assets accounted for in the Water Fund, Sewer Fund or any city enterprise fund, the moneys for the repairs shall be in the form of an interest-bearing loan. At the option of the Council, moneys used for repairs to assets accounted for in the funds may be in the form of interest-bearing loans or permanent transfers. It shall be used for no other purpose, and any moneys on deposit in the Fund may be invested in accordance with provisions of the City Charter and with applicable state statutes.
(6) This fund may also be used to pay the bond service charges of the paying agents of the bonds which were formerly accounted for in the Debt Service Fund and which were defeased on 01-18-1984.
(D) Funds to be deposited. There shall be deposited in the fund the initial sum of $853,459 which represents the cash balance remaining in the Debt Service Fund after the cash defeasance of the fund’s outstanding bonds. The special assessments receivable of the Debt Service Fund shall be transferred to the fund and, hereafter, all future payments of principal and interest on those assessments shall be deposited in the fund. There may also be deposited in the fund such other moneys as may be directed by the Council.
(E) Use of funds.
(1) Upon the adoption of a resolution by four-fifths of the entire Council, moneys of the fund may be used for the purposes stated in division (B) above. In the event of an interest-bearing loan, the resolution authorizing the loan shall state the amount of the loan, its purpose, term, interest rate and method of repayment.
(2) In the event of the purchase of equipment or the financing of capital improvement projects, the authorizing resolution shall state the amount of the purchase or financing, shall contain a description of the equipment or project and shall designate the fund to which the moneys are to be transferred.
(3) In the event of emergency repairs, the authorizing resolution shall state the nature of the repairs, the amount needed for the repairs and shall designate the fund to which the moneys are to be transferred. The authorizing resolution shall also state that moneys for the emergency repairs had not previously been budgeted and that sufficient moneys are not available from other sources to finance the emergency repairs.
(4) In the event of a permanent transfer to the fund balance of the general fund, the authorizing resolution shall state the amount of the transfer and shall indicate whether the transfer is designated for the cash flow reserve or the reserve for contingencies.
(F) Amendment or repeal. Upon the adoption of an ordinance by four-fifths of the entire Council, this section may be amended or repealed. In the event of repeal, moneys accumulated in the fund shall be deposited in the general fund with the resolution authorizing repeal specifying the purposes for which the funds would be expended.
(Prior Code, § 203.08) (Ord. 844, passed 05-20-2010; Ord. 944, passed 06-25-2018)