(a) Required Funds. The Finance Director shall maintain any fund required by the Uniform Tax Levy Law or other state statute, and such funds shall be maintained and used in accordance with the requirements of the Ohio Revised Code. Any transfer between City funds shall be made in accordance with ORC 5705.14 to 5705.16.
(b) Special Funds.
(1) The Finance Director is hereby authorized to create any special fund which is required by ORC 5705.09(D) to (H) or other provision of state law, either specifically or in general.
(ORC 5705.09)
(2) Council may establish, by ordinance or resolution, any special fund, the establishment of which is discretionary under the Uniform Tax Levy law. Special funds which are needed for a period of less than five (5) years may be established by resolution, and special funds which are needed for a period of five (5) years or more shall be established by ordinance.
(ORC 5705.121)
(3) Council may also establish, by ordinance or resolution and with the approval of and in the manner prescribed by the Ohio State Auditor, other such special funds that are not established or authorized by state law, either specifically or in general, as may be needed or desirable. Special funds which are needed for a period of less than five (5) years may be established by resolution, and special funds which are needed for a period of five (5) years or more shall be established by ordinance. Any ordinance or resolution establishing a special fund may provide that money derived from specified sources other than the general property tax shall be paid directly into such special fund.
(ORC 5705.12)
(c) Reserve Balance Accounts.
(1) City Council, by ordinance or resolution, may establish reserve balance accounts to accumulate currently available resources for purposes listed in ORC 5705.13(A).
(2) The ordinance or resolution establishing a reserve balance account shall state the purpose for which the account is established, the fund in which the account is to be established, and the total amount of money to be reserved in the account. Money to the credit of a reserve balance account may be expended only for the purpose for which the account was established.
(3) City Council, may, in the same manner the reserve balance account was created, rescind a reserve balance account, and upon such rescission, the Finance Director shall transfer the money that has accumulated in the account to the fund or funds from which the money was originally transferred.
(ORC 5705.13(A))
(d) Capital Project Funds. Council, by resolution, may establish one or more capital project funds for the purpose of accumulating resources for the acquisition, construction, or improvement of fixed assets of the City. For the purposes of this division, "fixed assets" include motor vehicles. More than one (1) capital project fund may be established and may exist at any time.
(1) The resolution establishing the capital project fund shall identify the source of the money to be used to acquire, construct, or improve the fixed assets identified in the resolution, the amount of money to be accumulated for that purpose, the period of time over which that amount is to be accumulated, and the fixed assets that the City intends to acquire, construct, or improve with the money to be accumulated in the fund.
(2) No capital project fund shall accumulate money for more than ten (10) years after the resolution establishing the fund is passed. If the City has not entered into a contract for the acquisition, construction, or improvement of fixed assets for which money was accumulated in such a fund before the end of that ten-year period, the Finance Director shall transfer all money in the fund to the fund or funds from which that money originally was transferred or the fund that originally was intended to receive the money.
(3) Notwithstanding ORC 5705.14, 5705.15, and 5705.16, City Council, by appropriation ordinance or resolution, may transfer money to a capital project fund from any other City fund that may lawfully be used for the purpose of acquiring, constructing, or improving the fixed assets identified in the ordinance or resolution.
(4) City Council may, by resolution, rescind a capital project fund. If the fund is so rescinded, the Finance Director shall transfer the money that has accumulated in the fund to the fund or funds from which the money was originally transferred.
(5) Notwithstanding ORC 5705.14, 5705.15, and 5705.16, the City Council, by resolution, may transfer money to a Capital Project Fund from any other fund of the City that may lawfully be used for the purpose of acquiring, constructing, or improving the fixed assets identified in the resolution.
(ORC 5705.13(C))
(e) Nonexpendable Trust Funds. City Council may establish, by ordinance, a nonexpendable trust fund for the purpose of receiving donations or contributions that the donor or contributor requires to be maintained intact. The principal of such fund may be invested in accordance with the City's Deposit and Investment Policy, and the investment earning on the principal shall be credited to the trust fund. The principal of the fund, and any additions to the principal arising from sources other than the reinvestment of investment earnings arising from the fund, shall not be considered part of the unencumbered balance or revenue of the City under ORC 5705.35(A) or 5705.36(A)(1). Only investment earnings arising from investment of the principal or investment of such additions to the principal may be considered an unencumbered balance or revenue of the City under those ORC sections.
(ORC 5705.131)
(f) Sale of Permanent Improvements. If a permanent improvement of the City is sold, the amount received from the sale shall be paid into the Sinking Fund, the Bond Retirement Fund, or the Capital (Permanent) Improvements Fund; provided, however, that the proceeds from the sale of a public utility shall be paid into the Sinking Fund or Bond Retirement Fund to the extent necessary to provide for the retirement of the outstanding indebtedness incurred in the construction or acquisition of such utility. Proceeds from the sale of property other than a permanent improvement shall be paid into the fund from which such property was acquired or is maintained or, if there is no such fund, into the General Fund.
(ORC 5705.10(F))
(g) Interest on Inactive Interim Deposits. Except as otherwise provided in any section or division of this Chapter, the proceeds from the investment made of the inactive interim deposits of any City fund shall be credited to that fund upon receipt.
(h) Authority of Finance Director. The Finance Director may create cost centers within any fund to properly account for activity within that fund. The Finance Director may transfer funds between cost centers unless otherwise prohibited by law or unless such a transfer is restricted by financial management policies approved by the City Council.
(Ord. 2022-44. Adopted 11/22/22)