[CC 1985 § 24-21; Ord. No. 109 § 15, 1-13-1947]
A.
In the process of operating said utilities,
as herein provided, it shall be the duty of the Utility Board, through
its servants and employees, to collect all sums due for services rendered,
and on all accounts in connection with the operation of said utilities,
and all sums so collected, shall be by the board deposited to the
credit of a special account, to be known as the "Public Utility Account"
in the bank acting as the City's depository, out of which account
all bills and expenses in connection with the operation of said utilities
shall be paid.
B.
This public utility account shall be under
the general control of said Utility Board, and no sums shall be paid
therefrom, except upon checks prepared and drawn by the Secretary
of the Utility Board, and countersigned by the Mayor and the City
Clerk.
[CC 1985 § 24-22; Ord. No. 109 § 18, 1-13-1947]
Whatever remains in the public utility
account, and whatever may accrue, shall be at the disposition of the
Utility Board for the operation of said public utilities, making improvements
and betterments and extensions, and to do all things that in their
judgment is for the best interest of the City and the public generally,
and for the further purpose of paying all interest and demands on
account of the indebtedness incurred for the purchase of the utilities
by the City and to pay on the principal thereof, as may be. It being
the spirit and intent of this Chapter to accumulate a fund for the
discharge of the general purchase price of the utilities as speedily
as may be, consistent with good operation of the system and good service
to the public, and that this fund shall be at the disposition of said
Utility Board for above purposes.
[CC 1985 § 24-23; Ord. No. 369 §§ 1 — 3, 4-7-1975]
A.
The City Clerk shall cause the books of
all services managed by the Utility Board to be audited in the month
of May of each year.
B.
The audit will show all moneys generated
and all expenses incurred for the past year in each service's accounts.
C.
The audit will show maintenance costs,
capital improvements, cash on hand, all other items that meet accepted
auditing standards of each account managed by the Utility Board.
[CC 1985 § 24-24; Ord. No. 1016, 10-3-2011]
A.
The
City of St. James establishes the City and Municipal Utility Reserve
Funds and the City and Municipal Utility Capital Project Fund Accounts
as follows:
1.
Reserve Accounts. The City shall establish Reserve Fund Accounts
for Utility funds and City funds.
a.
City Reserve Fund. The City shall maintain not less than thirty percent
(30%) of budgeted annual general revenue.
b.
Municipal Utility Reserve Fund. The City shall maintain not less
than twenty percent (20%) of budgeted annual revenues for all utilities,
or no less than two (2) months of operating expenditures, whichever
is greater.
2.
Capital Project Fund Accounts. The City shall establish Capital Project
Fund Accounts for Utility funds and City funds.
a.
City Capital Project Fluid Balance Goals. The City Capital Project
Fund balance goals will be established as a percentage of the accumulated
depreciation of assets owned by the City and will include the following:
b.
Municipal Utility Capital Project Fund Balance Minimum. The Municipal
Utility Capital Project Fund minimum balances will be based on a percentage
of the accumulated depreciation for the assets owned by the City/Municipal
Utility and will include the following:
c.
Municipal Utility Capital Project Fund Balance Minimum. The municipal
Utility Capital Project Funds will have fund balance goals designed
to provide funding for on going capital improvement purchases, including
replacements and maintenance. The fund balance goals have been established
based on a percentage of accumulated depreciation and include the
following:
[Ord. No. 1158, 1-13-2020]
3.
Reserve Fund Establishment, Contributions and Reductions. To accumulate
the proper level of reserves, the Municipal Utility/City shall implement
the following procedures:
a.
Establishment Of Funds And Accounts. The Municipal Utility/City shall
establish necessary budgetary and revenue policies, funds and sub-accounts
as are necessary to implement this policy.
b.
City Reserve Fund Account Contributions. The City will budget an
ending balance equal not less than thirty percent (30%) of budgeted
annual general revenue and will, each fiscal year, ensure that an
annual City Reserve Fund adjustment is made as part of the annual
budget process.
c.
Municipal Utility Reserve Fund Account Contributions. The Municipal
Utility/City will budget an ending balance equal to at least twenty
percent (20%) of annual utility revenues, or two (2) months' operating
expenditures for all utilities, whichever is larger based on annual
budget. For each fiscal year, the Municipal Utility Board/City Council
will ensure that an annual Municipal Utility Reserve Fund adjustment
is made as part of the annual budget process.
d.
City and Municipal Utility Reserve Funds Reduction And Restoration.
Reserve Fund balances are designed to be maintained from year to year.
The Municipal Utility Board/City Council will require a plan to recapitalize
the Municipal Utility and/or City Reserve Funds over a period of not
more than two (2) years, or as determined by the Municipal Utility
Board/City Council. Reserves may not be budgeted for routine operations
or maintenance, but may be spent consistent with the Municipal Utility/City's
normal budget and expenditure practices for the following purposes:
(1)
Natural And Man-Made Emergencies. When expenditures are made
from City and/or Municipal Utility Reserve Funds for expenses incurred
as a result of any natural or man-made emergency, the affected reserve
shall be restated to the fullest extent possible with any grants or
insurance awards upon receipt thereof.
(2)
Severe Economic Circumstances. The Mayor and Municipal Utility/City
staff will present to the Municipal Utility Board/City Council a plan
for any use of reserve funds due to severe economic circumstances.
The plan will include a time line for the restoration of the affected
reserves.
(3)
Unanticipated Draws On City And Municipal Utility Reserve Funds.
In the event the City and/or Municipal Utility Reserve Fund is expected
to fall below its designated reserve during any fiscal year as a result
of unanticipated draws on designated reserves for expenditures relating
to revenue cash flow shortfalls or other non-emergency unanticipated
expenditures, the Mayor and Municipal Utility/City staff shall promptly
advise the City Council regarding the decline and make recommendations
regarding the time line and method for the restoration of the designated
reserve.
(4)
Excess City And Municipal Utility Reserve Funds. When the City
and/or Municipal Utility Reserve Fund/Funds exceed one hundred percent
(100%) of budgeted revenues, the Mayor and City staff shall advise
the Municipal Utility Board/City Council of the reserve balance and
make recommendations regarding the use of the excess funds, including
the prepayment of bonds or
loans, or the transfer of funds to Capital Project Fund Accounts,
provided that the Mayor and Municipal Utility City staff can assure
the further accumulation of funds for future capital projects.
4.
Capital Project Fund Establishment, Contributions And Reductions.
To accumulate the desired Capital Project Fund balances, the Municipal
Utility/City shall implement the following procedures:
a.
Establishment Of Funds And Accounts. The Municipal Utility/City shall
establish necessary budgetary and revenue policies, funds and sub-accounts
as are necessary to implement this policy. The establishment of Capital
Project Reserve Funds will assist in delaying rate increases and/or
tax increases; however, the establishment of these funds does not
negate a future need to institute tax and/or rate increases or the
possibility of a future need to issue bonds for significant capital
expenditures.
b.
City Capital Project Fund Accounts — Contributions. All City
departments will include depreciation in their annual budget, and
the appropriate percentage of annual depreciation will be deposited
to the credit of each department/Utility Capital Project Fund. The
annual depreciation shall be based on asset depreciation schedules
prepared by the City Auditor. All departments shall work to maintain
the designated capital reserve balance in each fund. City departments
will plan annual capital improvement expenditures based on fund balances
available in excess of the established goals. The fund balance goals
are designed to be maintained from year to year.
c.
Municipal Utility Capital Project Fund Accounts — Contributions.
Municipal Utilities will include depreciation in their annual budget
and this annual depreciation will be deposited to the credit of each
Utility Capital Project Fund. The annual depreciation shall be based
on asset depreciation schedules prepared by the City Auditor. Municipal
Utilities shall work to maintain the designated capital reserve balance
goal in each fund.
d.
City And Municipal Utility Capital Project Fund Accounts —
Additional Contributions. For each fiscal year, when the reserve balance
in the City or Municipal Utility Reserve Fund exceeds the designated
reserve balance for that fund, the excess funds shall be transferred
to the Capital Project Fund and credited to the Capital Project Fund
for the department and/or Utility as determined by the Mayor and City
staff and approved by the Municipal Utility Board/City Council.
e.
City Capitol Project Fund Reduction And Restoration. Reserves in
these accounts may only be spent for capital projects or repairs and
replacement to facilities and equipment relating to the department
for which the Capital Project Fund Account was created. City departments
will plan annual capital improvement expenditures based on fund balances
available in excess of the established goals for each department.
The fund balance goals are designed to be maintained from year to
year. The City Council will approve any expenditures made from Capital
Project Fund Accounts. In the event that expenditures are made from
City Capital Project Fund Accounts that drop the fund balance below
the goal, the City will work to recapitalize the fund to its established
goal over the period of not more than three (3) years, or as determined
by the City Council and accomplished through the annual budgeting
process. This may include consideration of increasing revenue sources
or decreasing operating expenditures.
f.
Municipal Utility Capital Project Fund Reduction And Restoration.
The minimum balances in the Municipal Utility Capital Project Funds
are designed to be maintained as reserve funds. The balances available
in each Utility consisting of the difference between the minimum balance
and the goal are available for capital projects or repairs and replacement
to facilities and equipment relating to the Utility for which the
Capital Project Fund Account was created. The Municipal Utility will
plan annual capital improvement expenditures based on fund balances
available. When expenditures are made from the Municipal Utility Capital
Project Fund Accounts that drop the fund balance below the minimum,
the Municipal Utility and City will work to recapitalize the fund
over the period of not more than five (5) years through the annual
budgeting process. The fund balance minimum and goals will be adjusted
annually based on change in accumulated depreciation, and this amount
will be included as a line item in the annual budgeting process. The
Municipal Utility Board will recommend and the City Council will approve
any expenditure made from Capital Project Fund Accounts. When capital
expenditures are made and the fund drops below the goal, the Municipal
Utilities/City will develop a plan to work toward recapitalization
of the fund balance goal. This may include consideration of rate increases
or decreasing operating expenditures.
5.
Periodic Review And Modification. The Mayor and City and Municipal
Utility staff shall periodically evaluate and make recommendations
to the City Council and/or the Municipal Utility Board regarding the
adequacy of the designated reserves and recommend modifications to
this policy; however, such recommendations shall be consistent with
the intended purpose.
