Chapter 3.20
FISCAL SUSTAINABILITY

Sections:

Article I. Use of One-Time and Budget Residual Funds

3.20.010    Purpose and definitions.

3.20.020    Use of one-time and budget residual funds.

Article I. Use of One-Time and Budget Residual Funds

3.20.010 Purpose and definitions.

(a) The purpose of this chapter is twofold:

(1) First, to assure that one-time funds and budget residual funds are used for nonrecurring rather than ongoing expenditures, thereby ensuring that the city continues to employ sound fiscal strategies; and

(2) Second, to define the uses for which the city shall employ such funds.

(b) For purposes of this chapter, the following terms shall have the following meanings:

(1) “One-time funds” shall mean funds and/or revenues that the city receives on a nonrecurring basis (usually only received in one annual budget) and/or that are unexpected, unanticipated and not included in the baseline revenue projections in the budget or amended budget. For example, these may include, but are not limited to: unbudgeted, unanticipated proceeds from the sale of surplus land; unanticipated, unbudgeted one-time sales tax allocations associated with capital improvements from local businesses that were not included in the budget; or the receipt of funds for unbudgeted, unanticipated retroactive (prior-year payments) taxes or fees, etc.

(2) “Budget residual funds” (i.e., Measure Q residual funds and/or Measure V residual funds, as applicable) are those funds that result after closing the city’s accounting records for the fiscal year and completion of the annual audit, when total general fund annual revenues recognized during the fiscal year exceed total actual expenditures for that year, thus adding to the city’s general fund balance at the end of the fiscal year. The net budget residual may be comprised of two components: (a) revenues received in excess of the budget and/or (b) expenditure savings.

(3) “Measure Q revenues” shall mean the total proceeds that are received from the City of Concord’s district use and transactions tax under Ordinance No. 14-8, which is replaced by Ordinance No. 20-11 on April 1, 2021.

(4) “Measure V revenues” shall mean the total proceeds that are received from the City of Concord’s district use and transactions tax under Ordinance No. 20-11.

(5) “Infrastructure backlog” shall mean the cost of capital and maintenance expenditures required to bring the city’s public assets (including, but not limited to, parks, buildings, roads, signs, etc.) up to an acceptable standard, where such expenditures have not been funded or programmed by the city into the city’s capital improvement program and/or the city’s biennial operating budget.

(6) “Post-employment benefits” shall mean: (a) the city’s retiree medical program, (b) the City of Concord Retirement System (CCRS), and (c) CalPERS or the city’s then-current pension program should the city withdraw from CalPERS participation.

(7) “Unfunded post-employment benefit liabilities” shall mean that portion of the city’s post-employment benefits that have not been fully funded.

(8) “Annual recommended contributions” shall mean the annual amount of funds that an actuarial study recommends the city deposit and set aside in a post-employment benefit plan to fully fund post-employment benefits over time.

(9) “General fund” shall mean the fund that is established by the city into which all sums of money collected by the city are deposited and expended for general government purposes, unless otherwise provided by ordinance, resolution or legal mandate directing the deposit(s) into a specific fund other than the general fund.

(10) “General fund reserves” shall mean the reserves established pursuant to current City Council adopted Policy and Procedure Number 129 (PP129) (as may be amended from time to time), which establishes thresholds on levels of general fund reserves.

(11) “Measure Q budget residual funds” are those funds that result after closing the city’s accounting records for the fiscal year and completion of the annual audit, when total Measure Q annual revenues recognized during the fiscal year exceed the amount budgeted for that year, thus adding to the city’s general fund balance at the end of the fiscal year.

(12) “Measure V budget residual funds” are those funds that result after closing the city’s accounting records for the fiscal year and completion of the annual audit, when total Measure V annual revenues recognized during the fiscal year exceed the amount budgeted for that year, thus adding to the city’s Measure V fund balance at the end of the fiscal year.

(13) “City Council defined priorities” are those goals, priorities, or otherwise Council identified objectives for the city. Traditionally set every year or two by Council during a study session.

(Ord. No. 14-4, § 2; Ord. No. 15-1, § 3; Ord. No. 20-6, § 2 (Exh. A); Ord. No. 21-4, § 2 (Exh. A))

3.20.020 Use of one-time and budget residual funds.

(a) From time to time, the City Manager shall recommend allocations to the City Council on the use of one-time and budget residual funds consistent with the uses identified in this chapter.

(b) One-time funds and budget residual funds shall be allocated to reserves or used for one-time expenditures; therefore, the city shall not use one-time funds or budget residual funds in a way that creates new ongoing expenditure requirements unless it can be demonstrated that adequate alternative resources exist to support the new ongoing expenditure requirements.

(c) One-time funds and budget residual funds identified throughout each budget cycle shall only be used to fund the following city needs, as directed by the City Council at a public meeting. The City Council retains the discretion of how to allocate these funds between the categories listed below:

(1) Annual recommended contributions.

(2) Infrastructure backlog.

(3) Unfunded post-employment benefits.

(4) Special or one-time, nonrecurring expenditure needs of the city, consistent with City Council defined priorities.

(5) Strengthening the city’s general fund reserves.

(Ord. No. 14-4, § 3; Ord. No. 15-1, § 4; Ord. No. 20-6, § 2 (Exh. A); Ord. No. 21-4, § 2 (Exh. A))