HomeMy WebLinkAbout19793 - RESOLUTIONS - 5/17/2000 RESOLUTION NO. 19793
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, FURTHER DEFINING ITS POLICIES FOR THE USE
OF THE WASTEWATER TREATMENT PLANT FUND.
WHEREAS Resolution No. 9279 established the Wastewater Treatment Plant Fund and provides
broad use categories for eligible expenditures from the fund; and
WHEREAS State law has been amended to integrate comprehensive provisions regulating facility
fee programs; and
WHEREAS Proposition 218, as passed by State of California voters in November 1996, provides
that fees (1) should not exceed the funds required to provide the service, (2) shall not be used for
purposes other than that for which they were imposed, (3) shall not exceed the proportional cost
of the service attributable to the parcel, (4)shall not be charged unless the service is available, (5)
may not be charged for general governmental services; and
WHEREAS the Palm Springs voters reemphasized principles of Proposition 218 when they passed
proposition "U" in November of 1999, which prohibited the sale or lease of the Wastewater Plant
to a private entity and enacted restrictions on fees similar to Proposition 218; and
WHEREAS with the adoption of Measure "U" in November of 1999, the voters amended the City
Charter to prohibit loans from the Wastewater Treatment Plant Fund; and
WHEREAS the City Council has expressed a desire to further define its policies on how the
Wastewater Treatment Plant Fund is to be utilized,
NOW THEREFORE BE IT RESOLVED that in addition to complying with Resolution No. 9279, the
Wastewater Treatment Plant Fund shall be administered in accordance with the following:
Section 1. General. The following general policies shall apply to the Fund:
a. The Wastewater Treatment Plant is an Enterprise Fund of the City of Palm Springs
to account for the income, expenses, collections, and assets of the Wastewater
Treatment Plant operations and capital investments.
b. The Wastewater Treatment Plant Fund shall be used for the annual appropriations
of funds for Wastewater Treatment Plant operations and wastewater collection
services.
C. The Wastewater Treatment Plant Fund may be utilized for annual equipment and
small capital project needs, less than $50,000 per project, of the wastewater plant
or collection system or large capital needs as specified herein.
d. The Fund may be utilized to reimburse any Capital Facility Charges invoiced by the
City's Operations & Maintenance contractor.
e. The minimum fund balance goal for the Fund shall be $2.2 million for unforseen
emergencies or regulatory mandates.
R19793
Resolution for WWTP Fund Policies
May 17, 2000
Page Two
f. The Fund's balances may be utilized to cover the annual operational swings, in
profits or loss, up to a maximum of $200,000 per year, which will allow for minor
swings in annual profit or loss from operations without requiring a recalculation of
sewer service rates.
g. The Fund may be utilized for capital expansion of the plant and collection system.
Section 2. Collection of Fees and Charges. Fees and charges collected and placed in the
Wastewater Treatment Plant Fund shall comply with the following:
a. They shall not exceed the estimated reasonable cost of providing the service.
b. They shall not be used for any work other than that for which they were collected.
C. They shall not exceed the proportional cost of providing the service.
d. They shall not be imposed unless the service is used by or available to the payee.
e. They shall not be collected for general governmental purposes.
Section 3. Loans from the Fund. The City may not borrow funds from the Wastewater
Treatment Plant Fund forthe use of any department or program of the City not within
the Wastewater Division except in the case of a declared emergency pursuant to the
California Constitution.
Section 4. Establishing the Fee. Any action establishing, increasing or imposing any fees and '
charges shall include:
a. The source, purpose and use of the fee.
b. A determination of the reasonable relationship between the use of the fee and the
method of imposition.
Section 5. Administration of Fund.
a. On the fifth fiscal year following deposit into the Fund and every year thereafter, the
City shall make the following findings with respect to all Funds remaining
unexpended.
1. Identify the source and nature of all funds.
2. Identify the purpose for which the fee is to be put.
3. Demonstrate the reasonable relationship between the fee and the purpose
for which it is charged.
4. Identify all other sources of financing necessary to complete the necessary
improvements.
5. Designate the approximate dates of deposit.
b. The City shall comply with all other provisions of Government Code Sections 66000 '
et. seq as it shall be amended, and as applicable, in the administration of the Fund.
R19793
Resolution for WWTP Fund Policies
May 17, 2000
Page Three
C. Within 180 days following the end of the fiscal year, the Director of Finance shall
make available to the public the following information for the fiscal year:
1. A description of the source, type and amount of any fees.
2. The beginning and ending balance of the Fund and all interest earnings.
3. An identification of an approximate date construction of improvements
funded from the Fund will commence.
4. A description of any other Fund transfers or loans to the Fund with the date
of repayment and interest.
5. Any refunds.
6. The City Council shall review the information made available to the public at
a public meeting not less than 15 days after the information is made
available to the public.
7. Any person may request an audit of the Fund.
ADOPTED this 17th day of May 2000.
AYES: Members Jones, Hodges, Oden, Reller-Spurgin and Mayor Kleindienst
NOES: None
ABSENT:None
ATTTST:-� CITY OF PALM SPRINGS, CALIFORNIA
_ ity Clerk City Manager
REVIEWED &APPROVED AS TO FORM