CHAPTER 12.
FINANCE.

Article 1. In General.

§ 12-1.    Consolidation of offices of auditor, collector and treasurer.

§ 12-2.    Powers and duties of city treasurer.

Article 2. Funds.

Division 1. Special Gas Tax Street Improvement Fund.

§ 12-3.    Established.

§ 12-4.    Accumulation of funds.

§ 12-5.    Expenditures.

Division 2. Library Trust Fund.

§ 12-6.    Established.

§ 12-7.    Accumulation of money.

§ 12-8.    Expenditures.

Division 3. Scholze Park Trust Fund and Scholze Children’s Playground Trust Fund.

§ 12-9.    Established; purpose.

§ 12-10.    Accumulation and deposit of money.

§ 12-11.    Use of funds.

§ 12-12.    Investment of assets. (Ord 3394; 10/07)

Division 4. Mary Jacks Thomas Trust Fund.

§ 12-13.    Established.

§ 12-14.    Accumulation, investment and use of money.

§ 12-15.    Approval of expenditures.

Division 5. Visitor Promotion Fund.

§ 12-16.    Established; accumulation of funds.

§ 12-17.    Disposition and use of funds.

Article 3. Responsible Banking. (Ord. 3526, 10/15)

§ 12-18.    Purpose.

§ 12-19.    Definitions.

§ 12-20.    Applicable financial institutions.

§ 12-21.    Responsible banking.

§ 12-22.    Evaluation method.

§ 12-23.    Public participation/disclosure.

ARTICLE 1.
IN GENERAL.

Sec. 12-1. Consolidation of offices of auditor, collector and treasurer.

Pursuant to Section 5.3 of the Charter of the City, the City Council hereby finds and determines that it is in the best interest of the City to combine in one person the offices of auditor, collector and treasurer, and does so combine such offices. The person serving in the office of Finance Director is hereby appointed and shall have all the powers and duties assigns to the offices of auditor, collector and treasurer as set forth in the Charter. The Finance Director shall serve as such Charter officers without additional compensation.

Sec. 12-2. Powers and duties of City Treasurer.

The Finance Director, in his capacity as City Treasurer, shall have the following powers and duties:

(a)    To receive and safely keep all money of the City deposited with him in connection with any business thereof, for all of which he shall give duplicate receipts, one of which shall be filed forthwith with the City Auditor. Before any money is accepted or received by him on account of any indebtedness due the City, he shall receive a certificate from the City Auditor specifying the amount thereof to be paid.

(b)    To pay out all money, except the principal and interest due on the bonds of the City, including improvement bonds thereof, on warrants signed by the proper officers and not otherwise. He shall pay out all money for the principal and interest due on bonds of the City, including improvement bonds thereof, by check countersigned by the City Auditor, and all other payments, transfers or withdrawals of City money except as otherwise set forth in this Chapter, shall be by check signed by the Treasurer and countersigned by the Auditor.

(c)    To make monthly statements showing the receipts and disbursements for each month, except during the months of September, December, March and June, at which time he shall make quarterly statements showing the receipts and disbursements for each quarter ending September 30, December 31, March 31 and June 30 respectively. Such statements shall show in detail the condition of each fund required to be set apart by the Treasurer and one copy of each such statement shall be filed with the City Clerk and one delivered to the City Manager within ten days after the date each such statement is due. The Finance Director shall make quarterly settlements with the City Auditor.

(d)    Before entering upon his/her duties, to take the oath of office provided for in the Constitution of the state and either (i) file an official bond in the amount to be set from time to time by the City Manager for the faithful performance of his/her duties, payable to the City or (ii) be covered by a public employee dishonesty/crime policy of insurance with limits as established by the City Manager. Such bond or insurance shall be to the satisfaction of the City Manager. The premium of such bond or insurance shall be paid by the City. The bond or proof insurance shall be filed with the City Clerk. (Ord. 3535 § 2, 2016; Ord. 3472 § 6, 2012)

ARTICLE 2.
FUNDS.

DIVISION 1.

SPECIAL GAS TAX STREET IMPROVEMENT FUND.

Sec. 12-3. Established.

To comply with the provisions of Article 5, Chapter 1, Division I of the Streets and Highways Code of the State of California, with particular reference to the amendments made thereto by Chapter 642, Statutes of 1935, there is hereby established in the City treasury a special fund to be known as the “Special Gas Tax Street Improvement Fund.”

Sec. 12-4. Accumulation of funds.

All money received by the City from the state under the provision of the Streets and Highways code of the state for the acquisition of real property or interests therein for, or the construction, maintenance or improvement of, streets or highways other than state highways, shall be paid into the Special Gas Tax Street Improvement Fund.

Sec. 12-5. Expenditures.

All money in the Special Gas Tax Street Improvement Fund shall be expended exclusively for the purposes authorized by, and subject to all of the provisions of, Article 5, Chapter 1, Division I, of the Streets and Highways Code of the state.

DIVISION 2.

LIBRARY TRUST FUND.

Sec. 12-6. Established.

A fund designated the “Library Trust Fund” is hereby established.

Sec. 12-7. Accumulation of money.

All gifts and bequests received for the use of the library, and all miscellaneous revenues, except fines, of the library shall be placed in the Library Trust Fund.

Sec. 12-8. Expenditures.

Expenditures from the Library Trust Fund shall be for such library purposes as are requested by the Board of Library Trustees and as are in conformity with the conditions of any gifts or bequests.

DIVISION 3.

SCHOLZE PARK TRUST FUND AND SCHOLZE CHILDREN’S PLAYGROUND TRUST FUND.

Sec. 12-9. Established; purpose.

There are hereby established two trust funds, the “Scholze Park Trust Fund,” which is to be used for improving and maintaining parks owned by the City within the City, and the “Scholze Children’s Playground Trust Fund,” which shall be used for building, equipping and maintaining children’s playgrounds within the City.

Sec. 12-10. Accumulation and deposit of money.

All stocks, bonds, cash and personal property received by the City from the Scholze Estate shall be divided equally between the two trust funds established in this Division and the income from each trust fund shall be deposited in the trust fund earning the same.

Sec. 12-11. Use of funds.

The income from the trust funds established in this Division shall be budgeted each year for the purposes set out in Section 12-9 and none of the capital of such trust funds shall be expended.

Sec. 12-12. Investment of assets. (Ord 3394; 10/07)

The Finance Director shall retain the corpus presently held in the trust funds established in this Division and invest or re-invest any money available for investment in such trust funds only in securities allowed by the City’s Investment Policy.

DIVISION 4.

MARY JACKS THOMAS TRUST FUND.

Sec. 12-13. Established.

There is hereby established a trust fund to be known as the “Mary Jacks Thomas Trust Fund.”

Sec. 12-14. Accumulation, investment and use of money.

All money received from the trust created under the last will and testament of Mary Jacks Thomas shall be deposited in the Mary Jacks Thomas Trust Fund and the City Finance Director shall place such funds in such depositories, or invest such funds in such securities as are approved by the laws of the state.

The money in the Mary Jacks Thomas Trust Fund shall be used for the purpose of creating or improving a park or recreation center or constructing or maintaining a public building in the City.

Sec. 12-15. Approval of expenditures.

The City Council shall approve all expenditures from the Mary Jacks Thomas Trust Fund for purposes set out in the last will and testament of Mary Jacks Thomas. Prior to the expenditure of any money from such trust fund, the expenditure shall have the prior approval of a committee composed of the then presiding Judge of the Superior Court of the County, the Chairman of the Planning Commission, and President of the Monterey History and Art Association and the corporate trustee.

DIVISION 5.

VISITOR PROMOTION FUND.

Sec. 12-16. Established; accumulation of funds.

There is hereby established a fund to be known as the “Visitor Promotion Fund.” All money collected pursuant to the transient occupancy tax regulations of the City shall be deposited in such fund.

Sec. 12-17. Disposition and use of funds.

All money in the Visitor Promotion fund shall be spent in accordance with laws or ordinances regulating the expenditure of other general fund revenues.

ARTICLE 3.
RESPONSIBLE BANKING. (Ord. 3526, 10/15)

Sec. 12-18. Purpose.

The purpose of the responsible banking ordinance is to ensure that financial institutions that hold City funds on deposit are responsive to community financial needs, provide services that reflect fair businesses practices, and promote economic growth and community reinvestment within the City of Monterey. Nothing in this article shall limit the authority of the Finance Director/City Treasurer as provided in Section 12-2 or State law. (Ord. 3526 § 3, 2015)

Sec. 12-19. Definitions.

a.    “Affordable” means low- or moderate-income individuals as provided in the CRA.

b.    “Community development” means: (i) affordable housing for low- or moderate-income individuals; (ii) community services targeted to low- or moderate-income individuals; and (iii) activities that promote economic development by financing small businesses.

c.    “CRA” means the Community Reinvestment Act of 1977 (12 U.S.C. Section 2901 et seq.) as may be amended.

d.    “Depository” means a financial institution that is selected by the City Finance Director/City Treasurer and designated to receive deposits of Monterey’s funds.

e.    “Low-income” means individual income that is less than 50% of the area median income, or a median family income that is less than 50% of the area median family income.

f.    “Moderate-income” means an individual income that is at least 50% and less than 80% of the area median income, or a median family income that is at least 50% and less than 80% of the area median family income.

g.    “Predatory lending practices” are practices that are specifically prohibited by State or Federal law, including such practices as: (i) the frequent making of new loans to refinance existing loans; (ii) the selling of additional products without the borrower’s informed consent; and (iii) the charging of excessive fees. (Ord. 3526 § 3, 2015)

Sec. 12-20. Applicable financial institutions.

The provisions of this chapter shall apply to depositories that maintain at least $3 million in City deposits on an annual basis. (Ord. 3526 § 3, 2015)

Sec. 12-21. Responsible banking.

The Finance Director/City Treasurer, in selecting qualified depositories for City moneys, shall:

a.    Include local banks in any request for proposals for depository services.

b.    Require prospective bidders to provide the City with data on their responsible banking practices.

c.    Include in contracts for depository services a statement of work that provides a framework for responsible banking.

d.    Establish relevant reporting criteria and time frames to validate the statement of work.

e.    Incorporate responsible banking bid criteria requiring any bidder to describe current or proposed programs that address the financial needs for the City’s residents and businesses including: community involvement and reinvestment; meeting community banking needs; supporting small business lending and community development; providing for home ownership and consumer credit; assisting distressed homeowners; residential lending including affordable mortgage programs, new construction and rehabilitation lending and investment; and allowing for products and services that are advantageous for the City and its residents.

f.    Include in contracts for depository services that financial institutions shall provide the City with an annual report of their community involvement and reinvestment; meeting community banking needs; supporting small business lending and community development; providing for home ownership and consumer credit; assisting distressed homeowners; residential lending including affordable mortgage programs, new construction and rehabilitation lending and investment; and allowing for products and services that are advantageous for the City and its residents.

g.    Require, as part of that year’s annual data disclosure, that financial institutions shall provide a two-year plan for loans and services. Institutions shall describe how they will match or exceed peer Community Reinvestment Act (CRA) performance.

h.    Include in contracts for depository services that depositories sign an annual affidavit that they have incorporated the terms and conditions of the responsible banking ordinance.

i.    Include in contracts for depository services that the City shall not keep deposits with depositories that have been the subject of a court judgment that they have engaged in predatory lending practices to residents of Monterey County.

j.    Include in contracts for depository services that depositories shall provide 120-day notice to the City for branch closures and shall identify branch location and reason for closure.

k.    Include in contracts for depository services that if the Finance Director/City Treasurer determines that a depository has failed to meet the requirements for reporting and compliance, such depository shall be prohibited from holding City funds. (Ord. 3526 § 3, 2015)

Sec. 12-22. Evaluation method.

The City as part of its evaluation of proposals for depository services shall utilize the following criteria as a component of the overall rating/ranking of proposals: community investment, loan modifications, small business loans, affordable home loans, number of locations of branches and services and services provided at branches. (Ord. 3526 § 3, 2015)

Sec. 12-23. Public participation/disclosure.

The Finance Department shall make an annual compliance report to the City Council and shall maintain on the City’s website the annual report(s) submitted by depositories. (Ord. 3526 § 3, 2015)