Chapter 3.02
BUDGETING, ACCOUNTING AND FISCAL PROCEDURES

Sections:

3.02.010    General premise of budgeting and accounting system.

3.02.020    Fiscal year.

3.02.030    Budget.

3.02.040    Capital improvement plan.

3.02.050    Public financial documents and reports.

3.02.060    Fund structure.

3.02.070    Interest earnings allocation.

3.02.080    Special assessment fund procedures.

3.02.090    Fixed asset replacement policy and requirements.

3.02.100    Inviolate use of special funds.

3.02.110    Method of payment of demands.

3.02.120    Depositories and method of payment.

3.02.130    Accounting records.

3.02.140    Certifications and records.

3.02.150    Petty cash accounts.

3.02.160    Audit of city accounts.

3.02.170    Claims against the city.

3.02.180    Actions against the city.

3.02.190    Security required of depositories.

3.02.200    Assumption of treasurer’s duties.

3.02.010 General premise of budgeting and accounting system.

The city budgeting and accounting system shall be an integrated budgeting and financial management system based on the principles of double entry self-balancing accounts, and under the supervision of the finance director.

A.    Generally accepted accounting principles shall be followed and adhered to, and appropriate controls shall be installed, implemented and maintained for all city and agency financial records, thereby assuring maximum protection of the city’s moneys, assets and resources, and the integrity of the accounting, cash management, budgeting and reporting system comprising the integrated financial management and reporting system as required by the City Charter.

B.    The annual budget, annual comprehensive financial and administrative report, and all other reports of the finance department except those prepared to the specifications of granting agencies shall be prepared with the informational needs of the public and the city council in mind, as well as meeting the requirements of generally accepted accounting principles, audit standards and the reporting requirements of other governments.

C.    Quarterly budgetary status reports shall be prepared and provided to the city manager, department heads and city council by the finance director, such that those persons might maintain the integrity of and accountability for the city’s financial resources, accomplish city council established policies and programs, and utilize such data for management purposes. (Ord. 685 § 3 (part), 1990)

3.02.020 Fiscal year.

The fiscal year for the city shall begin on July 1st and end on June 30th. All budgets, financial plans, financial and management reports, and audits shall correspond with the fiscal year. (Ord. 685 § 3 (part), 1990)

3.02.030 Budget.

An annual budget shall be prepared by the city manager, with the assistance of the finance director. The budget for the ensuing fiscal year shall be presented to the city council on or before the first working day of the last month of each fiscal year.

A.    The budget shall consist of the following, which shall comprise a complete budget document:

1.    A budget message by the city manager, which message shall provide an explanation of the budget, both in fiscal terms and in terms of the work programs proposed to be funded by the budget. The message shall outline the proposed financial policies of the city for the ensuing fiscal year, describe the important features of the budget, indicate any major changes from the current year in financial policies, expenditures, revenues or financial position, together with the reasons for such changes;

2.    A summarization of the city’s debt position;

3.    A complete financial plan for the fiscal year for all city funds, agencies and activities, in such form as the city manager shall deem desirable to provide the information desired by the city council, except for trust funds;

4.    A clear general summary of the contents of the budget;

5.    A summary of all estimated revenues of all funds and agencies, including carryover fund balances and reserves;

6.    All proposed expenditures, including debt service, for the ensuing fiscal year;

7.    Sufficient summaries to provide a comprehensive and consolidated view of the city’s financial plan;

8.    A section providing a statement of proposed goals and objectives and appropriations for current operations during the ensuing year, detailed for each fund by organization unit, and program, purpose or activity, and the method of financing each such proposed appropriation;

9.    A section providing comparative amounts for actual and estimated income and expenditures for the current fiscal year and actual income and expenditures for the preceding fiscal year;

10.    A section providing capital expenditures proposed to be made during the ensuing fiscal year, detailed for each fund by organization unit when practicable, and the proposed method of financing each such capital expenditures;

11.    A section detailing anticipated income, expense, profit, loss and reserves, and the purpose of such reserves, for each utility and enterprise fund separate agency of the city;

12.    Such other material as the city manager and finance director shall deem desirable to explain the comprehensive annual financial plan for all city funds, agencies and activities.

B.    Each such department, division, program or activity budget shall contain within it such detail as the city manager shall determine necessary and appropriate to provide the city council with adequate policy data and the department heads and program managers with proper management information, but minimally shall contain with each such budget recommended appropriations for the following categories:

1.    Personnel services;

2.    Services and supplies;

3.    Capital outlay/improvements.

C.    The budget shall establish the number of authorized positions to be filled by employees, the number of hours for which part-time or seasonal employees may be hired, and the dollar amount of overtime which may be utilized by the employees of any budgetary program.

D.    The city manager may transfer authorized positions between departments, divisions or programs, but not between funds, provided:

1.    The total appropriation for the fund within which the position transfers are made is not exceeded;

2.    Any new salary involved for any position so transferred is at the same or a lower level and dollar amount than the present or prior incumbent; and,

3.    That moneys to cover the necessary appropriation is transferred in accordance with the requirements and procedures of this section.

E.    Each fund may contain a general contingency appropriation, and such additional subsidiary contingency accounts within the several departmental accounts as the city manager shall recommend and the city council shall deem appropriate.

F.    The total of expenditures proposed as the budget for each fund shall not exceed the total of estimated revenues, plus the carried forward balance, exclusive of reserves, for each fund.

G.    The city council shall adopt the annual budget by resolution by fund and program by affirmative vote of at least 3 members, on or before the last working day of the last month of the current fiscal year. If the city council fails to adopt the budget by the last day of the current fiscal year, the budget as proposed by the city manager shall be deemed adopted.

H.    The city council may make supplemental appropriations during the course of the fiscal year provided that the city manager certifies that moneys are available. All such supplemental appropriations shall be made for the fiscal year by resolution, up to the amount of any excess moneys certified by the city manager as being available.

I.    Emergency appropriations may be made by the city council provided:

1.    A statement accompanies the appropriation, which statement declares the reason for declaring the emergency;

2.    The stated emergency is related to a public threat to the life, health, public welfare, property or peace of the general public;

3.    A source of funding is declared as a part of each such appropriation;

4.    Each of the statements and the appropriation is approved by at least a four-fifths vote of the city council.

J.    Appropriations made in any budget, or any component thereof, may be reduced by the city manager or the city council at any time during any fiscal year provided:

1.    It appears probable that the revenues or fund balances available to fund any portion of the budget will be insufficient to finance the expenditures for which appropriations have been authorized;

2.    The city manager reports any such reduced appropriation which he/she shall make to the next meeting of the city council, indicating the estimated amount of the deficit, remedial actions taken, and recommendations to the city council as to any other steps which should be taken by either of the city manager or the city council.

K.    The city manager may transfer appropriations between departments and divisions, and programs and accounts within departments and divisions within the budget, provided:

1.    All such transfers shall be reported in the aggregate to the city council by the city manager at least quarterly;

2.    The appropriation for any department, division, program, activity or account shall not be exceeded by any transfer unless a similar reduction is made in another account, or a transfer made from a contingency appropriation or account;

L.    Only the city council, by resolution, may transfer appropriations between funds and from unappropriated balances, contingency appropriations or accounts, or fund balances to any fund or appropriation account, or increase the total budget of any fund.

M.    All appropriations, except for capital projects involving capital replacements and capital additions, shall lapse at the end of the fiscal year to the extent that such appropriation has not been expended or encumbered, except:

1.    All capital project appropriations shall continue in force until expended, revised or repealed by action of the city council;

2.    All capital project appropriations shall be deemed to be abandoned if 3 years pass without disbursement from or encumbrance against the appropriation.

N.    The annual budget shall be adopted only after being the subject of a public hearing before the city council. Ten days’ posted notice shall be provided for the hearing. (Ord. 685 § 3 (part), 1990)

3.02.040 Capital improvement plan.

A capital improvement plan and budget shall be prepared and presented, or updated and presented by the city manager to the city council annually.

A.    The capital improvement plan and budget shall encompass 5 or more years, as determined by the city manager, and shall include:

1.    A general summary of its contents;

2.    Appropriate supporting information as to the necessity for each proposed project or acquisition;

3.    Cost estimates and recommended time schedules for each project, improvement or capital expenditure;

4.    The proposed method of financing for each proposed capital project, whether replacement or addition;

5.    The estimated annual cost of operating and maintaining any facility to be constructed or acquired.

B.    The capital improvement plan and budget shall be adopted only after being subjected to a public hearing before the city council. Ten days’ posted notice shall be provided for such public hearing.

C.    The capital improvement plan and budget shall be adopted by the city council by resolution on or before the beginning of the first fiscal year covered by the plan and budget.

D.    Since the city does not have a capital improvement plan, a period of 1 year will be allowed for implementation. (Ord. 685 § 3 (part), 1990)

3.02.050 Public financial documents and reports.

Each of the annual budget, the capital improvement plan and budget, and the comprehensive annual financial and administrative report shall be public documents and filed with the city council as required in this chapter and by the City Charter.

A.    Copies of each of the documents listed in this section, and all appropriate summarizing documents, shall be made available to the public for inspection and review.

B.    Within 30 days after the end of each quarter during the fiscal year, and more often if required by the city council, the city manager shall submit to the city council a financial and management report showing the relation between budgeted and actual revenues and appropriations, expenditures and encumbrances to date for all city funds, departments, offices and agencies, and summarizing all budgetary transfers. (Ord. 685 § 3 (part), 1990)

3.02.060 Fund structure.

The finance director shall prepare the annual budget, maintain the accounting system, and make all required financial reports reflecting the transactions of the following funds, which shall conform to the Governmental Accounting Standards Board, and which funds shall contain the moneys, assets and report the transactions of the funds created hereby, as follows:

A.    Governmental Funds.

1.    The general fund will account for all financial resources except those required to be accounted for in another fund.

2.    Special revenue funds will account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are legally restricted to expenditure for specified purposes.

3.    Capital projects funds will account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds)

4.    Debt service funds will account for the accumulation of resources for and the payment of general long- term debt principal and interest.

B.    Proprietary Funds.

1.    Enterprise funds will account for operations:

a.    That are financed and operated in a manner similar to business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or

b.    Where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.

2.    Internal service funds will account for the financing of goods or services provided by 1 department or agency to other departments or agencies of the governmental unit, or to other governmental units, on a cost-reimbursement basis.

C.    Fiduciary Funds.

1.    Trust and agency funds will account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or funds. These include:

a.    Expendable trust funds;

b.    Nonexpendable trust funds;

c.    Pension trust funds; and

d.    Agency funds.

D.    Account Groups.

1.    General fixed assets account group will account for fixed assets other than those accounted for in the proprietary funds or trust funds;

2.    General long-term debt account group will account for all unmatured general long-term liabilities for which the city is obligated in some manner except for proprietary funds and trust funds of which the long-term liabilities will be accounted for in these funds.

The finance director may create subsidiary revenue and expenditure accounts or subfunds within the fund to segregate specific accounts, as he may deem to be appropriate or necessary. (Ord. 685 § 3 (part), 1990)

3.02.070 Interest earnings allocation.

All interest earned on investment of city moneys shall be allocated to the various funds and subfunds in proportion to the contribution made by each fund or subfund to the moneys which were invested, based on computations made and applied by the finance department. (Ord. 685 § 3 (part), 1990)

3.02.080 Special assessment fund procedures.

In addition to the special assessment projects or districts established and accounted for under all applicable state laws, the city council may by ordinance establish assessment projects or programs and require accounting therefor through special funds and/or accounts within the funds structure. Any and all assessments shall be spread among benefitted properties in accordance with council policy, with applicable state law and as interpreted by judicial decision, and within the City Charter, ordinances and council policy.

A.    All assessment projects and programs authorized by the Charter and by state law are authorized to be proceeded on and under by the city council on its order, following applicable procedural steps, determinations and notifications.

B.    The finance director is directed to maintain such accounts as are appropriate, and records necessary to provide a full fiscal accounting to the council and to benefitted and assessed property owners. (Ord. 685 § 3 (part), 1990)

3.02.090 Fixed asset replacement policy and requirements.

It is the policy of the city council that insofar as is possible the city services listed in this section shall be operated on a businesslike basis.

A.    The city manager and finance director are directed to establish each of an emergency reserve account, and a fixed asset replacement account in each fund enumerated in this section and, for those listed in subsections B and C of this section, to assure that the amounts set out in this section are held in such accounts and utilized only for the purposes set out herein.

B.    It is the policy of the city council that the utility and enterprise services of the city listed in this subsection shall be operated with adequate reserves to meet emergencies and to replace the depreciable fixed assets of the utility system or enterprise as they wear out or in reasonable anticipation of their failure:

1.    Water fund;

2.    Sewer fund;

3.    Transit fund;

4.    Solid waste fund;

5.    Golf enterprise fund;

6.    Storm drainage fund.

C.    It is the policy of the city council that the internal service funds of the city listed in this subsection shall be operated with adequate reserves to meet emergencies and to replace the depreciable fixed assets of the internal service fund as they wear out or in reasonable anticipation of their failure:

1.    Building fund;

2.    Equipment fund;

3.    Computer fund;

4.    Microfilming fund.

D.    It is the policy of the city council that insofar as is possible and as expeditiously as is possible, the following city funds listed in this subsection shall have adequate reserves to meet emergencies and to replace depreciable fixed assets as they wear out or in reasonable anticipation of their failure:

1.    General fund;

2.    Historic district fund;

3.    Lighting and landscape district fund.

E.    Each fund enumerated in subsections B and C of this section shall be credited quarterly with the calculated amount of moneys generated from the revenues of the utility, enterprise or internal service fund which represents a fixed asset charge calculated to be adequate to replace perpetually the depreciable fixed assets of the utility, enterprise or internal service fund.

1.    Such amounts shall be estimated annually as part of the annual budget process, contained in and enumerated by the budget, credited to a fixed asset replacement account in each such fund, and appropriated from such anticipated estimated revenues.

2.    Such moneys as are accumulated in each such fixed asset replacement account within each such fund shall be expended only for the specific purposes of the fund and account, unless the requirements of Section 3.02.100 are met.

F.    Each fund enumerated in subsection B of this section shall retain an amount equal to 5 percent of the estimated current replacement value of the depreciable fixed assets of the fund as an emergency reserve account within each such fund.

1.    The emergency reserve account within each fund shall be fully funded before moneys may be expended for projects, pursuant to subsection E2 of this section.

a.    Moneys may be expended from any emergency reserve account only by a four-fifths vote of the city council.

b.    Every such appropriation from any emergency reserve account shall enumerate the nature of the emergency, make the appropriation, and notify the public of the nature of and situation engendering the emergency.

G.    The city manager annually shall cause an updating of the fixed asset value for each city utility, enterprise and internal service fund as listed in subsections B and C of this section, calculate the amount necessary to provide adequate cash flow to the funds enumerated in subsections B and C of this section from rates, and make a written report and rate recommendation to the city council, which rate recommendation shall provide to the city council the rate structure necessary to meet all of the following:

1.    All elements of costs as set out in Chapter 3.50 of this code, including fixed asset replacement costs;

2.    Those utilities and enterprises listed in subsection B of this section additionally shall contribute:

a.    One percent of the fixed asset replacement value of the utility or enterprise to the general fund;

b.    A fee in amount of 2 percent of the gross billings of the utility or enterprise to the general fund;

c.    Such fees to begin July 1, 1991. (Ord. 685 § 3 (part), 1990)

3.02.100 Inviolate use of special funds.

The use of moneys designated by law or by council ordinance as assets of any special fund as established by this chapter shall remain inviolate for the purpose for which they were created unless the city council shall by ordinance adopted by a four-fifths vote of the city council, after the holding of a public hearing, designate otherwise.

A.    Any unexpended and unencumbered balance remaining in any special fund created hereby after the purpose for which the special fund was created has been accomplished shall be transferred by the city council to the general fund or to the most appropriate other special fund.

B.    Prior to the discontinuance of any special fund, and the transfer of moneys, the city council shall hold a public hearing on such proposed action. (Ord. 685 § 3 (part), 1990)

3.02.110 Method of payment of demands.

The finance director shall be the disbursing officer of the city. The city clerk shall provide the finance director with a copy of each ordinance, resolution or council action pertaining to the fiscal affairs of the city. The finance director shall not approve the payment of any bill or demand on the city until the following conditions are met:

A.    He/she is satisfied both as to the fund and account to be charged and as to the legality of the payment requested;

B.    That sufficient moneys are available for payment of the bill or demand in the fund to be charged;

C.    That an appropriation has been made by the city council or an appropriate, legal budgetary transfer made;

D.    That such other conditions are met as the city council may by ordinance, resolution, contract or agreement have provided, or as may be required by the City Charter or state law;

E.    That a contract, purchase order, or other valid written disbursement document denoting an obligation requiring payment has been entered into or approved by a city official who has authority to so do;

F.    That a receiving report for supplies, a certified payroll for employee payments, a certification for services provided, or a signed general disbursement claim authorization is a part of the documentation supporting such disbursement. (Ord. 685 § 3 (part), 1990)

3.02.120 Depositories and method of payment.

All payments of bills and demands made on the city which are approved pursuant to Section 3.02.100 shall be paid by city check drawn on a checking account held in a depository bank approved by the city council by resolution, which process shall comply with all provisions of this section.

A.    The city shall have not more than 2 major consolidated checking accounts, 1 for general purposes and 1 for payroll checks. This does not include money held by fiscal agents.

B.    All moneys received by the city shall be deposited in 1 consolidated account in such bank as the city council shall designate by resolution, and city investments shall be made from that account.

C.    Transfers between bank accounts may be made by the finance director as may be necessary to meet demands on the city, but only by check or appropriate electronic transfer made payable to the “City of Folsom Only,” pursuant to requirements of this section.

D.    All electronic fund transfers shall be authorized by the finance director and 1 other city officer which the city council shall designate by resolution.

E.    All checks shall be signed with 2 signatures, both of which may be by facsimile signature plate, with each such plate retained in the custody of 2 persons, and at all times prior to and after use signed out and in by those 2 persons.

1.    Neither of the 2 persons having custody over 1 plate shall under any circumstances have access to the other plate;

2.    Each of the persons involved in the check writing and electronic transfer procedure, and the finance director, shall be covered by an individual surety bond in amount set by the city council;

3.    The city council shall by resolution designate which 2 city officers shall have their signatures affixed to city checks and be authorized to make electronic fund transfers, but, in the discretion of the city council, may designate an alternate third officer whose signature and electronic fund transfer authorization will be valid only as an alternate to the signature and authorization of 1 of the 2 primary designees.

F.    The finance director shall establish and enforce procedures to assure the integrity of revenue receipt, accounting therefor, review and approval of disbursements, the writing of checks, and the custody of moneys and other city assets. (Ord. 685 § 3 (part), 1990)

3.02.130 Accounting records.

The finance director shall maintain accounting records for each fund showing the cash and unencumbered balances of each fund, and such records as are sufficient to show each demand issued and disbursement made and the appropriation account, program and fund against which each such payment is made.

A.    Each disbursement shall be recorded as to date, payee, number, amount, fund and account charged therefor.

B.    The bank account on which the check is drawn. (Ord. 685 § 3 (part), 1990)

3.02.140 Certifications and records.

The finance director shall review each purchase order, contract or other document which financially obligates the city prior to the issuance of such document and certify that moneys are available and an appropriation has been made by the city council adequate to meet the proposed obligation, or provide a statement as to the expected source of payment, prior to entering into any such obligation.

A.    The finance director is charged with custody of and responsibility for all books of account, papers, records, computer programs and data sources, electronic storage media, accounting documents and documentation, and all financial records of the city pertaining in any respect to any and all fiscal transactions of the city.

B.    The finance director shall assure that all revenues received and disbursements made are fully documented and recorded pursuant to the requirements of this chapter and such other requirements as he/she shall establish to assure the validity and integrity of the utilization of city moneys and assets. (Ord. 685 § 3 (part), 1990)

3.02.150 Petty cash accounts.

The finance director is authorized to establish and control petty cash and change accounts pursuant to the requirements set out in this chapter, no 1 of which shall exceed $1,000.

A.    The finance director shall establish in writing such petty cash and change accounts as he may determine to be necessary.

B.    The finance director shall establish, require and audit documentation for replacement of moneys in such accounts.

C.    The finance director shall in writing designate the person or persons responsible for maintenance of the integrity and records of each such petty cash and change account as is established. (Ord. 685 § 3 (part), 1990)

3.02.160 Audit of city accounts.

The city council shall provide for an independent annual audit of all city accounts, financial transactions and documents, and may provide for more frequent, more specialized, or special audits as it may determine in its discretion to be necessary to assure the integrity of city moneys, assets, accounts and records.

A.    All such audits shall be made by a certified public accountant firm experienced in the audit of California cities.

B.    The audit firm shall have no personal interest, either direct or indirect, in the fiscal affairs of the city government or any of its officers, and may not provide services to the city other than audit services.

C.    The city council shall, through a request for qualifications and proposal process as set out in the city purchasing ordinance, select and designate such audit firm annually, or for a period not exceeding 3 years, at the discretion of the city council.

D.    Such selection process and designation to perform the annual audit for any particular fiscal year shall be completed not later than 30 days before the beginning of the fiscal year for which the audit is to be performed.

E.    The annual audit shall be comprehensive of all departments and agencies, and shall include a written evaluation of the city budgeting and accounting system as to compliance with generally accepted accounting principles and modern practices for an integrated and computerized city financial management system utilizing all possible modern accounting and control techniques and procedures.

F.    The annual audit and written evaluation report shall be submitted to the city council at a regular meeting, shall be open to public inspection in the office of the city clerk, and shall be acted on by the finance director as appropriate and necessary to assure full compliance with generally accepted accounting principles, the City Charter, state law, and this code. (Ord. 685 § 3 (part), 1990)

3.02.170 Claims against the city.

Claims against the city for damage alleged to have been incurred by persons and corporations shall be filed with the city clerk on a form provided by the city clerk to the claimant.

A.    The form shall contain all pertinent information and must be completed by the claimant prior to being considered for processing, including whether the claim is for bodily injury, property damage, personal injury or material damage.

B.    Claims shall be processed pursuant to state law and the procedures under joint powers insurance agreements and claims processing requirements of agreements entered into by the city.

C.    Claims shall be filed with the city clerk within 6 months of the incident or event for which the claim is made.

D.    Claims shall be rejected or processed for appropriate payment pursuant to procedures established by the city’s insurance coverage process and pursuant to state law.

E.    Claims against a city employee shall be reviewed by the city personnel office as part of the processing of the claim.

F.    The city manager is authorized to enter into agreements with insurance carriers, adjustors, or the city’s joint powers self-insurance agency to review, process, advise on, negotiate with claimants on behalf of the city, and to settle claims on behalf of the city.

G.    Claims of less than $20,000 may be approved for payment by the city manager. Claims which are recommended to be paid, which involve in excess of $20,000, shall be referred to the city council for approval. Such claims may be reviewed in closed session on recommendation of the city attorney, pursuant to the State Open Meeting Law and Procedures. (Ord. 951 § 3, 2002; Ord. 685 § 3 (part), 1990)

3.02.180 Actions against the city.

All legal actions naming the city or any of its officers, employees or agencies as defendant shall be filed with the city clerk and immediately referred to the city attorney for appropriate response to protect the interests of the city. (Ord. 685 § 3 (part), 1990)

3.02.190 Security required of depositories.

City moneys may be deposited only in a depository designated by the city council, which depository shall be a state or national bank, state or federal savings association, or state or federal credit union headquartered within the state.

A.    Deposits maintained by the city in any depository shall not exceed the amount of the paid up capital and surplus of the depository institution.

B.    All active and inactive city deposits held by the depository institution must be secured by the deposit of government securities as authorized by state law and approved by the finance director having a current market value of 110 percent of the total amount of the deposits, pledged to the city by the depository institution.

C.    The finance director at his/her discretion may waive security for that portion of a deposit which is insured by federal insurance.

D.    Prior to the designation of a depository institution by the city council, each such institution desiring to be considered as a city depository shall submit the following documents and meet the following requirements, which information shall be evaluated by the finance director, who shall make a recommendation to the city council as to the institution which he feels is best suited to be a city depository:

1.    The financial institution shall:

a.    Have been in business for a minimum of 3 years,

b.    Have assets of at least $50,000,000,

c.    Have a net worth to liability ratio of at least 3.5 to 1,

d.    Have a ratio of brokered to direct deposits of less than 50 percent,

2.    Audited financial statements covering the past fiscal years;

3.    An unaudited but certified financial statement for the most recently completed quarter;

4.    A favorable reserve for loan losses, generally with an improving ratio;

5.    Sufficient capital to meet all federal insurance and regulatory requirements and standards;

6.    A qualified rating service may be used in lieu of financial statements.

E.    All city investments shall comply with all City Charter and city ordinance requirements.

F.    Local financial institutions, or California institutions with branches in the city shall be given preference, provided that all requirements of this section are met. (Ord. 685 § 3 (part), 1990)

3.02.200 Assumption of treasurer’s duties.

The duties assigned in this chapter to the finance director, which by law are to be exercised by the city treasurer, shall not be assumed by the finance director until the end of the term of the office of the present city treasurer, or until the office is otherwise vacated. (Ord. 685 § 6, 1990)