§ 20-361. Capital projects permanent fund.

(a)

Creation. The capital projects permanent fund is created.

(b)

Investments. The investment officer shall manage the investment of the capital projects permanent fund. The chief financial officer or his designee shall perform the duties of the investment officer.

(c)

Standards for investment. The standards for investment of the fund shall be the same as those contained in section 20-403 for investment of other county funds.

(d)

Real value of principal. Beginning in fiscal year 2001, the real value of the principal of the fund shall be computed by multiplying the principal at the end of the previous fiscal year by the sum of 100 percent, plus the percentage by which the implicit price deflator for the gross domestic product for state and local governments, published by the United States Department of Commerce for the most recent calendar year exceeds the implicit price deflator for the year preceding the most recent calendar year. If the implicit price deflator is no longer published, a similar index shall be used.

(e)

Designated fund balance for income stabilization. A portion of the capital projects permanent fund shall be designated for income stabilization and shall not be considered to be part of the principal of the fund. The purpose of this designated fund balance for income stabilization is to provide short-term annual stability to the amounts available for principal maintenance and for distributions. The initial transfer into the capital projects permanent fund to create the designated fund balance for income stabilization shall be an amount equal to ten percent of the principal of the fund as of June 30, 2000. Additions to and uses of the designated fund balance shall be made as provided in subsection (h) of this section. When the designated fund balance for income stabilization equals the sum of the amount of the initial transfer plus ten percent of the current principal of the fund, then the amount of the initial transfer shall be transferred to the capital improvement projects fund.

(f)

Distributions. Distributions shall be made from the capital projects permanent fund to the capital improvement projects fund to pay for capital projects as defined in this subsection. Unless otherwise limited by the provisions of subsection (h) of this section, the amount to be distributed shall be computed as follows:

(1)

In fiscal year 2001, the amount shall be equal to the amount budgeted for transfer from the capital projects permanent fund to the expenditure fund for capital projects in the fiscal year 2001 adopted budget.

(2)

In fiscal years 2002 through 2005, the amount shall be equal to 105 percent of the prior fiscal year's distribution.

(3)

In fiscal year 2006 and thereafter, the amount shall be equal to 4.7 percent of the average of the calendar yearend market values of the capital projects permanent fund for the immediately preceding five calendar years.

(g)

Distribution expenditure. The distributions shall be expended solely to pay all or part of the cost of any capital project having a minimum aggregate cost of one percent of the total general fund operating budget for the year in which the project is approved by the council. Minimum aggregate cost means the amount of money projected to be needed for the completion of a capital project which involves a single principal functional purpose at a common, contiguous or discrete location.  As used in this subsection, the term "capital project" means:

(1)

Constructing, purchasing, furnishing, equipping, rehabilitating, making additions to or making improvements to one or more public buildings or purchasing or improving their sites or grounds including, but not necessarily limited to, acquiring and improving parking and storage lots, or any combination of the foregoing;

(2)

Constructing, acquiring or improving municipal or public parking lots, structures or facilities, or any combination of the foregoing;

(3)

Constructing, acquiring, extending, enlarging, bettering or otherwise improving storm sewers, drainage facilities and erosion control facilities including, but not necessarily limited to, the acquisition of rights-of-way, or any combination of the foregoing;

(4)

Reconstructing existing alleys, streets, roads or bridges, or laying off, opening, constructing or otherwise acquiring new alleys, streets, roads, bridges, or traffic-control facilities including, but not necessarily limited to, the acquisition of rights-of-way, or any combination of the foregoing, but shall not include major street maintenance; and

(5)

Acquiring, constructing, purchasing, equipping, furnishing, making additions to, renovating, rehabilitating, beautifying or otherwise improving public parks, public recreational or cultural buildings or facilities or purchasing or improving their sites or grounds, or any combination of the foregoing.

As used in this subsection, the term "public building" shall include, but is not necessarily limited to, fire stations, criminal justice facilities, libraries, museums, auditoriums, convention halls, hospitals, buildings for administrative officers, city halls and garages for housing, repairing and maintaining county vehicles and equipment, but shall exclude utility facilities.

(h)

Priority of the uses of income and the designated fund balance for income stabilization.

(1)

Income from investment of the capital projects permanent fund shall be used in the following order of priority:

a.

First, to make additions to the principal in an amount which maintains the real value of the principal; and then, if any income remains;

b.

Second, to make distributions for capital projects in accordance with subsection (g) of this section; and then, if any income remains;

c.

Third, to make additions to the designated fund balance for income stabilization.

(2)

If the investment income in each fiscal year is less than the sum of the amounts needed to maintain the real value of the principal and to make distributions for capital projects, then the designated fund balance for income stabilization shall be reduced and used in the following order of priority:

a.

First, to make additions to the principal in an amount that maintains the real value of the principal; and then, the extent that any designated fund balance remains;

b.

Second, to make distributions for capital projects in accordance with subsection (g) of this section.

(3)

If the total of the investment income plus the designated fund balance is less than the amount needed to maintain the real value of the principal, then the county council shall adopt a plan under which the amount of the principal shall be equal to the real value by no later than the end of three fiscal years.

(i)

Additions to principal from the general fund. Additions may be made to the principal of the capital projects permanent fund from the general fund to the extent that unexpended and unencumbered general fund balances, exclusive of budgeted reserves, exceed ten percent of the general fund operating budget for the year in which the addition to the capital projects permanent fund is to be made. No addition to the capital projects permanent fund from the general fund shall be made which would cause the total aggregate appropriations and contributions to the capital projects permanent fund to exceed ten times the general fund operating budget for the most recently completed fiscal year.

(Ord. No. 85-45, § 1, 1986; Ord. No. 85-72, § 1, 1988; Ord. No. 85-196, § 1, 1994; Code 1985, § 2.98.010; Ord. No. 85-285, § 1, 10-3-2000; Ord. No. 02-067, § 2, 5-24-2005)