here - City of Reedley

The City’s financial system utilizes fund accounting. There are over 40 active funds and each fund
should be considered to be a separate and unique “business”. Each fund has a separate accounting
structure for its revenues and expenditures, cash, assets and liabilities. And with only one
exception, that being the General Fund, the revenues and expenditures of these funds are restricted
for the unique purpose of the specific fund.
GENERAL FUND 001
The General Fund is the only discretionary fund that the City maintains. It supports a wide variety
of expenses ranging from public safety to recreational activities. Because of the vast array of uses,
expenditures within the General Fund are broken down into departmental categories. This allows
individual functions, such as Police Administration or Aquatics to maintain expenditure control and
track program costs. The General Fund currently has over 30 different departmental uses. Some
departments, such as the Building department, have the ability to generate revenue (building permit
fees, plan check fees, etc.). Other departments, while still vital to the City’s operation, do not
generate any revenue source, but rather share the General fund’s total revenue.
The three largest and most vital revenue sources for the General Fund are Motor Vehicle License
Fees, Property Taxes and Sales Tax.
As part of the 2004 State budget package, the Legislature adopted a swap of the old Motor Vehicle
License Fees (VLF) backfill revenues to cities and counties for a new allocation of ad valorem
property tax revenue. The legislation included:
• A permanent reduction of the VLF rate from 2% to 0.65%
• The elimination of the $4.4 billion VLF backfill from the state general fund
• The replacement for each city and county in 2004-005 of the lost VLF with a like amount of
property tax
• Subsequent to the fiscal year 2004-05 base year, each city and county’s property tax in lieu
of VLF, or “VLF Adjustment Amount” is increased or decreased annually in proportion to the
growth in gross assessed valuation in that jurisdiction.
The City of Reedley now receives two large VLF In Lieu payments from Fresno County. This
payment is commonly referred to as the “Triple Flip” payment. Monthly payments for VLF from the
State of California have been discontinued in order to fund State front line law enforcement
program, such as the City’s COPS Fund 075.
Property Taxes are the 1% annual tax paid by property owners within our city limits. This total 1%
tax is split up and shared among many taxing jurisdictions, including the City of Reedley, Fresno
County, Fresno County Library, Fresno County Fire Protection District, Consolidated Mosquito
Abatement District, State Center Community College District, Kings Canyon Unified School District
and Fresno County Schools. Prior to the inception of the Redevelopment Agency (when all assessed
valuations were “frozen”), the City received approximately 16% of the total property tax revenue
collected within Reedley’s city limits. Redevelopment law allowed for only a 2% annual growth
amount for the areas within the redevelopment boundary, and pass-thru tax increment was based
upon individual agreements with the other taxing jurisdictions. For areas within city limits, but
outside of the redevelopment boundary, property tax revenue allotments have been based upon the
Master Tax Sharing agreement between the City and County.
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CITY OF REEDLEY
ADOPTED BUDGET 2013-2014