Section VIII.C: Accounts Receivable
Purpose: To provide an outline for the development of financial management practices and the establishment of internal controls over the collection of revenues owed to the City for services, fees, and other local charges.
Policy: It is the responsibility of the Revenue Collection Division to comply with and enforce the following collection policies:
1. All accounts receivable invoices shall be due and payable within 30 days of the day of invoice.
2. A penalty of 10% of the unpaid invoice amount shall be added to any invoices when the full payment is not received by the 60th day from the date of invoice and an additional 1% per month on the unpaid invoice amount shall be imposed upon any invoice when the full payment is not received by the 90th day from the date of invoice.
3. Penalties provisions may be waived by the Director of Finance or City Council, in their opinion, circumstances warrant such a waiver.
4. Department and Revenue staff will pursue the timely collection of delinquent accounts.
Procedure:
Revenue is responsible for:
1. Preparing and mailing all invoices for amounts owed to the City, including maintaining all relevant supporting data.
2. Recording all financial data in the general ledger prior to the close of each month of business activity.
3. Maintaining accurate sub-ledger details on all receivable items, inclusive of invoice supporting documentation, aging and collection performance reports and activities summary reports.
4. Maintaining customer account information including name, address and any signature between the City and customer such as complaints, late payments, etc.
5. Managing collection efforts, including preparation and distribution of aging reports to the Director of Finance, Community Development, Parks & Recreation, Police Department and City Clerk.
Finance Department
Policy and Procedures
Updated 2023
6. Pursuing collection activities for accounts sixty (60) days delinquent including 1st and 2nd delinquency notices. Turning accounts over to collection for the next 180 days. If still unpaid after 180 days, accounts are written off.
It is the responsibility of the respective Department rendering a particular service or commodity to cooperate with Revenue by providing the necessary information and supporting documentation including all required approvals and account revenues to be utilized to facilitate the generation of invoices and the recording of accounts receivable.
Write-offs for Uncollectible Accounts
On a monthly basis, when an amount remains unpaid without payment activity for 240 days, in specific instances, installment and payment arrangements may be made with the approval of the Director of Finance. The proposed write-off shall be prepared by the Finance Manager monthly, approved by the Director of Finance and distributed to the City Manager and Department Heads.
Amounts previously written off as uncollectible and subsequently collected shall be credited to the appropriate enterprise fund or to the General Fund Miscellaneous Revenue.
Finance Department
Policy and Procedures
Updated 2023
Section VIII.D: Electronic Fund Transfers
Purpose: To provide a procedure for ensuring the timely and consistent recording of expenditures and revenues which occur initially as an electronic funds transfer (EFT), also referred to as automated clearing house (ACH) or “wire”, to or from the City’s bank accounts
Policy: EFTs relating to revenues are to be recorded with a cash receipt and be dated the day of bank credit.
Procedure: EFTs are occurring on a more frequent basis and are representing a substantial outflow and inflow of City funds. In order to ensure that these important financial transactions are recorded on a consistent basis, the following procedure should be followed:
Incoming EFTs
EFTs are routinely received as revenues for investment interest, grants, State taxes and fees. Upon receipt of the EFT, a cash receipt shall be prepared to record the proceeds and book into proper revenue or trust accounts. Incoming EFTs shall be included on the daily revenue collection reports on the date received. Departments are responsible for informing the Finance Department when incoming revenue is being processed and provide the correct documentation for recording purposes. A copy of the remittance advice must be attached to the incoming wire notification form.
Finance Department
Policy and Procedures
Updated 2023
Section VIII.E: Insufficient Funds, Closed Accounts and Stopped Payments Purpose: To establish procedures and internal controls for the handling of checks with insufficient funds paid to the City.
Policy: The City makes every possible attempt to collect monies due resulting from returned checks. A non-sufficient funds fee shall be imposed on all checks with. Refer to the most current Master List Fee for further details.
Procedure:
1. The bank returns all checks to the City with an accompanying statement as a result of non-sufficient funds due to a closed account or stop payment.
2. The accountant prepares a journal entry and/or a payment reversal to back off the returned checks.
3. Once the replacement check with the fee is received, it gets recorded as an NSF transaction. The penalty amount will be recorded in the miscellaneous revenue account.
4. If the Department cannot resolve the returned item and the service has been provided by the City, the Department should forward the returned check with a request for the Finance Department to initiation collection procedures.
Finance Department
Policy and Procedures
Updated 2023
Section VIII.F: Water Account Setup
Purpose: To establish a policy for the proper establishment of water accounts Policy: Water accounts will not be opened in the name of residential tenants. Property owners must file an application and provide a deposit as a prerequisite for establishing water service. The property owner shall assume responsibility for payment of all water and sewer fees.
Procedure: Persons or firms wishing to establish water service must complete a utility account application and pay a utility deposit.
The City of Huntington Park shall require a deposit prior to the start of the new water service account. Deposit rates can be found in the Master List Fee.
The deposit will be refunded at the closing of the account. If there is a balance due it will be taken from the deposit.
Finance Department
Policy and Procedures
Updated 2023
Section VIII.G: Water Rates
Purpose: To establish the policy and procedures for modifying water consumption charges
Policy: The City of Huntington Park Municipal Code establishes that water consumption charges by means of City Council Resolution.
Resolution 96-38 requires that water consumption rates be adjusted annually based upon the Consumer Price Index charges.
Water Rates can be found in the most current Master List Fee.
Finance Department
Policy and Procedures
Updated 2023
Section VIII.H: Billing Frequency
Purpose: To establish a criteria for the frequency of utility billing Policy: Utility billing frequency shall be as follows:
1. All Residential Customers Bi-Monthly
2. Typical Commercial Customers Bi-Monthly
3. High Consumption Commercial Customers Bi-Monthly
For brand new commercial customers, the City’s water operations contractor shall determine whether the new business is considered a high-volume water consumer for the purpose of water billing frequency.
Procedure: Water accounts shall be reviewed at least quarterly for the purposes of determining billing frequency.
Finance Department
Policy and Procedures
Updated 2023
Section VIII.I: Delinquency Reporting
Purpose: To ensure internal control through the reporting of delinquent accounts and timely collection of money owed to the City of Huntington Park Policy: The Revenue Collection Division, on a monthly basis, shall provide a summary report to the Director of Finance indicating for each applicable revenue source the total number of delinquent accounts and the dollar amount of the delinquent accounts.
Revenue sources to be reported shall include but not necessarily limited to the following:
1. Water Accounts
2. Sewer Accounts
3. Business Licenses
The reports shall indicate variance from the previous reporting period.
A detailed listing of delinquent accounts shall be prepared and provided to the Director of Finance each July for the 12-month period that ended June 30th.
Finance Department
Policy and Procedures
Updated 2023
Section VIII.J: Sewer Fees
Purpose: To establish a procedure for the efficient collection of sewer maintenance fees Policy: The City Council, pursuant to Section 6-4.19 of the Huntington Park Municipal Code, levies fees for the maintenance of City owned sewers and storm drains. Sewer Fees can be found in the most current Master List Fee.
Procedure: For City water customers, the amount is added to the water bill. For residents and businesses who are not City water customers, the consumption factor is obtained from the respective water surveyor. A separate bill is prepared and mailed to those firms and/or individuals.
Sewer fees collected are required to be placed in the Sewer Maintenance Fund (Fund 283).
Finance Department
Policy and Procedures
Updated 2023
Section VIII.K: Solid Waste Fees
Purpose: To establish a procedure for the efficient collection of solid waste administration fees
Policy: The City Council pursuant to Title 6 Chapter 7 of the Huntington Park Municipal Code authorizes the collection of a Solid Waste Administrative charge. This charge is to reimburse the City for its expenses in administrating the Recycling and Hazardous Waste elements of the City’s General Plan.
Procedure: Each parcel of property in the City is charged a fee, which is a percentage of the trash bill. For residential properties, commercial and multi-family residents, the fees are collected by the solid waste company on a monthly basis.
Fees are adjusted annually based upon April’s Consumer Price Index as published by the U.S Department of Labor.
Finance Department
Policy and Procedures
Updated 2023
Section VIII.L: Late Fees and Penalties
Purpose: To establish a policy concerning penalties for delinquent payment. Late fees and penalties provide an incentive for timely payment of funds to the City Policy: The late fees and penalties are based on the most current Master List Fee.
Water Account – Single Family Residential
Delinquency fees plus penalties are included in water charge penalties.
Finance Department
Policy and Procedures
Updated 2023
Section VIII.M: Utility User’s Tax
Purpose: To describe the authority for and develop procedures toward the efficient collection of the City’s Utility User’s Tax
Policy: Several years ago, the voters of Huntington Park approved the imposition of a Utility Users Tax. The rules of which are contained in Title 3 Chapter 9 of the Huntington Park Municipal Code.
Chapter 9 establishes a 9.25% Utility Users Tax for telephone (including wireless) usage, a 9.75% on electric use, a 9.75% gas usage, and 9.75% for water usage.
Procedure: The tax must be calculated and collected by the seller company and remitted to the City no later than the 19th day of the month following the month of collection. The tax remittance must be accompanied by a written statement showing the calculation of tax collected.
The following are exempted from the tax:
1. State, Federal, County, School District
2. Head of Household Receiving Supplemental Social Security Income.
Finance Department
Policy and Procedures
Updated 2023
Section VIII.N: Transient Occupancy Taxes
Purpose: To provide for the effective collection transient occupancy taxes Policy: Title 3 Chapter 8 of the Huntington Park Municipal Code provides for the levy of transient occupancy tax.
More specifically, Section 3-8.03 of the Huntington Park Municipal Code establishes a 5% tax rate and requires the hotel or motel operators to collect the tax from every transient guest of the facility.
Procedure: Each operator is required to submit a transient tax return by the last day of each month for the prior month.
Failure to submit the required form and collected taxed will subject to operator to penalty and interest charges announced in Section VIIIK of this manual.
Finance Department
Policy and Procedures
Updated 2023
Section VIII.O: Senior and Disabled Citizens Discount
Purpose: To establish a procedure and policy to provide discounts to senior citizens sixty-two (62) years of age and disabled citizens
Policy: Senior citizens of 62 years or older will receive discounts on animal pet licenses of twenty-five percent (25%).
Procedure: The City Council has granted a discount for Senior Citizens and/or Disabled individuals for fees and charges. At the time of applying, seniors must provide a valid picture identification to show proof of age. Proof of residency is verified through a utility bill other than a water bill. Disabled citizens must provide supporting documentation, such as a doctor’s note to qualify.
The following criteria shall be used:
1. Senior Citizens: Individuals 62 years of age or older.
2. Disabled Citizen: Individuals with a physical or mental disability.
Finance Department
Policy and Procedures
Updated 2023
IX. Budget
Finance Department
Policy and Procedures
Updated 2023
Section IX.A: Budget Adoption
Purpose: To provide administrative and accounting control of the City’s finances Policy: The City Council and the Successor Agency to the Community Development Commission of the City of Huntington Park (Successor Agency) shall adopt annual operating budgets prior to the beginning of each fiscal year, or as soon thereafter, as practicable, in accordance with the following procedures.
Procedure:
1. The annual City budget shall be adopted by resolution of the City Council and shall include the General Fund, all Special Revenue Funds, Enterprise Funds and Capital Improvement Funds. The City budget shall also contain the Successor Agency budget, which shall, separately, be adopted by the Successor Agency.
2. Any and all unexpended appropriations in the City or Successor Agency budgets lapse at the end of each fiscal year and do not rollover to the following fiscal year.
3. New requested current fiscal year appropriations should be sufficient to cover open encumbrances as of the beginning of the fiscal year and include the current year’s proposed work plan expenditures.
4. Budget control is at the fund level.
5. City Council approval is required to increase or decrease total appropriations to a fund after the annual budget is adopted.
6. The City Manager and designees shall have the authority to adjust department, program and activity and object level budgets within City Council approved appropriations for a fund.
Finance Department
Policy and Procedures
Updated 2023
Section IX.B: Annual Budget
Purpose: To provide administrative and accounting control of the City and Successor Agency annual budgets
Policy: The City Manager shall submit an annual budget to the City Council each year for its consideration and approval.
All budget requests shall be made through and with the approval of the City Manager.
The City Manager may delegate coordination of the budget process to the Finance Director or such other City employee as he or she may deem appropriate.
Procedure:
1. The City Manager or designate shall develop and distribute a budget development and adoption schedule each January for the upcoming fiscal year. Said schedule shall be reported the City Council.
2. In addition to the budget adoption schedule, the City Manager or designate will prepare and distribute to the various departments a budget package consisting of instruction and forms.
Finance Department
Policy and Procedures
Updated 2023
Section IX.C: Budget Amendments
Purpose: To provide administrative and accounting control of the City's and Successor Agency’s annual budgets
Policy: Amendments to the budget following adoption shall be discouraged and, if possible limited, to the Mid-Year Budget Review process. However, budget amendments may occur at any time when recommended by the City Manager and approved by the City Council.
A budget amendment is any change that affects the City Council approved total of appropriations for a fund, both increases and decreases in total fund appropriations. A budget transfer may be approved by the City Manager when there is no net impact to the City Council approved total of appropriations for a fund. Budget control is at the fund level.
Procedure:
1. When events occur that require a budget amendment, approval of the amendment must be obtained prior to the encumbrance or expenditure of funds. Department directors are responsible for controlling their department budgets.
2. Budget amendments are required when revenue significantly exceeds budget estimates, including unanticipated grants, and their allocation to expenditure is deemed desirable.
3. When unanticipated expenses would cause a fund’s expenditure to exceed total appropriations, a department director in consultation with the Director of Finance will identify the specific resources to be used to pay for the increased expenditures.
The department director will draft a staff report for review by the Director of Finance in order to recommend the budget amendment to the City Manager and City Council for approval.
4. At mid-year, the Director of Finance will review the entirety of the City’s financial status in relation to the adopted budget. Department heads will identify line items within their budgets that should be increased/decreased to maintain a balanced budget for the year.
5. Annually in February, the Director of Finance will submit a mid-year financial status report, including requested amendments, to the City Council for approval. Once approved by the City Council, amendments will be entered into the City's accounting and budgetary system.
Finance Department
Policy and Procedures
Updated 2023
Section IX.D: Annual Appropriation Limit
Purpose: To establish a procedure to ensure compliance with California Constitution’s requirement to compute the City’s annual appropriation limit Policy: The City shall comply with State requirements.
Procedure:
1. Based upon population and inflation factors provided by the State Department of Finance in or around May of each year, the Director of Finance shall cause the City's annual appropriation limit to be calculated.
2. The annual appropriation limit will be submitted to the City Council at the same time the City's annual budget is submitted for approval.
3. The City’s auditors shall be tasked to review and report on the Appropriation Limit calculations as part of the City’s annual financial audit.
ITEM 5
CITY OF HUNTINGTON PARK
Office of the City Clerk
City Council Agenda Report
Honorable Mayor and Members of the City Council
City of Huntington Park
6550 Miles Avenue
Huntington Park, CA 90255
Dear Mayor and Members of the City Council:
COUNCIL APPOINTMENTS TO VARIOUS COMMISSIONS
IT IS RECOMMENDED THAT CITY COUNCIL:
1. Make appointments to Commissions consistent with provisions set forth in Resolution No. 2025-01.
PURPOSE/JUSTIFICATION OF RECOMMENDED ACTION
On May 18, 2015, the City Council adopted Resolution No. 2015-19 which established a new process for making appointments to various City Commissions. On January 6, 2025 the City Council adopted resolution 2025-01 amending resolution No. 2015-19 to include the newly formed Arts and Theatre Commission.
Individuals appointed to Commissions will be required to submit to a LiveScan and subsequently take an Oath of Office.
FISCAL IMPACT
There is no fiscal impact. Compensation for added Commissioners has been budgeted for FY 2024/25 to account 111-0123-413.19-05.
CONCLUSION
Terms will run concurrent with the Council Member who appoints. After the appointment the City Clerk will notify applicants of their appointments.
January 21, 2025
COUNCIL APPOINTMENT TO CIVIL SERVICE COMMISSION
January 21, 2025
Respectfully submitted,
RICARDO REYES
City Manager
EDUARDO SARMIENTO,
City Clerk
ATTACHMENT(S)
A. Resolution No. 2025-01, Amending list of established commission and revised Rules, Method of Appointment, Guidelines for the Conduct of Meetings and Structure for all Commissions of the city and Repealing all Prior Resolutions or Provisions in Conflict with the Provisions Contained Herein. 1 2
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J
RESOLUTION NO. 2025-01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON PARK AMENDING THE LIST OF ESTABLISHED CITY
COMMISSIONS TO INCLUDE THE ADDITION OF THE ARTS AND
THEATRE COMMISSION
WHEREAS, the City Council has decided to amend all commission resolutions to provide for congruent and consistent regulation and structure across all City Commissions.
THE CITY COUNCIL OF THE CITY OF HUNTINGTON PARK DOES
RESOLVE AS FOLLOWS:
SECTION 1: Establishment of City Commissions.
The City has currently established the following commissions to serve in the capacity as advisory bodies to the City Council:
Planning Commission
Civil Service Commission
Parks and Recreation Commission
Health and Education Commission
Historic Preservation Commission
Youth Commission
This Resolution is intended to govern and supersede all prior resolutions establishing and amending member qualifications, organizational rules, guidelines and structure for City Commissions and hereby repeals all provisions in conflict with the provisions contained herein by the adoption of the revised provisions below. This Resolution will also govern over provisions of City ordinances currently in existence, but which will be repealed or amended for consistency with this Resolution. This Resolution shall also govern and control any additional Commission created by the City Council in addition to those enumerated above.
SECTION 2: Membership.
All City Commissions shall consist of five (5) members, with the exception of the Youth Commission which shall consist of ten (10) youth from the City as defined below. All members of each Commission shall be a resident of the City of Huntington Park, however, at the City Council’s discretion, no more than two (2) Commissioners for any Commission may be non-Huntington Park residents. Each person seeking appointment to a Commission shall complete an application provided by the City and submit to a Live Scan background check before being appointed to a Commission and before being sworn in to office.
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Arts and Theatre Commission
ATTACHMENT "A"
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Karina Macias,
Mayor
ATTEST:
______
Eduardo Sarmiento,
City Clerk
PASSED, APPROVED AND ADOPTED this 6
th day of January 2025.