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HomeMy WebLinkAboutO-80-11ORDINANCE NO o-ff0-// Ordains: AN ORDINANCE CREATING ARTICLE II OF CHAPTER 2 OF CODE OF ORDINANCES OF THE CITY OF SEBASTIAN; ESTABLISHING A DEPARTMENT OF FINANCE; CALLING FOR APPOINTMENT OF DIRECTOR OF FINANCE; SETTING QUALIFICATIONS; REQUIRING SURETY BOND; ESTABLISHING DUTIES AND POWERS; SETTING STANDARDS FOR INVESTMENT FUNDS; PROVIDING AN EFFECTIVE DATE The Council of the City of Sebastian, Florida, hereby SECTION I. That Article II of the Code of Ordinances of the City of Sebastian, Florida, is hereby created to read as follows: ARTICLE II. DEPARTMENT OF FINANCE Sec. 2-10. Department of Finance Created. There shall be a department of finance, the head of which shall be the director of finance, who shall be appointed by the Mayor, and shall be subject to the con- firmation of the City Council. Sec. 2-11. Director of Finance -Qualifications and Salary. The Director of Finance shall have knowledge of municipal accounting and taxation and shall have had experience in budgeting and financial control. The Director shall receive an annual salary to be fixed by the City Council. Sec. 2-12. Director of Finance Surety Bond Required. (a) The Director of Finance of the city shall post a bond payable to the city in the penal sum of $25,000.00, conditional for the faithful performance of all his duties as director of finance and the accounting; safe- keeping and delivery unto the city of all money or property coming into his hands belonging to the city, with surety of a surety company authorized to transact business in the state. (b) Ail bonds provided for herein shall be presented to and be subject to the approval of the City Council° The premium for all bonds provided herein shall be paid by the city. Sec. 2-13. Director of Finance Powers and Duties. The director of finance shall have charge of the administration of the financial affairs of the city and to that end he shall be the city treasurer and shall have authority and shall be required to: (a) Compile the current expense estimates for the budget for the Mayor, and the City Council. (b) Compile the capital estimates for the budget for the Mayor, and the City Council° (c) Supervise and be responsible for the disbursement of all moneys and have control over all expenditures to ensure that budget appropriations are not exceeded. (d) Maintain a general accounting system for the city government and each of its offices~ departments and agencies; keep books for and exercise financial budgetary control over each office, department and agency; keep separate accounts for the items of appropriation contained in the city budget, each of which accounts shall show the amount of the appropriation, the amounts paid therefrom, the unpaid obligations against it and the unencumbered balance; require reports of receipts and disbursements from each receiving and spending agency of the city government to be made daily or at such intervals as he may deem expedient~ (e) Submit to the council through the Mayor a monthly statement of all receipts and disbursements from each receiving and spending agency of the city government to be made daily or at such intervals as he may deem expedient. -2- (e) Submit to the council through the Mayor a monthly statement of all receipts and disbursements in sufficient detail to show the exact financial condition of the city. (f) Prepare for the Mayor and the City Council, within sixty (60) days of the end of each fiscal year, a complete financial statement and report. (g) Supervise ~hd be responsible for the assessment of all special assessments for the city government, and give such notice of special assessments as may be required by law. (h) Collect all special assessments, license fees and other revenue of the city for whose collection the city is responsible and receive all money receivable by the city from the state or federal government, or from any court, or from any office, department or agency of the city. (i) Have custody of all public funds belonging to or under the control of the city, or any office, department or agency of the city government, and deposit all funds coming into his hands in such depositories as may be designated by resolution of the council, or, if no such resolution be adopted, by the Mayor, subject to the requirements of law as to surety and the payment of interest on deposits, but all such interest shall be the property of the city and shall be accounted for and credited to the proper account. (j) Have custody of all investments and invested funds of the city government, or in possession of such government in a fiduciary capacity, and haVe the safekeeping of all bonds and notes of the city and the receipt and delivery of city bonds and notes for transfer, registration or exchange. (k) Supervise and maintain proper procedures for the purchase of all supplies, materials, equipment and other articles used by any office, department or~.agency of the city government, in cooperation with other department heads. (1) Approve all proposed expenditures; unless he shall certify that there is an unencumbered balance of appropriation and available funds~ no appropriation shall be encumbered and no expenditure shall be made. (m) Keep a list of outstanding city bonds and revenue certificates, to whom issued, for what purpose and when and where payable and the rate of interest such obligations respectively bear and recommend to the city council, through the Mayor, such action from time to time as will insure punctual payment of principal and interest of such bonds. (n) issue all warrants for the payment of money by the city and countersign the same. Sec. 2-.-14. Director of Finance Report of Invested Funds. The Director of Finance shall submit a report (or reports) on all invested funds to the Mayor and members of the City Council periodically, as shall be specified from time to time by the City Counc~.l. The report(s) shall give a complete list of all invested funds, indicating the financial institution or name of the securities in which the funds are invested, description, amount invested, maturity date and amount (if any) current value, and interest or dividend yield. The report(s) shall indicate any action necessary during the next report period concerning any portion of the portfolio. Sec. 2~15. Classes and Types of Investments. A. There Shall be Two Classes of Investments: 1o Regular funds consisting of all funds in any general or special account or fund of a unit of the city which in reasonable contemplation will not be immediately needed for the purposes intended. 2.. Trust funds consisting of those funds, determined by resolution, in a special account or fund or are surplus funds which in reasonable contemplation will not be immediately needed for the purposes intended. B. There are two types of investment funds: 1. New money funds which have been newly acquired by the city. 2. Old money funds which have been invested originally according to provisions of this Section and which require reinvestment. Sec. 2-16. Selection of Investment Regular Funds A. Selection of investment of Regular Funds shall be made by the Director of Finance, subject to the following conditions. 1. New money shall be invested with the financial institution having an established place of business within the city which offers the highest percentage yield for the amount and time offered, provided, however, if an additional one-half of one percent or greater percentage yield thereon can be obtained from a financial institution outside the city limits, new money may be invested outside the city limits. 2. Old money shall be invested with the financial institution holding the fund subject to reinvestment unless a yield of an addiitoan one~.half of one percent or higher can be obtained from another financial institutioni The same local investment restriction as specified for new money shall apply to reinvestment of old money. B. Security for Regular Funds Investments shall be required as follows: 1. The security to be given by such financial institutions as may be designated under Subsection (A) above, shall consist of direct obligations of the United States, bonds or certificates of the several states, county and municipal bonds or certificates~ and county or district school time warrants issued by any of the counties, school districts, or cities of the state, or by any of the state -5- agencies, department or commissions authorized to issue bonds or certificates, or issued by authorities created by the state legislature. Such bonds or certificates may be general obligations of the issuing authority or they may be secured by utility revenues, or other revenues, or by excise taxes, or they may be secured by a limited ad valorem tax; provided, however, that none of the foregoing bonds or certificates shall be accepted as security for the funds herein mentioned unless they shall have qualities pertinent to bank investment; and provided further, that except as to direct obligations of the United States or funds the payment of whose principal and interest is guaranteed by the United States or federal certificates of indebtedness, or state, county, or muni- cipal general ob ligation bonds, the bonds or certificates herein mentioned shall be rated in one of the highest four classifications by established nationally recognized investment rating services. 2. In lieu of the actual depositing of said securities, the Director of Finance may accept a safekeeping receipt issued by any federal reserve bank or member bank thereof, or by any bank incorporated under the laws of the United States. The Director shall maintain a list of all security placed in city deposits and shall periodically audit such list of securities for each financial institution maintain- ing a deposit of city funds to confirm and validate the safe- keeping of the securities pledged to the city of Sebastian. 3. The Director of Finance may accept a telegram from an approved bank for a period not to exceed four (4) working days pending the actual receipt of a safe- keeping receipt, provided the telegram authorizes and empowers the approved bank having actual physical possession of the said securities to surrender, release or deliver the same or any part thereof only to the Director of Finance upon the sole written direction and authorization of the bank issuing the telegram to the Director of Finance. Co Disposition of Earnings ~ Regular Funds Ail regular funds which in reasonable con- templation will not be immediately needed by the city for purposes intended are to be placed in a pool investment account. Funds from the pool investment account are then to be in- vested in accordance with the procedure prescribed in Sec. 2-16, paragraphs A and B. At the end of each fiscal year an average cash balance available for investment, through the pool investment account, shall be computed for each respective fund° The total amount of interest earned that year shall be prorated to each contributing fund in accordance with the average yearly balance that was available for investment in the pool investment account. Sec. 2-17. Selection of Investment - Trust Funds A. Selection of investment of Trust Funds shall be made by resolution of the Council, upon the recommendation of the Director of Finance and the Mayor. B. Such funds may be deposited in the Local Government Surplus Funds Trust Fund, as created by Part IV of Chapter 218, Florida Statutes (1979) as may from time to time be revised or amended, or shall invest moneys in the Trust Fund with that degree of judgment and care, under the circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their affairs, not for speculation, but for investment, considering the probably safety of their capital as well as the probably income to be derived. Such investments shall in all respects comply with state law regulating the investment of local government funds. SECTION This Ordinance shall take effect immediately upon final passage. I HEREBY CERTIFY that the foregoing ordinance was finally passed by the City Council on the [~ ~ day of ~ , 1980. CITY OF SEBASTIAN Pat Pl6od, Jrt., Mayor ATTEST: z~ity C~erk - ~ · I HEREBY CERTIFY that Notice of Public Hearing of the foregoing ordinance was given in accordance with Chapter 166,041 of the Florida Statutes on ~ 7 1980, at 7:30 p. m., and that the foregoing ordinance was duly passed and adopted by the City Council of the City of Sebastian, Florida, on the /1~ day of ~ 1980. Cfty ¢le~ ' -8-