05-20-08 Item 1919
I ORDINANCE NO.
2
3 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
4 THE CITY OF SOUTH MIAMI, FLORIDA, CREATING SECTION
5 2 -47 ENTITLED "EMERGENCY RESERVES FUND," OF
6 ARTICLE V OF THE CITY'S CODE OF ORDINANCES,
7 ADOPTING A CASH MANAGEMENT POLICY THAT REQUIRES
8 NO LESS THAN 10% OF THE BUDGET TO BE MAINTAINED AT
9 ALL TIMES BY THE CITY AS EMERGENCY RESERVES FUND
10 TO BE USED SOLELY FOR CATASTROPHES OR OTHER
11 UNSCHEDULED EMERGENCIES; PROVIDING FOR
12 CODIFICATION; AND PROVIDING FOR SEVERABILITY,
13 ORDINANCE IN CONFLICT, AND AN EFFECTIVE DATE.
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15 WHEREAS, When the City's Comprehensive Financial Report was issued for
16 FY 1994/95, the Auditors, Sharpton, Brunson & Company recommended the creation of
17 a Contingency Reserves Fund to be funded from the cash carryover balance in the
18 General Fund; and
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20 WHEREAS, it is believed that the aforesaid new construction and additions to
21 existing single family residences are only the beginning of a trend that could increase as
22 older single family residences in the City are sold for demolition or reconstruction; and
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24 WHEREAS, at that time, City Administration -reviewed the Auditor's
25 recommendation and considered it to be feasible and beneficial to the City's financial
26 stability; and
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28 WHEREAS, the Contingency Reserves Fund was created by resolution with a
29 balance of $1,000,000.00 to be maintained at all times and adopted a policy that would
30 restrict the use of this fund to catastrophes and other unscheduled emergencies; and
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32 WHEREAS, on September 2 °a, 2001 the City Commission changed the policy to
33 provide for a Contingency Reserves Fund of no less than 10% of the budget; and
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35 WHEREAS, the Mayor and City Commission desire to adopt the policy as an
36 ordinance to be codified and hereby referred to as "Emergency Reserve Fund."
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38 WHEREAS, Section 2 -47 entitled "Emergency Reserve Fund" under Article V
39 of the City's Code of Ordinances is being created.
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41 NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
42 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA:
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44 SECTION 1. The foregoing "WHEREAS" clauses are hereby ratified and
45 confirmed as being true and correct and are hereby made a specific part of this Ordinance
46 upon adoption hereof.
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SECTION 2. That a Cash. Management Policy is hereby adopted by ordinance,
to be codified to provide for a reserves fund balance of no less than 10% of the budget,
and hereby to be referred to as "Emergency Reserves Fund."
SECTION 3. Use of the Emergency Reserves Fund shall be by a majority vote of
the City Commission for catastrophes and other unscheduled emergencies.
hereof.
SECTION 4. This ordinance shall be effective immediately after the adoption
PASSED AND ADOPTED
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
this day of , 2008
APPROVED:
MAYOR
Commission Vote:
Mayor Feliu
Vice Mayor Beasley:
Commissioner Wiscombe:
Commissioner Palmer:
Commissioner Beckman:
WAMy Documents\resolutions \Ordinance Emergency Reserve Fund.becicman.doc
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