Chapter 110 - CITY TREASURY

Sec. 108.507. - Representation of City Officials and employees in civil and criminal matters or investigations. Chapter 111 - SPECIAL REVENUE AND TRUST ACCOUNTS Chapter 110 - CITY TREASURY[1]

Footnotes: --- (1) ---

Charter reference— Finance and taxation, Art. 14.

Cross reference— Tax collector, Ch. 40.

State Law reference— County funds, Fla. Const. Art. VIII, § 1(b); service fee for dishonored check, F.S. §§ 125.0105, 166.251; investment of surplus public funds, regulations, F.S. § 125.31; handling of County public money, F.S. §§ 219.01—219.201; Florida Security for Public Deposits Act, F.S. §§ 280.01—280.19.

PART 1. - THE CITY TREASURY

Sec. 110.101. - What comprises City Treasury.

The City Treasury shall consist of:

(a)

Funds which are paid to, deposited with or held by the Tax Collector (except funds collected by the Tax Collector for remittance to the State as State funds), whether such funds are held in the Tax Collector's custody or are on deposit in his name in banks or other depositories.

(b)

Funds which are received by the Treasurer and held in his custody or on deposit in the name of the City in banks or other depositories.

(c)

Funds which are received by and are in the custody of any other person (including collection agents appointed by the Tax Collector under Chapter 40) for payment to or deposit with the Treasurer or the Tax Collector.

(d)

Funds which are in the custody of a person as a petty cash or imprest fund under Section 110.109.

(Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3)

Sec. 110.102. - Responsibility for City funds; receipt for funds paid over to or deposited.

Funds received for the use of the City by persons other than the Treasurer or the Tax Collector are City funds, and are a part of the City Treasury, as soon as such persons receive the funds, regardless of whether the funds are paid over to or deposited with the Treasurer or Tax Collector immediately or not, and such persons shall be liable to the City for the entire amount of the funds so received by them and held in their custody. All persons charged by law with the safekeeping, transfer and disbursement of City funds are required to keep an accurate record of each sum received and of each payment or transfer. Every person who has City funds in his hands or possession shall pay them to the Treasurer or the Tax Collector without delay and in all cases within 30 days of their receipt. When the funds are paid over to or deposited with the Treasurer or Tax Collector, the person so paying over to or depositing the funds shall obtain a receipt therefor and shall keep this receipt in his records as a credit in the amount of the receipt against the amount owed by him to the City.

(Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3)

Sec. 110.103. - Deposit without deduction.

The gross amount of all moneys received from whatever source for the use of the City shall, except as provided by law, be paid by the person receiving the same into the City Treasury, at as early a day as possible, without any abatement or deduction on account of salary, fees, costs, charges, expenses or claim of any description whatever.

(Ord. 83-591-400, § 1)

Sec. 110.104. - Penalty for withholding money.

Every officer, employee or agent of the City who neglects or refuses to comply with the requirement of Sections 110.102 and 110.103 shall be subject to be removed from office, employment or agency and to forfeit to the City any share or part of the moneys withheld to which he might otherwise be entitled.

(Ord. 83-591-400, § 1)

Sec. 110.105. - Payment to City of revenues of JEA.

JEA shall pay over to the Tax Collector, on a monthly basis, such portion of its revenues as the council shall from time to time appropriate pursuant to Section 21.07 of the Charter.

(Ord. 68-99-69, § 1; Ord. 70-650-526; Ord. 71-397-181; Ord. 83-591-400, § 1; Ord. 84-1307-754, § 25; Ord. 86-1305-736, § 3; Ord. 97-229-E, § 15; Ord. 97-1054-E, § 10.04; Ord. 98-254-E, § 3)

Note— Former § 124.107.

Sec. 110.106. - Segregation of funds; description of funds.

(a)

Funds established. All moneys shall be accounted for by the Treasurer within the following funds or fund groups, which funds and fund groups are hereby created and established:

(1)

General Fund-General Services District.

(2)

General Fund-Urban Services District.

(3)

Enterprise Funds.

(4)

Internal Service Funds.

(5)

Special Revenue Funds.

(6)

Streets and Highways Five-Year Road Program Fund.

(7)

Self-Insurance Funds.

(8)

Federal Revenue Sharing Trust Fund.

(9)

General Trust and Agency Funds.

(10)

Capital Projects Funds.

(11)

Debt Service Funds.

(12)

Independent Authorities Funds.

(13)

Special Assessment Funds.

(b)

Description of funds. The source and use of each of these funds shall be as follows:

(1)

The General Fund-General Services District shall consist of all moneys received by the City from every source whatsoever, except as provided in paragraphs (2)—(13). Moneys in the General Fund-General Services District shall be expended pursuant to the budget ordinance and other appropriation ordinances.

(2)

The General Fund-Urban Services District shall consist of moneys received from an ad valorem tax levied on real and personal property in the First Urban Services District, plus the earnings on investments of these moneys and miscellaneous licenses, taxes and penalties specifically applicable to the First Urban Services District. Moneys in the General Fund-Urban Services District shall be expended pursuant to the budget ordinance and other appropriation ordinances.

(3)

The Enterprise Funds shall consist of the revenues earned by the enterprises and utilities operated by the City as proprietary activities, plus the earnings on investments of these revenues, interdepartmental charges billed and collected by these activities and contributions from other funds. Moneys in the Enterprise Funds shall be expended pursuant to the budget ordinance and other appropriation ordinances. The Treasurer is authorized to set up on the books of the Enterprise Funds a retained earnings account for each of the activities included in the Enterprise Funds, and the revenues earned by each activity during each fiscal year which exceed the expenses chargeable to that activity shall, as soon as practicable after the close of each fiscal year, be paid into the retained earnings account for that activity. The retained earnings account shall be available for expenditure, upon appropriation by the Council, for capital improvements to the activity and the purchase of new or replacement equipment or other assets, and to fund projected operating deficits.

(4)

The Internal Service Funds shall consist of the revenues billed and collected as service charges by the Finance and Administration Department and Information Technology Division, Planning and Development Department and Office of General Counsel, except such activities of these agencies as are included in another fund. Moneys in the Internal Service Funds shall be expended pursuant to the budget ordinance and other appropriation ordinances.

(5)

The Special Revenue Funds shall consist of moneys received from the United States and the State as grants, plus contributions from other funds as match money and for other purposes and other revenues applicable to federal and State programs operated by the City. Moneys in the Special Revenue Funds shall be expended pursuant to the appropriation ordinances applicable to the federal and State grants and programs funded from this fund.

(6)

The Streets and Highways Five-Year Road Program Fund shall consist of the surplus gas tax funds received by the City under the provisions of Section 746.408, plus the earnings on investments of these moneys. Moneys in the Streets and Highways Five-Year Road Program Fund shall be expended in accordance with Chapter 746.

(7)

The Self-Insurance Funds shall consist of the amounts billed and collected by the Finance and Administration Department under the provisions of Chapter 128, plus the earnings on investments of these moneys. Moneys in the Self-Insurance Funds shall be expended in accordance with Chapter 128.

(8)

The Federal Revenue Sharing Trust Fund shall consist of all moneys received by the City from any federal revenue sharing act. Moneys in the Federal Revenue Sharing Trust Fund shall be expended pursuant to the budget ordinance and other appropriation ordinances.

(9)

(i)

The General Trust and Agency Funds shall consist of all moneys received by the City as testamentary or inter vivos donations or gifts for specific purposes or uses and not properly includable in the revenues of any other fund, all moneys held by the City for the use or benefit of ascertained or ascertainable payees or beneficiaries, moneys received or intended for deposit in the pension funds, moneys held as trust funds or revolving funds under law or a trust agreement and moneys held in escrow accounts, plus the earnings on investments of these moneys to the extent such provisions are made and contributions from other funds. In the absence of specific provisions with respect to earnings on investments, such earnings will be allocated to the General Fund-General Services District. All moneys in the General Trust and Agency Funds (except earnings on investments of such moneys allocated to the General Fund-General Services District) are hereby appropriated to be expended in accordance with the law or trust agreement under which they were received, subject to the provisions of Chapter 106 and to applicable laws relating to the deposit or expenditure of moneys in the City Treasury.

(ii)

In order to maintain a minimum number of trust funds in the City Treasury, the Director of Finance and Administration may consolidate, if permitted under the terms and conditions of their receipt, any two or more of the trust funds administered by the City; provided, that the Accounting Division shall employ effectively a uniform system of accounts sufficient to preserve the integrity of the trust funds.

(10)

The Capital Projects Funds shall consist of moneys received as proceeds from the sale of bonds and held as funds for the construction, acquisition or improvement of a specific capital improvement project or projects funded by the bond issue. Moneys in the Capital Projects Funds shall be expended pursuant to the applicable bond ordinances and other applicable laws.

(11)

The Debt Service Funds shall consist of all moneys received by appropriation or otherwise and held for the payment of debt service requirements of the various bond issues of the City. Unless otherwise provided by the Council or contained in the bond ordinance, all interest which accrues on bond issues shall only be expended in accordance with and for the same purposes for which the bonds were issued. Moneys in the Debt Service Funds shall be expended pursuant to the various bond ordinances.

(12)

The Independent Authorities Funds shall consist of moneys appropriated for the use of independent agencies and governmental agencies outside the Consolidated Government, in either case when the City is acting as fiscal agent of and performing the accounting for the agency. Moneys in the Independent Authorities Funds shall be expended pursuant to the budget ordinance and other appropriation ordinances, and as provided in the agreement or law establishing the agency relationship.

(13)

The Special Assessment Funds shall consist of moneys received as special assessments on real property for public improvements constructed for the benefit of such real property, plus moneys appropriated for such projects from other City funds. The Street Assessment Revolving Fund established by Section 111.505 shall be accounted for in the Special Assessment Funds. Moneys in the Special Assessment Funds shall be expended pursuant to the applicable ordinances and special assessment resolutions.

(Ord. 82-982-414, § 1; Ord. 83-591-400, § 1; Ord. 97-229-E, § 16; Ord. 2006-422-E, § 126; Ord. 2011-732-E; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Note— Former § 126.325.

Sec. 110.107. - Payment of moneys only on approved vouchers.

Moneys shall be paid by the Treasury Division only on vouchers which have been approved by the Accounting Division. However, the Tax Collector is authorized to furnish a personal check-cashing service for the benefit of City employees who properly identify themselves.

(Ord. 83-591-400, § 1)

Sec. 110.108. - Authorization for drawing check in favor of financial organization for credit to employee's account.

Under rules promulgated by the Director of Finance and Administration, the Treasurer is authorized, upon the written request of an employee to whom a payment for wages or salary is to be made, to make the payment by sending to a financial organization designated by the employee a check that is drawn in favor of the organization and is for credit to the checking account of the employee or is for the deposit of savings or purchase of shares for the employee. If more than one employee to whom a payment is to be made designates the same financial organization, the Treasurer shall make payment by sending to the organization a check that is drawn in favor of the organization for the total amount designated by those employees and by specifying the amount to be credited to the account of each of those employees. Payment by the City in the form of a check drawn in accordance with this Section and properly endorsed, shall constitute a full acquittance for the amount due to the employee requesting the payment. The term financial organization means any bank, savings bank, savings and loan association or similar institution, or a federal or State chartered credit union.

(Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Sec. 110.109. - Imprest and petty cash funds.

Under rules promulgated by the Director of Finance and Administration, the Treasurer may authorize City agencies to establish imprest and petty cash funds, using appropriated funds available to the agency, for the purchase of minor supplies or the payment of incidental fees and charges. The rules shall require that one person employed by the agency, or the head of the agency, shall be the custodian of the imprest or petty cash fund, and that an accurate and timely account be maintained of each fund, with adequate vouchers or other documentation of the expenditures from the account. Each custodian shall be personally responsible for the funds in his hands and for their proper expenditure and accounting. No imprest or petty cash fund shall be used to cash or negotiate the personal checks of any employee or any other person.

(Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Sec. 110.110. - Not to issue evidences of indebtedness.

It is not lawful for the Treasurer, or the Director of Finance and Administration, to issue any treasury certificates, or any other evidences of indebtedness, for any purpose whatsoever, and he is prohibited from issuing the same. Only the Council may authorize the issuance of debt obligations.

(Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Sec. 110.111. - Suits to recover money.

Whenever any person accountable for City funds neglects or refuses to pay into the City Treasury the sum or balance reported to be due to the City, the General Counsel, upon the request of the Director of Finance and Administration, shall institute suit for the recovery of the City funds due, plus interest from the time of receiving the money until it shall be repaid into the City Treasury.

(Ord. 83-591-400, § 1; Ord. 2016-140-E, § 16)

Sec. 110.112. - Advance of City funds; prohibition against.

No advance of City funds shall be made in any case unless authorized by the appropriation concerned or other law. In all cases of contracts for the performance of any service or the delivery of any articles of any description for the use of the City, payment shall not exceed the value of the service rendered or of the articles delivered previously to the payment. It shall be lawful, under the authorization of the Mayor or his designee, to make such advances as may be necessary to the fulfillment of the public engagements.

(Ord. 83-591-400, § 1)

Sec. 110.113. - Applicability when City acting as fiscal agent.

Parts 1 and 2 shall apply in all cases when the City is acting as fiscal agent for an independent agency or governmental agency outside the Consolidated Government, pursuant to law or an agency agreement under Section 106.444. For this purpose, funds held by the City as fiscal agent shall be deemed and considered to be City funds and a part of the City Treasury.

(Ord. 83-591-400, § 1)

PART 2. - CUSTODY AND INVESTMENT OF FUNDS

Sec. 110.201. - Execution of checks and drafts.

(a)

Checks shall be drawn and drafts shall be accepted by the City by the signature of any two of the following three officials: the Mayor, the Director of Finance and Administration, and the Treasurer. On and after May 13, 1970, any check or draft so executed shall be valid and effective, notwithstanding any other provision of law relating to the signing of checks and drafts.

(b)

The signatures required by this Section may be executed by machine facsimile. Any bank, depository or person is authorized to honor such checks and drafts bearing facsimile signatures of the authorized officials.

(Ord. 70-530-180, §§ 1, 2; Ord. 70-650-526; Ord. 71-397-181; Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Note— Former § 124.101.

Sec. 110.202. - Checks payable to City; fee for dishonored instruments.

(a)

All payments of funds to the City made by check or draft shall specify the City of Jacksonville as the payee, not the title of an office, an individual as the holder of an office, or other designation, except that payment of combined governmental utility services bills described in Chapter 40 shall, if made by check or draft, designate the Tax Collector of the City of Jacksonville as the payee.

(b)

A $5 service fee is hereby imposed for the collection of each dishonored check, draft or other order for the payment of money to the City, or its agencies or officials. This service fee shall be in addition to all other penalties imposed by law.

(Ord. 76-259-128, § 1; Ord. 83-591-400, § 1)

Note— Former § 124.102.

Sec. 110.203. - Investment policies and debt management policies; authorized transactions; cooperation with independent agencies; classes and types of investments; investment pool.

(a)

Investment policies and debt management policies. A copy of the City's investment policy and any revisions thereto as described herein and as approved by the City Council ("Investment Policy") and a copy of the City's debt management policies and any revisions thereto as described herein and as approved by City Council each shall be maintained on file in the offices of the City Treasurer, the Legislative Services Division, and the Council Auditor. The investment policy shall require periodic reporting by third parties on the performance of the City's investments.

(b)

Investments.

(1)

When in the judgment of the Director of Finance and Administration, consistent with guidelines approved by the City Council, a sufficient amount of money has accumulated in the accounts or funds of the City or when the City of Jacksonville has accumulated monies by reason of the sale of its own securities, the Director of Finance and Administration may invest the same, at prevailing market yields on behalf of and in the name of the City of Jacksonville, only through the purchase of one or more of the following securities or investment instruments, or any other securities or investment instruments authorized in the City's Investment Policy adopted by City Council; provided, any security or investment instrument purchased must meet the maturity, duration, credit and exposure criteria set forth in the City's Investment Policy:

(i)

Debt obligations issued by the United States Government, or one of its agencies, for which the payment of interest and the repayment of principal are backed by the full faith and credit of the United States.

(ii)

Debt obligations issued and guaranteed by a federally sponsored entity that is backed by, or is permitted to borrow from, the Treasury of the United States.

(iii)

Corporate debt obligations of domestic or foreign corporations, or foreign sovereignties, including, but not limited to, corporate notes and bonds, medium-term notes, Euro-dollar notes and bonds, Yankee notes and bonds, bankers acceptances and commercial paper.

(iv)

Mortgage-backed and Asset-backed securities issued by a federal agency or instrumentality or by a private corporation.

(v)

Bank certificates of deposit in accordance with the provisions of F.S. Chapter 280, as amended from time to time.

(vi)

Repurchase Agreements with eligible parties to be fully collateralized in accordance with the terms of a master repurchase agreement.

(vii)

Taxable or Tax-exempt government debt obligations issued by any one of the United States, a commonwealth or territory of the United States, or any county, municipality, taxing district or political subdivision thereof.

(viii)

Money Market Funds, structured as a mutual or trust fund, which provide daily liquidity of funds.

(ix)

Fixed-Income Mutual Funds which may provide liquidity of funds less frequently than daily.

(x)

Specialty Risk investment funds or pools with specifically identifiable risk exposure. Such funds or pools may be accessed through and/or managed by a qualified third-party.

(xi)

Derivatives, the value of which depends on, or is derived from, one or more underlying assets, indices or asset values related to securities or investment instruments authorized by the City's Investment Policy.

(2)

Notwithstanding the above, the Director of Finance and Administration is authorized to contract with External Investment Management firms to professionally invest and manage portions of the City's investable assets. In those instances where investment guidelines, by the nature of the investment product provided by External Managers, will differ from those contained herein or in the City's Investment Policy, the investment guidelines governing the management of those assets by the External Investment Manager must first be approved by the City Council's Finance Committee.

(3)

Specific authority to invest in Specialty Risk/Externally Managed Funds, as defined in the Investment Policy, and the related specific investment guidelines must be approved by the City Council's Finance Committee and operate within the specific risk exposure guideline established in the City Council approved Investment Policy.

(4)

The Director of Finance and Administration, and any other member of the City staff designated by the Director of Finance and Administration, consistent with guidelines set forth in the City's Investment Policy as approved by the City Council, are authorized to (a) execute trades and maintain positions with respect to authorized securities or investment instruments in a manner consistent with the methods of settlement or authorized transactions contained in the City's Investment Policy and (b) pay the cost thereof from or deposit the proceeds therefrom into the proper accounts or funds of the City.

(5)

The Director of Finance and Administration, and any other member of the City staff designated by the Director of Finance and Administration, consistent with the guidelines set forth in the City's Investment Policy as approved by the City Council, are authorized to execute reverse repurchase agreement transactions for the purpose of providing liquidity to the City's investment portfolio.

(6)

The Investment Committee described in the Investment Policy is hereby approved and authorized to undertake all actions described in the Investment Policy.

(7)

Nothing herein contained shall be interpreted or construed to abrogate any specific provision contained in any bond ordinance of the City relating to the investment of bond proceeds temporarily available in specific funds or accounts. Furthermore, nothing herein contained shall necessarily be applicable to pension funds, trust funds, deferred compensation funds or any other funds the use of which is restricted by debt covenant, applicable legal or regulatory constraint, or prior contract; nor shall the provisions herein be interpreted or construed to abrogate any specific provision of any document related to such pension funds, trust funds, deferred compensation funds, debt covenant, legal or regulatory constraint or prior contract.

(c)

Authorized transactions. The Director of Finance and Administration, and/or other staff as may be designated by the Director of Finance and Administration, are hereby authorized to invest and reinvest funds, execute trades and to otherwise conduct business within the scope of the Investment Policy and this Section in such amounts and in the types of investments permitted by outstanding bond ordinances of the City, the Investment Policy and debt and swap policies, and by applicable law. This authorization includes entering into transactions in compliance with the City's Investment Policy and debt and swap policies. All investments shall be evidenced in the form of safekeeping receipts, bank trust receipts, Federal Reserve Bank book-entry notices or confirmation/purchase notices in the name of the City.

(d)

Cooperation with independent agencies. The Director of Finance and Administration or his or her designee is authorized to negotiate agreements with the independent agencies for the pooling of public funds of the City and the independent agencies and for joint investment of such pooled funds. The Mayor and Corporation Secretary shall execute the agreement on behalf of the City. The provisions of subsections (b) and (c) shall apply to City funds held in pooled funds under this subsection.

(e)

Classes and types of investments.

(1)

There shall be two classes of investments: Class I funds and Class II funds, as follows:

(i)

Class I funds, designated as regular funds, shall consist of the funds in any of the funds or fund groups described in Section 110.106, except the Capital Projects Funds described in Section 110.106(b)(10) and the Debt Service Funds described in Section 110.106(b)(11). Escrow funds and the pension funds are not included as Class I funds and will not be invested in accordance with this subsection. Class I funds may be invested according to the City's approved investment policies.

(ii)

Class II funds, designated as restricted bond trust funds, shall consist of all funds that are restricted by the terms of a bond ordinance. The funds in the Capital Projects Funds described in Section 110.106(b)(10) and in the Debt Service Funds described in Section 110.106(b)(11) are Class II funds. Class II funds may be invested in any of the types of investments set forth in the applicable bond ordinances. If a bond ordinance is silent as to the types of investments or permits the funds to be invested in the same types of investments as the City's regular funds are invested, then the investments authorized for Class I funds shall be authorized for the Class II funds under that bond ordinance.

(f)

Investment pool. All Class I funds, and all Class II funds being treated as Class I funds, which the Director of Finance and Administration determines will not be immediately needed for their intended use shall be placed in the City's investment pool. Funds in the investment pool shall be invested in accordance with the City's investment policies. At the end of each month, an average cash balance available for investment through the investment pool shall be computed for each participating fund and account. The total amount of interest earned (and principal returned under certain types of investments) for that month shall be prorated to each participating fund and account in accordance with the average monthly balance that was available for investment in the investment pool from that fund or account.

(Ord. 2003-1015-E, § 2; Ord. 2004-297-E, § 1; Ord. 2004-1281-E, § 1; Ord. 2006-824-E, § 2; Ord. 2009-427-E, §§ 1—3; Ord. 2016-140-E, § 16)

Editor's note— Ord. No. 2003-1015-E, § 2, amended the Code by repealing former § 110.203, and adding a new § 110.203. Former § 110.203 pertained to investment of idle funds; cooperation with independent agencies; classes and types of investments; and investment pool; and derived from Ord. 70-468-137; Ord. 70-650-526; Ord. 71-397-181; Ord. 83-591-400; Ord. 86-1305-736; Ord. 95-973-521; and Ord. 95-1253-703.

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Sec. 110.204. - Safe deposit box.

The City is authorized to lease and rent from any authorized depository for City funds one or more safe deposit boxes in its vaults, and the Director of Finance and Administration and the Treasurer, jointly and not severally, are constituted and appointed as the true and lawful attorneys in fact, or agents, of the City to have access to and otherwise use such safe deposit boxes for and on behalf of the City. Such persons are authorized to make and enter into a lease agreement with such depository to provide for the rental to the City of such deposit box, to contain such terms and provisions as are usual and customary, and to execute such lease agreement in the name of the City.

(Ord. 70-468-137, § 3; Ord. 70-650-526; Ord. 71-397-181; Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Note— Former § 124.104.

Sec. 110.205. - Certifying names of Director of Finance and Administration and Treasurer.

The Council Secretary is authorized to certify from time to time, as requested, the names of the Director of Finance and Administration and the Treasurer.

(Ord. 70-468-137, § 5; Ord. 70-650-526; Ord. 71-397-181; Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Note— Former § 124.105.

Sec. 110.206. - Placement of time deposits.

(a)

Definitions. As used in this Section:

(1)

Commercial bank shall mean a national or State commercial bank having its principal place of business in the City.

(2)

Savings association shall mean a federal association organized under the laws of the United States and under federal supervision, having its principal place of business in the City.

(3)

Time deposits shall include certificates of deposit, time deposits and savings deposits as defined under applicable federal banking laws and regulations.

(b)

Placement procedure. Subject to the approval of the Director of Finance and Administration, the Treasurer is authorized to place any or all of the excess funds of the City in time deposits held by one or more commercial banks or savings associations; provided, that the financial institutions selected shall be qualified public depositories under F.S. Ch. 280. The placement of such funds shall be made according to the following procedure:

(1)

Subject to the approval of the Director of Finance and Administration, the Treasurer shall from time to time determine the amount of excess funds of the City which in his judgment, according to the best interests of the City, should be placed in time deposits held by commercial banks or savings associations, and shall determine the desired period of time for each such deposit.

(2)

The Treasurer shall solicit sealed bids from all commercial banks and savings associations to determine the highest rate of interest which can then be obtained on the placement of excess funds in time deposits. All bids submitted shall contain the following terms and conditions and shall conform to the following procedures:

(i)

No bid shall require the City to maintain any demand deposit with the bidder.

(ii)

Time deposits shall be secured by a pledge of collateral by the bidder equal in market value to the amount of money deposited. Subject to the approval of the Director of Finance and Administration, the Treasurer is authorized to accept as collateral such securities as the Treasurer of the State of Florida is from time to time authorized by Florida law to accept as collateral security for demand deposits of State funds in commercial banks.

(iii)

Bids for time deposits shall be solicited upon both the entire amount offered for deposit, which shall not be less than $100,000, and upon increments of $100,000 thereof. Any commercial bank or savings association may bid upon the entire amount offered or upon one or more increments of $100,000 thereof, or both.

(iv)

In the case of tie bids, the award, in whole or in part, shall be made in the best interest of the City to one or more of the tie bidders in the discretion of the awarding authority.

(v)

The City shall reserve the right to reject any or all bids.

(3)

Awards under this Section shall be made by a majority vote of the Director of Finance and Administration, the Treasurer and the General Counsel who shall comprise the awarding authority.

(Ord. 68-66-96, §§ 1, 2; Ord. 70-650-526; Ord. 71-397-181; Ord. 75-402-212, § 1; Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Note— Former § 124.106.

Sec. 110.207. - Treasurer designated Bond Registrar; authority to appoint and designate Deputy Bond Registrars and transfer agents and specify duties.

(a)

The Treasurer is designated as, and shall perform the duties and responsibilities of, Registrar of the City for the purposes of registration and transfer of registration of bonds issued by the City.

(b)

The Treasurer, with the approval of the Director of Finance and Administration and the Mayor, is authorized from time to time to appoint and designate one or more Deputy Bond Registrars and one or more transfer agents in connection with all bonds issued by the City after June 30, 1983, as provided for in Part 2, Chapter 104. It shall not be necessary for the Treasurer to use the provisions of Part 3, Chapter 106 if he appoints and designates a person other than a City employee as Deputy Bond Registrar or transfer agent.

(Ord. 70-1242-589, § 1; Ord. 70-650-526; Ord. 71-397-181; Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3; Ord. 2009-427-E, § 4; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Note— Former § 124.108.

Sec. 110.208. - Depositories of public funds.

(a)

Designation of depository.

(1)

Any bank or savings association which:

(i)

Is authorized to do business in the State,

(ii)

Has its principal office or a branch in the City, and

(iii)

Is a qualified public depository under F.S. Ch. 280.

Is eligible for designation as a City depository for such public funds as the Director of Finance and Administration may authorize and direct to be deposited therewith. The Treasurer shall develop a form for qualified public depositories to make application, which shall provide such detailed information as he considers necessary and appropriate.

(2)

When a bank or savings association has submitted an application for designation as a City depository, the Treasurer shall examine the application and the institution to ascertain whether the designation of such institution as a City depository is in the public interest. The Treasurer shall transmit the results of his examination and his recommendations to the Director of Finance and Administration, who shall be responsible for approving or disapproving the designation of a bank or savings association as a City depository; his decision shall be final. If the Director of Finance and Administration approves the designation of an applicant institution as a City depository, the Treasurer shall so notify the institution and request that it execute an appropriate agreement as a City depository, which shall be a condition precedent to the depositing of any public funds with the depository.

(3)

A designated depository shall execute a City depository agreement, in a form prescribed by the Treasurer, in which the depository agrees to maintain its designation as a qualified public depository under State law, and conditioned that the depository will:

(i)

Ensure the safekeeping, proper accounting for and payment over to the proper authority of all money that may come into its possession by virtue of its acting as a City depository.

(ii)

In all respects duly and faithfully perform the duties imposed upon it by reason of acting as a City depository.

The agreement shall be executed by the duly authorized officers of the bank and by the Mayor and Corporation Secretary. Thereupon, the Treasurer shall issue his certificate showing that the bank has qualified as a City depository and that it is eligible, in accordance with the provisions and requirements of this Section and the regulations promulgated by the Treasurer, to receive public funds deposited by a City agency.

(b)

Collateral for public funds. A City depository shall at all times be a qualified public depository under F.S. Ch. 280 and shall offer such collateral for City funds deposited with it as is required by State law, under such regulations as the State Treasurer prescribes, for qualified public depositories.

(c)

Accounts subject to examination. The public funds accounts of each City depository, and the books and records associated with these accounts, shall at all times be subject to the inspection and examination of the Finance and Administration Department, Council Auditor and the independent auditor for the City.

(d)

Revocation of designation. The Director of Finance and Administration, upon the recommendation of the Treasurer, shall revoke the designation and cancel the certificate of a City depository if at any time such City depository ceases to be a qualified public depository under F.S. Ch. 280. Until and unless again qualified, approved and designated hereunder, the institution may not receive or retain deposits of funds by a City agency.

(e)

Removal of public funds from former depository; authority under State law. If the designation of a City depository is revoked, the Director of Finance and Administration shall direct that all public funds then on deposit (except funds sufficient to pay outstanding but unpaid negotiable instruments and accrued bank charges) be withdrawn and deposited in a City depository; provided, that, if the depository ceases to be a qualified public depository because of default or insolvency, and in lieu of withdrawing public funds, the Director of Finance and Administration shall ascertain the amount that was on deposit with the failed depository and certify that amount to the State Treasurer on behalf of the City. When funds are received from the State Treasurer under F.S. § 280.08(5), the Director of Finance and Administration shall credit the appropriate revenue accounts. The Mayor is authorized to execute all necessary assignments required by F.S. § 280.08(6).

(f)

Independent agencies not covered. The various independent agencies, and the funds received or generated by them, are not subject to or included in this Section. Each independent agency shall be responsible for designating, monitoring and supervising depositories for its funds. Independent agencies for which the City is acting as fiscal agent are not affected by this subsection.

(Ord. 79-903-457, § 1; Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Note— Former § 124.109.

Sec. 110.209. - Presentment of checks, etc.

It shall be the duty of the Director of Finance and Administration to issue and publish rules to enforce the speedy presentation of all City checks, drafts and other negotiable instruments for payment at the place where payable. To this end, he may cause to be printed on each City check a statement that it is void after a fixed period, not less than 90 days, after its date; and each depository receiving or cashing a check with such a statement shall be held to observe the period during which it is payable and to refuse to pay a check that is presented after the expiration of the period stated thereon.

(Ord. 83-591-400, § 1; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Sec. 110.210. - Duplicates for lost, stolen, destroyed, mutilated or defaced checks; indemnity bond; payment of duplicates.

Whenever it is clearly proved to the satisfaction of the Director of Finance and Administration that any original check of the City is lost, stolen or wholly or partially destroyed, or is so mutilated or defaced as to impair its value to the owner or holder, the Director is authorized to issue to the owner or holder thereof against funds available for the payment of the original check a duplicate showing such information as may be necessary to identify the original check, but no duplicate shall be payable if the original check shall first have been paid. The Director may, before issuance of a duplicate check, require from the owner or holder of the original check an undertaking to indemnify the City, in the form and amount and with the surety or security the Director believes necessary. Duplicates issued under this Section drawn by the Treasurer shall be deemed to be original checks and payable under the same conditions as original checks.

(Ord. 83-591-400, § 1; Ord. 86-1305-736, § 3; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

PART 4. - CONTINUING APPROPRIATIONS

Sec. 110.401. - Indefinite appropriations.

The appropriations contained in this Part 4 shall be permanent annual appropriations of the revenues involved in each appropriation, to the extent that such revenues are appropriated for a specified purpose, and shall be deemed continuing appropriations unless the revenues are declared to be general revenues or are otherwise not specifically appropriated. For the purposes of this Part 4, continuing appropriation means an appropriation automatically renewed without further legislative action, until altered or repealed by the Council.

(Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Note— Former §§ 126.103, 126.341.

Sec. 110.402. - Cigarette tax.

The City's share of cigarette tax revenues distributed from the State revenue sharing trust fund for municipalities as a replacement for revenues derived from the cigarette tax previously imposed by former Chapter 800 of the 1970 Edition of the Ordinance Code are appropriated for debt service and bond fund requirements of the Excise Taxes Revenue Bonds, Series 1970, authorized by Ordinance 70-572-241, of the Excise Taxes Revenue Bonds, Series 1977, authorized by Ordinance 77-113-33, and of the Excise Taxes Revenue Refunding Bonds authorized by Ordinance 77-469-204; and the balance shall be a part of the general revenues of the General Fund-General Services Districts.

(Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Note— Former § 126.342.

Sec. 110.403. - Public service tax—USD.

The revenues derived from the public service tax imposed by Chapter 790 and deposited in Capital Improvement Fund No. 1, as required by Section 790.109, are appropriated, first, for debt service and bond fund requirements of the Utilities Tax Revenue Refunding Bonds authorized by Ordinance EE-523 of the former City of Jacksonville and, second, for debt service and bond fund requirements of the Excise Taxes Revenue Bonds, Series 1970, authorized by Ordinance 70-572-241, of the Excise Taxes Revenue Bonds, Series 1977, authorized by Ordinance 77-113-33, and of the Excise Taxes Revenue Refunding Bonds authorized by Ordinance 77-469-204; and the balance is available for other lawful purposes.

(Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Note— Former § 126.343.

Sec. 110.404. - Public service tax—GSD.

The revenues derived from the public service tax imposed by Chapter 790 and deposited in the Public Service Tax Fund, as required by Section 790.109(b), are appropriated for debt service and bond fund requirements of the Excise Taxes Revenue Bonds, Series 1977, authorized by Ordinance 77-113-33, and of the Excise Taxes Revenue Refunding Bonds authorized by Ordinance 77-469-204; and the balance is available for other lawful purposes.

(Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Note— Former § 126.344.

Sec. 110.405. - Gas tax.

(a)

Second gas tax revenues are appropriated only for the purposes authorized by Article XII, Section 9(c) of the Florida Constitution.

(b)

Seventh-cent gasoline tax revenues are appropriated only for the purposes of the Streets and Highways and Engineering Divisions, as authorized by F.S. § 206.60(2)(b)2.

(Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Note— Former § 126.345.

Sec. 110.406. - Circuit and County Court costs.

Circuit and County Court costs imposed by Section 634.202, budgeted as police training fees revenue, are appropriated only for the Sheriff's Office for criminal justice education and training, including basic training, expenditures for law enforcement and correctional officers, part-time law enforcement officers, auxiliary officers and support personnel of the City, in accordance with F.S. §§ 943.14 and 943.25(8)(a).

(Ord. 77-61-638, § 2; Ord. 81-560-223, § 2; Ord. 83-591-400, § 1)

Note— Former § 126.346.

Sec. 110.407. - Motor vehicle inspection fees.

The revenues derived from motor vehicle inspection fees are appropriated, first, for debt service and bond fund requirements of the Duval County Motor Vehicle Inspection Fee Revenue Certificates authorized by resolution of the former Board of County Commissioners of Duval County and, second, for operation, maintenance, repairs and replacements of the motor vehicle inspection stations of the City; and the balance shall be deemed a part of the general revenues.

(Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Note— Former § 126.347.

Sec. 110.408. - Gator Bowl revenue.

The revenues derived from the operation of the Gator Bowl stadium and from the operation of automobile parking areas when used in connection with activities at the stadium and thereafter are appropriated for debt service and bond fund requirements of the Gator Bowl Revenue Certificates authorized by Ordinance FF-262 of the former City of Jacksonville. The appropriation for these purposes in excess of the revenues shall be made from general revenues other than ad valorem taxes.

(Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Note— Former § 126.348.

Secs. 110.409, 110.410. - Reserved.

Sec. 110.411. - Nassau County library revenue.

The revenue derived from Nassau County from public library services shall be deemed to be appropriated only for the purpose of the Nassau County services activity of the public libraries. Any of these revenues remaining at the end of the fiscal year unencumbered and unimpounded shall not lapse but shall be reappropriated to the Nassau County services activity of the public libraries as provided in the ensuing fiscal year budget ordinance.

(Ord. 77-691-638, § 2; Ord. 83-591-400, § 1; Ord. 94-903-552, § 10)

Note— Former § 126.353.

Sec. 110.412. - Occupational license tax revenue.

The revenues derived from the occupational license taxes imposed by Chapters 770 and 772 are appropriated first for debt service and bond fund requirements of the Excise Taxes Revenue bonds, Series 1970, authorized by Ordinance 70-572-241, of the Excise Taxes Revenue Bonds, Series 1977, authorized by Ordinance 77-113-33, and of the Excise Taxes Revenue Refunding Bonds authorized by Ordinance 77-459-204; and the balance shall be deemed a part of general revenues.

(Ord. 77-691-638, § 2; Ord. 83-591-400, § 1; Ord. 94-903-552, § 10)

Note— Former § 126.354.

Sec. 110.413. - Florida Boater Improvement Program revenue share.

The Duval County share of the revenues distributed by the State Department of Environmental Protection annually through the Florida Boater Improvement Program (FBIP) pursuant to F.S. § 328.72(15) shall be deposited in a separate City account. The funds in the account shall be appropriated annually by the City Council and shall not lapse as of the end of any fiscal year. The funds shall be expended for local recreational boating projects pursuant to the guidelines set forth in F.S. § 328.72(15) for the sole purposes of providing recreational channel marking, public launching facilities and other boating-related activities, removal of vessels and floating structures deemed a hazard to public safety and health for failure to comply with F.S. § 327.53, for manatee and marine mammal protection and recovery. The funds may be used as the City's matching funds for boating-related projects, such as construction or renovation of boat ramps, docks, water access facility restrooms, parking, access roads, signs, land acquisition, recreational channel marking and navigational lights. Funds may be distributed by the Director of Finance and Administration for the purposes set forth herein upon the written request from the Director of Recreation and Parks Services, or his designee for any project the cost of which is $30,000 or less; otherwise, the funds shall be available only upon approval of the Council. Annually, the Director of the Recreation and Parks Department shall report to the Jacksonville Waterways Commission and the Finance Committee on all the expenditures from the fund during the preceding 12 months.

(Ord. 97-804-E, § 1; Ord. 1999-114-E, § 1; Ord. 2005-160-E, § 1; Ord. 2005-1283-E, § 7; Ord. 2011-732-E; Ord. 2016-140-E, § 16)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Sec. 110.414. - Reserved.

Editor's note— Ord. 2022-60-E, § 1, amended the Code by repealing former § 110.414 in its entirety. Former § 110.414 pertained to the Derelict Vessel and Floating Structure Removal Fund, and derived from Ord. 2001-458-E, § 1; Ord. 2005-1283-E, § 7; Ord. 2011-732-E; and Ord. 2020-589-E, § 8.

PART 5. - CITY DEBT MANAGEMENT[3]

Footnotes: --- (3) ---

Editor's note— Ord. 2015-483-E, § 1, changed the title of Pt. 5.

Sec. 110.501. - Program defined.

The City routinely accesses the capital markets to facilitate the purchase of capital assets and to build, improve, and maintain public capital infrastructure. Funds are typically generated through the issuance of municipal market medium-term or long-term debt, commercial paper, or bank loans utilizing one of the City's specific revenue or group of revenues.

(Ord. 2005-1373-E, § 3; Ord. 2015-483-E, § 1)

Sec. 110.502. - Reserved.

Editor's note— Ord. 2015-483-E, § 1, amended the Code by repealing former § 110.502 in its entirety. Former § 110.502 pertained to restrictions on installment purchase contracts, and derived from Ord. 2005-1373-E.

Sec. 110.503. - Useful life of projects funded.

Debt may be used to fund only projects with a useful life of five years or greater and a per-unit value of at least $25,000, unless projects with a lesser per-unit value are specifically approved in the legislation authorizing such funding. Debt may be issued over a period which does not exceed the average useful life of the capital items being financed. The average maturity of the issued bonds shall be structured within one year of the useful life of assets being financed. The list of projects financed with each new money debt issue, shall be delivered to City Council within 60 days of bond closing.

(Ord. 2005-1373-E, § 3; Ord. 2011-405-E, § 10.7; Ord. 2015-483-E, § 1; Ord. 2025-434-E, § 1)

Sec. 110.504. - Payment of Debt Service.

Principal and interest payments assigned for the repayment of debt shall be based on the useful life of each capital item or project being financed, inclusive of costs related to the issuance and management of debt.

(Ord. 2005-1373-E, § 3; Ord. 2015-483-E, § 1)

Sec. 110.505. - Reserved.

Editor's note— Ord. 2015-483-E, § 1, amended the Code by repealing former § 110.505 in its entirety. Former § 110.505 pertained to interest rate on loans from the City Banking Fund, and derived from Ord. 2005-1373-E.

Sec. 110.506. - City council appropriation required.

Expenditures made using borrowed funds shall require City Council appropriation as part of the annual City budget process or as approved by subsequent ordinance and or amendment thereto. Each borrowing shall be supported by an itemized list of projects being financed. Within 60 days of each borrowing closing, a report with the amount borrowed, the interest rate of the borrowing and the list of projects funded by the borrowing shall be prepared and submitted to the Finance Committee Chair.

(Ord. 2005-1373-E, § 3; Ord. 2012-143-E, § 1; Ord. 2015-483-E, § 1)

Secs. 110.507, 110.508. - Reserved.

Editor's note— Ord. 2015-483-E, § 1, amended the Code by repealing former § 110.507 in its entirety. Former § 110.507 pertained to permitted transfers of funds within categories, and derived from Ord. 2005-1373-E. Ord. 2015-450-E, § 1, amended the Code by repealing former § 110.508 in its entirety. Former § 110.508 pertained to modification of project descriptions, and derived from Ord. 2005-1373-E, § 3.

Sec. 110.509. - Use of borrowed cash.

The Director of the Finance Department may use any cash which has been authorized to be spent on projects approved for funding to cover cash needs in other projects within Council appropriated project budgets to effectively manage cash and ensure that the use of borrowed funds complies with tax exempt borrowing provisions contained in Internal Revenue Code. In any applicable quarter, the Finance Department shall submit a report to the Finance Committee of all cash transfers between projects over the last quarter, and proposed and anticipated cash transfers over the subsequent quarter.

(Ord. 2005-1373-E, § 3; Ord. 2015-450-E, § 1; Ord. 2015-483-E, § 1; Ord. 2025-434-E, § 1)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Sec. 110.510. - Reserved.

Editor's note— Ord. 2015-483-E, § 1, amended the Code by repealing former § 110.510 in its entirety. Former § 110.510 pertained to use of undesignated funds, and derived from Ord. 2005-1373-E.

Sec. 110.511. - Short-term/interim financing of long term projects.

In addition to other uses allowed by law, Commercial Paper and Medium Term Notes may be utilized for the internal issuance of notes (i) for prompt, temporary, short-term funding of projects for which permanent long term bond financing has been authorized by the enactment of an authorizing bond ordinance specifying such projects, or (ii) for the issuance of variable rate notes to fund projects for which fixed rate notes will later be issued, or (iii) for the issuance of structural variable rate debt up to 30 percent of debt outstanding.

(Ord. 2005-1373-E, § 3; Ord. 2015-483-E, § 1)

Sec. 110.512. - Reserved.

Editor's note— Ord. 2015-483-E, § 1, amended the Code by repealing former § 110.512 in its entirety. Former § 110.512 pertained to annual debt amortization analysis, and derived from Ord. 2005-1373-E.

Sec. 110.513. - Limitations on debt types.

The outstanding debt shall at all times fit within the following guidelines:

(1)

No more than 30 percent of the total debt outstanding shall be variable rate instruments.

(2)

No less than 70 percent of the total debt outstanding shall be fixed rate instruments (including medium term notes).

(3)

No more than 30 percent of the total debt outstanding shall be unhedged variable rate instruments.

(Ord. 2005-1373-E, § 3; Ord. 2015-450-E, § 5; Ord. 2015-483-E, § 1)

Sec. 110.514. - Annual debt affordability analysis.

(a)

It is the public policy of this City to encourage fiscal responsibility on matters pertaining to City debt. In an effort to finance essential capital projects for the benefit of residents at favorable interest rates, the City must continue to maintain its excellent credit standing with investors. Authorizations of City debt must take into account the ability of the City to meet its total debt service requirements in light of other demands on the City's fiscal resources. The Council declares that it is the policy of this City to exercise prudence in undertaking the authorization and issuance of debt.

(b)

The Director of the Finance Department shall conduct a debt affordability analysis each year. Proposed capital projects that require funding by the issuance of additional City debt shall be evaluated on the basis of the analysis to assist the Council in setting priorities among capital projects and related appropriations.

(1)

The Director of the Finance Department shall annually prepare a baseline debt affordability report, to be presented to the Finance Committee and the City Council standing committee to which matters regarding Audits are referenced on or before May 31 of each year for purposes of providing a framework for the Council to evaluate and establish priorities for bills that propose the authorization of additional City debt during the next budget year.

(2)

The baseline report shall include, but not be limited to:

(i)

A listing of City debt outstanding, other debt secured by City revenues, and other contingent debt current through April 30 of such year.

(ii)

An estimate of revenues available for the next five fiscal years to pay debt service, including general revenues plus any revenues specifically pledged to pay debt service.

(iii)

An estimate of additional debt issuance for previously authorized debt to be issued under the next five fiscal years for the City's existing borrowing programs.

(iv)

A current schedule of the annual debt service requirements by bond issue or Banking Fund Issuance, including principal and interest allocation, on the outstanding City debt and an estimate of the annual debt service requirements on the debt included in subparagraph (iii) for each of the next five fiscal years. Such schedules shall not include projected savings from anticipated refinancing but shall be based on current terms and conditions. Assumptions regarding interest rates on variable debt shall be disclosed.

(v)

An overview of the City's issuer, general obligation, if any, covenant and specific revenue credit ratings.

(vi)

Identification and calculation of pertinent debt ratios, including, but not limited to, the debt affordability parameters and ratios established by Code.

(vii)

A comparison of the debt ratios prepared for subparagraph (vi), with the comparable debt ratios for the national average for cities and counties of size and rating comparable to the City.

(3)

The Director of the Finance Department shall prepare an update of the report set forth above in conjunction with any proposal to issue new City debt including an updated debt affordability report, to be presented to the Finance Committee and the City Council standing committee to which matters regarding Audits are referenced concurrent with the submission of the City's Capital Improvement Plan and Capital Improvement Plan Budget each year, for purposes of providing a framework for the Council to evaluate and establish priorities for bills that propose the authorization of additional City debt during the next budget year. This updated report shall contain the information provided in the baseline report, updated to reflect the impact of the issuance of additional debt on both the debt affordability parameters in the Code as well as the debt service schedules for the next five years. The amount of additional debt used in the analysis shall be the amount proposed in the proposed Capital Improvement Plan Budget and Capital Improvement Plan as well as a schedule depicting the impact on debt service and debt affordability of each $20,000,000 increase or decrease from that proposed up to 50 percent greater than the proposed budget. The schedule shall note breakpoints at which debt affordability criteria must be waived to permit such authorization.

(4)

Any entity issuing debt secured by City revenues shall provide the information necessary to prepare the debt affordability report.

(c)

The Debt Management Policy, in accordance with the parameters set forth in 110.516, Ordinance Code, shall be reviewed and re-adopted by the Council every five years.

(d)

Failure to comply with this Section shall not affect the validity of any debt or the authorization of such debt.

(Ord. 2005-1373-E, § 3; Ord. No. 2011-19-E, § 1; Ord. 2015-450-E, § 1; Ord. 2015-483-E, § 1; Ord. 2025-434-E, § 1)

Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization.

Sec. 110.515. - Liquidity.

To ensure adequate cash liquidity the City shall, at least annually, issue the amount necessary to reimburse all spending on projects authorized by City Council for funding with debt. The City may use commercial paper to meet this need within the limitations contained elsewhere in this Section and the City's Debt Policy. Any commercial paper which is outstanding for more than one year after project completion shall, no later than in year two, begin amortizing principal in alignment with the useful lives of the assets financed. If commercial paper is used and then subsequently refinanced with long term debt, the amortization schedule shall be constructed based on the remaining useful life of the underlying capital item.

(Ord. 2005-1373-E, § 3; Ord. 2015-483-E, § 1)

Sec. 110.516. - Debt management parameters.

The City is establishing appropriate objective guidelines and parameters for future debt issuance. Guidelines that are too restrictive do not provide enough debt capacity to finance needed infrastructure. Guidelines that are not restrictive enough may result in excessive debt issuance in the near term, which will reduce future budgetary flexibility by creating an excessive debt service demand on the City's resources, contributing to a deteriorating credit position. Objective guidelines typically take the form of debt ratios. Below are seven debt related ratios identified by the City to control its debt position.

EXPAND Target Maximum/Minimum Overall net debt to estimated market value 2.50% 3.50%** Debt per capita $2,600 $3,150** General Fund/General Services District (GF/GSD) Debt Service to GF/GSD revenues 11.5% 13.0%** General Fund/General Services District (GF/GSD) Debt Service to GF/GSD expenditures 12.5% 15.0%** Ten-year principal paydown - GF/GSD 50% 30%* Ten-year principal paydown - All 50% 30%* Unassigned GF/GSD Fund Balance to GF/GSD revenues 10% 5%*

* Measured as a minimum

** Measured as a maximum

A supermajority of Council Members present shall be required for a waiver of two or more debt parameters in authorized borrowing not including "Ten-year principal paydown - All."

For purposes of this Section, the following definitions and exclusions shall apply:

Overall net debt to estimated market value shall be computed as the aggregate City and overlapping debt (debt issued by other jurisdictions within the boundaries of the local government that is repaid from the same tax base) divided by the market value of that tax base. The estimated market value shall not include the portion of taxable values of properties located in the Beaches and Baldwin service districts upon which the City has the inability to collect property taxes. For purposes of this calculation, the taxable value of Beaches properties shall be reduced by 30 percent and the taxable values of Baldwin properties shall be divided by 118.8%.

Debt per capita shall include overlapping debt.

GF/GSD Debt Service to GF/GSD Revenue shall include all GF/GSD debt service, as well as any debt service supported by GF/GSD transfers to Enterprise or other internal funds. This shall include banking fund debt repayments within individual departments and non-departmental accounts. This parameter requires a comparison to total GF/GSD Revenues, rather than total operating expenditures.

The Ten-Year Principal Paydown is computed as the total principal repayment scheduled for the next ten years divided by the total debt currently outstanding and shall be computed for two separate measures.

1.

"Ten-Year Principal Paydown - GF/GSD" shall apply only to GF/GSD debt service as described above.

2.

"Ten-Year Principal Paydown - All" shall apply to all outstanding City debt regardless of the pledged revenue source.

Unassigned GF/GSD Fund Balance to GF/GSD Revenues shall be computed as the aggregate of unassigned GF/GSD fund balance divided by total GF/GSD operating revenues and shall not include any Fund Balance within any other General Revenue Fund subfund. The fund balance within any other General Fund subfund, including the City Council Emergency Reserve, shall not be included in the unassigned fund balance for purposes of this calculation. A second optional ratio may be provided that includes such fund balances if they are included by ratings agencies in their evaluation of the City's credit status, but such calculation shall not replace the established unreserved/undesignated target and minimum for guiding the City's borrowing decisions.

(Ord. 2015-483-E, § 1; Ord. 2025-434-E, § 1)

Editor's note— Formerly § 106.111, Debt management parameters.

Sec. 108.507. - Representation of City Officials and employees in civil and criminal matters or investigations. Chapter 111 - SPECIAL REVENUE AND TRUST ACCOUNTS