HomeMy Public PortalAboutResolution No. 23-034 - Interim City Manager to Establish a Local Financial Oversight BoardSponsored by: Mayor Taylor
RESOLUTION NO. 23-034
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
OPA-LOCKA, FLORIDA, DIRECTING THE INTERIM CITY
MANAGER TO ESTABLISH A LOCAL FINANCIAL OVERSIGHT
BOARD TO ASSIST THE CITY OF OPA-LOCKA, FLORIDA IN ITS
FINANCIAL RECOVERY EFFORTS; PROVIDING FOR
INCORPORATION OF RECITALS; PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, in 2016, City of Opa-Locka officials became aware that the city was
suffering financially and requested that the Florida Governor place the City under
financial emergency status; and
WHEREAS, pursuant to Section 218.503(1), Florida Statutes, Governor Rick Scott
signed Executive Order 16-135 appointing a financial emergency board to assist the City
in its financial recovery efforts; and
WHEREAS, on June 8, 2016, the City entered into a State and Local Agreement of
Cooperation with the State of Florida, which included, in part, a requirement for the
implementation of a five year financial recovery plan and also a requirement for the
presentation of a budget to the Governor; and
WHEREAS, the City Commission desires to establish a Local Financial Oversight
Board to replicate some of the duties of the ongoing State Financial Oversight Board
established by the former Governor. The local board shall include a total of seven
members representing the following offices: 1) one appointee from the Office of State
Senator Shevrin Jones, District 35; one appointee from the Office of State Representative
Ashley Ghantt; District 109; one appointee from the Office of County Commissioner
Marleine Bastien, District 2 and one appointee from the Board Chairman/Office of
County Commissioner Oliver G. Gilbert, III, District 1; and three (3) City Commission
appointees, for which two (2) shall be residents of the City and one (1) shall be a business
owner of the City. It is preferably that each City Commission appointee have a
background and/or understanding of budgeting, finance or accounting; and
WHEREAS, the duties and responsibilities of the local Financial Oversight Board
shall be those set forth herein; and
WHEREAS, the City Commission of the City of Opa-Locka finds that the
establishment of a local Financial Oversight Board is in the best interests of the City of
Opa-Locka.
Resolution No. 23-034
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF OPA LOCKA, FLORIDA:
SECTION 1. RECITALS ADOPTED.
The recitals to the preamble herein are incorporated by reference.
SECTION 2. EXTABLISHMENT OF LOCAL FINANCIAL OVERSIGHT BOARD.
The City Commission hereby authorizes a Local Financial Oversight Board to include a
total of seven (7) members representing the following offices: 1) one appointee from the
Office of State Senator Shevrin Jones, District 35; one appointee from the Office of State
Representative Ashley Ghantt; District 109; one appointee from the Office of County
Commissioner Marleine Bastien, District 2 and one appointee from the Board
Chairman/Office of County Commissioner Oliver G. Gilbert, III, District 1; and three (3)
City Commission appointees, for which two (2) shall be residents of the City and one (1)
shall be a business owner of the City. It is preferable that each City Commission appointee
have a background and/or understanding of budgeting, finance or accounting.
SECTION 3. ESTABLISHING DUTIES OF LOCAL FINANCIAL OVERSIGHT
BOARD. The duties and responsibilities of the Local Financial Oversight Board shall be:
1) To consult with other governmental entities for the consolidation of support
for the City Manager, including, but not limited to, services for asset sales,
economic and community development, building inspections, parks and
recreation, facilities management, engineering and construction, insurance
coverage, risk management, planning and zoning, information systems, fleet
management, human resources and purchasing.
2) To provide technical assistance to the City and City Manager.
3) To consult with officials and auditors of the city regarding any steps necessary
to bring the books of account, accounting systems, financial procedures and
reports into compliance.
4) To review management efficiency, productivity and financing of functions and
operations of the City.
5) To make reviews of records, reports and assets of the City as needed.
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Resolution No. 23-034
6) To submit findings in a report to the City of Opa-Locka City Commission for
appropriate action by the City Manager at the earliest possible time and in
accordance with this Resolution.
7) The local Financial Oversight Board shall include an establishment of priority
budgeting or zero -based budgeting in order to eliminate items that are not
affordable; and 2) The prohibition of a level of operations which can be
sustained only with nonrecurring revenues.
8) Reports.
Reports to the City Commission shall be prepared periodically throughout the
year with the necessary assistance of City staff through the Office of the City
Manager. The City Manager shall cooperate with the Local Oversight Board in
providing all necessary information for reports.
If the City Commission approves findings and recommendations of the Local
Oversight Board, the City Manager shall review the recommendations and
provide comments, if any, to the City Commission within thirty (30) days. If no
changes are proposed to the Board's recommendations, the City Manager shall
take all necessary steps to incorporate any short term and long-term plans into the
City's 5 year strategic plan for consideration by the State of Florida.
SECTION 4. SCRIVENER'S ERRORS
Sections of this Resolution may be renumbered or re -lettered and corrections of
typographical errors, which do not affect the intent of this Resolution may be
authorized by the Interim City Manager, following review and approval by the
City Attorney, without need of public hearing, by filing a corrected copy of same
with the City Clerk.
SECTION 5. EFFECTIVE DATE
This Resolution shall take effect upon the adoption and is subject to the approval
of the Governor or Governor's Designee.
PASSED and ADOPTED this 22nd day of March, 2023.
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Resolution No. 23-034
ATTEST:
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
oai ( a Flores, City Clerk
B rna• -tte No is -Weeks, P.A.
City Attorne
Moved by: Commissioner Williams
Seconded by: Vice Mayor Ervin
VOTE:
5-0
Commissioner Bass YES
Commissioner Kelley YES
Commissioner Williams YES
Vice Mayor Ervin YES
Mayor Taylor YES
John H aylor Jr., Mayor
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City of Opa-locka
Agenda Cover Memo
City
Manager:
Darvin Williams
CM Signature:
.4, ��L.'
Commission
Meeting
Date:
03.22.2023
Item Type:
(EnterXin box)
Resolution
dinance
Other
R
Fiscal
Impact:
(EnterXin box)
Yes
No
Ordinance Reading.
(EnterXin box)
1st Reading
2nd Reading
X
Public Hearing:
(EnterXin box)
Yes
No
Yes
No
R
Funding
Source:
Account# :
(Enter Fund & Dept)
Ex:
NA
Advertising Requirement:
(EnterXin box)
Yes
No
X
Contract/P.O.
Required:
(EnterX in box)
Yes
No
RFP/RFQ/Bid#:
X
Strategic
Plan Related
(En ter X in box)
Yes
No
Strategic Plan Priority
Enhance Organizational
Bus. & Economic Dev
Public Safety
Quality of Education
Qual. of Life & City Image
Communication
Area:
Strategic Plan Obj./Strategy:
(list the specific objective/strategy this
item will address)
X
NI
•
III
•
•
Sponsor
Name
Mayor Taylor
Department:
City Commission
Short Title:
A resolution of the City Commission of the City of Opa-locka directing the Interim City Manager to establish a
local Financial Oversight Board consisting of three (3) at -large residents and one (1) appointee from each of
the State and County officials representing the City of 0pa-locka.
Staff Summary:
In 2016, City Officials became aware the City was suffering financially and requested a declaration for a state
of financial emergency. Pursuant to the conditions of Florida Statute Section 218.503(1), Governor Rick Scott
signed Executive Order 16-135 to appoint a financial emergency board and provide technical assistance to aid
the City in its financial and operational recovery. The board was established by the Governor to periodically
review the City's progress, make recommendations and be available to provide technical aid when requested.
The City Commission would like to establish a local Financial Oversight Board to replicate the duties of the
board established by the Governor. The board shall include three at -large City residents, and one appointee
each from the State and County government officials who represent the City. The Interim City Manager and
Finance Director shall be responsible for providing reports and documentation to the proposed board for
review.
Financial Impact - There is no immediate financial impact resulting from the formation of a local Financial
Oversight Board.
Proposed Action:
Staff recommends the City Commission approve the legislation directing the Interim City Manager to establish
a local Financial Oversight Board
Attachment:
Resolution No. 16-9189
Executive Order 16-135
Sponsored by: Mayor and City Commission
RESOLUTION NO. 16-9189
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF OPA-LOCKA, FLORIDA, REQUESTING THE
GOVERNOR OF THE STATE OF FLORIDA TO APPOINT A
FINANCIAL OVERSIGHT COMMITTEE AND PROVIDE
OTHER ASSISTANCE PURSUANT TO FLORIDA STATUTE
218.503; PROVIDING FOR INCORPORATION OF
RECITALS; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, The City Commission of the City of Opa-locka, Florida,
acknowledges that the City is experiencing financial challenges; and
WHEREAS, The City Commission of the City of Opa-locka, Florida,
acknowledges that since notifying the Governor of the State of Florida of its financial
condition in October of 2015, the City's financial condition has not improved; and
WHEREAS, The City Commission of the City of Opa-locka, Florida, believes
that it is in the City's best interest to request that the Governor of the State of Florida
appoint a financial oversight committee to assist the City with its financial recovery
in a similar fashion as the assistance that was provided to the City in 2002, as
detailed in Executive Order Number 02-125 (attached as "Exhibit A").
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COMMISSION
OF THE CITY OF OPA-LOCKA, FLORIDA:
Section 1. The recitals to the preamble herein are incorporated by reference;
Section 2. The City Commission of the City of Opa-locka, Florida, hereby
requests that the Governor of the State of Florida declare that the City of Opa-locka,
Florida is in a state of financial emergency pursuant to Florida Statute 218.503(4).
Section 3. The City Commission of the City of Opa-locka, Florida, further
requests the Governor of the State of Florida implement the following measures
pursuant to Florida Statute 218.503(3):
Resolution No. 16-9189
(A) Appoint a financial Oversight Committee to assist the City with its
financial recovery. The committee shall adopt rules and policies consistent with
Florida Statute 218.503(3) necessary bring the City out of financial emergency.
(B) Authorize a State and Local Agreement of Cooperation ("Agreement") designed
to resolve the financial emergency and provide assistance to the City.
(C) Require the City of Opa-Locka to obtain approval of its proposed annual
budgets, and any amendments to such budgets, from the Governor before final approval
of the budget.
(D) Prohibit the City of Opa-Locka from issuing bonds, notes, certificates of
indebtedness, or any other form of debt without the written approval of the Govemor,
except for continuing implementation of planned improvements to its water and sewer
system utilizing the Florida Department of Environmental Protection's revolving loan
program and as otherwise provided.
(E) Require the City of Opa-Locka to make available for inspection and review
records, information, reports, and assets of the City at the request of the Governor.
(F) Prohibit the City of Opa-Locka from seeking application of laws under the
bankruptcy provision(s) of the United States Constitution or Federal Statues without prior
written approval of the Governor.
(G) Require the City of Opa-Locka to notify the Governor in writing of any event,
occurrence, transaction, or thing that might affect the financial condition of the City.
(H) Require the City of Opa-Locka to cooperate fully with the Governor in his efforts
to provide technical assistance to the City, and in his efforts to consult with City officials
regarding and steps necessary to bring the books of account, accounting systems, financial
procedures, and reports into compliance with State requirements.
(I) Authorize the Department of Revenue and Comptroller, pursuant to section
218.503(3)(b), Florida Statues, to loan funds to the City of Opa-Locka upon terms and
conditions to be determined by the Govemor.
(J) Designate the Office of the Chief Inspector General as the lead agency in carrying
out the financial recovery of the City. The Governor may name the Chief Inspector General
Resolution No. 16-9189
of the State of Florida as his Designee, and require other agencies to provide full
cooperation and support as the Governor's Designee finds necessary.
(K) Provide technical assistance in the areas of finance, budgeting, human
resources management, planning and development; code enforcement, public
works, water and sewer, infrastructure and law enforcement.
(L) Provide other measures as set forth in Florida Statute 218.503(3) as he
deems necessary and appropriate.
Section 4. The City Clerk shall forward a certified copy of this resolution to
the Governor of the State of Florida immediately.
Section 5. This Resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 151 day of Tune, 2016.
Attest to:
Approved as to form and legal sufficiency:
J nna Flores Vincent T. Brown, Esq.
City Clerk The Brown Law Group, LLC
City Attorney
Moved by: COMMISSIONER SANTIAGO
Seconded by: VICE MAYOR HOLMES
Commissioner Vote: 4-0
Commissioner Kelley: YES
Commissioner Santiago: YES
Vice Mayor Holmes: YES
Mayor Taylor: YES
State and Local Agreement of Cooperation
Between the Governor and the City of Opa-locka
THIS STATE AND LOCAL AGREEMEM OF COOPERATION
(the "Agreement"), made and entered into this day of June, 2016, between the
Governor of the State of Florida ("Governor") and the City of Opa-locka, Miami -Dade
County, Florida ("City"), is in accordance with Executive Order Number 2016-135.
WHEREAS, on June 1, 2016, the City adopted a Resolution requesting the
Governor to make a determination that the City is in a state of financial emergency,
pursuant to Chapter 218, Florida Statutes; and
WHEREAS, the Governor is authorized under section 218.503, Florida Statutes,
to implement measures to resolve the financial emergency; and
WHEREAS, the City desires this intervention and assistance, and intends to
cooperate with the Governor to resolve the financial emergency; and
WHEREAS, the Governor has designated the Office of the Chief Inspector
General ("Governor's Designee") to serve as the lead entity responsible for coordinating
the Governor's efforts in providing intervention and assistance to the City.
NOW, THEREFORE, the Governor and the City agree as follows:
1. FIVE-YEAR FINANCIAL RECOVERY PLAN.
a. On or before August 1, 2016, the City shall approve, by a vote of the
Mayor and City Commission, and submit in writing to the Governor a
Financial Recovery Plan ("FRP") for fiscal years 2016.2017 through 2020-
2021. The FRP shall show balanced recurring revenues and recurring
expenditures, as well as estimated reserves, for each of the five years
projected. The FRP shall meet the requirements of section 218.503(3)(h),
Florida Statutes, including, but not limited to, providing for payment m
full of all financial obligations currently due, or which will come due. The
underlying assumptions for all revenue and expenditure estimates
contained in the FRP shall be documented and included within the FRP.
b. Within twenty (20) business days of receiving the FRP, the Governor shall
review the FRP, and after consultation with the City, may direct changes
to the FRP in writing. The City shall make such directed changes to the
FRP within thirty (30) business days of being notified in writing by the
Governor.
c. The City may amend the FRP with the prior written approval of the
Governor. The FRP may also be amended if the Governor determines
such changes are required, or if this Agreement requires an amendment.
d. At the beginning of each new fiscal year, an additional fifth year shall be
added to the FRP, and shall provide all types of information and data
presented for the preceding years. Each revised FRP shall be approved by
a vote of the Mayor and City Commission and submitted to the Governor
for approval. Within twenty (20) business days of receiving the revised
FRP, and after consultation with the City, the Governor may direct
changes to the revised FRP in writing. The City shall make such directed
changes to the revised FRP within thirty (30) business days of being
notified in writing by the Governor.
e. The City shall adopt the FRP in its entirety, and shall adopt such
ordinances as are necessary to implement the FRP.
2. APPROVAL OF CITY BUDGET.
a. On or before August lst of each year, the City shall submit to the
Governor the proposed Annual Budget of the City, as preliminarily
approved by the Mayor and City Commission. The underlying
assumptions for all revenue and expenditure estimates contained in the
proposed Annual Budget shall be documented and included with the
budget submission. Within twenty (20) business days of receipt, the
Governor shall review the proposed Annual Budget and, after
consultation with the City, notify the City in writing if changes are
necessary. The City shall include the changes directed by the Governor,
and shall approve the final Annual Budget within thirty (30) business
days of being notified in writing by the Governor.
b. The City may request amendments to the final Annual Budget by
submitting such requests in writing to the Governor. Within twenty (20)
business days of receiving the requested amendments, the Governor shall
respond in writing to the City, either rejecting the requested amendments,
approving the requested amendments, or approving the requested
amendments with changes. The City shall accept the response of the
Governor.
3. COMPONENTS OF FINANCIAL RECOVERY PLAN AND ANNUAL
BUDGET. The FRP and Annual Budget documents shall contain the level of
detail necessary for the Governor to analyze the underlying assumptions
contained in all estimates of expected revenues and expected expenditures.
The FRP and Annual Budget documents shall be prepared using the
following guidelines:
a. Reasonable estimates of revenues and expenditures shall be made based
on historical trends, conditions, and anticipated events;
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b. A timetable for the elimination of all outstanding deficits in all funds shall
be included;
c. Current expenditures and current revenues shall be balanced for each
fiscal year;
d. Provisions shall be made to avoid the future occurrence of financial
emergency conditions, including the establishment of adequate cash
reserves and fund reserves to cover unfunded liabilities;
e. The FRP shall enhance the City's ability to regain short- and long-term
borrowing capabilities;
f. Managerial and operational efficiencies and accountability shall be
improved;
g. City programs and services that the City cannot afford to operate shall be
modified and/or eliminated;
h. Enterprise funds of the City shall be operated according to commonly
accepted business practices, and operating revenues shall be sufficient to
cover all costs of the operation, including depreciation;
i. Efforts to collect debts and revenues owed to the City shall be improved;
j, City employee compensation and benefits, union contracts, and
negotiating practices employed by the City shall be reviewed and
modified, as appropriate;
k. The organizational structure of the City shall be reviewed and modified to
Improve efficiencies;
1. A Capital Improvement Plan for the City shall be developed and updated
annually; and
m. The City shall cooperate with an operational review of its police
department and emergency services, and shall implement changes
necessary to improve public safety.
4. INCURRING DEBT. The City may continue to borrow funds under the
revolving loan program managed by the Florida Department of Environmental
Protection, subject to the approval of that agency. The City shall not enter into
any new form of debt or liability, which exceeds twelve (12) months for
repayment, without the prior written approval of the Governor.
5. REPORTING TO THE GOVERNOR. Beginning August 1, 2016, and every
month thereafter, the City shall provide the Governor with a Monthly Revenue
and Expenditure Report that compares actual revenues and expenditures in each
fund with the projected revenues and expenditures contained in the Annual
Budget.
6. FINANCIAL INTEGRITY ORDINANCE. Within six (6) months after execution
of the Agreement, the City shall adopt a Financial Integrity Ordinance, which
shall set forth the necessary procedures to be followed by the City in carrying out
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its financial affairs. Prior to the adoption of the Financial Integrity Ordinance,
the City shall submit a copy of the proposed ordinance to the Governor. Within
twenty (20) business days after receipt, the Governor shall review the proposed
ordinance and, after consultation with the City, the Governor may direct changes
to the proposed ordinance in writing. The City shall include the changes
directed by the Governor, and shall approve the final Financial Integrity
Ordinance within thirty (30) business days of being notified in writing by the
Governor.
7. FINANCIAL AND CONTRACTUAL OBLIGATIONS. The City shall not enter
into any financial or contractual obligations that are not specifically authorized
by the Annual Budget or this Agreement, or which are inconsistent with the FRP.
8. FAILURE TO COMPLY. The City shall notify the Governor immediately, in
writing, if the City, the Mayor, or any member of the City Commission
determines that the City has violated or anticipates a violation of any of the
terms or conditions of the Agreement, including, but not limited to:
a. The failure of the City to submit any plan or document required by the
Agreement;
b. An affirmative act or failure to act by the City that jeopardizes the City's
financial recovery; or
c. Any deviation by the City from any plan or document hereunder
approved by the Governor.
The notification of a violation or anticipated violation shall contain sufficient
detail for a determination of what actions are necessary to remedy the reported
violation. The failure to comply with the terms and conditions of the Agreement
shall constitute a failure to resolve the state of financial emergency facing the
City, which constitutes malfeasance, misfeasance, and neglect of duty for
purposes of section 7, Article IV of the Florida Constitution, as provided by
section 218.503(6), Florida Statutes.
9. INDEPENDENT REVIEW BY THE GOVERNOR. The City agrees that the
Governor may assign staff to conduct or cause to be conducted such audits,
examinations, or studies of the City as the Governor deems necessary to resolve
the financial emergency.
10. GOVERNOR'S DESIGNEE. The Governor designates the Office of the Chief
Inspector General to serve as the Governor's Designee and delegates to the
Governor's Designee the authority to implement the terms and conditions of this
Agreement as set forth herein.
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11. DURATION OF THIS AGREEMENT. The Agreement shall remain in effect
until such time as the Governor concludes that the state of financial emergency
no longer exists, pursuant to section 218.504, Florida Statutes.
12. AMENDMENTS OR MODIFICATIONS. Any request to amend or modify the
Agreement shall be submitted in writing to the Governor, and any amendment
or modification shall be made only with the written approval of the Governor,
which approval shall not be unreasonably withheld.
13. NOTICES AND COMMUNICATIONS. Any notice or other form of
communication related to this Agreement shall be served in writing by facsimile
transmission, electronic mail, personal delivery, or overnight courier, as follows:
To the City:
To the Governor:
Ms. Yvette Harrell
Acting City Manager
City of Opa-locka
780 Fisherman Street, Fourth Floor
Opa-locka, Florida 33054
Telephone: (305) 953-2868
Facsimile: (888) 355-0982
yharrell@Opalockafl.gov
Ms. Melinda Miguel
Chief Inspector General
Office of Governor Rick Scott
The Capitol, Room 1902
Tallahassee, Florida 32399-0001
Telephone: (850) 717-9264
Facsimile: (850) 921-0817
Melinda.Miguel@eog.myflorida.com
14. BINDING EFFECT. The Agreement shall be binding upon and enforceable
against any successors of the City government, including, but not limited to,
successive City Managers, Mayors, and City Commissioners.
15. ACKNOWLEDGMENT. By signing the Agreement, each party hereto affirms
that he/she possesses the authority to enter the Agreement on behalf of the City
and the Governor's Office; has fully and carefully read the terms and conditions
of the Agreement; knows and understands the contents of the Agreement; and
fully expects to carry out the Agreement in its entirety as set forth herein.
Further, the Mayor and City Manager each affirm, by the signatures affixed
hereto, that the Agreement has been approved by Resolution of the City.
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IN WITNESS WHEREOF, the parties hereto execute the Agreement.
Rick Scott, governor Myra Ta lor, Mayor
State of Florida
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City of Opa-locka, Florida
', . ame -
vette fl 11, Acting City Manager
City of • pa-locka, Florida