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Home My Public Portal About19-9656 Reaffirming the City Obligation to Comply w/2013 Integrity Ordinance Sponsored by: City Manager RESOLUTION NO. 19-9656 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, REAFFIRMING THE CITY'S OBLIGATION TO COMPLY WITH THE 2003 FINANCIAL INTEGRITY ORDINANCE; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Opa-locka adopted Ordinance No. 03-05 (Financial Integrity Ordinance); and WHEREAS, Ordinance No. 03-05 (Financial Integrity Ordinance) has not been repealed or sunsetted; and WHEREAS, the City Commission herby reaffirms Its obligation to comply with Ordinance No. 03-05 (Financial Integrity Ordinance). NOW THEREFORE, BE IT RESOLVED THAT 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. AUTHORIZATION. The City Commission hereby reaffirms Its obligation to comply with Ordinance No. 03-05 (Financial Integrity Ordinance). Section 3. SCRIVENER'S ERRORS. Sections of this Resolution may be renumbered or re-lettered and corrections of typographical errors which do not affect the intent may be authorized by the City Manager, or the City Manager's designee, without need of public hearing, by filing a corrected copy of same with the City Clerk. Resolution No. 19-9656 Section 4. EFFECTIVE DATE. This Resolution shall take effect immediately upon adoption, and is subject to the approval of the Governor of the State of Florida or his designee. PASSED AND ADOPTED this 8th day of May, 2019. MATTHEW A.PIGATT MAYOR Attest to: Approved as to form and legal sufficiency: Jo. a Flores BROWN LAW GROUP, LLC City Clerk City Attorney Moved By: COMMISSIONER KELLEY Seconded by: COMMISSIONER BURKE Commissioner Vote: 5-0 Commissioner Kelley: YES Commissioner Bass: YES Commissioner Burke: YES Vice Mayor Davis: YES Mayor Pigatt: YES 1s`Reading: February 12, 2003 2nd Reading/Public Hearing: February 26, 2 0 0 3 Adopted: February 26, 2003 Effective Date: February 26, 2003 Sponsored by: City Manager Ordinance No. 0 3-0 5 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA RELATING TO FINANCIAL POLICIES; PROVIDING FOR FINANCIAL INTEGRITY PRINCIPLES; CONTAINING A REPEALER PROVISION AND SEVERABILITY CLAUSE;FURTHER PROVIDING FOR AN EFFECTIVE DATE AND CODIFICATION IN THE CODE OF ORDINANCES WHEREAS,on February 28,2002,the Governor of the State of Florida was officially notified of a financial emergency in the City of Opa-locka; and WHEREAS, the City of Opa-locka and Governor entered into an Interlocal Agreement (IA) which set forth corrective actions to be taken to eliminate the financial emergency; and WHEREAS, the city desires that the use of financial "best practices" to assure maximum protection of public funds entrusted to the City of Opa-locka; and WHEREAS, the City recognized it has been making improvements in its financial position through adherence to financial "best practices"; and WHEREAS,these principles provide a framework to prevent another financial crisis through use of its own municipal home rule powers; and WHEREAS, the City desires to formalize eight (8) financial principles which will serve as the underlying basis for governing the City's finances in the future; and WHEREAS, these principles are crucial to assuring potential investors that investments in the City are safe as the City plans to reenter the credit market; NOW,THEREFORE,BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA: 1 Section 1. The recitals and findings contained in the Preamble to this Ordinance are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. Financial Integrity Principles Financial Integrity Principles and Policies to assure and maintain financial integrity in the City of Opa-locka are hereby established and shall be implemented immediately upon adoption to this Ordinance. The Financial Integrity Principles as set forth herein shall be reviewed and updated as necessary, at least every three years. The following Financial Integrity Principles are hereby adopted: 1. Structurally Balanced Budget—The City shall maintain a structurally-balanced budget. Recurring revenues will fund recurring expenditures. Non-recurring revenues and budget surpluses shall replenish reserve levels, support outstanding liabilities and pay for non- recurring expenditures, in the order set forth herein. 2. Professional Estimating Process—The City shall adopt budgets and develop its long and short-term financial and capital improvement plans containing estimates developed utilizing a professional estimating process. Estimates shall be prepared based on historical trends and shall be well substantiated. 3. Interfund Borrowing—The City shall not borrow or use internal fund transfers to obtain cash from one fund type or reserve to fund activities of another fund type or reserve unless such use is deemed lawful,and unless the Finance Director has determined that(a) the funds to be borrowed will not be needed during the lending period,and(b)the funds 2 for repayment will be available within a two-year period. Any actions taken to borrow funds under these conditions must be separately presented to and approved by the City Commission and the term of such borrowing shall not extend beyond the last day of the subsequent fiscal year. Recognizing that some programs are funded by grants or other entities on a reimbursement basis, the City shall apply for such reimbursements on a timely basis to minimize the period that City funds are used as float. In the event loans/float for these reimbursements extend beyond the end of a fiscal year, such reimbursements shall be reflected as receivables and noted as part of the annual budget process. 4. Reserve Policies—The City shall retain an annual end-of-year General Fund reserve of approximately$200,000. Further, upon resolving the deficits in the Water and Sewer and Solid Waste Funds, the City shall retain at least a 2-5%reserve in these funds. (a) Current Fiscal Year General Fund Contingency—A"contingency"reserve level of$500,000 shall be budgeted annually. $300,000 of such contingency reserve shall be available for use,with City Commission approval,during the fiscal year, to fund unanticipated budget issues, emergencies/natural disasters which may arise or potential expenditure overruns which cannot be offset through other sources or actions. This reserve level shall be replenished at the beginning of each fiscal year so it is available on an on-going basis. $200,000 shall remain unspent to provide for the year end reserve. (b) Reserve for uncompensated absences and other employee benefit liabilities-the City shall budget $65,000 annually in the General Fund, $17,500 in the Water 3 and Sewer Fund and $17,500 in the Sold Waste Fund to build the reserves sufficient to cover these liabilities for each fund. 5. Multi-Year Financial and Capital Plan(CIP)—The City Commission shall annually adopt a Financial Plan by September 30 of each year,in concert with the annual budget,which contains five years of financial forecast. Such plan will include cost estimates of all current city operations and proposed capital outlay expenditures,anticipated increases in operations, debt services payment, reserves to maintain the City's officially adopted levels and estimated recurring and non-recurring revenues. The Plan will be prepared by fund with a"Financial Summary Table" to reflect forecasted surpluses or deficits and potential budget balancing initiatives, where appropriate. The capital improvement component of the Plan shall cover cost estimates for all necessary infrastructure improvements needed to support City services, including information technology with an adequate repair and replacement(R&R)component. To the extent feasible, department heads shall be required to submit independent needs assessments for their departments for use in preparing the CIP.The plan will be detailed by fund,include recommended project prioritization rankings,identified revenue sources, planned financing options and unfunded projects. The CIP shall include a component reflecting all on-going approved capital projects of the City, the date funded, amount budgeted, amount spent since the start date, remaining budget, fiscal impact of known changes to financial assumptions underlying the project and estimated completion date. Approved projects,with circumstances that arise which change the funding requirements of the project, shall be addressed in the CIP annually. 4 6. Financial Oversight and Reporting—The City shall provide for the on-going generation and utilization of financial reports on all funds comparing budgeted revenue and expenditure information to actual on a monthly and year-to-date basis. The Finance Department shall be responsible for issuing the monthly reports to departments, the Mayor and City Commission, and provide any information regarding any potentially adverse trends or conditions. These reports should be issued within thirty(30)days after the close of each month. The annual external audit of the City shall be prepared and presented to the Mayor and City Commission within 195 days of the close of each fiscal year 2003 and within 180 days of the close of each subsequent financial year. 7. Basic Financial Policies— The City shall endeavor to maintain formal policies, which reflect"best practices" in the areas of: i. Debt— such policy shall address affordability, capacity, strategies for re-entering the bond market in the future, debt issuance and management. ii. Cash Management and Investments — such policy shall require twenty-four(24)month gross and net cash-flow projections by fund and address adequacy,risk, liquidity and asset allocation issues. iii. Budget Development and Adjustments—such policy shall establish proper budgetary preparation procedures and guidelines,calendar of events, planning models by fund, budget adjustment procedures, establishment of rates and fees, indirect costs/interest income and 5 the estimating conference process. The proposed budget should be scheduled to allow for sufficient review by the Mayor and City Commission while allowing for sufficient citizen input. The City budget document reflecting all final actions as adopted by the City Commission on or before September 30, of each year, shall be printed and made available within thirty(30)days of such adoption. iv. Revenue Collection — such policy shall provide for maximum collection and enforcement of existing revenues, monitoring procedures, and the adequacy level of subsidy for user fees. v. Purchasing Policy — such policy shall establish departmental policies and procedures and provide appropriate checks and balances to ensure the City departments adhere to the City's purchasing policies. 8. Promoting Operating Efficiencies —the City shall develop programs and incentives to encourage operating efficiencies through the use of technology,outsourcing,or any other curriculum. Section 3. All ordinances or parts or parts of ordinances insofar as they are inconsistent or in conflict with the provisions of this Ordinance are hereby reapealed. Section 4. If any section, part of section, paragraph, clause, phrase or word of this Ordinance is declared invalid, the remaining provisions of this Ordinance shall not be affected. Section 5. This Ordinance shall become effective in the manner provided by law. 6 Section 6. This Ordinance upon adoption shall be codified and included in The City of Opa-locka Code of Ordinances. PASSED AND ADOPTED this 26 day of February , 2003. fi/ MAYO Attest: Approved as to form and legal sufficiency: • CI CLERK C Y TTO Y f/6i-A1 DAT Moved by: Commissioner Holmes Second by: Vice Mayor Johnson Commission Vote: 5-0 Commissioner Holmes: YES Commissioner Tydus: YES Commissioner Kelley: YES Vice-Mayor Johnson: YES Mayor Taylor: YES Ordinance/Financial Policies 7