Ordinance 87-2588 ORDINANCE NO. 87-2588
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE CITY
OF MIAMI BEACH, FLORIDA, BY CREATING CHAPTER 18A,
ENTITLED: "INVESTMENT OF SURPLUS FUNDS" PROVIDING
FOR INVESTMENT OF SURPLUS PUBLIC FUNDS; DEFINING
SURPLUS PUBLIC FUNDS; REPEALING ORDINANCES IN CON-
FLICT HEREWITH; PROVIDING FOR SEVERABILITY; AND
PROVIDING FOR AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA:
Section 1: That the Code of the City of Miami Beach, Florida, be
amended by the creation of Chapter 18A, entitled
"INVESTMENT OF SURPLUS FUNDS. " , to read as follows:
CHAPTER 18A Investment of Surplus Funds
(1) That the City Commission of the City of Miami Beach,
Florida, may, by resolution to be adopted from time
to time, invest and reinvest any surplus public funds
in its control or possession in:
(a) government obligations, which obligations shall mean
(i ) direct obligations of, or obligations the principal of and the
interest on which are unconditionally guaranteed by, the United States
Government, (ii ) municipal obligations, the payment of the principal of,
interest and redemption premium, if any, on which are irrevocably secured
by obligations described in clause (i ) of this definition and which
obligations are not subject to redemption prior to the date on which the
proceeds attributable to the principal of the obligations are to be used
and have been deposited in an escrow account which is irrevocably pledged
to the payment, of the principal of and interest and redemption premium,
if any, on such municipal obligations, and (iii ) evidences of ownership
of proportionate interest or principal payments on obligations specified
in clauses (i ) and ( ii ) of this definition held by a bank or trust company
as custodian and which underlying obligations are not available to satisfy
any claim of the custodian or of any person to whom thecustodian may be
obligated;
(b) bankers acceptances, certificates of deposit or time deposits
of any bank, trust company or savings and loan association (including
any investment in pools of such bankers acceptances, certificates of deposit
or time deposits) , which to the extent that such obligations are not insured
by the Federal Deposit Insurance Corporation or the Federal Savings and Loan
Insurance Corporation, are either (i ) issued by a bank, trust company or
savings and loan association having a combined capital and surplus aggre-
gating at least $50,000,000 or (ii ) collateralized at all times by such
securities as are described in clause (a) above, having a market value at
least equal to the principal amount of such bankers acceptances, certificates
of deposit or time deposits (or portion thereof not so insured) provided
that the holder of such bankers acceptances, certificates of deposit or
time deposits has a perfected first security interest in the collateral and
that such collateral is held free and clear of claims by third parties:
(c) obligations issued by any state or territory of the United
States, which are rated, on the date of investment therein, in one of the
two highest rating categories (without regard to any gradation within such
category) by both Moody' s Investors Service, Inc. or any successors thereto
and Standard & Poor' s Corporation or any successors thereto:
(d) municipal obligations, the payment of the principal of and
the interest on which is insured, which are rated, on the date of investment
therein, in one of the two highest rating categories (without regard to any
gradation within such category) by both Moody' s Investors Service, Inc. or
any successors thereto and Standard & Poor' s Corporation or any seccessors
thereto; and
(e) any repurchase, reverse repurchase or investment agreement
with any bank or trust company organized under the laws of any state of the
United States or any national banking association, insurance company, or
government bond dealer reporting to, trading with, and recognized as a
member of the Security Investors Protection Corporation, which agreement is
secured by any one or more of the securities described in (a) above, provided
that the holder of such bankers acceptances, certificates of deposit or time
deposits has a perfected first security interest in the collateral and that
such collateral is held free and clear of claims by third parties.
Section 2. That for the purposes of the preceding section, the term
"surplus public funds" is defined as funds in any general or special account
or fund of the City of Miami Beach held or controlled by the City Commission
of the City of Miami Beach, which funds are not reasonably contemplated to
be needed for the purposes intended within a reasonable time from the date
of such investment.
Section 3. All ordinances or parts in conflict herewith be and the
same are hereby repealed.
-2-
Section 4. If any section, sentence, clause or phrase of this ordinance
is held to be invalid or unconstitutional by any court of competent jurisdiction ,
then said holding shall in no way affect the validity of the remaining portions
of this ordinance.
Section 5. This ordinance shall take effect ten (10) days after its
adoption, on Nnvemher 2R , 1987.
PASSED AND ADOPTED this 18th day of November ,1987.
pqOR
ATTEST:
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CITY CLERK
1st Reading - November 4, 1987
2nd Reading - November 18, 1987
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