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98-22661 RESO RESOLUTION NO. 98-22661 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING RESOLUTION NO. 96-22014 WHICH ESTABLISHED A CONTINGENCY RESERVE FUND WHICH SHALL BE MAINTAINED AT A MINIMUM OF ELEVEN PERCENT (11%) OF THE ANNUAL GENERAL FUND BUDGET BY AMENDING THE PROCEDURES FOR ITS USE. WHEREAS, the Mayar and City Cammissian recagnize the necessity ta adequately provide the resaurces ta .operate the City in the event .of a catastrophe; and WHEREAS, such resaurces can be pravided by the establishment .of a permanent reserve far such cantingencies; and WHEREAS, such reserve shall be maintained until the Mayar and City Cammission declare an emergency and autharize its expenditure; and WHEREAS, any amaunts expended from such reserve shall be replenished until such reserve shall again be fully funded; and WHEREAS, the Mayor and City Cammission passed Resalutian No. 96-22014 an June 5, 1996 which established a contingency reserve fund which shall be maintained at a minimum .of eleven percent (11 %) of the annual General Fund Budget and which established the pracedures far its use and replacement; and WHEREAS, it has naw became necessary ta amend Resalutian Na. 96-22014 ta further safeguard and clarify the use .of the cantingency reserve funds. NOW, THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH that Resalutian No. ,96-22014 is hereby amended as fallaws: 1. A permanent cantingency reserve .of $10,000,000 is hereby established in...an amaunt nat less than eleven percent (11%) .of the annual fiscal budget af-fft-the General Fund .of the City ta be held far use in 8ft a public emergency if and when an emergency is declared affecting life. health. property .or public safety, and the expenditure .of such funds is autharized by a five-sevenths (5/7) vate .of majarity .of the City Cammissian. 2. Said reserve shall be increased .or decreased annually but shall be maintained at a minimum amaunt .of eleven percent (11 %) .of the then existing General Fund Budget. 3. Prior to any expenditures from this reserve, the Mayor and City Commission must declare an emergency affecting life. health. property or public safety and authorize said expenditures by a five-sevenths (517) vote. After any expenditure from said reserve, all reimbursements from State and Federal Agencies for emergency relief are to be redeposited into such reserve. Any amounts disbursed which are not recovered from governmental agencies shall be appropriated from Undesignated Fund Balances of the General Fund to restore the reserve to its then established level. If there is an insufficient Undesignated Fund Balance to restore said reserve to its then established level, the Administration is directed to restore the reserve to its aforementioned level in an amount of not less than one million dollars ($1,000,000) annually, by an amendment to the Adopted General Fund Budget. Passed and Adopted this 18th day of February, 1998. ~ Mayor Attest: _~d' PCVl~ City Clerk APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~ JJIP//P- itv Affomey V'{{jk ate CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 CITY OF MIAMI BEACH OFFICE OF THE CITY MANAGER COMMISSION MEMORANDUM NO. QI..-98 TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 February 18, 1998 To: Mayor Neisen Kasdin and Members of the City Commission Sergio Rodriguez . g City Manager ~ Amendment to the Procedure for the Expenditure of Any Amount - from the Permanent Reserve for Contingencies From: Subject: Administrative Recommendation The Administration recommends that the Mayor and City Commission approve the resolution. Background On June 5, 1996, the City Commission adopted Resolution 96-22014 which established a permanent contingency reserve in the General Fund to be held for use in an emergency. This resolution established the reserve at $10 million and required that the reserve be maintained at a minimum amount of eleven percent (11 %) of the existing General Fund Budget The reserve is currently funded at $11,379,000. Expenditure of these funds was permitted only, if and when an emergency was declared, and the expenditure was authorized by a majority of the City Commission. Analysis It has now become necessary to further safeguard and clarify the use of these funds. As these funds may only be used in an emergency situation it is recommended that the language of Resolution 96-22014 be amended to be consistent with the language in the City Charter. This language delineates a public emergency as one that affects life, health, property or public safety and requires that when such a condition exists that the City Commission adopt an emergency ordinance by a five -sevenths (517) vote. This ordinance may be made effective immediately and requires that following adoption it shall be published in full, within 10 days in a newspaper of general circulation in the City. Agenda Item C. 1 G Date L.-L~-q8 Conclusion The City Commission should approve the amendment to further safeguard and clarify the use of these funds SR/PDW RESOLUTION NO. 98-22661 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING RESOLUTION NO. 96-22014 WHICH ESTABLISHED A CONTINGENCY RESERVE FUND WHICH SHALL BE MAINTAINED AT A MINIMUM OF ELEVEN PERCENT (11%) OF THE ANNUAL GENERAL FUND BUDGET BY AMENDING THE PROCEDURES FOR ITS USE. WHEREAS, the Mayor and City Commission recognize the necessity to adequately provide the resources to operate the City in the event of a catastrophe; and WHEREAS, such resources can be provided by the establishment of a permanent reserve for such contingencies; and WHEREAS, such reserve shall be maintained until the Mayor and City Commission declare an emergency and authorize its expenditure; and WHEREAS, any amounts expended from such reserve shall be replenished until such reserve shall again be fully funded; and WHEREAS, the Mayor and City Commission passed Resolution No. 96-22014 on June 5, 1996 which established a contingency reserve fund which shall be maintained at a minimum of eleven percent (11 %) of the annual General Fund Budget and which established the procedures for its use and replacement; and WHEREAS, it has now become necessary to amend Resolution No. 96-22014 to further safeguard and clarify the use of the contingency reserve funds. NOW, THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH that Resolution No. ,96-22014 is hereby amended as follows: 1. A permanent contingency reserve of $10,000,000 is hereby established h...an amount not less than eleven percent (11 %) of the annual fiscal budget of-fn-the General Fund of the City to be held for use in 8ft a public emergency if and when an emergency is declared affecting life. health. property or public safety, and the expenditure of such funds is authorized by a five-sevenths (517) vote of majority of the City Commission. 2. Said reserve shall be increased or decreased annually but shall be maintained at a minimum amount of eleven percent (11 %) of the then existing General Fund Budget 3. Prior to any expenditures from this reserve, the Mayor and City Commission must declare an emergency affecting life. health. property or public safety and authorize said expenditures by a five-sevenths (517) vote. After any expenditure from said reserve, all reimbursements from State and Federal Agencies for emergency relief are to be redeposited into such reserve. Any amounts disbursed which are not recovered from governmental agencies shall be appropriated from Undesignated Fund Balances of the General Fund to restore the reserve to its then established level. If there is an insufficient Undesignated Fund Balance to restore said reserve to its then established level, the Administration is directed to restore the reserve to its aforementioned level in an amount of not less than one million dollars ($1,000,000) annually, by an amendment to the Adopted General Fund Budget. Passed and Adopted this 18th day of February, 1998. Attest: Mayor City Clerk APPROVED AS TO FORM & lANGUAGE & FOR EXECUTION 1~ ~tIP- itv Affomey Vr~k ate