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HomeMy WebLinkAboutO-12026J-01-26 1/25/01 - ORDINANCE NO. 12026 AN ORDINANCE OF THE MIAMI CITY' COMMISSION AMENDING CHAPTER 18/ARTICLE IX/DIVISION 1 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED "FINANCE/FINANCIAL POLICIES/ANTI-DEFICIENCY ACT",... TO REQUIRE APPLICATION OF THE ANTI -DEFICIENCY ACT REGULATIONS TO ALL ENTITIES FUNDED IN WHOLE OR IN PART BY THE CITY OF MIAMI, INCLUDING, BUT NOT LIMITED TO, AGENCIES, AUTHORITIES, TRUSTS, BOARDS OR COMMISSIONS, EXCEPT FOR THE THREE CITY OF MIAMI RETIREMENT TRUSTS; MORE PARTICULARLY BY AMENDING SECTION 18-500 THROUGH 18-502 OF SAID CODE; DIRECTING THE CITY CLERK TO TRANSMIT A COPY OF THIS ORDINANCE TO THOSE INDIVIDUALS DESIGNATED HEREIN; CONTAINING A REPEALER PROVISION AND A SEVERABILITY. CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Chapter 2, Article XII, Section 2-1145 of the Code of the City of Miami, Florida, as amended, established the Anti -Deficiency Act (the "Act"); and WHEREAS, the Act sets forth regulations to ensure that department directors with authority to direct obligation or disbursement of City funds do not expend funds in excess of those which have been approved in an adopted budget; and WHEREAS, the Act also provides for mandatory procedures to be used by department directors, the City Manager, City Attorney, City Clerk, Mayor and Commissioners; and 11026 WHEREAS, the Act assures by its terms and in principal that a City department shall not exceed its budget authority; and WHEREAS, the City Commission wishes to extend the principal of such assurance to agencies, authorities, trusts, boards, and commissions which have the ability to obligate the City financially and which are created and funded either in whole or in part by the City of ,Miami (the "City") with the exception of the three Retirement Trusts known as the City of Miami Firefighters' and Police Officers' Retirement Trust, City of Miami General Employees' and Sanitation Employees' Retirement Trust, and the City of Miami Elected Officers' Retirement Trust; and WHEREAS, the Act includes mechanisms and procedures specific to the manner in which the City operates and which may not be specifically transferable to an entity under a separate financial system such as an agency, authority, trust, board, or commission; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Ordinance are adopted by reference and incorporated as if fully set forth in this Section. Section 2. Chapter 18/Article IX/Division 1 of the Code of the City of Miami, Florida, as amended, entitled Page 2 of 10 12026 • 0 "Finance/Financial Policies/Anti-Deficiency Act", is amended in the following particulars:l/ "Chapter 18 FINANCE Article IX. Financial Policies Division 1. Anti -Deficiency Act Sec. 18-500. Established. Regulations, to be known as the Anti -Deficiency Act, are hereby established to provide mandatory procedures to be used by department directors, the city manager, city attorney, city clerk, mayor, a-nd commissioners, and executive directors of agencies, authorities, trusts, boards, or commissions funded in whole or in part by the city, with authority to direct obligation or disbursement of city funds. However, the herein regulations shall not apply to the three City of Miami Retirement Trusts which are the City of Miami Firefighters' and Police Officers' Retirement Trust, the City of Miami General Employees' and Sanitation Employees' Retirement Trust, and the City of Miami Elected Officers' Retirement Trust. Sec. 18-501. Definitions As used in this article: Agency or agencies shall mean, including, but not limited to, any agency(s), authority(s), trust(s), board(s), or commission (s) funded in whole or in part by the city, except the City of Miami Firefighters' and Police Officers' Retirement Trust, the City of Miami General Employees' and Sanitation Employees' Retirement Trust, and the City of Miami Elected Officers' Retirement Trust. Authority to direct obligation or disbursement shall mean any permission, approval, consent, or 1� Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate omitted and unchanged material. Page 3 of 10 `� 0 . 0 signature from a department director or executive director of an agency, authority, trust, board, or commission funded in whole or in part by the city, except for the City of Miami Firefighters' and Police Officers' Retirement Trust, the City of Miami General Employees' and Sanitation Employees' Retirement Trust, and the City of Miami Elected Officers' Retirement Trust (the "Retirement Trusts"), or a single individual, specifically designated in writing by a department director or executive director of an agency, authority, trust, board, or commission funded in whole or in part by the city, except for the Retirement Trusts, and acknowledged and accepted in writing by the designee, and kept on file within the department, agency, authority, trust, board, or commission funded in whole or in part by the city, except for the Retirement Trusts, regardless of form, which permits or authorizes expenditure of funds, excluding documents or forms which process such authority. Department directors shall mean directors of all departments of the city including heads of offices and shall include persons responsible for individual budgets as set forth in the annual appropriations ordinance. Notwithstanding any delegation of authority for the act of budget oversight, heads of departments or offices shall not be relieved of responsibility related to this act. Executive director shall mean the executive directors of all agencies, authorities, trusts, boards, or commissions, including heads of offices, funded in whole or in part by the city, and shall include persons responsible for the individual annual budgets for each agency, authority, trust, board or commission approved by the city commission, except for the City of Miami Firefighters' and Police Officers' Retirement Trust, the City of Miami General Employees' and Sanitation Employees' Retirement Trust, and the City of Miami Elected Officers' Retirement Trust. Notwithstanding any delegation of authority for the act of budget oversight, the executive director shall not be relieved of responsibility related to this Act. Obligational authority shall mean any document, ordinance, resolution or paper, regardless of form, which grants permission for an expenditure. Sec. 18-502. Procedures and implementation. 1206 Page 4 of 10 The procedures set forth herein apply where a continuing ordinance or resolution of the city commission which specifically directs an expenditure of funds, and identifies a source of funds to increase the obligation/expenditure authority has not been enacted, extended, or renewed by the city commission to provide temporary obligational authority. Notwithstanding the adoption of an ordinance or resolution by the city commission expending funds, any ordinance or resolution which exceeds an approved departmental or agency budget may be considered voidable and shall be placed on the next regular city commission agenda by the city manager or executive director for budget approval and adjustments as deemed appropriate. Nor may any individual in authority instruct an employee of the city to exceed, without legal authority, the depaitFRental, annual budget appropriation for any department or agency. This following Anti -deficiency Act is hereby enacted and regulations set forth as follows: (1) This section applies to all obligations chargeable to annual appropriations, and prior year billing, or multiple -year appropriations which have expired, and for which the obligational authority has not been extended. This section shall additionally apply to the city manager, a-nd department directors, and executive directors with authority to approve overtime budgets. (2) The city manager, assistant city managers, aid department directors, and executive directors with authority to direct obligation or disbursement of city funds may not enter into contracts or any other agreements for the future payment of money in excess of those funds approved in the current year budget by ordinance or resolution. However, the terms and conditions set forth in the document related to debt issuance and long- term capital improvement projects and other approved multi-year agreements shall be controlling. (3) Any obligation incurred in excess of an annual departmental or agency appropriation represents a violation of the Anti -Deficiency Act. No such obligation shall be incurred Page 5 of 10 12 61 1 61 unless the city commission or city manager through emergency powers, has enacted legislation or exercised authority extending a department's or agency's obligational authority of a department or agency. However, should an emergency, defined under state law as any occurrence, or threat thereof, whether natural, technological, or manmade, in war or in peace, which results or may result in substantial injury or harm to the population or substantial damage to or loss of property, occur and temporary obligation authority is authorized, said obligations and authority shall require an ordinance or resolution for the ratification, approval and confirmation of said action together with such other necessary actions to ensure a balanced year-end budget by an affirmative majority vote of the members of the city commission at the next immediate regularly scheduled meeting of the city commission or special meeting called for that purpose. (4) The prohibitions contained herein are applicable to the city manager, and department directors., or executive directors with the authority to verify and/or approve the availability of funds, disburse or obligate funds for the city. The provisions contained herein apply to the offices of the mayor, city clerk, city attorney, city commission, the city manager, ai-rd all departments and agencies budgets which incorporate overtime budgets and prior year billings, and funds, including but not limited to non -departmental accounts and the capital improvements program. (5) The city manager shall promulgate policies which instruct department directors with authority to direct obligation or disbursement of city funds to assure compliance with this act. (6) The city commission shall promulgate policies which instruct executive directors with authority to direct obligation or disbursement of city funds to assure compliance with this act. Page 6 of 10 2 0 265 (�7) The official or employee verifying the availability of funds, and/or approving budget authority and/or certifying a voucher, purchase order or any other paper indicating availability of funds is responsible for ensuring that the expenditure will not exceed the department's or agency's current year budget appropriations for that line item. (-78) Any employee of the city who has knowledge or a reasonably based belief that a budget of the city may be in violation of this act shall have the right to be heard under the provisions for a monthly status of the city budget set forth below. Any such person shall not be penalized in any manner for actions taken to report violation -of this act. ($9) A department director or executive director with obligation or disbursement authority shall be in violation of this act if he/she willfully withholds invoices, payments, settlement, or any other instrument of city debt which were incurred and due in the current fiscal year in an effort to avoid exceeding the approved current year budget. (41_0) The city manager shall have the authority to adjust line items in an amount not to exceed ten percent of a department's budget so long as the total annual projected expenditures of a department do not exceed the department's current budget, and said adjustment is verified by the department of management and budget. Additionally, all proposed budget adjustments between departments, including capital improvements projects shall require approval by city commission ordinance or resolution. During the fourth quarter of the fiscal year, any changes or deviations in excess of $5,000.00 per transaction from the current approved budget for those departments under the authority of the city manager shall require city manager approval, with the advice and written concurrence of the member of the city commission designated as the presiding officer, a copy of which shall be provided to the city clerk. Page 7 of 10 1. 2 0 21 16 (11) The executive director shall have the authority to adjust line items in an amount not to exceed ten percent of an .agency's budget so long as the total_ annual projected expenditures of the agency does not exceed the agency's current budget, and said adjustment is verified in a manner using acceptable accounting principles. During the fourth quarter of the fiscal year, any changes or deviations in excess of $5,000.00 per transaction from the current approved budget for those agencies shall require written concurrence of the member of the city commission designated as the presiding officer, a copy of which shall be provided to the citv clerk. (3-&12)Notification of possible deficiency. Any department director, executive director or individual with authority to verify the availability of funds, or direct obligation or disbursement of city funds who anticipates or has reason to believe that the annual budget of a department or agency may exceed the sum appropriated in the approved budget ordinance or resolution (a "deficiency") shall immediately provide written notification to the mayor, the city commission, city manager, city attorney, city clerk, and the director of the department of management and budget. Said notification shall include the cause of the deficiency, the amount of the deficiency and the recommended remedial action to cure the deficiency. (a-113)The city manager shall present monthly, except during the month of September, a written report on the status of the city budget at a city commission meeting. The executive directors of all agencies shall each present quarterly, except during the month of September, a written report on the status of the individual agency's budget at a city commission meeting. At a minimum, this report should generally include, but not be limited to, the following information in a form acceptable to the city commission: fund summary, revenues by category and expenditures by major object, revenues by Page 8 of 101 Section 3. category and expenditure by department, or revenues by minor object-recurring/non- recurring, expenditures by minor object- recurring/non-recurring,, revenues by minor object -recurring, revenues by minor object - non -recurring, expenditures by minor object - recurring, expenditures by minor object -non- recurring, bank reconciliation memo, cash positions for all funds, investments outstanding as of the preceding month, cash received year to date, cash received for the current month or preceding month, human resource personnel reports, including computation which details sworn or unsworn personnel. The city external auditor shall present the comprehensive annual financial report. or status thereof no later than the end of the second quarter of each fiscal year. The external auditors engaged by -the individual agencies shall each present the agencies, comprehensive annual financial reports or status thereof no later than the end of the second quarter of each fiscal year. The City Clerk is directed to transmit a copy of this Ordinance, upon adoption on second reading, to the executive directors of all agencies, authorities, trusts, boards or commissions of the City of Miami. Section 4. All ordinances or parts of ordinances insofar as they are inconsistent or in conflict with the provisions of this Ordinance are repealed. Section 5. 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 6. The provisions set forth in this Ordinance shall commence and become operative as of July 1, 2001. Page 9 of 10 12 0 2 0 • Section 7. This Ordinance shall become effective thirty (30) days after final reading and adoption thereof 21 PASSED ON FIRST READING BY TITLE ONLY this 25th day of January 2001. PASSED AND ADOPTED ON SECOND AND FINAL READING BY TITLE ONLY this 22nd day of February , 2001. , JOE CAROLLO, MAYOR In accordance with Miami Code Sec. 2-36, since the tayor did not indlvto ap;-' Vlal of this legislation by signing it in the designated r.azo, p-mAded becomes effective with th<o e!u ase of ton. � <3 cit arcn i the �; ate of �"c��r :,P; 1, . ' : �:rte, a regarding sane, without the iViags( exr;cisi- ctc. ATTEST: Clerk WALTER J. FOEMAN, CITY CLERK APPROV3$) "S l'/ FORN� AND CORRECTNESS :t/ DRO VILARELLO C ATTORNEY W998:BSS z/ This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become effective immediately upon override of the veto by the City Commission or upon the effective date stated herein, whichever is later. Page 10 of 10 2 0 CITY OF MIAMI CITY ATTORNEY'S OFFICE MEMORANDU TO: Mayor and Members of th ity Co fission FROM: Alejandro Vilarello, Atto DATE: February 5, 2001 RE: City Commiss n Meeti — Febru 22, 2001 Proposed Second Rea ' g Ordinance Amending Code to quite application of Anti -Deficiency Act regulations to all entities d in whole or in part by the City, except for the three City of Miami Retirement Trusts (J-01-26) At the meeting of January 25, 2001, the City Commission passed, at first reading, an ordinance, with modifications, -requiring application of the Anti -Deficiency Act regulations to all executive directors or individuals responsible for the operation of entities funded in whole or in part by the City, including, but not limited to, agencies, authorities, trusts, boards or commissions, with the exception of the three City of Miami Retirement Trusts, which are: the City of Miami Firefighters' and Police Officers' Retirement Trust, the City of Miami General Employees' and Sanitation Employees' Retirement Trust, and the City of Miami Elected Officers' Retirement Trust. The attached ordinance proposed for second reading incorporates the modifications you requested to (1) change the time requirement for presentation of status reports by executive directors of City. agencies from monthly to quarterly [see Page 8, Section 18-502(13)]; and (2) provide that the provisions contained in the ordinance commence and become operative as of July 1, 2001 [see Page 9, Section 6]. W534:BSS Attachment c: Carlos A. Gimenez, City Manager Walter J. Foeman, City Clerk Maria J. Chiaro, Assistant City Attorney Linda Haskins, Director, Department of Management and Budget Scott Simpson, Interim Director, Department of Finance I04 • MIAMI DAILY BUSINESS REVIEW Published Daily except Saturday, Sunday and Legal Holidays Miami, Miami -Dade County, Florida. STATE OF FLORIDA COUNTY OF MIAMI-DADE: Before the undersigned authority personally appeared Octelma V. Ferbeyre, who on oath says that she Is the Supervisor, Legal Notices of the Miami Daily Business Review f/k/a Miami Review, a daily (except Saturday, Sunday and Legal Holidays) newspaper, published at Miami in Miami - Dade County, Florida; that the attached copy of advertise- ment, being a Legal Advertisement of Notice in the matter of CITY OF MIAMI PROPOSED ORDINANCES- 2/22/01 ORDINANCE AMENDING CHAPTER 18/ ARTICLE IX/ DIVISION 1 in the .............)=XX ..................... Court, was published in said newspaper in the issues of Feb 12, 2001 Affiant further says that the said Miami Daily Business Review is a newspaper published at Miami in said Miami - Dade County, Florida, and that the said newspaper has heretofore been continuously published in said Miami -Dade County, Florida, each day (except Saturday, Sunday and Legal Holidays) and has been entered as second class mail matter at the post office in Miami in said Miami -Dade County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that she has neither paid nor promised any person, firm or corporation any discount, rebate, com- mission or refund f the p securing this advertise- ment for public nA aid ne paper. Sworn to and subscribed before me this 12 February 2001 ..... day of ................................ A.D........ �s�/w. • • �JR.t . ........... (SEAL) Octelma V. Ferbeyre personalF7,:� QVACIIILNOTARYSEAL DOM M MARMER COMMMCON LIMBER owl Ise W00MOSION EXPIRES APR. 24 2oo4 F,-I LJ NOTICE OF PROPOSED ORDINANCES `Notice is hereby -given-that=the City Corn fission of the City of Miami, Florida, will consider the:followmg ordinance.on second and final reading on February -22; 2001 commencing"at 9 30 a.m in the City Commission Chambers",t3500Pan;Amencan?Qrive Miami;-Flonda:` . . ORDINANCE NO. AN ORDINANCE OFTHE MIAM! CITY COMMISSION AMEND= ING CHAPTER 18/ARTICLE ikibiVISION * OF THE CODE OF., �. "THE CITY OF'MIAMI, FLORIDA?AS.AMENDED, ENTITLED t"FINANCE/FINANCIAL POLICIES/ANTI-DEFICIENCY- ACT TO REQUIRE APPLICATION OF THE"ANTI-DEFICIENCY ACT REGULATIONS TO'ALL ENTITIES FUNDED4N WHOLE OR IN l PART'b1(THECITY`OF MIAMI, INCLUDING, BUT NOT LIMIT-, ED TO,<.AGENGIES, .AUTHORITIES,. TRUSTS, BOARDS O f COMMISSIONS; EXCEPT FOR THE THREE CITY OF MIAMI- RETIREMENT TRUSTS;, J OhE PARTICULARLY BY `AMEND- ` `.. ING S trio' N'18=500'THROUGH.18=502 OF SAID:CODE; DI- } RECTING THECITY CLERK TO TRANSMIT A COPY OF THIS ORDINANCE TO:7HOSE:INDIVIDUALS, DESIGNATED HERE- -IN;