HomeMy WebLinkAboutRESOLUTION 1975-25
CITY OF KRNAI
RESOLUTION NO. 75-25
A RESOLUTION OF THF. KF.NAI CITY COUNCIL DIRRCTING THF.
FINANCE DIRECTOR TO ESTABLISH A BOND CASH IIWF.STMENT POOL
WHEREAS, the independent auditors for the City of Kenai for
the past three years have indicated that the City is not in compliance with
the cash restriction requirements of the bond ordinances relating to the
General Obligation Bonds and Terminal Revenue Bonds; and
WHEREAS , the City is desirous of remedying this situation; and
WHEREAS , the City realizes that a concerted effort over a period
of time would be required to remedy such situation .
NOW, THEREFORE, BE IT RESOLVED by the Council of the City
of Kenai, that the Finance Director take whatever steps necessary to correct
the situation, including, but not limited to the following:
• (1) Establish a central "Bond Cash Investment Pool" to which
all proceeds from the sale of City bonds shall be directly deposited. Equity
of bond monies within the central "Bond Cash Investment Pool" shall be
maintained at all times for each fund as reflected on the City's general ledgers
and financial reports . All checks to support bond fund expenditures shall be
drawn from the central "Operational Cash Pool" , and daily reimbursements
shall be made from the central "Bond Cash Investment Pool" for all such bond
fund expenditures .
(2) Whenever specific bond covenant requirements dictate that
certain bond reserves be established and maintained for the security and
repayment of certain bond issues, such funds shall be placed in trust accounts
of the City , and may be invested to accrue interest . Such funds will not be
utilized for any purpose other than for the intentions as specified.
. (3) Financial procedures shall be established by resolution, aizd
as prescribed by the American Institute of Certified Public Accountants and
the Municipal Finance Officers Association, in order to ensure that each bond
account within the "Bond Cash Investment Pool" is not impaired.
(4) Idle monies of the central "Bond Cash Investment Pool" will
be managed in such a manner as to provide the maximum possible interest
rates of return .
Page One, RESOLUTION NO. 75-25
~--T ~- .r T~ rv-orl; --
i
~-- -- L - - ---- - - -- ---- __ _
~~ ~ ~ ~
. ,
. -~ -
(5) The interim borrowing of bond funds for operational purposes
shall be approved by resolution of the City Council, and shall occur only for
purposes deemed by the City Council to be of an emergency nature and in the
best interest of the City of Kenai.
(6) Loans may only be made where there is anticipated revenue
to be received to repay the loan. All loans must be for a short period of time,
and are th be repaid within the fiscal year in which they were made.
(7) Interest Earned -Interest earned on operational or bond
funds shall be properly credited to the fund from which the investment cash
was available for investment. Interest earned through temporary loans made
from City funds and approved by the City Council , shall be credited to the fund
from which the loan was made .
(8) Interest Expense -Interest costs for loans shall be properly
charged to the fund for whose benefit the loan was made. Interest costs for
temporary loans made from City funds and approved by the City Council, shall
be charged to the fund receiving such loan benefit .
DATED: At Kenai, Alaska, this ~ day of 1975.
CITY OF KENAI
ES A. ELSON, Mayor
ATTEST•
Acting City Clerk
Page Two, RESOLUTION NO. ?5-25
~-- -