(A) Special assessment funds. All money received on special fund to be applied to the payment of the improvement for which the assessment was made and such money shall be used for no other purpose unless to reimburse the municipality for money expended for any such improvement.
(Prior Code, § 1-816)
(B) Sinking funds. The governing body, subject to the limitation set forth herein, shall have the power to levy a tax not to exceed that prescribed by state law upon the assessed value of all taxable property within the municipality for a term not to exceed that prescribed by state law in addition to the amount of tax which may be annually levied for the purpose of the adopted budget statement of the municipality, for the purpose of establishing a sinking fund for the construction, purchase, improvement, extension or repair of the approved uses as authorized by state law. To initiate the said sinking fund, the governing body shall declare its purpose by resolution to submit to the qualified electors of the municipality the proposition to provide the improvement at the next general municipal election. The resolution shall set forth the improvement, the estimated cost, the amount of the annual levy, the number of years required to provide the required revenue, the name of the sinking fund proposed and the proposition shall be published in its entirety three times on successive weeks before the day of the election in a legal newspaper of general circulation in the municipality. The sinking fund may be established after the election if a majority or more of the legal votes were in favor of the establishment of the fund. The governing body may then proceed to establish the said fund in conformity with the provisions of the proposition and applicable state law. The funds received by the Municipal Treasurer shall, as they accumulate, be immediately invested with the written approval of the governing body in the manner provided by state law. No sinking fund so established shall be used for any purpose or purposes contrary to the purpose as it appeared on the ballot unless the governing body is authorized to do so by 60% of the qualified electors of the municipality voting at a general election favoring such a change in the use of the sinking fund.
(Prior Code, § 1-817)
(C) Deposit of funds.
(1) The governing body, at its first meeting in each fiscal year, shall designate some one or more banks or capital stock financial institutions of approved and responsible standing in which the Municipal Treasurer shall keep at all times, subject to payment on his or her demand, all money held by him or her as Municipal Treasurer. If there is one or more banks or capital stock financial institutions located in the municipality which apply for the privilege of keeping such money and give bond or give security for the repayment of deposits as provided in this section, such banks or capital stock financial institutions shall be selected as such depositories. The Municipal Treasurer shall not give a preference to any one or more of them in the money he or she may so deposit.
(2) (a) The governing body shall require from all banks or capital stock financial institutions:
1. A bond in such penal sum as may be the maximum amount on deposit at any time less the amount insured by the Federal Deposit Insurance Corporation; or, in lieu thereof
2. Security given as provided in the Public Funds Deposit Security Act, being Neb. RS 77-2386 to 77-23,108 to secure the payment of all such deposits and accretions.
(b) The governing body shall approve such bond or giving of security. The Municipal Treasurer shall not be liable for any loss of any money sustained by reason of the failure of any such depository so designated and approved. The fact that a stockholder, director or other officer of such bank or capital stock financial institution is also serving as a member of the governing body or as any other officer of the municipality shall not disqualify such bank or capital stock financial institution from acting as a depository for such municipal funds.
(3) The insurance afforded to depositors in banks or capital stock financial institutions through the Federal Deposit Insurance Corporation shall be deemed and construed to be surety bond to the extent that the deposits are insured by such corporation. For deposits so insured, no other surety bond or other security shall be required. The provisions of Neb. RS 77-2366 shall apply to deposits in capital stock financial institutions.
(4) The Municipal Treasurer may deposit the funds received and held by him or her, by virtue of such office, with a cooperative credit association situated within the boundaries of the county, or a county adjoining thereto, where the municipality is situated, if the municipality is the depositor, as well as in a commercial state of national bank if the cooperative credit association performs all the conditions precedent required by the laws of the state of commercial state and national banks to qualify them to receive deposits of such public funds. It shall not be necessary for the municipality, in making such a deposit of public funds, to purchase shares in such cooperative credit association or become a member thereof and such a cooperative credit association is hereby authorized and empowered to receive such money under such conditions.
(Prior Code, § 1-818)
(D) Investment of funds. Whenever the municipality has accumulated a surplus of any fund in excess of its current needs or has accumulated a sinking fund for the payment of its bonds and the money in such sinking fund exceeds the amount necessary to pay the principal and interest of any such bonds which may become due during the current year, the governing body of such municipality may invest any surplus in certificates of deposit, in time deposits and in any securities in which the state investment officer is authorized by law and as provided in the authorized investment guidelines of the state’s Investment Council in effect on the date the investment is made.
(Prior Code, § 1-819)
Statutory reference:
Related provisions, see Neb. RS 17-607, 17-608, 17-609, 17-710, 19-1301 through 19-1304, 77-2337, 77-2341, 77-2362 through 77-2364, 77-2386 through 77-2397