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It is recognized by the Common Council that there is a perpetual and growing need for the maintenance, repair, paving, preservation, and upgrading of the roads and streets under the jurisdiction of city government, and that the Street Department and Department of Public Works, develop plans, projects, and programs for such, and seek appropriations and allocations of monies by the Common Council therefore, as part of the annual budgetary process, and otherwise. Such undertakings are herewith referred to as road maintenance programs. Requests for use of monies from the Fund for road maintenance programs shall be submitted annually to the Expenditure Review Committee, as part of the regular budgetary process. The following additional or altered goals, standards, and procedures shall apply relative to such road maintenance programs:
(A) A portion of the accumulated earnings from the Fund shall be appropriated annually by the Common Council for road maintenance programs.
(B) The amount of such annual appropriation for road maintenance programs shall be determined by the Common Council, after the Expenditure Review Committee has submitted its report to the Mayor and the Common Council, and the Mayor has submitted to the Common Council the desired appropriation amount from the Fund for road maintenance programs.
(C) Monies appropriated for road maintenance programs shall not be subject to the otherwise existing repayment standard or the otherwise existing payment of interest on appropriated monies from the Fund, it being established that expenditures from the Fund for road maintenance programs shall be exempt from such repayment and interest payment standards.
(D) No appropriation of monies from the Fund for road maintenance programs shall cause the targeted growth rate for the Fund, set forth in § 33.505, to go unattained, on a regular and ongoing basis, though due to fluctuations in interest rates, during the course of any 12-month cycle, interest earnings on monies in the Fund may be adversely affected, which adverse impact, if any, shall be considered relative to future appropriations for road maintenance programs from the Fund by the Mayor, Common Council, and Expenditure Review Committee, so as to stabilize and restore the desired target growth rate(s).
(E) Appropriations from the Fund for road maintenance programs shall not require the documentation contemplated by § 33.506.
(Ord. 5086, passed 12-17-2007)
(A) Monies in the Fund shall grow, on an annualized basis, so that the interest earned by monies in the Fund, and interest paid back on appropriations from the Fund subject to repayment programs, collectively exceed appropriations for road maintenance programs. Annually, and as part of the budgetary process for city government generally, the Expenditure Review Committee, using the best economic records and information available, shall recommend to the Mayor and the Common Council a target growth rate for the succeeding calendar year, commencing with the calendar year 2009; the target growth rate for the calendar year 2008 is stipulated by the Common Council to be 1.9%. The target growth rate to be recommended by the Expenditure Review Committee, subject to actual approval by the Mayor and the Common Council, shall not be less than 30% nor more than 50% of the projected interest earnings by the Fund for the succeeding calendar year. The approval of the target growth rate by the Mayor and the Common Council shall take place as part of the annual budgetary process for city government; should the Mayor and Common Council be unable to agree upon the target growth rate, the target growth rate recommended by the Expenditure Review Committee shall control for the succeeding calendar year.
(B) An example of establishing the target growth rate (for illustrative purposes only) is as follows:
(1) Assume the Fund balance as projected by the Expenditure Review Committee as of January 1, 2008 to be $26,500,000.
(2) Assume that earnings on loaned and advanced monies, as well as earnings on monies retained within the Fund, shall average 5% per annum for the calendar year 2008, giving rise to projected interest earnings of $1,325,000.
(3) Assume that the Expenditure Review Committee recommends that 80% of such interest earnings shall be appropriated for road maintenance programs per annum, which recommendation shall be accepted by the Mayor and Common Council. If 80% of the interest earnings are targeted for road maintenance programs, the balance of the interest earnings, to-wit: 20%, shall be added to and become a part of the Fund and ultimately the Fund balance; 20% of the 5% interest earnings represents a 1% target growth rate; 20% of the projected interest earnings would be $265,000 to be added to the Fund balance. The appropriation for road maintenance programs, out of such interest earnings, would be in the amount of $1,060,000 under the example herein set forth.
(Ord. 5086, passed 12-17-2007)
With the exception of appropriations for road maintenance programs, no appropriation of monies from the Fund shall be made without documentation that requires repayment of the monies appropriated and states the interest rate, and method of payment of accruing interest, applicable to the monies so appropriated. Such documentation shall define the contemplated sources of revenue for the repayment of the monies advanced and the interest accruing, and shall be in such form, and contain such standards, pledges, and remedies as the Expenditure Review Committee shall require.
(Ord. 5086, passed 12-17-2007)
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