HomeMy WebLinkAboutOrdinance No. 04-2025 General Fund Reserve Balance Policy1 ORDINANCE NO. 04-2025
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3 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAPE
4 CANAVERAL, FLORIDA; AMENDING SECTION 2-208 OF THE
5 CITY CODE TO MODIFY THE CITY'S GENERAL FUND RESERVE
6 BALANCE POLICY; PROVIDING FOR THE REPEAL OF PRIOR
7 INCONSISTENT ORDINANCES AND RESOLUTIONS,
8 INCORPORATION INTO THE CODE, SEVERABILITY AND AN
9 EFFECTIVE DATE.
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11 WHEREAS, the City is granted the authority, under Section 2(b), Article VIII, of the State
12 Constitution, to exercise any power for municipal purposes, except when expressly prohibited by
13 law; and
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15 WHEREAS, pursuant to Section 2-208 of the City Code, the City Council has adopted a
16 general fund reserve policy requiring a fund balance equal to twenty (20) percent of the current
17 fiscal year budget for the fund; and
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19 WHEREAS, the City Council desires to amend the policy to reduce the required minimum
20 General Fund reserve balance to 16.7% which, according to the City's Finance Director and City
21 Auditors, remains in compliance with acceptable levels under GFOA standards; and
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23 WHEREAS, the City Council of the City of Cape Canaveral, Florida, hereby finds this
24 ordinance to be in the best interests of the public health, safety and welfare of the citizens of Cape
25 Canaveral.
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27 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAPE CANAVERAL HEREBY
28 ORDAINS, AS FOLLOWS:
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30 Section 1. Recitals. The foregoing recitals are hereby fully incorporated herein by this
31 reference as legislative findings and the intent and purpose of the City Council of the City of Cape
32 Canaveral.
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34 Section 2. Amending Section 2-208 of the City Code. The City of Cape Canaveral Code
35 of Ordinances, Section 2-208, is hereby amended as set forth below (underlined type indicates
36 additions and strikeout type indicates deletions, while *** indicate deletions from this Ordinance
37 of said Section 2-208 of the City Code which shall remain unchanged in the City Code):
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39 Sec. 2-208. -Creation of fund balance/retained earnings reserves.
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41 There is hereby created in each of the various governmental fund types (general fund, special
42 revenue funds, debt service funds, and capital projects funds) and proprietary fund types
43 (enterprise funds) of the city, a reservation of fund balance or retained earnings equal to the
44 following:
City of Cape Canaveral
Ordinance No. 04-2025
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1 (a) General fund. In the general fund, there shall be created a reservation of fund balance
2 equal to~ 16.7 percent of the current fiscal year budget for the fund. For the purposes
3 of this calculation, the current fiscal year budget shall be the budget as originally
4 adopted by ordinance in September. This reserve shall be in addition to all other
5 reserves or designations of fund balance, including, but not limited to, reservations for
6 uncollected receivables and reservations of funds which have expenditure authority
7 limited to specific purposes. In any fiscal year when the city is unable to create the
8 reservation of fund balance required by this section, the city shall not budget any
9 amount of appropriated fund balance for the purpose of balancing the budget.
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11 ***
12 Section 3. Repeal of Prior Inconsistent Ordinances and Resolutions. All prior
13 inconsistent ordinances and resolutions adopted by the City Council, or parts of prior ordinances
14 and resolutions in conflict herewith, are hereby repealed to the extent of the conflict.
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16 Section 4. Incorporation Into Code. This Ordinance shall be incorporated into the Cape
17 Canaveral City Code and any section or paragraph, number or letter and any heading may be
18 changed or modified as necessary to effectuate the foregoing. Grammatical, typographical and
19 like errors may be corrected and additions, alterations, and omissions, not affecting the
20 construction or meaning of this Ordinance and the City Code may be freely made.
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22 Section 5. Severability. If any section, subsection, sentence, clause, phrase, word or
23 provision of this Ordinance is for any reason held invalid or unconstitutional by any court of
24 competent jurisdiction, whether for substantive, procedural or any other reason, such portion shall
25 be deemed a separate, distinct and independent provision, and such holding shall not affect the
26 validity of the remaining portions of this Ordinance.
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28 Section 6. Effective Date. This Ordinance shall become effective immediately upon
29 adoption by the City Council of the City of Cape Canaveral, Florida.
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31 ADOPTED by the City Council of the City of Cape Canaveral, Florida, this 16th day of September,
32 2025.
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City of Cape Canaveral
Ordinance No. 04-2025
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Absent
Motion
Second
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12 City Clerk
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20 First Reading: August 19, 2025
21 Advertisement: August 22, 2025
22 Second Reading: September 16, 2025
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24 Approve a to legal form and sufficiency
25 for th it f Cape Canave only by:
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28 Anthony A. Garganese, City Attorney
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Wes Morrison, Mayor
Kim Davis
Mickie Kellum
Kay Jackson
Wes Morrison
Don Willis
City of Cape Canaveral
Ordinance No. 04-2025
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For Against