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ORDINANCE NO. 030573
Amending
Chapter 2 of the Code of Ordinances by repealing Section 2-1614 and enacting in
its place new Section 2-1614 which adds a subsection to allow the use of banks
not within the city and/or banks within the City acting on behalf of an agent
or private contractor of the City; and repealing Section 2-200 and enacting in
its place a new Section 2-200 which adds a subsection to allow agents or
private contractors acting on behalf of the City to deposit funds collected by
them to the Citys bank account on terms determined by ordinance of the City
Council.
BE
IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section
1. That Chapter 2, Article XI of the Code of Ordinances is hereby amended by
repealing Section 2-1614 and enacting in its place a new Section 2-1614 to read
as follows:
Sec.
2-1614. Selection of depositories.
(a) Generally.
On December 1 each four years, commencing December 1, 1992, and whenever
occasion may require, the director of finance shall select and recommend to the
city council banks or banking institutions in the city which will agree to act
as depositories for city funds as provided in this division for a period of
four years beginning on February 1 next ensuing, with the option of termination
by either the city or the bank or banking institution on giving 30 days'
written notice to the other party. The director of finance, with approval of
the city council and the depository bank or banking institution, may extend
such contract for additional periods of four years. The treasurer shall keep
the city funds in the banks or banking institutions so selected; however,
before any bank or banking institution shall be so selected or deposits made
therein by the treasurer, such bank or banking institution shall enter into
agreement with the city and the Federal Reserve Bank located in the city,
whereby the bank or banking institution agrees to and does deposit with the
Federal Reserve Bank as custodian for the city such collateral securities as
provided by section 2-1617 for the safekeeping and prompt payment of city
deposits. The market value of such securities shall at all times be not less
than ten percent in excess of the maximum amount deposited by the city in such
bank or banking institution, except as otherwise provided in section 2-1617.
The cost and expense of the administration of such agreements shall be borne by
such depository bank or banking institution. So long as such depository bank or
banking institution is not in default in the safekeeping and prompt payment of
the city deposits, it shall be permitted to detach and collect all interest
coupons and interest upon such securities. No change or substitution of such
securities or any part of the securities shall be made unless approved in
writing by the director of finance. The securities deposited under the
provisions of this section shall be approved by the director of finance.
(b) Allocation
of funds. The director of finance shall furnish an estimate of the maximum
amount of funds to be deposited and shall recommend the allocation of funds
between the several banks or banking institutions as will furnish collateral
security and accept the funds. Funds shall be allocated in units of $25,000.00
each, and no bank or banking institution shall receive more than one-third of
the estimate furnished by the director of finance of the maximum amount of
funds to be deposited. Should the funds of the city at any time exceed the
amount of the estimate, then the director of finance may order additional
collateral securities to be given by such banks or banking institutions as are
willing to temporarily increase the amount of collateral securities for the
protection of city funds, so that the sum of the securities shall be at least
ten percent more than the total amount of the city funds deposited in such
banks or banking institutions; however, when authorized to do so by the city
council, the director of finance may invest the excess of deposits in
securities as provided by article IV, section 79 of the Charter. The city
treasurer shall not be responsible for any loss from the failure or default of
any depository bank or banking institution in performing the provisions of this
article.
(c) Banks
not within city. Banks or banking institutions not located within the city may
be selected as depositories for city funds under the requirements of subsection
(a) of this section provided such banks or banking institutions execute
agreements under the city's linked deposit program as set forth in Ordinance
No. 63537 as it is currently in effect or as hereafter amended. The limit of
such deposit shall be determined by the director of finance in the same manner
required for other deposits under subsection (b) of this section.
(d)
Banks not within the city and/or banks within the city acting on behalf
of an agent or private contractor of the city. Banks or banking institutions
not located within the city and/or banks within the city acting on behalf of an
agent or private contractor of the city may act as depositories for city funds
provided the city council approves by ordinance a contract with the agent or
contractor, which specifies additional security, if any, as may be required in
lieu of subsection (a) of this section.
Section
2. That Chapter 2, Article V of the Code of Ordinances is hereby amended by
repealing Section 2-200 and enacting in its place a new Section 2-200 to read
as follows:
Sec. 2-200. Payment into treasury
of moneys collected by city officials; daily deposit of moneys received by
treasurer.
(a) All
moneys belonging to the city and collected by any officer or employee shall be
paid into the city treasury before 3:00 p.m. of the business day next following
the day of such collection. All moneys received by the city treasurer shall be
deposited by him daily in a bank or banking institution designated as the
depository of the city funds.
(b) Where
collections are small and do not accumulate to an amount in excess of $100.00
in one week, such moneys shall be paid into the city treasury once each week,
or whenever the sum of $100.00 is accumulated, if such sum is accumulated in a
lesser period of time; except that no funds in any amount may be held beyond
the last business day of each month or the last business day of the fiscal
year.
(c)
Agents or private contractors acting on behalf of the city. Agents or
private contractors charged with collecting moneys belonging to the city shall
be required to meet the citys daily deposit requirements as described in subsections
(a) and (b) of this section, unless otherwise specified by ordinance of the
city council.
__________________________________________________________________
Approved
as to form and legality:
______________________________________
Assistant
City Attorney