SECOND COMMITTEE
SUBSTITUTE FOR ORDINANCE NO. 090677
Reestablishing the financial
policies governing the use of the Liberty Memorial Endowment principal and
earned investment income; and providing for an increase in the percentage of
interest earnings which may be used for upkeep and maintenance from 45% to 90%
for FY 2009-11 only.
WHEREAS, the
citizens of Kansas City approved a one-half cent sales tax on August 4, 1998,
for the purpose of funding the restoration of the Liberty Memorial and to
establish an endowment for future maintenance of the Memorial and Memorial
Museum; and
WHEREAS, the
City Council adopted Committee Substitute for Ordinance No. 001246 establishing
the policy for investment and expenditure of monies in the Liberty Memorial
Endowment; and
WHEREAS, the
Board of Parks and Recreation Commissioners adopted Resolution No. 25773
requesting the City Council to set aside a portion of the interest funds
produced in excess of approximately eighteen (18) million dollars in a separate
account established for the maintenance and upkeep costs of the Liberty
Memorial and Museum; and
WHEREAS, the
City Council with Committee Substitute for Ordinance No. 001246 as approved on
October 5, 2000, established a set of financial policies governing the use of
the Liberty Memorial Endowment, and
WHEREAS, those
governing financial policies were subsequently amended by Ordinance No. 030363
allowing up to 45% of the interest earnings to be used for maintenance and
upkeep of the facility; and
WHEREAS,
Ordinance No. 050798 authorized the use of up to $10 million in endowment
proceeds to construct the expanded Liberty Memorial Museum as long as the
resources were paid back; and
WHEREAS, after
completion of the Liberty Memorial expansion project and in light of the
demands to meet the FY 2009-10 budget needs of the City, it is now time to
reestablish the governing financial policies regarding the use of the Liberty
Memorial Endowment now and into the future; NOW, THEREFORE,
BE IT ORDAINED
BY THE COUNCIL OF KANSAS CITY:
Section 1. The
funds which were approved by the voters to be set aside for the maintenance of
the Liberty Memorial and Museum from the Liberty Memorial sales tax shall be
placed in a separate segregated City fund established to hold the funds.
Section 2. The
investment of the funds shall be as determined by the Citys Investment
Committee in accord with the Citys Investment Policy outlined in Chapter 2,
Article XIV, Section 2-1950 of the Code of Ordinances, as approved by Ordinance
No. 090129.
Section 3. For
FY 2009-11 only, up to ninety (90) percent of the annual interest earned from
the endowment may be used for the routine maintenance and upkeep costs of the
Liberty Memorial and Museum. In subsequent fiscal years up to forty-five (45)
percent of the annual interest earned may be used for routine maintenance and
upkeep costs at Liberty Memorial and Museum unless otherwise authorized by the
Council. If at any time, part or all of the maintenance endowment or its
income is needed for capital maintenance, any such funds shall become available
and used to cover capital maintenance costs.
Section 4.
Expenditures from the investment income generated from the Liberty Memorial
Endowment shall be used only for the benefit of the Liberty Memorial and
Museum.
Section 5.
Expenditures from the available principal of the fund shall only be made after
the Board of Parks and Recreation has determined there is a need for
expenditure, and the Park Board shall introduce an ordinance describing the
need for utilization of such fund for approval by the City Council and Mayor.
________________________________________
Approved as to
form and legality:
______________________________
William Geary
Assistant City Attorney