Substituted 11/10/15
1
Introduced by Council Members Boyer, Anderson, Love, Crescimbeni,
2
Gulliford
3
Committee:
and
Schellenberg
and
Substituted
by
the
4
5
6
ORDINANCE 2015-450-E
7
AN
ORDINANCE
REGARDING
8
AMENDING PART 5 (CITY BANKING FUND), CHAPTER
9
110 (CITY TREASURY), ORDINANCE CODE, TO REPEAL
AFFORDABILITY;
10
SECTION
11
DESCRIPTIONS) AND MODIFY SECTION 110.509 (USE
12
OF
13
110.514. (ANNUAL DEBT AFFORDABILITY ANALYSIS)
14
TO CLARIFY THE DEBT AFFORDABILITY ANALYSIS AND
15
REQUIRE
16
(DEBT
17
(BUDGET AND ACCOUNTING CODE), ORDINANCE CODE,
18
TO CLARIFY THE DEBT MANAGEMENT PARAMETERS AND
19
CALCULATIONS;
20
APPROVED;
21
PROGRAM), CHAPTER 106 (BUDGET AND ACCOUNTING
22
CODE),
23
106.1006
24
DESCRIPTIONS) AND MODIFY SECTION 106.1007 (USE
25
OF
26
110.513 (LIMITATIONS ON DEBT TYPES), PART 5
27
(CITY
28
TREASURY),
29
LIMITATIONS
30
EFFECTIVE DATE.
31
110.508
DEBT
EXCESS
(MODIFICATION
BUDGETED
REPORTS;
AMENDING
MANAGEMENT
AMENDING
SECTION
PARAMETERS),
DEBT
AMENDING
ORDINANCE
EXCESS
FUNDS);
PART
10
CODE,
BUDGET
FUNDS);
FUND),
ORDINANCE
ON
DEBT
OF
CHAPTER
TO
106
AND
POOL
SECTION
PROJECT
AMENDING
TYPES;
106.111
LOAN
REPEAL
CODE,
SECTION
ADOPTED
(CITY
TO
PROJECT
CHAPTER
AFFORDABILITY
(MODIFICATION
BANKING
OF
SECTION
110
(CITY
MODIFY
PROVIDING
THE
AN
Finance
Substituted 11/10/15
1
BE IT ORDAINED by the Council of the City of Jacksonville:
2
Section 1.
Amending Part 5 (City Banking Fund), Chapter
3
110 (City Treasury), Ordinance Code. Part 5 (City Banking Fund),
4
Chapter 110 (City Treasury), Ordinance Code, is hereby amended to
5
read as follows:
6
Chapter 110. City Treasury.
7
* * *
8
Part 5. City Banking Fund.
9
* * *
10
Sec. 110.508.
11
Unless otherwise provided in the legislation authorizing such
12
funding, descriptions of projects approved for funding through the
13
City Banking Fund may be modified or substituted, at the discretion
14
of the Director of Finance, and with prior approval of the City
15
Council Finance Committee, provided that the total funding budgeted
16
for such department in the City Banking Fund is not affected by
17
such
18
provide a report to the Finance Committee of City Council at the
19
time the transfer is requested that relates in detail all project
20
description modifications and substitutions.
modification
Modification of project descriptions. Reserved.
or
substitution.
The
Treasury
division
shall
21
Sec. 110.509.
22
Any funds which have been authorized to be spent on projects
23
approved for funding through the City Banking Fund and which were
24
in excess of the amount actually required for funding such projects
25
(the "Excess Budgeted Funds") may, at the request of a department
26
head having Excess Budgeted Funds, and with the prior approval of
27
the Director of Finance, and prior approval of the City Council
28
Finance
29
projects,
30
requesting department. Any Excess Budgeted Funds that are not used
31
as described in the previous sentence shall become "Undesignated
Committee
modified
Use of excess funds.
be
used
to
projects,
cover
or
overages
substituted
- 2 -
in
other
projects
approved
within
the
Substituted 11/10/15
1
Funds" and may be disbursed in accordance with Section 110.510
2
below.
3
The
Director
of
Finance
may
use
any
cash
which
has
been
4
authorized to be spent on projects approved for funding through the
5
City Banking Fund to cover cash needs in other projects within
6
Council
7
Department shall submit a report to the Finance Committee of all
8
cash transfers between projects over the last quarter, and proposed
9
and anticipated cash transfers over the subsequent quarter.
appropriated
project
10
11
12
budgets.
Quarterly,
the
Finance
* * *
Sec. 110.514. Annual debt affordability analysis.
(a)
It is the public policy of this City to encourage fiscal
13
responsibility on matters pertaining to City debt. In an
14
effort to finance essential capital projects for the benefit
15
of residents at favorable interest rates, the City must
16
continue
17
investors.
18
account the ability of the City to meet its total debt
19
service requirements in light of other demands on the City's
20
fiscal resources. The Council declares that it is the policy
21
of
22
authorization and issuance of debt.
23
(b)
this
to
maintain
its
Authorizations
City
to
excellent
of
exercise
City
prudence
credit
debt
in
standing
must
take
undertaking
with
into
the
The Director of Finance shall conduct a debt affordability
24
analysis each year. Proposed capital projects that require
25
funding by the issuance of additional City debt shall be
26
evaluated on the basis of the analysis to assist the Council
27
in setting priorities among capital projects and related
28
appropriations. The Debt Management Policy shall be reviewed
29
and re-adopted by the Council every five (5) years.
30
31
(1) The Director of Finance shall annually prepare a
baseline
debt
affordability
- 3 -
report,
to
be
Substituted 11/10/15
1
presented to the Finance Committee and the City
2
Council
3
regarding Audits are referenced on or before May
4
31st of each year concurrent with the submission of
5
the City's Capital Improvement Plan each year, for
6
purposes of providing a framework for the Council
7
to
8
that propose the authorization of additional City
9
debt during the next budget year.
10
(2) The
11
12
standing
evaluate
baseline
and
committee
establish
report
to
which
priorities
shall
include,
matters
for
but
bills
not
be
limited to:
(i)
A listing of City debt outstanding, other debt
13
secured by City revenues, and other contingent
14
debt current through April 30th of such year.
15
(ii)
An estimate of revenues available for the next
16
five
17
including general revenues plus any revenues
18
specifically pledged to pay debt service.
19
(iii)
fiscal
years
to
pay
debt
service,
An estimate of additional debt issuance for
20
previously authorized debt to be issued under
21
the
22
existing borrowing programs.
23
(iv)
next
five
fiscal
years
for
the
City's
A current schedule of the annual debt service
24
requirements
by
bond
25
Issuance,
26
allocation, on the outstanding City debt and
27
an
estimate
of
28
requirements
on
29
subparagraph (iii) for each of the next five
30
fiscal years. Such schedules shall not include
31
projected savings from anticipated refinancing
including
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issue
or
principal
the
the
annual
debt
Banking
and
debt
Fund
interest
service
included
in
Substituted 11/10/15
1
but
2
conditions.
3
rates on variable debt shall be disclosed.
4
(v)
An
shall
be
based
on
Assumptions
overview
of
6
revenue credit ratings.
Identification
any,
and
terms
regarding
City's
obligation,
(vi)
if
the
5
7
current
interest
issuer,
covenant
calculation
general
and
of
and
specific
pertinent
8
debt ratios, including, but not limited to,
9
the debt affordability parameters and ratios
10
established by code. debt service to revenues
11
available
12
personal income, and debt per capita for the
13
City's net tax-supported debt.
14
(vii)
to
pay
debt
service,
debt
to
A comparison of the debt ratios prepared for
15
subparagraph
(vi),
with
the
comparable
debt
16
ratios for the national average for cities and
17
counties of size and rating comparable to the
18
City.
19
(3) The Director of Finance shall prepare an update of
20
the report set forth above in conjunction with any
21
proposal
22
updated debt affordability report, to be presented
23
to
24
standing
25
Audits
26
submission of the City's Capital Improvement Plan
27
and Capital Improvement Plan Budget each year, for
28
purposes of providing a framework for the Council
29
to
30
that propose the authorization of additional City
31
debt
the
to
issue
Finance
evaluate
during
City
Committee
committee
are
new
to
which
referenced
and
the
establish
next
- 5 -
and
debt
including
the
City
matters
concurrent
budget
year.
Council
regarding
with
priorities
an
for
This
the
bills
updated
Substituted 11/10/15
1
report shall contain the information provided in
2
baseline report, updated to reflect the impact of
3
the issuance of additional debt on both the debt
4
affordability parameters in the code as well as
5
the
6
years. The amount of additional debt used in the
7
analysis
shall
8
proposed
Capital
9
Capital
Improvement
debt
service
the
schedules
be
the
for
amount
Improvement
Plan
impact
on
as
the
proposed
Plan
well
debt
next
five
in
the
Budget
and
as
service
a
schedule
10
depicting
and
debt
11
affordability of each ten million dollar increase
12
or decrease from that proposed up to 50% greater
13
than the proposed budget. The schedule shall note
14
breakpoints at which debt affordability criteria
15
must be waived to permit such authorization.
16
(4) Any entity issuing debt secured by City revenues
17
shall provide the information necessary to prepare
18
the debt affordability report.
19
(c)
Failure to comply with this section shall not affect the
20
validity of any debt or the authorization of such debt. The
21
Debt Management Policy, in accordance with the parameters
22
set forth in 106.111, Ordinance Code, shall be reviewed and
23
re-adopted by the Council every five (5) years.
24
(d)
Failure to comply with this section shall not affect the
25
validity of any debt or the authorization of such debt.
26
* * *
27
Section 2.
Debt
Management
Policy
Approved.
The
Debit
28
Management Policy attached hereto as Exhibit 1 is hereby approved
29
and adopted.
30
31
Section 3.
Amending
Section
106.111
(Debt
management
parameters), Chapter 106 (Budget and Accounting Code), Ordinance
- 6 -
Substituted 11/10/15
1
Code. Section 106.111, Chapter 106 (Budget and Accounting Code),
2
Ordinance Code, is hereby amended to read as follows:
3
Chapter 106. Budget and Accounting Code.
4
* * *
5
Sec. 106.111. Debt management parameters.
6
The City is establishing appropriate objective guidelines and
7
parameters
for
future
debt
8
restrictive do not provide enough debt capacity to finance needed
9
infrastructure.
Guidelines
issuance.
that
are
Guidelines
not
that
restrictive
are
too
enough
may
10
result in excessive debt issuance in the near term, which will
11
reduce future budgetary flexibility by creating an excessive debt
12
service
13
deteriorating credit position. Objective guidelines typically take
14
the
15
identified by the City to control its debt position.
form
demand
of
on
debt
the
City's
ratios.
Below
resources,
are
five
contributing
debt
service
to
a
ratios
16
Overall net debt to estimated market value
Debt per capita
Target
Maximum
/Minimu
m
2.50%
3.50%**
$2,600
$3,150*
*
General Fund/General Services District (GF/GSD)
11.5%
13.0%**
Ten-year principal paydown – GF/GSD
50%
30%*
Ten-year principal paydown – All
50%
30%*
Unreserved, Unassigned
10%
5%*
Debt Service to General Fund / General Services
District GF/GSD revenues
undesignated General
GF/GSD Fund Balance to GF/GSD
revenues
17
* Measured as a minimum
18
** Measured as a maximum
19
A supermajority of Council Members present shall be required
- 7 -
Substituted 11/10/15
1
for a waiver of two or more debt parameters in authorized borrowing
2
not including “Ten-year principal paydown – All.”
3
4
For purposes of this section, the following definitions and
exclusions shall apply:
5
6
Overall net debt to estimated market value shall be computed as the
7
aggregate
8
jurisdictions within the boundaries of the local government that is
9
repaid from the same tax base) divided by the market value of that
10
tax base. The estimated market value shall not include the portion
11
of taxable values of properties located in the Beaches and Baldwin
12
service districts upon which the City has the inability to collect
13
property taxes. For purposes of this calculation, the taxable value
14
of Beaches properties shall be reduced by thirty percent (30%) and
15
the
16
118.8%.
City
taxable
and
values
overlapping
of
Baldwin
debt
(debt
properties
issued
shall
be
by
other
divided
by
17
18
Debt per capita shall include overlapping debt.
19
20
GF/GSD Debt Service to GF/GSD Revenue shall include all GF/GSD debt
21
service, as well as any debt service supported by GF/GSD transfers
22
to Enterprise or other internal funds. This shall include banking
23
fund
24
departmental
25
total GF/GSD Revenues, rather than total operating expenditures.
debt
repayments
accounts.
within
This
individual
parameter
departments
requires
a
and
non-
comparison
to
26
27
The Ten-Year Principal Paydown is computed as the total principal
28
repayment scheduled for the next ten years divided by the total
29
debt currently outstanding and shall be computed for two separate
30
measures.
31
1. Ten-Year Principal Paydown – GF/GSD shall apply only to GF/GSD
- 8 -
Substituted 11/10/15
1
2
debt service as described above.
2. Ten-Year Principal Paydown shall apply to all outstanding City
3
debt regardless of the pledged revenue source.
4
5
Unassigned GF/GSD Fund Balance to GF/GSD Revenues shall be computed
6
as the aggregate of unassigned GF/GSD fund balance divided by total
7
GF/GSD operating revenues and shall not include any Fund Balance
8
within any other General Revenue Fund subfund. The fund balance
9
within any other General Fund subfund, including the City Council
10
Emergency Reserve, shall not be included in the unassigned fund
11
balance for purposes of this calculation. A second optional ratio
12
may
13
included by ratings agencies in their evaluation of the City’s
14
credit
15
established unreserved/undesignated target and minimum for guiding
16
the City’s borrowing decisions.
17
be
provided
status,
that
but
Section 4.
includes
such
such
fund
calculation
Amending
Part
10
balances
shall
(City
not
Loan
if
they
replace
Pool
are
the
Program),
18
Chapter 106 (Budget and Accounting Code), Ordinance Code. Part 10,
19
Chapter 106 (Budget and Accounting Code), Ordinance Code, is hereby
20
amended to read as follows:
21
Chapter 106. Budget and Accounting Code.
22
* * *
23
Part 10. City Loan Pool Program.
24
* * *
25
Sec. 106.1006. Modification of project descriptions. Reserved.
26
Unless otherwise provided in the legislation authorizing such
27
funding, descriptions of projects approved for funding through the
28
City
29
descriptions may be added, at the discretion of the Director of
30
Finance,
31
Committee,
Loan
Pool may
and
with
provided
be
modified
prior
that
or
approval
the
substituted,
of
total
- 9 -
the
City
funding
or
new
Council
budgeted
project
Finance
for
such
Substituted 11/10/15
1
department
in
the
City
Loan
2
modification, substitution or addition. The Treasury division shall
3
provide a report to the Finance Committee of City Council at the
4
time the transfer is requested that relates in detail all project
5
description
6
requested changes.
modifications,
Pool
is
substitutions,
not
affected
and
by
additions
such
for
the
7
Sec. 106.1007.
8
Any funds which have been authorized to be spent on pflojects
9
approved for funding through the City Loan Pool and which were in
10
excess of the amount actually required for funding such projects
11
(the "Excess Budgeted Funds") may, at the request of a department
12
head having Excess Budgeted Funds, and with the prior approval of
13
the Director of Finance, and prior approval of the City Council
14
Finance
15
projects,
16
requesting department, e to fund new projects within the requesting
17
department.
18
described
19
Funds" and may be disbursed in accordance with Section 106.1008.
20
The
Committee
be
modified
in
Use of excess funds.
Any
used
projects,
Excess
the
Director
to
or
Funds
sentence
Finance
overages
substituted
Budgeted
previous
of
cover
may
use
any
other
projects
that
shall
in
are
become
cash
approved
within
not
the
used
as
"Undesignated
which
has
been
21
authorized to be spent on projects approved for funding through the
22
City Loan Pool to cover cash needs in other projects within Council
23
appropriated
24
shall
25
transfers between projects over the last quarter, and proposed and
26
anticipated cash transfers over the subsequent quarter.
submit
project
a
27
28
budgets.
report
to
Quarterly,
the
Finance
the
Finance
Committee
of
Department
all
cash
* * *
Section 5.
Amending Section 110.513 (Limitations on debt
29
types), Part 5 (City Banking Fund), Chapter 110 (City Treasury),
30
Ordinance Code. Section 110.513 (Limitations on debt types), Part 5
31
(City Banking Fund), Chapter 110 (City Treasury), Ordinance Code,
- 10 -
Substituted 11/10/15
1
is hereby amended to read as follows:
2
Chapter 110. City Treasury.
3
* * *
4
Part 5. City Banking Fund.
5
* * *
6
Sec. 110.513. Limitations on debt types.
7
The outstanding debt of the Banking Fund proceeds shall at all
8
times fit within the following guidelines
9
(a)
For the proceeds in excess of $250,000,000:
10
(1)
No more than 50 30 percent of the total debt outstanding shall
11
be variable rate instruments.
12
(2)
13
be fixed rate instruments (including medium term notes).
14
(3)
15
be unhedged variable rate instruments.
16
(b)
For the proceeds up to and including $250,000,000:
17
(1)
No more than 70 percent of the total debt outstanding shall be
18
variable rate instruments.
19
(2)
20
fixed rate instruments (including medium term notes).
21
22
No less than 50 70 percent of the total debt outstanding shall
No more than 40 30 percent of the total debt outstanding shall
No less than 30 percent of the total debt outstanding shall be
No more than 50 percent of the total debt outstanding shall be
unhedged variable rate instruments.
23
Section 6.
Effective Date.
This ordinance shall become
24
effective upon signature by the Mayor or upon becoming effective
25
without the Mayor’s signature.
26
Form Approved:
27
28
/s/
Margaret M. Sidman
29
Office of General Counsel
30
Legislation Prepared By:
31
G:\SHARED\LEGIS.CC\2015\Sub\2015-450-E.doc
Margaret M. Sidman
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