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HomeMy WebLinkAbout10767� ORDINANCE NO. 10,767 0 a% Ln o `n AN ORDINANCE PROVIDING THAT CERTAIN DESIGNATED BANKS SHALL SERVE, SUCCESSIVELY, AS DEPOSITARIES OF ALL MUNICIPAL FUNDS WHICH ARE UNDER THE EXCLUSIVE o CONTROL OF THE BOARD OF DIRECTORS. >1 �. 4 A �ro 'a N BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY r4l OF LITTLE ROCK: Section 1. All funds of the City of Little Rock which are under the exclusive contro of Directors (as distinguished from funds control of the Waterworks Commission, the and similar autonomous statutory agencies shall hereafter be deposited successively following Little Rock banks, viz: L of the Board under the Sewer Committee, of the City) with the (a) From the date of the enactment of this Ordinance to the expiration of the calendar year 1958 all such funds shall be deposited with Worthen Bank and Trust Company; (b) During the entire calendar year 1959 all such funds shall be deposited with Commercial National Bank of Little Rock; (c) During the entire calendar year 1960 all such funds shall be deposited with The First National Bank in Little Rock; (d) During the entire calendar year 1961 all such funds shall be deposited with Union National Bank of Little Rock; boo -a C -- '`t and thereafter all such funds will be deposited with the same banks, successively, each bank being the municipal depositary for one calendar year, rotating in the order above set out. Section 2. Each of said banks, prior to becoming a depositary of municipal funds under this Ordinance, shall execute with the City of Little Rock a written contract upon the following form: DEPOSITORY AGREEMENT THIS AGREEMENT, between the City of Little Rock, Arkansas (hereinafter called the "City "), and (Name of Ban (hereinafter called the "Depositary "), WITNESSETH: (a) The Depositary shall act as Depositary of the City, under the authority of Ordinance No. enacted by the City Board of erectors on , 19 rinsert in the blank spaces the num er and date of this ordinance, for the following term: ere insert term of epository agreement) (b) During the entire term of this agreement, the City shall maintain on deposit with the Depositary all municipal funds which are under the exclusive control of the Board of Directors; said funds to be deposited with the Depositary in such separate accounts as may from time to time be designated for such purpose by the City Manager. (c) All deposit accounts established with the Depositary under the authority of this ordinance shall be general checking accounts, and not time deposits or savings accounts; and the Depositary shall pay no interest on the balances maintained in these accounts. All -2- checks on these accounts shall be drawn in the name of the City over the joint signatures (which may be facsimile signatures) of the then City Manager and Director of Finance. (d) The Depositary will not make any service charges in connection with any deposit account established under the authority of this ordinance. (e) From time to time the City Manager may determine the portion of each deposit balance established hereunder which, in his opinion, should be withdrawn from such account and invested; and this amount shall be certified by the City Manager to the Depositary with instructions that the sum so certified be invested by the Depositary in short term United States Treasury obligations of a type specified by the City Manager. The Depositary shall thereupon make such invest- ment as directed by the City Manager; and the securities represented by such investment shall be held by the Depositary in trust for the City, as evidenced by custody receipt to be executed by the Depositary and delivered in each instance to-the City Manager. The Depositary will make no charges for its services in handling these investments; and the earnings on each investment will be credited to the City in such deposit account as may be designated for such purpose by the City Manager. (f) The Depositary will not be required to absorb any out of pocket expense, on account of non -par checks or otherwise, which it does not absorb in handling the deposits of its other customers. EXECUTED in duplicate on this day of , 19� Section 3. As each of the above named banks becomes eligible to serve as depositary hereunder, the Mayor and the City Clerk (without further authority from the Board of Directors) shall execute with said bank a Depository Agreement upon the form above set out; such -3- contract to be executed by the Mayor and City Clerk in the name of the City and over their official signatures. The City Manager and the Director of Finance shall have authority to draw checks, over their r joint signatures (which may be facsimile signatures), for proper municipal purposes upon all deposit accounts established hereunder; and in the instance of each such withdrawal the depositary will be protected in assuming that such withdrawal is lawfully authorized. The City Manager (without further authority from the Board of Directors) shall have exclusive authority to direct the investment of the deposited funds and take such other steps as may be necessary to effectuate the pur- poses of the successive Depository Agreements executed under the authority of this ordinance. Section 4. The Board of Directors finds that this ordinance will make available to the City of Little Rock a comprehensive plan for the deposit of municipal funds, free of service charges, including a plan for the investment from time to time of portions of the deposited funds, not afforded by any existing ordinance or ordinances of the City of Little Rock; and that the enactment of this ordinance will improve the efficiency and economy of the fiscal operations of such city. THEREFORE, an emergency is hereby declared to exist and this ordinance being necessary for the preservation of -4- i the public peace, health and safety, shall take effect and be in force from and after the date of its passage. PASSED: March 31 , 19 58 0 ATTEST: APPROVED: A -5-