HomeMy WebLinkAboutO-1520ORDINANCE NO. 1520
AN ORDINANCE REPEALING AND REPLACING
ORDINANCE NO. 1384 AND ORDINANCE NO. 1459,
AN ORDINANCE ALLOCATING THE FUNDS COLLECTED FROM
THE CITY OF FAIRHOPE'S SALES AND USE TAX
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAIRHOPE
ALABAMA, as follows:
Section 1. That the Treasurer for the City of Fairhope is hereby instructed and
empowered to receive and deposit any funds collected in the future as Sales and Use
Tax receipts according to the following distribution:
1. Deposit one-half (1/2) of each month's Sales and Use Tax receipts into the
General Fund Operating Account, for operations of the General Fund.
2. Deposit any amount of the remaining one-half (1/2) of each month's Sales
and Use Tax receipts necessary to maintain the Sales Tax Reserve Account
balance of $7,000,000.00.
3. In months when the Sales Tax Reserve Account is $7,000,000.00, the
remaining one-half (1/2) of each month's Sales and Use Tax receipts is to be
deposited as follows:
a. Deposit one-half (1/2) into a General Fund Reserve Account,
specifically designated as General Fund Debt Pre -payment Account.
Funds in this General Fund Debt Pre -payment Account are to be used
for pre -payment of existing debt of the General Fund or General Fund
operations as set forth in Section 3.
b. Deposit one-half (1/2) into a Capital Projects Fund, specifically
designated as Infrastructure Improvement Special Account. Funds in
this Infrastructure Improvement Special Account are to be used only
for improvements to City streets, sidewalks, parks, and buildings, as
approved by vote of the City Council.
Section 2. During the budget process, the City Council will review and decide if
any additional debt principal reduction will be made during the next fiscal year. If
additional debt principal reduction is agreed upon, the City Treasurer will move the
necessary amount into the General Fund Debt Pre -payment Account which will
decrease the funds going into the Capital Projects Fund for that year.
Section 3. During the budget process, the City Council will decide if any
additional debt principal reduction for the Utilities by reducing transfers from the
Utilities to the General Fund will be made during the next fiscal year. To offset the
reduction of transfers from the Utilities, the portion of the Sales and Use Tax revenue
that is restricted in the General Fund Debt Pre -payment Account can be used for
General Fund operations up to the amount of the reduction. If additional debt
principal reduction is agreed upon, a statement with the reduction amount will be
included in the resolution adopting the budget for that year.
Ordinance No. 1520
Page -2-
Severability. The sections, paragraphs, sentences, clauses and phrases of this
ordinance are severable, and if any phrase, clause, sentence, paragraph or section of
this ordinance shall be declared unconstitutional by a court of competent jurisdiction,
then such ruling shall not affect any other paragraphs and sections, since the same
would have been enacted by the municipality council without the incorporation of
any such unconstitutional phrase, clause, sentence, paragraph or section.
Effective Date. This ordinance shall take effect immediately upon its due
adoption and publication as required by law.
ADOPTED AND APPROVED THIS 29TH DAY OF SEPTEMBER, 2014
ATTEST:
AisaA.ank , MMC
City Clerk
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