Chapter 4.18
BETHEL ENDOWMENT FUND
Sections:
4.18.010 Fund established.
4.18.020 Purpose of fund.
4.18.021 Fund management.
4.18.030 Investments.
4.18.040 Accounting for earnings.
4.18.050 Procedure for repeal.
4.18.060 Reinvestment proposals.
4.18.010 Fund established.
There is established a separate fund named the Bethel endowment fund. The Bethel endowment fund consists of money originally appropriated to the Bethel endowment fund by the city council, called the principal, plus the accumulation of thirty (30) percent of the annual net income for each year since inception. [Ord. 08-19 § 2; Ord. 93-27 § 1.]
4.18.020 Purpose of fund.
The purpose of the Bethel endowment fund is to maximize income for the continuing operations of general government of the city. Seventy (70) percent of the net income of the previous year shall be deposited in the general fund upon adoption of the annual budget each year. [Ord. 08-19 § 2; Ord. 93-27 § 1.]
4.18.021 Fund management.
A. A separate single investment account recommended by the finance director with concurrence by the city manager, and approved by the city council by majority vote, will be established for holding the Bethel endowment fund principal.
B. The city manager is directed to prepare the annual budget for submission to the city council not later than the fifteenth day of March of each calendar year. Concurrently, the city manager shall cause to be introduced an ordinance proposing an appropriation to the general fund of monies in an amount equal to seventy (70) percent of the endowment fund’s net income of the previous fiscal year. In the event that there were no earnings from the previous fiscal year, no appropriation to the general fund will be proposed.
C. The city of Bethel finance director, or the assistant finance director in the absence of the finance director, will submit a complete written disclosure of the status of the Bethel endowment fund monthly to the city council. A copy of this disclosure will be provided to the city manager. [Ord. 08-19 § 2.]
4.18.030 Investments.
A. The “Prudent Man” Rule shall be applied in the management and investment of the Bethel endowment fund assets. This rule means that in making investments, the same judgment and care under the circumstances then prevailing shall be exercised which an institutional investor of ordinary prudence, discretion, and intelligence exercises in the management of large investments entrusted to it, not in regard to speculation, but in regard to the permanent disposition of funds, considering probable safety of capital as well as probable income.
B. The Bethel endowment fund assets shall only be used for income-producing investments. [Ord. 08-19 § 2; Ord. 93-27 § 1.]
4.18.040 Accounting for earnings.
The net income of the Bethel endowment fund shall be computed in accordance with generally accepted accounting principles (GAAP). [Ord. 08-19 § 2; Ord. 93-27 § 1.]
4.18.050 Procedure for repeal.
A. The principal of the Bethel endowment fund shall not be invaded unless approved by a majority of the voters at a general or special election called for that purpose by the city council.
B. If a majority of the voters approve an invasion of the Bethel endowment fund, an ordinance will be created to that effect and duly adopted by the Bethel city council.
C. Upon introduction of an ordinance invading the principal of the Bethel endowment fund, the city manager must provide at least one (1) month’s public notice of said ordinance. This notice shall include the holding of at least two (2) informational meetings open to the public. At least two (2) such meetings shall be held prior to the public hearing on the proposed ordinance before the city council. [Ord. 08-19 § 2; Ord. 93-27 § 1.]
4.18.060 Reinvestment proposals.
Simultaneous with the submission of the annual budget, the city manager shall cause to be introduced an ordinance proposing appropriation and reinvestment of an amount equal to thirty (30) percent of the Bethel endowment fund’s net income of the previous year. [Ord. 08-19 § 2; Ord. 93-27 § 1.]