§ 13.11. Trust fund.


Latest version.
  • (a)

    When a municipal owned utility is sold pursuant to section 16.02 of this Charter, the proceeds shall be used to:

    (1)

    Retire the debt of that utility;

    (2)

    Retire other municipal debt deemed appropriate by the assembly;

    (3)

    Establish a trust fund with the balance of the proceeds.

    (b)

    The trust fund shall be defined as an endowment fund with a controlled spending policy limiting dividend distributions and managed by the municipal treasurer under chapter 6.70 of the Municipal Code with the following stipulations:

    (1)

    The corpus, or a portion of the corpus, of this trust shall be maintained in perpetuity as an endowment. Any use of the corpus, or a portion of the corpus, separate from the controlled spending policy of the endowment, may only be used for purposes approved by a majority of the voters voting on a ballot proposition in a regular or special election;

    (2)

    Under the endowment's controlled spending policy an annual dividend may be appropriated by the assembly provided that the annual appropriation does not exceed five percent of the average asset balance of the trust.

    (c)

    The fund shall be invested and managed in accordance with chapter 6.50 of the Municipal Code.

(AO No. 89-27(S), prop. 1, 10-3-89; AO No. 2002-11, § 2, 2-12-02)