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HomeMy WebLinkAboutORD884APPENDIX C ORDINANCE NO.884 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,ESTABLISHING A POLICY RELATED TO THE USE OF INTERNAL REVENUE CODE SECTION 457 RETIREMENT FUNDS AND REQUIRING BOTH NOTICE AND A PUBLIC HEARING IF FUNDS ARE ALLOCATED FOR OTHER THAN RETIREMENT BENEFITS OR IF THE PROVISIONS OF THIS ORDINANCE ARE TO BE AMENDED OR REPEALED;REPEALING ANY CONFLICTING PROVISIONS; PROVIDING FOR SEVERABILITY; AND DECLARING AN EMERGENCY. NOW,THEREFORE,BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA,AS FOLLOWS: SECTION I POLICY AND INTENT A.R.S.§9-500 authorizes a City to establish a deferred compensation program, pursuant to the Internal Revenue Code,Section 457,for the benefit of its employees.The City Council of the City of Apache Junction hereby recognizes and declares that deferred compensation plans are payroll -fringe benefits for employees,providing both a convenient way to save and a means of sheltering a portion of their salaries from federal taxation,and not to provide a source of working capital for the governmental entity.The City Council hereby recognizes that a government that maintains an IRC 457 Plan in good faith will not access nor permanently diminish the plan assets for purposes other than to provide employee benefits, even though it may otherwise legally do so.It is recognized and declared that the City of Apache Junction is acting in a fiduciary capacity on behalf of the participating employees in maintaining such a plan and that such relationship shall be disclosed through the entities annual financial statements. While it is understood these funds belong to the City and may be used,in the case of bankruptcy or insolvency,to satisfy the general claims and obligations of the City,it is hereby declared that it is the policy of the City of Apache Junction that if such circumstances arise,the deferred compensation plan fund shall be used only as a last resort and subsequent to a public hearing process only after notice has been given to all affected plan participants. SECTION I I PUBLIC HEARING AND NOTICE Prior to amending,supplementing,changing or repealing the provisions of this ordinance and/or prior to using any Internal Revenue Code Section 457 retirement funds f:r purposes other than to provide employee benefits,the City Council of the City of Apache Junction shall hold a public hearing.Notice of the time and place of hearing,including a general explanation of the matter to be considered and a general description of the employee benefits affected,shall be given at least fifteen (15) days before the hearing in the following manner: (a)Notice shall be sent by certified mail to each participant in any I.R.C. Section 457 Plan established for the benefit of the employees of the City of Apache Junction to the last known address of the participant. ORDINANCE NO.884 PAGE ONE OF TWO (b)Notice shall be additionally distributed in the payroll envelopes of each employee of the City of Apache Junction. (c)Notice shall additionally be sent by certified mail to any plan administrator. SECTION III REPEALING OF CONFLICTING ORDINANCES All ordinances and parts of ordinancesand/or provisions of the Apache Junction City Code which are in conflict with the provisions of this ordinance are hereby repealed. SECTION IV PROVIDING FOR SEVERABILITY I f any section,sub -section,sentence,phrase,clause or portion of this ordinance or any part of the Code adopted herein by reference is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction,such decision shall not affect the validity of the remaining portion thereof. SECTION V EMERGENCY CLAUSE WHEREAS,i t being necessary for the peace,health,and safety of the City of Apache Junction,Arizona,an emergency is declared to exist,and this ordinance shall be effective immediately upon its passage and adoption. PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA,THIS 21ST DAY OF DECEMBER ,1993. SIGNED AND ATTESTED TO THIS 22ND DAY OF DECEMBER KATHLEEN CONNELLY City Clerk A GVENN J!GiIHBUT CAty Attofney ORDINANCE NO.884 PAGE TWO OF TWO ,1993.