Res 06-81 RESOLUTION NO. 6-81
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DELRAY BEACH,
FLORIDA, REQUESTING AND URGING THE LEGISLATURE OF THE STATE OF
FLORIDA TO REPEAL SECTIONS 658.60 AND 665.104, FLORIDA STA-
TUTES, ADOPTED IN THE 1980 LEGISLATIVE SESSION, ~ICH, TOGEHTER
WITH INTERNAL REGULATIONS PROMULGATED BY THE STATE TREASURER,
REQUIRE BANKS AND SAVINGS AND LOAN ASSOCIATIONS HOLDING MUNI-'
CIPAL MONEY DEPOSITS TO PLEDGE COLLATERAL FOR SUCH DEPOSITS TO
THE TREASURER OF THE STATE OF FLORIDA, RATHER THAN TO THE MUNI-
CIPALITY MAKING SUCH DEPOSITS; AND, FURTHER REQUIRING APPROVAL
OF THE STATE TREASURER IN WRITING TO RELEASE, MODIFY OR SUB-
STITUTE SUCH COLLATERAL REQUIRED; AUTHORIZING AND DIRECTING THE
CITY CLERK TO FORWARD A CERTIFIED COPY OF THIS RESOLUTION TO
SUCH PERSONS AS THE MAYOR SHALL DIRECT; AND, PROVIDING FOR AN
EFFECTIVE DATE HEREOF.
WHEREAS, the Legislature of the State of Florida enacted Sections
658.60 and 665.104, Florida Statutes, in the 1980 Legislative Session;
and,
WHEREAS, said statutory provisions, together with internal regu-
lations promulgated by the State Treasurer, require banks and savings and
loan associations holding municipal money deposits to pledge collateral
for such deposit~ to the Treasurer of the State of Florida, rather than to
the municipality making such deposits; and further requiring written ap-
proval of the State Treasurer to release, modify or substitute such col-
lateral required after such officer shall first consult the municipality
involved; and,
WHEREAS, Counties and Boards of Education are not included under
this revised legislation; and,
WHEREAS, municipalities on the whole have wisely invested their
monies and obtained the collateral from depository banks and savings and
l~an associations as required by law prior to such revisions; and,
WHEREAS, the revisions' and regulations will require a large in-
crease in paper work at cost to the taxpayer together with the larger
banking institutions refusing to conduct business with municipalities due
to the inability to change pledged collateral within a reasonable time and
increased paper work. Further, the sum of money expected to exceed.
$400,000 may be required to fund the Treasurer's office for this purpose%
which is a needless cost to the taxpayer; and,
WHEREAS, such revisions reflect the wishes of a small segment of
the banking lobby and an effort to prevent a few municipalities from mak-
ing investments which do not meet the requirements of law,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That the City Council Of the City of Delray Beach,
Florida, urges and requests members of the Florida Legislature in its 1981
Session to repeal Sections 658.60 and 665.104, Florida Statutes.
Section 2. That the City Clerk is hereby authorized and directed
to forward a certified copy of this Resolution to such persons as the Ma-
yor shall direct.
Section 3. That this Resolution shall be effective upon date of
passage.
PASSED AND ADOPTED in regular sessio~ this the 10th day of
ATTEST: M A Y O R
LEON M. WEEKES
.y City Clerk