AGENDA MEMORANDUM
Meeting Date: October
8, 2007
From: Jay
M. Evans, Interim City Manager
Subject: Ordinance amending the
Retirement Plan for the General Employees of the City of Leesburg
Staff
Recommendation:
The
Board of Trustees, General Employees Retirement Plan, recommends the
introduction and adoption of the changes to Ordinance 03-57, as presented.
Analysis:
On
June 9, 2003, the City Commission adopted Ordinance 03-57, which is a restatement
of the City of Leesburg Retirement Plan for General Employees. The attached
amendment to this ordinance will increase the Board’s permissible investment in
foreign securities. This amendment was recommended by the Board’s investment
consultant in order to provide additional flexibility and increase the
possibility of greater returns.
The
actuary for the Retirement Plan for General Employees has reviewed the proposed
amendment. They determined that its adoption will have no impact on the
assumptions used in determining the funding requirements of the program.
Therefore, there is no additional cost associated with the adoption of this
ordinance.
Options:
1. Approve the ordinance amendment
pertaining to Ordinance 03-57, Section 4, Finances and Fund Management, and
repealing conflicting ordinances.
2.
Such alternative action as the Commission may deem appropriate
Fiscal
Impact:
There
is no fiscal impact to the City of Leesburg as a result of this change.
Submission Date and
Time: 10/18/2007 12:06 PM____
|
Department: __City
Manager__________
Prepared
by: __Jay M. Evans__________
Attachments:
Yes __X__ No _____
Advertised: ____Not Required ______
Dates: __________________________
Attorney Review : Yes _X__ No ___
_________________________________
Revised 6/10/04
|
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
Submitted
by:
City Manager ___________________
|
Account No. _________________
Project No. ___________________
WF No. ______________________
Budget ______________________
Available _____________________
|
ORDINANCE
NO. 07 -
AN ORDINANCE OF THE CITY OF LEESBURG, AMENDING THE
RETIREMENT PLAN FOR THE GENERAL EMPLOYEES FOR THE CITY OF LEESBURG, ADOPTED
PURSUANT TO ORDINANCE NO. 03-57, AS SUBSEQUENTLY AMENDED; AMENDING SECTION 4,
FINANCES AND FUND MANAGEMENT; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY
OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN
EFFECTIVE DATE.
BE
IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
SECTION 1: That Ordinance
No. 03-57, adopting the amended and restated City of Leesburg Retirement Plan
for General Employees, as subsequently amended, is further amended to amend
Section 4, Finances and Fund Management, subsection 6.B., to read as follows:
6. B. All
monies paid into or held in the Fund shall be invested and reinvested in such
securities or property wherever situated and whatever kind, as shall be
approved by the Board, including but not limited to stocks, common or
preferred, bonds, other evidences of indebtedness or ownership, and mutual
funds, but there shall be no investment in the following:
(1) Margin
Purchases.
(2) Commodities.
(3) Calls or
straddles (not including covered call options).
(4) Warrants
or other options, except as part of purchase of another security.
(5) Venture
Capital.
(6) Any
investment prohibited by State or Federal law.
(7) Bonds
which are rated less than “BBB” by Standard and Poors and Moodys.
(8) Real
property or real estate.
Investments
shall be further limited as follows:
(1) The
Board shall not invest more than ten percent (10%) of its assets in the common
stock, capital stock, or convertible securities of any one issuing company, nor
shall the aggregate investment in any one issuing company exceed five percent
(5%) of the outstanding capital stock of that company; nor shall the aggregate
of its investments in common stock, capital stock and convertible securities at
market exceed seventy percent (70%) of the assets of the Fund.
(2)
The Board shall not invest more than fifteen twenty
percent (20 15 %) of its assets in foreign securities.
The Board shall
develop and adopt a written investment policy statement setting forth goals and
objectives of investments and setting quality and quantity limitations on
investments. The investment policy statement shall be reviewed by the Board at
least annually.
SECTION 2:
Specific authority is hereby granted to codify and incorporate this Ordinance
in the existing Code of Ordinances of the City of Leesburg.
SECTION 3:
All Ordinances or parts of
Ordinances in conflict herewith be and the same are hereby repealed.
SECTION 4:
If any section, subsection, sentence, clause, phrase of this ordinance, or the
particular application thereof shall be held invalid by any court,
administrative agency, or other body with appropriate jurisdiction, the remaining
section, subsection, sentences, clauses or phrases under application shall not
be affected thereby.
SECTION 5:
That this Ordinance shall become effective upon its adoption.
PASSED AND ADOPTED at a regular
meeting of the City Commission of the City of Leesburg, Florida, held on the
_________ day of _____________________, 2007.
CITY
OF LEESBURG
Mayor
ATTEST:
City
Clerk
Approved
as to form:
City
Attorney