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