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AGENDA MEMORANDUM
Meeting Date: July 13, 2009
From: Tino Anthony – Chairperson, City of Leesburg Employee General Pension Board
Subject: Ordinance authorizing additions to the Investment Policy of the City of Leesburg Retirement Plan for General Employees.
Staff Recommendation:
The City of Leesburg General Employee’s Pension Board recommends approval of the additions to the Investment Policy of the City of Leesburg Retirement Plan for General Employees. This addition is required to allow alternative investment strategies to be employed as part of the investment tools currently utilized in our efforts to reach our investment goals.
Analysis:
The General Employee’s Pension Board’s investment goal is to make smart investment choices which maximize return and minimize risk. In today’s current economic climate, it is more difficult than ever to maintain a steady investment course as a result of volatile market conditions, recessionary pressures, and unprecedented national and international events. As a result of this, the General Employee’s Pension Board of the City of Leesburg has researched the viability of utilizing further diversification investment tools to lower the plans risk associated with its investments while taking measures to increase plan returns. In order to accomplish this task, the board directed its managing partner, Graystone Consulting to research the employment of Alternative Investment Strategies which are not directly tied to market volatility. Currently, the plans investment guidelines do not allow investments in other than traditional vehicles which are directly tied to market volatility. Our research indicates that employing alternative investment strategies has the ability to not only reduce the risk associated with our investments, but may also increase return.
Options:
1. Approve the City of Leesburg Pension Boards request to allow Alternative Strategies as a tool to reach plan goals and objectives.
2. Such alternative action as the Commission may deem appropriate
Fiscal Impact:
None
Submission Date and Time: 7/9/2009 5:21 PM____
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Department: ______________________ Prepared by: ______________________ Attachments: Yes____ No ______ Advertised: ____Not Required ______ Dates: __________________________ Attorney Review : Yes___ No ____
_________________________________ Revised 6/10/04 |
Reviewed by: Dept. Head ________
Finance Dept. __________JB______
Deputy C.M. ___________________ Submitted by: City Manager ___________________ |
Account No. _________________
Project No. ___________________
WF No. ______________________
Budget ______________________
Available _____________________ |
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF LEESBURG, AMENDING THE CITY OF LEESBURG RETIREMENT PLAN FOR GENERAL EMPLOYEES, 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 by the Board and the investment of all or any part of such funds shall be subject to the following:
(1) Notwithstanding any limitation in prior City ordinances to the contrary, all monies paid into or held in the Fund may be invested and reinvested in such securities, investment vehicles or property wherever situated and of whatever kind, as shall be approved by the Board, including but not limited to common or preferred stocks, bonds, and other evidences of indebtedness or ownership.
(2) The Board shall develop and adopt a written investment policy statement setting forth permissible types of investments, goals and objectives of investments and setting quality and quantity limitations on investments in accordance with the recommendations of its investment consultants. The investment policy statement shall be reviewed by the Board at least annually.