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.
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.
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
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. __________JB______
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF 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.
(3) In addition, the Board may, upon recommendation by the Board’s investment consultant, make investments in group trusts meeting the requirements of Internal Revenue Service Revenue Ruling 81-100 or successor rulings or guidance of similar import, and while any portion of the assets of the Fund are invested in such a group trust, such group trust is itself adopted as a part of the System or plan.
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 twenty percent (20 %) 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 ____________, 2009.