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:    7/24/2009 8:43 AM____

 

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.


(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.

 

                                                                                                                          

MAYOR

 

 

ATTEST:

 

 

                                                                                                                             

CITY CLERK