HomeMy WebLinkAboutItem 08 Ordinance Amending Ordinance No. 96-19, Section 4 re: General Employees’ Retirement Trust Fund
AGENDA ITEM COVER SHEET
Meeting Date: 10/04/05
)S
Item #
Contact Name:
Contact Number:
James Carnicella
1032
Background Summary:
The Pension Board Trustees and the Money Managers for the City of Ocoee General Employees' Retirement
Trust Fund are responsible for recommending investment strategies regarding the above Fund.
Issue:
Amend Ordinance 96-19, Section 4. Finances and Fund Management.
Recommendations
The Trustees and Money Managers of the City of Ocoee Municipal General Employees' Retirement Trust Fund
recommend amending the Fund investment strategy by providing authority to invest in common stock, capital
stock and convertible securities at market rather than cost and not to exceed seventy percent rather than sixty
percent of the assets of the Fund.
Attachments:
Ordinance Amendment, letter from the Pension Board Attorney Mr. Lee Dehner and a letter from the Actuary Mr.
Donlan.
Financial Impact:
None.
Type of Item: (please mark with an "x'J
Public Hearing
~ Ordinance First Reading
Resolution
_ Commission Approval
Discussion & Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by ( )
N/A
N/A
N/A
City Manager
Robert Frank
Commissioners
Danny Howell, District 1
Scott Anderson, District 2
Rusty ,Johnson, District 3
Nancy,J. Parker. District 4
Mayor
S. Scott V anden~Tift
STAFF REPORT
TO:
The Honorable Mayor and City Commissioners
FROM:
James Carnicella, Pension Administrator
DATE:
September 23,2005
RE:
Amendment to Ordinance 96-19
ISSUE
Amend Ordinance 96-19; Section 4- Finances and Fund Management.
BACKGROUNDIDISCUSSION
The Money Managers for the City of Ocoee Municipal General Employees' Trust Fund have recommended to
the Pension Board they consider amending the authority of the Money Managers to invest funds within certain
limits. The Pension Board has approved the same and requested the Attorney for the Board to prepare the
attached amendment. The Actuary from Foster and Foster, Inc. has also included a letter that indicates there is no
financial impact to the City as a result of this amendment and as a result there is no need for an actuarial impact
statement.
The revisions contained in this amendment will allow the Money Mangers to invest in common stock, capital
stock and convertible securities at market rather than cost, and not to exceed seventy percent of the Fund, rather
than sixty percent of the assets of the Fund.
The Money Managers and the Attorney will be available for the reading at the Commission meeting.
ORDINANCE NO. 20-
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELA TING TO THE CITY OF OCOEE MUNICIPAL
GENERAL EMPLOYEES' RETIREMENT TRUST FUND,
ADOPTED AND RESTATED IN FULL BY ORDINANCE
NUMBER 96-19; AS SUBSEQUENTLY AMENDED; IS
HEREBY FURTHER AMENDED BY AMENDING SECTION
4, FINANCES AND FUND MANAGEMENT; REPEALING
ALL ORDINANCES IN CONFLICT HEREWITH AND
PROVIDING AN EFFECTIVE DATE.
SECTION 1: Authority. The City Commission of the City ofOcoee has the authority
to adopt this ordinance pursuant to Article VIII ofthe Constitution ofthe State of Florida and
Chapter 166, Florida Statutes.
SECTION 2: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, as subsequently amended, is
hereby further amended by amending Section 4, Finances and Fund Management, subsection
6.C., to read as follows:
6.
C.
The Board shall not invest more than five percent (5%) of its assets in the
common stock or capital stock of anyone issuing company, nor shall the
aggregate investment in anyone 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 bonds at cost
market exceed sixty pelcellt (GO%) seventy percent (70%) of the assets of the
Fund. The Board may invest up to ten percent (10%) twenty percent (20%)
of the total fund asset value at cost market in international securities in a
mutual fund or commingled fund. The Board shall provide a report to the
City on the international investment experience, five years from the date this
international investment authority is added to the System, in order for the
City to consider the advisability of amending the System by increasing or
decreasing the extent of international investments.
SECTION 3. Repeal of Ordinances. All ordinances or parts of ordinances in conflict
herewith are hereby repealed.
SECTION 4. Effective Date. This ordinance shall take effect upon adoptions.
PASSED AND ADOPTED this _ day of ,2005.
APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
By:
Beth Eikenberry, City Clerk S. Scott Vandergrift, Mayor
1
(SEAL)
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS _ day of , 2005
CHRISTIANSEN & DEHNER, P.A.
Special Counsel
By:
noc\ocoee\gen\05-31-05.ord
2
ADVERTISED ,2005
READ FIRST TIME , 2005
READ SECOND TIME AND ADOPTED
,2005
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD ON
, 2005 UNDER AGENDA ITEM
NO.
LAW OFFICES
CHRISTIANSEN & DEHNER, P.A.
SCOTI R. CHRISTIANSEN
H. LEE DEHNER
63 SARASOTA CENTER BLVD.
SUITE 107
SARASOTA, FLORIDA 34240
PHONE: (941) 377-2200
FAX: (941) 377-4848
August 5, 2005
Mr. Rob Frank
City Manager
City of Ocoee
150 N. Lakeshore Drive
Ocoee, FL 34761
Re: City of Ocoee Pension Plans
Dear Rob:
As directed by the Board of Trustees of the City of Ocoee Municipal General Employees'
Retirement Trust Fund and the City of Ocoee Police Officers' and Firefighters Retirement Trust
Fund, I am forwarding proposed ordinances for each plan. These proposals amend each plan by
increasing the investment in equity securities from 60% at cost to 70% at market value of the assets
of the fund and for the General Employees' Plan only, increases that fund's investment in
international securities from 10% at cost to 20% at market. These amendments are proposed at the
recommendation of the money managers for the two Plans.
Please review these documents, and if they met with your approval, take the necessary steps
to have them read by the City Commission. As it will be advisable to have the money managers and
myself present at first reading, please contact my office for scheduling purposes.
By copy of these ordinances to the Boards' Actuary, Foster & Foster, Inc., I am requesting
them to prepare the appropriate actuarial analyses and forward them to you.
If you have any questions or comments, please do not hesitate to contact me.
Yours very truly,
t
~~
H. Lee Dehner
HLD\noc
enclosures
cc: Ward Foster, with enclosure
FOSTER Be FOSTER, INC.
~andff~tW~~~
TELEPHONE
(239) 433-5500
6290 CORPORATE COURT, C-201
FORT MYERS, FLORIDA 33919
FACSIMILE
(239) 481 - 0634
August 16, 2005
Ms. Jean Grafton
City of Ocoee
150 N. Lakeshore Dr.
Ocoee, FL 34761
Re: City of .ocoee
General Employees' Retirement Trust Fund
Dear Jean:
In response to H. Lee Dehner's letter dated August 5,2005, we have reviewed the
proposed Ordinance, identified on page 2 as noc\ocoee\gen\05-31-05.ord, amending
the investment provisions of the Plan and have determined that its adoption will have no
financial impact on the funding requirements to the program.
Because the changes do not result in a financial impact on the funding requirements, it
is our opinion that a formal Actuarial Impact Statement is not required in support of its
adoption.
When the Ordinance has been adopted, please provide a copy of this letter and the
executed Ordinance to the following Bureau at the Division of Retirement:
Mr. Charles Slavin
Division of Retirement
Bureau of Local Retirement Systems
P. O. Box 9000
Tallahassee, FL 32315-9000
If you have any questions, please let me know.
Sincerely,
f~D~
Patrick T. Donlan
PTD/hja
cc: Rob Frank, City Manager
Jim Carnicella, H.R. Director