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Home My WebLink AboutItem 05 Ordinance Amending Ordinance No. 96-19, Section 4 re: General Employees’ Retirement Trust Fund AGENDA ITEM COVER SHEET Meeting Date: 10/18/05 Item # __ S Re0ewedB~ ~~.. Contact Name: James Carnicella . Department Director: . n ~tt Contact Number: 1032 City Manager:_ __ u__~- Sl.Ibject:QrdinanbeAmendingC>rdinance96-19, Section4 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'7 Public Hearing x Ordinance Second Reading Resolution Commission Approval Discussion & Direction For Clerk's Deat Use: _ Consent Agenda _ Public Hearing _ Regular Agenda _ 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 Dannv HowelL District 1 Scott Anderson. District 2 Rusty Johnson. District 3 Nancy J. Parker, District 4 Mavor S. Scott Vandergrift 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 liniits. 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. LA W OFFICES CHRISTIANSEN & DEHNER, P.A. SCOTT R. CHRlSTIANSEN 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, ~~ H. Lee Delmer HLD\noc enclosures \ cc: Ward Foster, with enclosure D,) FOSTER 8: FOSTER, INC. ~andW~@",~~~ 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~O~ Patrick T. Donlan PTD/hja cc: Rob Frank, City Manager Jim Carnicella, H.R. Director ORDINANCE NO. 20- AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, RELATING 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 of the Constitution of the 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 pelCc.nt (GO%) seventy percent (70%) of the assets of the Fund. The Board may invest up to ten pCleent (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 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 2 NO. Copy of Public Hearing Advertisement Date Published SUNDAY, OCTOBER 9.2005 Advertisement CITY OF OCOEE - PUBUC HWlNG AMENDING CITY OF OCOEE IIlINICIPAl IENERAL EMPlOYEES' IIET1REMEI'fT TRUST FUND A Public Ho.rin, before the 0.0" City CommISsion will be held Tuesday, October 18, ! 2005, 7: 15 P.M., or os soon thereafter os may be heard, in the Commission Cham- bers of City Hall at 150 North Lokeshore Drive, Ocoee. Florida, to consider the followi ng: AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, RELAT- ING TO THE CITY OF OCOEE MUNICIPAL GENERAL EM- PLOYEES' RETIREMENT TRUST FUND, ADOPTED AND RESTATED IN FUU BY ORDI- NANCE NUMBER 96. U: AS SUBSEQUENTLY AMENDED; IS HEREBY FURTHER AMEND- ED BY AMENDING SECTION 4. FINANCES AND FUND MANAGEMENT; REPEALING AU ORDINANCES IN CON- FUCT HEREWITH AND PRO- VIDING AN EfFEcnVE DATE. If 0 Plrson decides to ap- peal any decision made by the above City Commission with respect to any matter considered at such hearing, they will need. a record of the proceedings, and for such purpose they may need to ensure that a verbatim record of the proceedings is made, which record in- cludes the testimony and ev- idence uPon which the ap- peal is to be based. All interested parties ore in- vited to attend and be heard with respect to the above. In accordance with the Ameri- cans with Disabilities Act, persons needing a special accommodation or an inter- preter to participate in this proceeding should contact i the City Clerk's office at 407-905-3105 at least two days prior to the date of hearing. Beth Eikenberry City Clerk COR6419915 OCT.9.2005