HomeMy WebLinkAboutResolution 2008-11A SBA Investment PoolRESOLUTION NO. 2008-11A
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS FLORIDA, REQUESTING THE
LEGISLATURE TO PROVIDE A TEMPORARY PLEDGE OF
SECURITY FOR THE STATE BOARD OF ADMINISTRATION
LOCAL GOVERNMENT INVESTMENT POOL TO FACILITATE
THE RESTORATION OF INVESTOR CONFIDENCE IN THE
POOL EQUAL TO THAT PRIOR TO THE 2007 LIQUIDITY
CRISIS.
WHEREAS, the State Board of Administration Local Government Investment Pool
(SBA-LGIP) was established in 1982 to provide local governments, school boards, state agencies
and special districts with a safe and liquid place to invest idle funds; and
WHEREAS, prior to the 2007 liquidity crisis, the SBA-LGIP had enjoyed a long and
admirable history of stellar performance and investor confidence among participating investors;
and
WHEREAS, the liquidity crisis seriously reduced investor confidence in the security of
their investment of idle funds in the SBA-LGIP resulting in panic withdrawals of funds reducing
SBA-LGIP holdings from $26 billion to $14 billion; and
WHEREAS, the SBA-LGIP provides a badly needed short term investment option for
local governments, school boards, state agencies and special districts; and
WHEREAS, the restoration of investment inflows into the pool will depend upon a
restoration of confidence in the perceived security of investments held within the pool; and
WHEREAS, Winter Springs, like many other investors, would like to restore its
investment relationship with the SBA-LGIP once appropriate measures are taken to fortify the
security of funds invested in the SBA-LGIP,
NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS STATED
ABOVE, BE IT RESOLVED THAT THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS, FLORIDA, REQUESTS THE LEGISLATURE TO DO THE
FOLLOWING:
1. Mandate that all improvement strategies recommended by SBA-LGIP's consultant
Black Rock Financial Management are implemented, and
2. That the Legislature provide a temporary instrument of security protecting all member
investors with funds remaining in the Fund "B" investment pool from any losses
related to defaults in Fund "B".
RESOLVED this the 11 `h day of February, 2008 by the City Commission of the City of
Winter Springs, Florida in a regular meeting duly assembled in Winter Springs, Seminole
County, Florida.
~,
JO F. BUSH, Mayor ~ , • . :
ATTES~'T:
ANDR~A LORENZO-LUACES, City Clerk