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HomeMy WebLinkAbout2008 10 13 Regular 601 Resolution 2008-50 Board Of Trustees Investment of Idle City Funds COMMISSION AGENDA October 13,2008 Regular Meeting Consent Informational Public Hearin Re ular MGR. IL/"/ /DEPT. Authorization x ITEM 601 REQUEST: City Manager requesting Commission consider recommendations from the Board of Trustees regarding investment of idle City funds. PURPOSE: This agenda item is needed for the City Commission to consider recommendations from the Board of Trustees regarding investment of idle City funds. CONSIDERA nONS: On August 13,2008 the City Commission heard presentations from representatives of the State Board of Administration Local Government Investment Pool (SBA-LGIP) and the Florida League of Cities Florida Municipal Investment Trust (FMIvT). These presentations were made in order to assist the Commission in deciding whether or not to return to the SBA-LGIP for investment of surplus City funds, to utilize an alternative investment vehicle such as the FMIvT for this purpose, or to maintain its current investment portfolio. At the conclusion of that meeting, the Commission directed the City Manager to ask the Board of Trustees to hear the same presentations and provide an advisory opinion on the matter. NOTE: The City's current investment portfolio consists of the following: The Reserve Fund SBA-LGIP "A" SBA-LGIP "B" Total $17.9 M $5.7M $1.3 M $24.9 M On September 17,2008, the Board of Trustees heard presentations from representatives ofthe SBA- LGIP and the FMIvT. The Board of Trustees voted unanimously to recommend the following to the Commission: 1. That the City move up to 25% of the funds currently invested in The Reserve Fund to the FMIvT High Quality Government Fund. 2. That as additional funds are liquidated in the future from the SBA-LGIP, that up to 25% of that liquidated amount be moved to the FMIvT High Quality Government Fund 3. That the Board of Trustees revisit this issue in 6 months. 4. That the City NOT reinvest in the SBA-LGIP at this point in time. The Board of Trustees met again on October 1,2008 and voted (4-1 on items 1 & 2; 5-0 on items 3 & 4) in favor of recommending the following additional items to the Commission: 1. That the City engage Bogdahn Consulting for a one-time engagement for purposes of providing the City a professional evaluation and recommendation regarding investment alternatives for idle City funds. 2. That the City engage Bogdahn Consulting on an on-going basis for purposes of providing Third Party Investment Advisory services to the City regarding its idle City funds. 3. That the City utilize remaining funds in the City's Medical Transport Special Revenue Fund ($683,225) to accelerate the payment of (to the extent these funds will allow) the portion of the required FY 2009 normal pension costs and the past service liability related specifically to firefighters. 4. That, to the extent feasible and allowable, the City accelerate the payment of the past service liability and pass this cost on to the County in accordance with the Fire Consolidation Interlocal Agreement. FUNDING: September 17 Recommendation: Expenses: The FMIvT charges participants 18 basis points to administer the Fund. Revenues: Based on a 25% allocation to the FMIvT and a current interest spread (Reserve Fund return vs. FMIvT return) of 1.20%, an estimated additional $54,000 in annual earnings would be obtained. October 1 Recommendation: The cost for Bogdahn Consulting to provide a one-time evaluation and recommendation for investment of idle City funds and to provide on-going Investment Advisory services to the City would determined though appropriate vendor negotiations. RECOMMENDATION: It is recommended that the Commission approve the recommendations of the Board of Trustees regarding investment of idle City funds and utilization of remaining funds in the in the City's Medical Transport Special Revenue Fund. It is further recommended that the Commission authorize the City Manager to enter into negotiations with Bogdahn Consulting and bring back a fee proposal and contract for Commission approval. If the Commission approves the Board of Trustees recommendation regarding use of the FMIvT, the attached resolution will be required from the FMIvT for participation in the Fund. It is recommended the Commission approve this resolution and authorize the City Manager to execute any documents required for participation in the FMIvT High Quality Government Fund. ATTACHMENTS: 1. Resolution No. 2008-50. COMMISSION ACTION: Resolution 2008-50 Was Referenced in Agenda Item for 10/13/08 Regular Meeting, but the Resolution was not attached. There was no motion to Approve this Resolution on 10/13/08.