HomeMy WebLinkAbout2008 10 27 Consent 201 Resolution 2008-51 Investment Of The City's Surplus FundsCOMMISSION AGENDA
ITEM 201
October 27.2008
Regular Meeting
REQUEST:
Informational
Consent X
Public Hearings
Regular
Mgr. / Dept.
Authorization
The City Manager and City Attorney request the City Commission consider Resolution
2008-51 memorializing the direction given by the City Commission on October 20, 2008
regarding the investment of the City's surplus funds.
PURPOSE:
This Agenda Item is being presented to memorialize the investment policy direction given
by the City Commission at the special meeting on October 20, 2008.
APPLICABLE LAW:
Section 218.415, Florida Statutes.
CONSIDERATIONS:
1. The City Commission held a special meeting on October 20, 2008 to discuss and provide
direction regarding the City's investment of surplus funds.
2. Due to the ongoing situation involving the SBA Fund and the current economic crisis
affecting the world's financial markets, the City Commission directed that additional
temporary steps be taken to safeguard the principal and liquidity of the City's surplus
funds and to seek the assistance of new financial adviser.
3. The City Commission's directive is memorialized in the attached Resolution.
CITY OF WINTER SPRINGS, FLORIDA
CITY COMMISSION
OCTOBER 27, 2008
CONSENT ITEM 201
PAGE 2 OF 2
4. City surplus funds shall be invested and reinvested in accordance with the terms and
conditions of the Resolution until the City Commission directs otherwise.
ATTACHMENT:
Resolution 2008-51.
RECOMMENDATION:
The City Manager and City Attorney recommend the City Commission consider the
Resolution and approve or modify the Resolution as the City Commission deems
appropriate.
RESOLUTION 2008-51
A RESOLUTION OF THE CITY OF WINTER SPRINGS, FLORIDA
REGARDING THE INVESTMENT OF THE CITY'S SURPLUS
FUNDS; PROVIDING A TEMPORARY INVESTMENT POLICY
DUE TO THE STATUS OF THE SBA FUND AND THE CURRENT
ECONOMIC CRISIS; AUTHORIZING THE CITY MANAGER
AND FINANCE DIRECTOR TO IMPLEMENT THIS
TEMPORARY INVESTMENT POLICY IN ACCORDANCE WITH
THIS RESOLUTION UNTIL THE CITY COMMISSION DIRECTS
OTHERWISE; PROVIDING FOR CONFLICTS AND AN
EFFECTIVE DATE.
WHEREAS, on or about November 29, 2007, the State of Florida suspended withdrawals from a State Board of
Administration investment fund ("SBA Fund") due to the financial instability of the SBA Fund; and
WHEREAS, like many cities, counties, and school districts, the City of Winter Springs had surplus funds deposited
with the SBA Fund which is an authorized investment under Section 218.415, Fla. Stat., for units of local
government in Florida; and
WHEREAS, due to this emergency situation, the City Commission held several emergency, special, and regular
meetings to address the SBA Fund situation; and
WHEREAS, on December 10, 2007, upon recommendation of the City's financial consultant, Bogdahn Consulting,
LLC (Bogdahn), and the City Manager, the City Commission directed the City Manager to work with Bogdahn to
liquidate the City's surplus funds on deposit with the SBA Fund (as the SBA Fund permitted) and to temporarily
deposit said liquidated surplus funds into one of three U.S. Treasury money market funds recommended by
Bogdahn; and
WHEREAS, since that time, the City's surplus funds have been deposited into The Reserve, U.S. Treasury Fund
Institutional Class (The Reserve), which according to the fund's prospectus invests exclusively in securities backed
by the full faith and credit of the U.S. government; and
WHEREAS, in recent months, it has become evident to economists and governments around the world that there is
currently a world economic crisis which has severely impacted the world's financial markets; and
WHEREAS, because of the current economic crisis, the City Commission desires to take additional temporary steps
to safeguard the principal and liquidity of the City's surplus funds by directly purchasing U.S. Treasury securities;
and
WHEREAS, the investment in direct securities of the U.S. Treasury is an authorized investment under Section
218.41 S, Fla. Stat., for units of local government in Florida; and
WHEREAS, it is the intent of the City Commission of Winter Springs to continue to place the highest priority on the
safety of principal and liquidity of the City's surplus funds; and
WHEREAS, the City Commission of the City of Winter Springs finds that this Resolution is in the best interests of
the public health, safety, and welfare of the citizens of Winter Springs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS, FLORIDA:
SECTION 1. Direct U.S. Treasury Obligations. Untii further direction of the City Commission, all City
surplus funds shall be invested and reinvested in direct negotiable obligations of the U.S. Treasury as follows:
(a) The City Manager shall notify The Reserve that the City intends to withdraw its deposits in the
middle of December 2008. Until the withdrawal date, any existing deposits at The Reserve shall remain
in The Reserve. Upon withdrawal, however, the deposits shall be invested and reinvested in direct
negotiable obligations of the U.S. Treasury if said deposits are surplus funds or deposited in the City's
interest bearing checking account if said funds are needed for operational purposes.
(b) The City Manager shall continue to withdraw deposits from the SBA Fund when permitted by the
SBA Fund. Upon withdrawal, the deposits shall be invested and reinvested in direct negotiable
obligations of the U.S. Treasury if said deposits are surplus funds or deposited in the City's interest
bearing checking account if said funds are needed for operational purposes.
(c) Any new surplus funds not deposited in the SBA Fund or The Reserve shall be invested and
reinvested in direct negotiable obligations of the U.S. Treasury.
SECTION 2. lmplementatlon. Under the terms and conditions of the City's current Investment Policy, the City
Manager shall develop strategies to implement the directives set forth in Section 1 of this Resolution including, but
not limited to, making appropriate transactional and custodial arrangements for directly investing and reinvesting in
U.S. Treasury obligations. The City Manager, Finance Director, or other authorized City representatives are
authorized to execute such applications and other documents as are required to invest and reinvest surplus funds in
direct negotiable obligations of the U.S. Treasury.
SECTION 3. RFP For A New Financial Adviser. The City Manager is hereby directed to prepare and publish
a Request for Proposals (RFP) for the City to retain the services of a new financial adviser. Said RFP shall be
published to the general public within thirty (30) days of the effective date of this Resolution.
SECTION 4. Conflicts. The provisions set forth in this Resolution shalt take precedence over any conflicting
prior City resolution or policy adopted by the City Commission.
SECTION 5. Effective Date. This Resolution shall take effect immediately upon its adoption
DONE AND ADOPTED in regular session of the City Commission of the City of Winter Springs, Florida,
this 27`s day of October 2008.
CITY OF WINTER SPRINGS, FLORIDA
JOHN BUSH, MAYOR
ATTEST:
ANDREA LORENZO-LUACES, City Clerk
Approved as to legal form and sufficiency for
The City of Winter Springs only:
ANTHONY A. GARGANESE, City Attorney
RESOLUTION 2008-S1
A RESOLUTION OF THE CITY OF WINTER SPRINGS,
FLORIDA REGARDING THE INVESTMENT OF THE CITY'S
SURPLUS FUNDS; PROVIDING A TEMPORARY INVESTMENT
POLICY DUE TO THE STATUS OF THE SBA FUND AND THE
CURRENT ECONOMIC CRISIS; AUTHORIZING THE CITY
MANAGER AND FINANCE DIRECTOR TO IMPLEMENT THIS
TEMPORARY INVESTMENT POLICY IN ACCORDANCE WITH
THIS RESOLUTION UNTIL THE CITY COMMISSION DIRECTS
OTHERWISE; PROVIDING FOR CONFLICTS AND AN
EFFECTIVE DATE.
WHEREAS, on or about November 29, 2007, the State of Florida suspended withdrawals from a State Board of
Administration investment fund ("SBA Fund") due to the financial instability of the SBA Fund; and
WHEREAS, like many cities, counties, and school districts, the City of Winter Springs had surplus funds
deposited with the SBA Fund which is an authorized investment under Section 218.415, Fla. Stat., for units of
local government in Florida; and
WHEREAS, due to this emergency situation, the City Commission held several emergency, special, and regular
meetings to address the SBA Fund situation; and
WHEREAS, on December 10, 2007, upon recommendation of the City's financial consultant, Bogdahn
Consulting, LLC (Bogdahn), and the City Manager, the City Commission directed the City Manager to work with
Bogdahn to liquidate the City's surplus funds on deposit with the SBA Fund (as the SBA Fund permitted) and to
temporarily deposit said liquidated surplus funds into one of three U.S. Treasury money market funds
recommended by Bogdahn; and
WHEREAS, since that time, the City's surplus funds have been deposited into The Reserve, U. S. Treasury Fund
Institutional Class (The Reserve), which according to the fund's prospectus invests exclusively in securities backed
by the full faith and credit of the U.S. government; and
WHEREAS, in recent months, it has become evident to economists and governments around the world that there
is currently a world economic crisis which has severely impacted the world's financial markets; and
WHEREAS, because of the current economic crisis, the City Commission desires to take additional temporary
steps to safeguard the principal and liquidity of the City's surplus funds by directly purchasing U.S. Treasury
securities; and
WHEREAS, the investment in direct securities of the U.S. Treasury is an authorized investment under Section
218.415, Fla. Stat., for units of local government in Florida; and
WHEREAS, it is the intent of the City Commission of Winter Springs to continue to place the highest priority on
the safety of principal and liquidity of the City's surplus funds; and
WHEREAS, the City Commission of the City of Winter Springs finds that this Resolution is in the best interests
of the public health, safety, and welfare of the citizens of Winter Springs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS, FLORIDA:
SECTION 1. Direct U.S. Treasury Obligations. Until further direction of the City Commission, all
City surplus funds shall be invested and reinvested in direct negotiable obligations of the U.S. Treasury as follows:
(a) The City Manager shall notify The Reserve that the City intends to promptly withdraw its deposits
as soon as the City Manager completes a custodial contract for holding the direct negotiable
obligations of the U.S. Treasury or as needed for operational purposes, whichever occurs first. Until
the withdrawal date, any existing deposits at The Reserve shall remain in The Reserve. Upon
withdrawal, however, the deposits shall be invested and reinvested in direct negotiable obligations of
the U.S. Treasury if said deposits are surplus funds or deposited in the City's interest bearing checking
account if said funds are needed for operational purposes.
(b) The City Manager shall continue to withdraw deposits from the SBA Fund when permitted by the
SBA Fund. Upon withdrawal, the deposits shall be invested and reinvested in direct negotiable
obligations of the U.S. Treasury if said deposits are surplus funds or deposited in the City's interest
bearing checking account if said funds are needed for operational purposes.
(c) Any new surplus funds not deposited in the SBA Fund or The Reserve shall be invested and
reinvested in direct negotiable obligations of the U.S. Treasury.
SECTION 2. Implementation. Under the terms and conditions of the City's current Investment Policy, the
City Manager shall develop strategies to implement the directives set forth in Section 1 of this Resolution
including, but not limited to, making appropriate transactional and custodial arrangements for directly investing
and reinvesting in U.S. Treasury obligations. The City Manager, Finance Director, or other authorized City
representatives are authorized to execute such applications and other documents as are required to invest and
reinvest surplus funds in direct negotiable obligations of the U.S. Treasury.
SECTION 3. RFP For A New Financial Adviser. The City Manager is hereby directed to prepare and
publish a Request for Proposals (RFP) for the City to retain the services of a new financial adviser. Said RFP shall
be published to the general public within thirty (30) days of the effective date of this Resolution.
SECTION 4. Conflicts. The provisions set forth in this Resolution shall take precedence over any conflicting
prior City resolution or policy adopted by the City Commission.
SECTION 5. Effective Date. This Resolution shall take effect immediately upon its adoption.
DONE AND ADOPTED in regular session of the City Commission of the City of Winter Springs,
Florida, this 27`" day of October 2008.
Y OF WINTER SPRINGS, FLORIDA
7'~
F. BUSH, MAYOR
ATTEST:
u' YJ ~ ~~~~~ NWI ~ ~~ CI~h/ L~~
~Q,l' A DREA LORENZO-LUACE , Ci Cler
Approved to legal form and sufficiency for
The C' of inter Springs only:
ANTHONY A. GARGANESE, City Attorney