06-037
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1 ORDINANCE NO. 06- 0:37
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3 AN ORDINANCE OF THE CITY COMMISSION OF THE
4 CITY OF BOYNTON BEACH, FLORIDA, AMENDING
5 SECTION 18-181 OF THE BOYNTON BEACH CITY
6 CODE TO EXPAND THE FIREFIGHTER PENSION
7 BOARD'S INVESTMENT AUTHORITY BY RAISING
8 THE CAP ON EQUITY HOLDINGS; AMENDING
9 SECTION 18-181.1 TO PERMIT INVESTMENT IN
10 FOREIGN SECURITIES, AS PERMITTED BY STATE
11 LAW; REPEALING ANY ORDINANCE IN CONFLICT;
12 PROVIDING A CONFLICTS CLAUSE, SEVERABILITY,
13 CODIFICATION, AND AN EFFECTIVE DATE.
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15 WHEREAS, the City of Boynton Beach Florida, presently has a retirement plan and
16 trust for firefighters; and
17 WHEREAS, the Board of Trustees of the Firefighter Pension Trust Fund desires to
18 expand the scope of permissible investments to include up to 70% equity, at cost; and
19 WHEREAS, the Board of Trustees of the Firefighter Pension Trust Fund desires to
20 expand the scope of permissible investments to permit diversification into up to 10% foreign
2] equities, at cost; and
22 WHEREAS, these investments are authorized by Section 175.071, Florida Statutes, if
23 adopted by municipal ordinance; and
24 WHEREAS, the Board of Trustees' investment consultant has recommended the
25 following changes; and
26 WHEREAS, the City Commission finds that the passage of this Ordinance is in the
27 interest of the firefighters and the citizens of the City of Boynton Beach.
28 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
29 THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
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Section 1.
The foregoing "WHEREAS" clauses are hereby certified as being true
2 and correct and are incorporated herein by this reference.
Section 2. Section 18-181 is hereby amended as follows:
Sec. 18-181. Investments.
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5 The investment powers and authority of the board of trustees of the municipal
6 firefighters pension trust fund shall be in accordance with Florida Statutes, Section 175.071,
7 provided, however:
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(a)
The aggregate investment of fund assets in:
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(2)
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(4)
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Obligations of the United States obligations guaranteed as to principal
and interest by the government of the United States; and
County bonds containing a pledge of the full faith and credit of the
county involved, bonds of the division of bond finance of the department
of general services, or of any other state agency, which have approved as
to legal and fiscal sufficiency by the state board of administration; and
Obligations of any municipal authority issued pursuant to the laws of this
State; provided, however, that for each of the five (5) years next
preceding the date of investment the income of such authority available
for fixed charges shall have been not less than 1.5 times its average
annual fixed-charges requirement over the life of its obligations; and
Bonds or other certificates of indebtedness issued or guaranteed by a
corporation organized under the laws of the United States, any state or
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(b)
(c)
organized territory of the United States or the District of Columbia; shall
not at cost exceed seventy (70) percent of the fund's assets; nor shall
more than ten (10) percent of the fund's assets be invested in the bonds or
other certificates of indebtedness of anyone issuing company; nor shall
the aggregate of such investment in anyone issuing company exceed
three (3) percent of the outstanding bonds or other certificates of
indebtedness of that company. Fund assets may be invested in investment
grade bonds with not greater than 10% of the fixed income portfolio to
hold an investment rating of Baa.
The aggregate investment of fund assets in the common stock or capital stock
issued by a corporation organized under the laws of the United States, any state,
or organized territory of the United States or District of Columbia shall not at
cost exceed sixty (eO) seventv (70) per cent of the fund's assets; nor shall more
than five (5) per cent of the fund's assets be invested in common stock or capital
stock of anyone issuing company; nor shall the aggregate of such investment in
anyone issuing company exceed three (3) per cent of the outstanding bonds or
other certificates of indebtedness of that company.
The board of trustees may retain in cash and keep unproductive of income such
amount of the fund as it may deem advisable, having regard for the cash
requirements of the fund.
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(d)
The board of trustees may cause any investment in securities held by it to be
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registered in or transferred into its name as trustee or into the name of such
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nominee as it may direct or it may retain them unregistered and in form
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permitting transferability, but the books and records shall at all times show that
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all investments are part ofthe fund.
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Section 3.
Section 8-181.1 is hereby amended as follows:
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Sec. 18-181.1. Stocks not meeting specified quality criteria.
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Notwithstanding anything in Article VIII of this chapter to the contrary, the
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board of trustees may cause up to ten (10) percent of the equity portion of the
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fireman's pension fund to be invested in stocks whose sole criteria shall be that
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they are listed on anyone (1) or more of the recognized national stock
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exchanges. Consistent with Section 175.071. Fla.stat., the board of trustees mav
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also invest UP to ten percent (10%) of plan assets. at cost, in foreign securities.
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Subsequent amendments to Chapter 175. Fla. Stat. which expand the scope of
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permissible investments shall be incorporated herein upon adoption bv the
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Florida Legislature.
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Section 4.
Each and every other Section of Chapter 18, not herein specifically
20 amended, shall remain in full force and effect as previously enacted.
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Section 5.
All ordinances or parts of ordinances in conflict herewith be and the
22 same are hereby repealed.
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Should any section or provision of this ordinance or portion hereof, any
Section 6.
2 paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such
3 decision shall not affect the remainder of this ordinance.
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Section 7.
Authority is hereby granted to codify said ordinance.
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Section 8.
This ordinance shall become effective immediately upon passage.
6 FIRST READING this 18 day of April, 2006.
7 SECOND, FINAL READING AND PASSAGE this .;l. day of May, 2006.
8 CITY OF BOYNTON BEACH, FLORIDA
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23 ATTEST:
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Statutes & Constitution :View Statutes :->2005->Ch0175->Section 071 : Online Sunshine Page 1 of3
Select Year: 2005 I Go I
The 2005 Florida Statutes
JjJ;le)(~1
MUNICIPALITIES
C.hapt~[ ill
FIREFIGHTER PENSIONS
'lIew Entir~pter
175.071 General powers and duties of board of trustees.--For any municipality, special fire control
district, chapter plan, local law municipality, local law special fire control district, or local law plan
under this chapter:
(1) The board of trustees may:
(a) Invest and reinvest the assets of the firefighters' pension trust fund in annuity and life insurance
contracts of life insurance companies in amounts sufficient to provide, in whole or in part, the benefits
to which all of the participants in the firefighters' pension trust fund shall be entitled under the
provisions of this chapter and pay the initial and subsequent premiums thereon.
(b) Invest and reinvest the assets of the firefighters' pension trust fund in:
1. Time or savings accounts of a national bank, a state bank insured by the Bank Insurance Fund, or a
savings, building, and loan association insured by the Savings Association Insurance Fund which is
administered by the Federal Deposit Insurance Corporation or a state or federal chartered credit union
whose share accounts are insured by the National Credit Union Share Insurance Fund.
2. Obligations of the United States or obligations guaranteed as to principal and interest by the
government of the United States.
3. Bonds issued by the State of Israel.
4. Bonds, stocks, or other evidences of indebtedness issued or guaranteed by a corporation organized
under the laws of the United States, any state or organized territory of the United States, or the District
of Columbia, provided:
a. The corporation is listed on anyone or more of the recognized national stock exchanges or on the
National Market System of the NASDAQ Stock Market and, in the case of bonds only, holds a rating in one
of the three highest classifications by a major rating service; and
b. The board of trustees shall not invest more than 5 percent of its assets in the common stock or
capital stock of anyone issuing company, nor shall the aggregate investment in anyone issuing company
exceed 5 percent of the outstanding capital stock of that company or the aggregate of its investments
under this subparagraph at cost exceed 50 percent of the assets of the fund.
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