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O92-07 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 43 ORDINANCE N0.O9~-~ AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, ADOPTING A STATEMENT OF INVESTMENT POLICY GOALS AND GUIDELINES FOR THE CITY OF BOYNTON BEACH EMPLOYEES PENSION PLAN; PROVIDING GUIDELINES FOR PERMISSIBLE INVESTMENTS; PROVIDING GUIDELINES FOR EQUITY PORTFOLIO; PROVIDING GUIDELINES FOR FIXED INCOME PORTFOLIO; PROVIDING GUIDELINES FOR MUTUAL FUNDS AND COMMINGLED FUNDS; PROVIDING FOR PROHIBITED TRANSACTIONS; PROVIDING GOALS FOR THE TOTAL PORTFOLIO, THE EQUITY PORTFOLIO, AND THE FIXED INCOME PORTFOLIO; PROVIDING FOR THE PREPARATION OF A COMPREHENSIVE LIST OF INVESTMENT POLICIES; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVE~ABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Pension Plan statement of the Pension Board for the Boynton Beach Employees has heretofore met to consider revisions to the investment policy which it deems to be in the best interest of the members of the plan and; WHEREAS, the City Commission of the has considered the proposed statement of City of Boynton Beach investment policy for the employee's pension plan as well as the pension and retirement fund investment policies as set forth in Section 20.1 of the City Charter; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Section 1. Each "WHEREAS" clause set forth above is true ~nd correct and herein incorporated by this reference. Section 2. The City Commission of the City of Boynton Beach, Florida, hereby adopts the statement of investment policy CODING: Words in s%~uek-%h~e~h type are deletion from existing law; Words in underscore type are additions. Page 1 of 3 1 2 ~ 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 goals and guidelines attached hereto as Exhibit "A". The investment policies established by this Ordinance shall supplement the existing investment policies as set forth in Section 20.1(d) of the City Charter. Section 3. To the extent that any investment policy conflicts with an existing policy set forth in Section 20.1(d) of the City Charter, the investment policy set forth in this ordinance shall control and supersede that policy as set forth in the Charter. Section 4. The City Administration shall compile a comprehensive list of the investment policies set forth in the Charter and in this Ordinance and shall provide all City pension 91an advisors with a copy of the comprehensive list of investment ~olicies. Section 5. That all ordinances or parts of ordinances in ~onflict herewith be and the same are hereby repealed. Section 6. deemed invalid, competent jurisdiction, such decision the remaining portions or sections of remain in full force and effect. In the event any portion of this Ordinance is illegal or unconstitutional by any court of shall in no manner effect this Ordinance and shall Section 7. ordinance. Authority is hereby granted to codify said CODING: Words in s~e~-%h~e~§h type are deletion from existing law; Words in underscore type are additions. Page 2 of 3 Il 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 4O Section 8. This ordinance shall immediately upon adoption by second reading. FIRST READING this ~ day of SECOND, FINAL READING and PASSAGE this / P IA , 992. ATTEST: become effective , 1992. ~/ day of CITY OF BOYNTON BEACH, FLORIDA C~ i Soher C ' ne CLERK (CORPORATE SEAL) dACldJ 4/0~/92 [JAC/Formsl/Ord.] CODING: Words in s~ek-%h~e~gh type are deletion from existing law; Words in underscore type are additions. Page 3 of 3 EXHIBIT "A" INVESTMENT POLICIES 1. Investment in stocks issued by companies domiciled outside of the United States will be limited to 10% of the i~alue of the Plan's total assets (at cost). Investment in iany~ single stock issue shall not exceed 2 1/2% of the Fund's itotal value nor shall the equity portfolio's total value (at cost) exceed 35% of the Fund's total assets. 2. The fixed income portion of the Boynton Beach Employees' Pension Fund shall consist only of U.S. Government and U.S. Government Agency bonds and/or bonds issued by domestic corporations that are rated "A" or better by Moody's or Standard & Poor's rating services. In the event a bond rating drops below a rating of "A" it shall be sold by the investment manager. Investment in any single corporate bond issue shall not exceed 2 1/2% of the Fund's ~otal value. 3. Investments in mutual fund shares and bank sponsored commingled funds are permissible. However, ninety )ercent of the securities held in the mutual or commingled funds must meet the criteria outlined above. 4. Ail investments in options, futures, municipal bonds, precious metals, private placements, short sales and purchases on margin are prohibited. 5. Investments in common stocks be limited to those iilisted on a major stock exchange ~NASDAQ. 6. All securities purchased must hold a ranking in one the top three classifications of a major rating service. 7. Bonds and preferred stocks that are convertible i~nto common stock, or that include warrants for the price of ~ommon stock, are allowed even if a premium price is being Ipa~d for the convertible privilege or for the warrants, at !~he professional direction of the Investment Manager.