O95-40ORDINANCE NO. 095-~,~
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA, AMENDING
CHAPTER 18. PENSIONS AND RETIREMENT BY
DELETING SECTION 18-222 IN ITS ENTIRETY AND
AMENDING SECTION 18-145.1 ."STOCKS MEETING THE
SPECIFIED QUALITY CRITERIA." TO CORRECT AN
ERROR IN CODIFICATION AND TO PROVIDE FOR
AMENDMENT OF CRITERIA FOR INVESTMENT
POLICIES FOR THE CITY OF BOYNTON BEACH
GENERAL EMPLOYEES PENSION FUND; PROVIDING
FOR CONFLICTS, SEVERABILITY, CODIFICATION AND
AN EFFECTIVE DATE.
WHEREAS, the City of Boynton Beach General Employees Pension Fund
conducted a meeting on September 28, 1995 at which it was decided to present certain
amendments to Chapter 18. Pensions and Retirement to the City COmmission, to
correct an error in codification as well as amend criteria for investment policies;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section 1. Chapter 18. Section 18-222 is deleted in its entirety.
Section 2. Chapter 18. Section 145.1 Stocks Meeting the specified quality
criteria is hereby amended by adding the words and figures in underlined type, and by
deleting the words and figures in struck-through type, as follows:
Section 18-145.1. Stocks
cH~e~-;a. City of Boynton Beach General Employees
Pension Fund - Stocks. bonds, mutual funds, etc.
(a) Investment in stocks issued by companies domiciled
outside of the United States will be limited to ten (10)
percent of the value of the plan's total assets (at cost).
Investment in any single stock issue shall not exceed three
(3%) percent of the fund's total value nor shall the equity
portfolio's total value (at cost) exceed sixty (60%) percent
of the fund's total assets, with a target of fifty-five (55%)
percent.
(b) 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 two and
one-half (2 1/2) percent of the fund's total value.
(c) Investments in mutual fund shares and bank sponsored
commingled funds are permissible. However. ninety (90)
percent of the securities held in the mutual or commingled
funds must meet the criteria outlined above,
(d) All investments in options, futures, municipal bonds.
precious metals, private placements, short sales and
purchases on margin are prohibited.
(e) All securities purchased must hold a ranking in one (1)
of the top three (3) classifications of a major rating service.
(f) Bonds and preferred stocks that are convertible into
common stock, or that include warrants for the price of
common stock, are allowed even if a premium price is
being paid for the convertible privilege or for the warrants.
at the professional direction of the investment manager.
Notwithstanding anything in this article to the contrary, the board of trustees may
cause up to re,; (J0) twenty (20) percent of the equity portion of the general
employees' pension fund to be invested in stocks whose sole criteria shall be that they
are listed on any one (1) or more of the registered national stock exchanges, or
NASDAQ.
Section 3. CONFLICTS. All laws and ordinances applying to the City of
Boynton Beach in conflict with any provisions of this ordinance are hereby repealed.
Section 4. SEVERABILITY. Should any section or provision of this
Ordinance or any portion thereof be declared by a court of competent jurisdiction to be
invalid, such decision shall not affect the remainder of this Ordinance.
Section 5. CODIFICATION. Authority is hereby given to codify this
Ordinance.
Section6. EFFECTIVE DATE. This Ordinance shall become effective
immediately upon passage.
FIRST READING this ~' day of /~,/'~-,,-~,~--,,~ ,1995.
SECOND, FINAL READING AND PASSAGE this ,~.~/ day of /V~.<~-,~ ,
1995.
CITY OF FLORIDA
Mayor
Vice M~yor
Commi~
ATTEST:
Clerk
Gen. Emp. Pension
10/12/95