Res 55-97 RESOLUTION NO. 55-97
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AUTHORIZING THE CITY OF
DELRAY BEACH (HEREIN REFERRED TO AS THE "CITY") TO
JOIN WITH OTHER LOCAL GOVERNMENTAL UNITS AS A
PARTICIPANT IN THE FLORIDA MUNICIPAL INVESTMENT
TRUST FOR THE PURPOSE OF PURCHASING SHARES OF
BENEFICIAL INTEREST IN THE TRUST.
WHEREAS, Section 163.01, Florida Statutes, authorizes the
state, or any county, municipality or political subdivision of the
state, to jointly exercise any power, privilege or authority which
such governmental entities share in common and which each might
exercise separately, and further provides such authority is in
addition to and not in limitation of those granted by any other
general, local or special law; and
WHEREAS, by Resolutions dated the 27th day of January,
1993, the 25th day of January, 1993, and the 14th day of January,
1993, the governing bodies of the City of Bradenton, Florida, the
City of Lauderhill, Florida, and the City of Palatka, Florida,
respectively, found the creation of the Florida Municipal Trust
serves a municipal purpose and will offer diversified and
professionally managed portfolios for the investment of the assets of
participating municipalities and other agencies or political
subdivisions in or out of the state; and
WHEREAS, the authorized representatives for the City of'
Bradenton, Florida, the City of Lauderhill, Florida, and the City of
Palatka, Florida, have executed the Agreement and Declaration of
Trust on the 28th day of April, 1993, creating the Florida Municipal
Investment Trust which governs the purpose, administration and
operation of the Trust and its activities; and
WHEREAS, the constitutional, statutory and judicial
authorities in the State of Florida authorize municipalities and
other agencies or political subdivisions in or of the state to join
with other municipalities and other agencies or political
subdivisions in or of the state for the purpose of investing and
reinvesting surplus public funds; and
WHEREAS, under the terms and provisions of the Agreement
and Declaration of Trust creating the Florida Municipal Investment
Trust any municipality and any other agency or political subdivision
in or of the state desiring to participate in the Trust as a member
must become a party to the Agreement and Declaration of Trust; and
WHEREAS, the Florida Municipal Investment Trust is an
authorized investment under Section 218.415(15), Florida Statutes,
for units of local goYernment in Florida; and
WHEREAS, it is the intent of the City to participate in the
Florida Municipal Investment Trust as a member and become a party to
the Agreement and Declaration of Trust.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. The City finds that participation in the
Florida Municipal Investment Trust, a pool-investment program, would
be in the best interest of the City, its officials, officers and
citizens in that such a program offers diversified and professionally
managed portfolios to meet investment needs, results in economies of
scale that will create greater purchasing powers and will thereby
lower the cost traditionally associated with the investment of assets
of the City.
Section 2. The City hereby expressly authorizes
participation in the Florida Municipal Investment Trust as a member
and will become a party to the Agreement and Declaration of Trust, as
amended, which is adopted by reference with the same effect as if it
had been set out verbatim in this section.
Section 3. The City is hereby expressly authorized to
purchase shares of beneficial interest in the Trust from time to time'
with available funds, and to redeem some or all of its shares of
beneficial interest from time to time as funds are needed for other
purposes, subject to the terms and restrictions of the Agreement and
Declaration of Trust referred to in Section 2 and the most recent
Informational Statement. These actions are to be taken by the
officers designated for this purpose pursuant to general or specific
instructions by the governing body of the City.
Section 4. The Trustees of the Trust are designated as
having official custody of the City's funds which are invested by the
purchase of shares of beneficial interest in the Trust.
Section 5. The City specifically finds and determines the
following matters:
- 2 - Res. No. 55-97
(a) the conditions of the agreement and the rights and
responsibilities of members of the Trust are set forth in the
Agreement and Declaration of Trust, as amended, and in the most
recent Informational Statement;
(b) participation in the Trust shall be terminable at any
time by the City subject to the terms and restrictions of the
Agreement and Declaration of Trust, as amended, and the most recent
Informational Statement;
(c) the Agreement and Declaration of Trust, as amended,
and the purchase of its shares of beneficial interest are for the
purpose of investing the City's funds as part of a pooled-investment
program with other agencies or political subdivisions in or of the
state, thereby achieving economic and other advantages of pooled
investments, and the powers and scope of authority delegated are set
forth in the Agreement and Declaration of Trust, as amended;
(d) it is not necessary to finance the agreement
authorized herein from funds of the City, except through the purchase
of shares of beneficial interest in the Trust;
(e) the Trust shall be managed by a Board of Trustees as
set forth in the Agreement and Declaration of Trust, as amended; and
(f) the Board of Trustees of the Florida Municipal
Investment Trust adopted Resolution No. 93-2 providing for general
disclosure policies of the Trust's operations and Informational~
Statements for the benefit of members and prospective members of the
Trust so that members and prospective members are fully aware of
significant investment and administrative policies, practices and
restrictions of the investment portfolios of the Trust.
Section 6. The City designates and authorizes the Director
of Finance (or other authorized representatives) to execute such
applications and other documents as are required to invest and
reinvest surplus funds of the City in shares of beneficial interest
of the Trust's investment portfolios.
Section 7. The City Clerk is hereby directed to furnish a
certified copy of this Resolution to the Florida League of Cities.
Section 8. This Resolution shall become effective
immediately upon its adoption.
- 3 - Res. No. 55-97
PASSED AND ADOPTED in regular session on this the 5th day
of August, 1997.
ATTEST:
- Jcity -C]~rk r
The foregoing resolution is hereby
approved as to form, language and
execution on this the~. ~ day of
~-~City Attorney
- 4 - Res. No. 55-97
MEMORANDUM
TO: Becky O'Connor, Treasurer
FROM: Alison MacGregor Harty, City Clerk~~'
SUBJECT: Resolution #55-97 (Florida Municipal Investment Trust)
DATE: September 2, 1997
As requested, attached is a certified copy of Resolution No.
55-97 authorizing the City to participate in the Florida
Municipal Investment Trust.
I understand that you will take care of forwarding the certified
copy to the Florida League of Cities as directed in Section 7 of
the resolution.
If you have any questions, please give me a call.
Thank you for your assistance.
AMH/m
Attachment
Memorandum
To: David T. H~Manager
From: Joseph M. ~rector of Finance
Subject: Florida Municipal Investment Trust
Date: July 23, 1997
Attached is a resolution authorizing the City of Delray Beach to become a participant in
the Florida Municipal Investment Trust. We are recommending participation in the Trust
as an alternative investment vehicle.
BACKGROUND
The Trust was created by and for the benefit of governments and is an approved
investment by the State of Florida. The Florida League of Cities serves as the
Administrator. The Trust is governed by a Board of Trustees which is made up of the
President and First Vice President of the Florida League of Cities, Inc., two
representatives from the Florida Municipal Insurance Trust, and up to three members
who must be an elected official of an active member of the Trust and who are elected by
the Trustees.
The current investment advisory committee includes Mickey Miller, Director of Finance
of the City of Orlando; Robert J. Nachlinger, Finance Director of the City of Miami
Beach; James C. Maniak, Finance Director of the City of Daytona Beach, Damon R.
Adams, Director of Finance of the City of Fort Lauderdale, Mervyn C. Timberlake, Jr.,
Financial Services Director of the City of Boca Raton; and Robert B. Inzer, City
Treasurer of the City of Tallahassee.
The Trust is managed by Atlanta Capital Management Company (ACM) which
manages approximately $2 billion of fixed income, equity, and balanced portfolios for
public funds, employee benefit trusts, endowments and individual investors.
The Trust has a short-term bond portfolio as well as a long-term bond portfolio and
consists of U.S. Treasuries, Federal Agency Securities, Instrumentalities and high grade
Corporate Securities.
The Trust is monitored by Fitch Investor's Service for credit quality and compliance with
the investment policies of the funds. Both portfolios are rated AAA and are of Iow to
moderate risk. The Trust is also monitored by Dahab Associates, Inc. which provides
performance measurement.
INTEREST EARNINGS
The interest rate net of fees for the year ending June 30, 1997 was 6.42 for the short-
term portfolio and 7.67% for the long-term porfolio. For the same period of time, the
interest rate net of fees for the City's investment at the State Board of Administration
was 5.45% and the investment in a one year certificate of deposit was 5.43%.
RECOMMENDATION
We recommend that the City participate in the Florida Municipal Investment Trust and
request that this resolution be placed on the agenda of August 5, 1997 for City
Commission approval. Investing in this Trust will allow for competitive diversification of
City funds by investing in a state approved professionally managed porfolio of AAA
rated instruments.
Resolution NO. 55 - 97
A resolution authorizing the City of Delray Beach (herein referred to
as the "City") to join with other local governmental units as a
participant in the Florida Municipal Investment Trust for the purpose
of purchasing shares of beneficial interest in the Trust.
WHEREAS, Sec. 163.01, Fla. Stat., authorizes the state, or any county,
municipality or political subdivision of the state, to jointly exercise any power, privilege,
or authority which such governmental entities share in common and which each might
exercise separately, and further provides such authority is in addition to and not in
limitation of those granted by any other general, local, or special law; and
WHEREAS, by Resolutions dated the 27th day of January, 1993, the 25th day of
January, 1993, and the 14th day of January, 1993, the governing bodies of the City of
Bradenton, Florida, the City of Lauderhill, Florida, and the City of Palatka, Florida,
respectively, found the creation of the Florida Municipal Trust serves a municipal
purpose and will offer diversified and professionally managed portfolios for the
investment of the assets of participating municipalities and other agencies or political
subdivisions in or out of the state; and
WHEREAS, the authorized representatives for the City of Bradenton, Florida, the
City of Lauderhill, Florida, and the City of Palatka, Florida, have executed the
Agreement and Declaration of Trust on the 28th day of April, 1993, creating the Florida
Municipal Investment Trust which governs the purpose, administration and operation of
the Trust and its activities; and
WHEREAS, the constitutional, statutory and judicial authorities in the State of
Florida authorize municipalities and other agencies or political subdivisions in or of the
state to join with other municipalities and other agencies or political subdivisions in or of
the state for the purpose of investing and reinvesting surplus public funds; and
WHEREAS, under the terms and provisions of the Agreement and Declaration of
Trust creating the Florida Municipal Investment Trust any municipality and any other
agency or political subdivision in or of the state desiring to participate in the Trust as a
member must become a party to the Agreement and Declaration of Trust; and
WHEREAS, the Florida Municipal Investment Trust is an authorized investment
under Section 218.415(15), Fla. Stat., for units of local government in Florida.
WHEREAS, it is the intent of the City to participate in the Florida Municipal
Investment Trust as a member and become a party to the Agreement and Declaration of
Trust;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH:
--~: ~ ~:~ - Resolution NO. 55-97
SECTION 1. The City finds that participation in the Florida Municipal
Investment Trust, a pool-investment program, would be in the best interest of the City,
its officials, officers, and citizens in that such a program offers diversified and
professionally managed portfolios to meet investment needs, results in economies of
scale that will create greater purchasing powers and will thereby lower the cost
traditionally associated with the investment of assets of the City.
SECTION 2. The City hereby expressly authorizes participation in the Florida
Municipal Investment Trust as a member and will become a party to the Agreement and
Declaration of Trust, as amended, which is adopted by reference with the same effect
as if it had been set out verbatim in this section.
SECTION 3. The City is hereby expressly authorized to purchase shares of
beneficial interest in the Trust from time to time with available funds, and to redeem
some or all of its shares of beneficial interest from time to time as funds are needed for
other purposes, subject to the terms and restrictions of the Agreement and Declaration
of Trust referred to in Section 2 and the most recent Informational Statement. These
actions are to be taken by the officers designated for this purpose pursuant to general or
specific instructions by the governing body of the City.
SECTION 4. The Trustees of the Trust are designated as having official
custody of the City's funds which are invested by the purchase of shares of beneficial
interest in the Trust.
SECTION 5. The City specifically finds and determines the following matters:
(a) the conditions of the agreement and the rights and responsibilities of
members of the Trust are set forth in the Agreement and Declaration of Trust, as
amended and in the most recent Informational Statement;
(b) participation in the Trust shall be terminable at any time by the City subject
to the terms and restrictions of the Agreement and Declaration of Trust, as amended
and the most recent Informational Statement;
(c) the Agreement and Declaration of Trust, as amended, and the purchase of
its shares of beneficial interest are for the purpose of investing the City's funds as part of
a pooled-investment program with other agencies or political subdivisions in or of the
state, thereby achieving economic and other advantages of pooled investments,(ef-
I~etit~! s,,_bdivis!ons in--or_ , ' ' r~¢,ic-~-other
ac~va~t~..gc$ of poolcd inv~m~'Crs~, and the powers and scope of authority delegated are
set forth in the Agreement and Deblaration of Trust, as amended;
(d) it is not necessary to finance the agreement authorized herein from funds of
the City, except through the purchase of shares of beneficial interest in the Trust;
(e) the Trust shall be managed by a Board of Trustees as set forth in the
Agreement and Declaration of Trust, as amended; and
Resolution NO. 55-97
(f) the Board of Trustees of the Florida Municipal Investment Trust adopted
Resolution No. 93-2 providing for general disclosure policies of the Trust's operations
and Informational Statements for the benefit of members and prospective members of
the Trust so that members and prospective members are fully aware of significant
investment and administrative policies, practices and restrictions of the investment
portfolios of the Trust.
SECTION 6. The City designates and authorizes the Director of Finance (or
other authorized representatives) to execute such applications and other documents as
are required to invest and reinvest surplus funds of the City in shares of beneficial
interest of the Trust's investment portfolios.
SECTION 7. The City Clerk is hereby directed to furnish a certified copy of this
Resolution to the Florida League of Cities.
SECTION 8. This Resolution shall take effect immediately upon its adoption.
Passed and adopted in regular session on this 5th day of August, 1997.
Mayor
Attest:
City Clerk
The foregoing resolution is hereby approved
as to form, language and execution this 5th
day of August, 1997.
City Attorney
Resolution NO. 55-97