Item 6AAGENDA ITEM # 6A
JANUARY 11, 2010
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Resolution 10-01: Florida Municipal Investment Trust
Participation Agreement
SUBMITTED BY: Nelson Van Liere, Finance Director ~-~,_
DATE: December 30, 2009
BACKGROUND: Over the past few years, the City has experienced a dramatic decline in
investment returns on our surplus funds. In an effort obtain better returns on the
City's funds, we recommend having the option to invest at least some portion of
the funds in the Florida Municipal Investment Trust. Many cities throughout
Florida invest in the Florida Municipal Investment Trust as an alternative to the
State Board Administration. Historical returns have been better than what the
City is currently making at the Bank of America Public Funds Account and better
than what is available to the City in fully collateralized CDs. The rates of return
for Bank of America and our CD are 0.30% and 0.65% respectively. The
November return annualized was 2.28%. The City has never invested in this trust
in the past although investing in the trust is within the City's investment policy
objectives. These objectives are as follows:
1.) The investment program must conform to federal laws, state statutes, and
local ordinances as well as internal policies and procedures.
2.) Besides legality, the foremost objective should be safety of principal.
3.) Governments must maintain sufficient liquidity to meet operating
requirements.
4.) Governments depend on investment income to supplement other revenues.
The investment portfolio should earn a market rate of return.
Florida Statutes 218.415 authorizes local governments to invest in the Florida
Municipal Investment Trust
To enable the City to participate in the trust, the City must pass an enabling
resolution, sign the Florida Municipal Investment Trust Participation Agreement
and complete the authorized signature cards as is typical of any bank account.
The attached Resolution 10-01 meets the requirements of the Trust agreement
with this action authorizes the Finance Director to execute all required documents.
RECOMMENDATION: Approve Resolution 10-01, authorizing the City of Atlantic Beach
to invest to the Florida Municipal Investment Trust
ATTACHMENT: RESOLUTION 10-01
REVIEWED BY CITY MANAGER
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AGENDA ITEM # 6A
JANUARY 11, 2010
RESOLUTION 10-O1
A RESOLUTION AUTHORIZING THE CITY OF ATLANTIC
BEACH, FLORIDA, 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 Investment 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 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, Fla. Stat., for units of local government in Florida.
WHEREAS, it is the intent of the City of Atlantic Beach, Florida to participate in the Florida
Municipal Investment Trust as a member and become a parry to the Agreement and Declaration
of Trust;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF ATLANTIC BEACH,
FLORIDA, that
SECTION 1. The City of Atlantic Beach finds that participation in the Florida Municipal
Investment Trust, apooled-investment program, would be in the best interest of the
AGENDA ITEM # 6A
JANUARY 11, 2010
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 of Atlantic Beach, Florida 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 of Atlantic Beach, Florida, 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 of
Atlantic Beach, Florida.
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 of Atlantic Beach, Florida 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, 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 has provided 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 of Atlantic Beach, Florida designates and authorizes the Director of
Finance to execute such applications and other documents as are required to invest and
AGENDA ITEM # 6A
JANUARY 11, 2010
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.
Adopted by the City Commission of the City of Atlantic Beach, Florida, this
day of , 2010.
Mike Borno
(Mayor)
Approved as to form and correctness:
Alan C. Jensen, Esquire
City Attorney
ATTEST:
Donna L. Bartle, CMC
City Clerk