§ 33.80. FINANCES AND FUND MANAGEMENT.

(A)

As part of the system there is established the Trust Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the system.

(B)

The actual custody and supervision of the Fund (and assets thereof) shall be vested in the Board of Trustees. Payment of benefits and disbursements from the Fund shall be made by the disbursing agent on authorization from the Board.

(C)

The Board may hire and appoint those persons, agents or entities (including corporate fiduciaries) as in its discretion may be required or advisable to enable it to perform custodial and investment duties hereunder. The Board may enter into agency, investment advisory, and custodial agreements for the purpose of securing investment and custodianship services for the system and fund.

(D)

(1)

All funds and securities of the system may be commingled in the Fund, provided that accurate records are maintained at all times reflecting the financial composition of the Fund, including accurate current accounts and entries as regards the following:

(a)

Current amounts of accumulated contributions of members on both an individual and aggregate account basis;

(b)

Receipts and disbursements;

(c)

Benefit payments;

(d)

Current amounts clearly reflecting all moneys, funds and assets whatsoever attributable to contributions and deposits from the City;

(e)

All interest, dividends and gains (or losses) whatsoever; and

(f)

Any other entries as may be properly required so as to reflect a clear and complete financial report of the Fund.

(2)

An annual report shall be made by the certified public accounting firm performing the City's annual audit.

(E)

The Board of Trustees shall have the following investment powers and authority:

(1)

The Board of Trustees shall be vested with full legal title to the Fund; subject however and in any event to the authority and power of the City Commission to amend or terminate this trust; provided that no amendment or fund termination shall ever result in the use of any assets of this Fund except for the payment of regular expenses and benefits under this system. All contributions from time to time paid into the Fund, and the income thereof, without distinction between principal and income, shall be held and administered by the Board or its agent in the Fund and the Board shall not be required to segregate or invest separately any portion of the Fund.

(2)

The Board and each trustee thereof is a fiduciary with respect to the Trust Fund, and shall exercise investment authority under this Section solely in the interest of plan members and beneficiaries, for the exclusive purpose of providing benefits to members and their beneficiaries and defraying the reasonable expenses of administering the plan. The Board shall exercise its investment authority with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person in a like capacity and familiar with such matters would use in the conduct of an enterprise with like character and like aims.

(3)

Notwithstanding any limitation provided in F.S. ch. 175, or any limitation or condition contained in F.S. § 215.47, the Board of Trustees may invest and reinvest pension fund assets in such securities, investment vehicles and property wherever situated and of whatever kind, as the Board shall approve in the exercise of its fiduciary duty and authority, including but not limited to common or preferred stocks, bonds and other evidences of indebtedness or ownership. The Board may invest up to twenty-five (25) percent of fund assets, on a market-value basis in foreign securities.

(4)

The Board shall adopt and periodically update a written investment policy in accordance with F.S. § 112.661. All investments approved by the Board shall be in accordance with the investment policy. The Board shall provide a copy of the investment policy and any revisions thereto to the City Manager, in accordance with F.S. § 112.661.

(5)

The Board shall provide a quarterly financial report to the City Manager no later than thirty (30) days following the end of each calendar quarter, which report shall include a summary reflecting the total market value of the fund at the beginning and end of the quarter, total investment gains and losses during the quarter, and a summary of the market value and investment gains and losses during the quarter for each manager responsible for investing fund assets. The Board shall also provide a copy of all reports from the Board's investment consultant to the City Manager within five (5) days following the Board's approval or review of such reports.

(6)

The Board may retain in cash or unproductive of income an amount of the Fund as it may deem advisable, having regard for the cash requirements of the system.

(7)

Neither the Board nor any person or entity shall be liable for the making, retention, or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the Fund, except that due to his own negligence, willful misconduct, or lack of good faith.

(8)

The Board may cause any investment in securities held by it to be registered in or transferred into its name as trustee or into the name of the nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Fund.

(9)

The Board is empowered, but is not required, to vote upon any stocks, bonds or securities of any corporation, association or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations and similar transactions with respect to those securities; to deposit stock or other securities in any voting trust or any protective or like committee or with the trustees or with depositaries designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally, to exercise any of the powers of an owner with respect to stocks, bonds or other investments, comprising the Fund which it may deem to be to the best interest of the Fund to exercise.

(10)

The Board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power herein contained.

(11)

Where any action which the Board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as trustee under this subchapter, can reasonably be taken or performed only after receipt by it from a member, the City or any other entity of specific information, certification, direction or instructions, the Board shall be free of liability in failing to take any action or perform any duty or function until that information, certification, direction or instruction has been received by it.

(12)

Any overpayments or underpayments from the Fund to a member or beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the Board. Overpayments shall be charged against payments next succeeding the correction. Underpayments shall be made up from the Trust Fund.

(13)

The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits herein provided for and shall be under no obligation to inquire into the sufficiency of the payments made into the Fund by the City.

(14)

In any application to or proceeding or action in the courts, only the City and the Board shall be necessary parties, and no member or other person having an interest in the Fund shall be entitled to any notice of service or process. Any judgment entered in that proceeding or action shall be conclusive upon all persons.

(F)

Any of the foregoing powers and functions reposed in the Board may be performed or carried out by the Board through duly authorized agents, provided that the Board at all times maintains continuous supervision over the acts of any agent; and that legal title to the Fund shall always remain in the Board of Trustees.

(G)

At least once every three (3) years, the Board shall retain a professionally qualified independent consultant to evaluate the performance of any existing money manager and make recommendations to the Board regarding the selection of money managers for the next investment term, in accordance with F.S. § 175.071(6). No change in any of the administrative provisions of the system shall be made without the approval of a majority of the Board of Trustees.

(Ord. No. 17-16 , § 2, passed 10/4/16)