Fort Walton Beach Ordinance — 2228-Amending Section IV Memorial Cemetery Investment Policy — reading text

1. RECITALS AND LEGISLATIVE FINDINGS. The foregoing recitals are true and correct and are hereby adopted as the legislative findings of the City Council and incorporated into this Ordinance. SECTION 2. AMENDMENT TO SECTION IV. Section IV of the Beal Memorial Cemetery Investment Policy, entitled " Authorized Investments, Maturity & Liquidity Requirements, and Portfolio Composition," is hereby amended by adding the following subsection at the end thereof, which shall read in full as follows: AUTHORIZED ONE- TIME INTERFUND LOAN FOR REVERTER PURCHASE Notwithstanding any other provision of this Policy, the City Council authorizes a one-time interfund loan in the principal amount of $3, 870, 000. 00 from the Beal Memorial Cemetery Perpetual Care Fund ( the " Fund") to the City fund or account designated by the Finance Director. The loan proceeds shall be used solely to finance the purchase, release, and extinuuishment of the reverter clause or reversions interest affectingthe Cit - owned to ert on which Cit Hall is located. The loan shall bear interest at a rate of 3. 53% per annum and shall be repaid over a term of twenty ( 20) years. All principal and interest payments shall be made from legally available City revenues other than assets of the Fund and shall be credited to the Fund. The Finance Director shall establish and maintain a written repayment schedule consistent with the interest rate and term stated above. The Finance Director is authorized to liquidate Fund investments as necessary; record the transaction as an interfund loan receivable of the Fund and a corresponding liability of the borrowing City fund or account; and transfer the loan proceeds directly to the closing agent or through another City account pursuant to written closing instructions approved by the City Manager and City Attorney. The Fund shall not acquire any ownership interest in the City Hall property.  For purposes of this Policy, the interfund loan receivable is an authorized asset of the Fund and constitutes an expressly authorized, one-time exception to any otherwise applicable asset- allocation, liquidity, portfolio- composition., or investment restrictions contained in this Policy. This exception extends only to the liquidation, transfer, accounting, repayment, and other actions necessary to complete and administer the transaction described above. SECTION 3. LIMITED AUTHORIZATION. This Ordinance authorizes only the one- time interfund loan described in Section 2. It does not authorize any other interfund loan, transfer, expenditure, or use of Fund assets outside the purposes and limitations established by the Beal Memorial Cemetery Investment Policy. SECTION 4. IMPLEMENTATION. The City Manager, Finance Director, City Clerk, and City Attorney are authorized to take all actions necessary to implement this Ordinance, including preparing and executing internal accounting entries, a repayment schedule, transfer documentation, closing instructions, and other instruments reasonably necessary to carry out the authorized interfund loan and closing transaction. SECTION 5. CONTINUING EFFECT. Except as expressly amended by this Ordinance, all provisions of the Beal Memorial Cemetery Investment Policy shall remain unchanged and in full force and effect. The City Clerk and Finance Director shall incorporate the amendment adopted by Section 2 into the official copy of the Policy. SECTION 6. CONFLICTS. All ordinances, resolutions, policies, or parts thereof in conflict with this Ordinance are repealed or superseded to the extent of such conflict. SECTION 7. SEVERABILITY. If any section, subsection, sentence, clause, phrase, or provision of this Ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance. SECTION 8. EFFECTIVE DATE. This Ordinance shall take effect immediately upon adoption on second and final reading. Adopted: S ep ie, ti.e r 1st z..,: vh 2Q_( o MAIO N c egretto, M: or Attest: Approved as to leg, • and sufficiency for the City . FoWalton Beach, only. r 77-) 73....„----/ Alkift. 11141. Kim' t arnes, City Clerk Kimberly R... a • Kopp,Cl Attorney WA( poly k6c o /'.,\, . r tt 1 cA y° J ( 71._ , 44-  2026 AMENDMENT TO THE BEAL MEMORIAL CEMETERY INVESTMENT POLICY This Amendment to the Beal Memorial Cemetery Investment Policy (" Amendment") is adopted by the City Council of the City of Fort Walton Beach, Florida. The Beal Memorial Cemetery Investment Policy, adopted by Ordinance No. 1922 on June 23, 2015, is hereby amended by adding the following to Section IV, Authorized Investments, Maturity& Liquidity Requirements, and Portfolio Composition: Authorized One-Time Interfund Loan For Reverter Purchase: Notwithstanding any other provision ofthis Policy, the City Council authorizes a one- time interfund loan in the principal amount of $3, 870,000.00 from the Beal Memorial Cemetery Perpetual Care Fund ( the " Fund") to the City fund or account designated by the Finance Director. The loan proceeds shall be used solely to finance the purchase, release, and extinguishment of the reverter clause or reversionary interest affecting the City-owned property on which City Hall is located. The loan shall bear interest at a rate of 3. 53% per annum and shall be repaid over a term of twenty (20) years. All principal and interest payments shall be made from legally available City revenues other than assets of the Fund and shall be credited to the Fund. The Finance Director shall establish and maintain a written repayment schedule consistent with the interest rate and term stated above. The Finance Director is authorized to liquidate Fund investments as necessary; record the transaction as an interfund loan receivable of the Fund and a corresponding liability of the borrowing City fund or account; and transfer the loan proceeds directly to the closing agent or through another City account pursuant to written closing instructions approved by the City Manager and City Attorney. The Fund shall not acquire any ownership interest in the City Hall property. For purposes of this Policy, the interfund loan receivable is an authorized asset of the Fund and constitutes an expressly authorized, one- time exception to any otherwise applicable asset- allocation, liquidity, portfolio- composition, or investment restrictions contained in this Policy. This exception extends only to the liquidation, transfer, accounting, repayment, and other actions necessary to complete and administer the transaction described above. Except as expressly amended herein, all other provisions of the Beal Memorial Cemetery Investment Policy shall remain unchanged and in full force and effect. Page 1 of 2  ADOPTED by the City Council of the City of Fort Walton Beach, Florida, this day of 2026. CITY OF FORT WALTON BEACH, FLORIDA By: Nic Allegretto, Mayor ATTEST: Kim Barnes, City Clerk APPROVED AS TO FORM: City Attorney Page 2 of 2