Fort Walton Beach Council agenda — 02-26-13--regular — reading text

City facilities and properties; 2. 4.3. Developing a sponsorship program to obtain community involvement through funding opportunities; 2. 4. 4. Exploring grant opportunities, as available; and DOC ID: 2207 B Page I  F-10-27 RESOLUTION ( ID # 2207) 2. 4. 5. Debt financing. 2. 5. As always, debt financing is recommended to be utilized only after all other options have been explored, as the issuance of debt commits future resources of the City, thereby eliminating the ability to reallocate those resources to address future financial issues. 2. 6. Resolution 2013 -08 allows for the costs related to the acquisition, construction, and equipping of the proposed Recreation Complex that are incurred prior to the issuance of any tax exempt debt instrument, to be reimbursable through the issuance of the debt, as desired. 3. FINANCIAL INFORMATION: 3. 1. There is no financial obligation related to Resolution 2013 -08. Any debt issued by the City must be separately approved by the City Council. 3. 2. The total amount of the debt that will be required to construct the Recreation Complex will be known upon completion of the 100% design drawings by DC Architects and the Guaranteed Maximum Price by Lord and Son. However, a maximum amount is required in the Resolution and has been set at $ 8 million based on the latest cost estimates from Lord and Son. 4. RECOMMENDATION: 4. 1. Staff respectfully recommends City Council adoption of Resolution 2013 -08 to allow for reimbursement of costs incurred prior to the issuance of any tax exempt debt instrument for the proposed Recreation Complex. 7 t[3 11119. 1 Do *13 Willi :Y Brandy Ferris Completed 02/ 18/ 2013 232 PM Jeff Peters Completed 02/ 19/ 2013 11: 58 AM Carole Jones Completed 02/ 19/ 2013 1: 06 PM City Manager Completed 02/ 19/ 2013 2: 23 PM City Council Pending  10. 2 RESOLUTION ( ID # 2207) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA WITH RESPECT TO REIMBURSEMENT OF CERTAIN COSTS RELATING TO THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF CERTAIN CAPITAL IMPROVEMENTS TO THE CONSOLIDATED RECREATION COMPLEX; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA THAT: SECTION 1. FINDINGS It is hereby found and determined that A) The City of Fort Walton Beach, Florida ( the " City ") has incurred various costs and is expected to incur additional costs in connection with the acquisition, construction and equipping of certain capital improvements to a consolidated Recreation Complex ( the Recreation Complex "); B) The City has determined it may be in its best interest to reimburse such costs from the proceeds of long -term tax- exempt debt; and C) The United States Department of Treasury has issued various regulations in regard to reimbursement of governmental costs through the issuance of tax -exempt debt. SECTION 2. PURPOSE It is the intent of the City to reimburse various costs and expenditures relating to the acquisition and construction of certain capital improvements to the Recreation Complex including, but not limited to, ( a) the demolition of the existing Fred B. Hedrick Recreation Center building and construction and equipping of a new recreation center building and ( b) certain site improvements, which are expected to include the build -out of adult baseball /softball fields, multi -purpose fields, youth baseball /softball fields, parking areas, restrooms and storm water management improvements, among other items. The City has paid for, and reasonably anticipates that it will continue to pay for, costs and expenditures related to the Recreation Complex from moneys on deposit in the general fund of the City until such time as such costs are financed on a long -term basis. It is reasonably expected that reimbursement of such costs and expenditures will come from the issuance of tax -exempt debt which is not expected to exceed 8. 000, 000 aggregate principal amount. It is currently the intention of the City to principally secure such tax -exempt debt by a pledge of and lien upon legally available non -ad valorem revenues of the City. The expenditures to be reimbursed are expected to be consistent with the City's budgetary and financial policy as being the type of expenditures which would be paid on a long -term basis. SECTION 3. APPLICABLE LAW The City shall comply with all applicable laws in regard to the public availability of records of official acts ( i. e., adoption of this Resolution) by public entities such as the City, including making this Resolution available to public inspection.  10. 2 RESOLUTION ( ID # 2207) SECTION 4. COMPLIANCE It is the intent of this Resolution to meet the requirements of Treasury Regulations Section 1. 150.2 and to be a declaration of official intent under such Section. SECTION 5. SEVERABILITY In the event that any portion or section of this Resolution is determined to be invalid, illegal or unconstitutional by a court of competent jurisdiction, such decision shall in no manner affect the remaining portions or sections of this Resolution shall remain in full force and effect. SECTION 6. EFFECTIVE DATE This Resolution shall become effective immediately upon approval by the City Council. Mike Anderson, Mayor Attest: Approved for form, legal sufficiency Helen Spencer, City Clerk Hayward Dykes, Jr., City Attorney Additions are underlined; deletions are sui,.. k a -.  11. 1 City Council of Fort Walton Beach FINANCE MEMORANDUM To: Michael D. Beedie, City Manager From: Charlotte Dunworth, Budget and Grants Manager Date: February 26, 2013 Subject: 1876 - Cemetery Investment Policy ( 1 st reading) 1. BACKGROUND: 1. 1. Ordinance 526 provides that twenty percent ( 20 %) of all cemetery lots sold shall beset aside to establish a permanent maintenance fund. 1. 2. These funds are currently commingled with the City' s surplus funds, primarily in short- term investments. 2. DISCUSSION: 2. 1. Approximately half of the cemetery lots remain unsold, so perpetual care funds will not be needed for another 30 -50 years. Given this long -term investment horizon, it would be more prudent to segregate these funds and invest them in a manner focusing on long- term growth of assets rather than liquidity. 2. 2. Since the proposed investment policy permits investments beyond those specifically authorized in the Florida Statutes, the investment policy must be adopted by ordinance. 2. 3. Morgan Stanley Smith Barney Consulting Group ( MSSB) has been retained to manage these assets. 2. 4. Comparison of investment returns achieved by MSSB to appropriate benchmarks and investment objectives will be used to determine the level of value achieved from outsourcing this investment function. 3. RECOMMENDATION: 3. 1. Staff respectfully recommends City Council adoption of Ordinance No. 1876 to establish the Beal Memorial Cemetery Perpetual Care Fund' s Investment Policy. ATTACHMENTS: 2 -2643 Cemetery Investment Policy CC appv 2 -26 -13 ( 2) ( PDF) SIGNATURE BLOCK: Charlotte Dunworth Completed 12/ 19/ 2012 10: 48 AM Finance Completed 12/ 21/ 2012 8: 45 AM City Attorney Completed 12/ 21/ 2012 10: 32 AM Carole Jones Completed 12/ 21/ 2012 10: 39 AM City Manager Completed 01/ 02/ 2013 8: 24 AM City Council Pending DOC ID, 2127 A Page 1 P tket Pg. 39  11. 1 ORDINANCE ( ID # 2127) AN ORDINANCE OF THE CITY OF FORT WALTON BEACH, FLORIDA, PROVIDING FOR THE INVESTMENT POLICY OF BEAL MEMORIAL CEMETERY PERPETUAL CARE FUNDS; AND PROVIDING AN EFFECTIVE DATE NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA AS FOLLOWS: SECTION 1. AUTHORITY & INTENT Ordinance 526 provides that twenty percent ( 20 %) of all cemetery lots sold shall be set aside to establish a permanent maintenance fund. SECTION 2. PURPOSE The purpose of the Beal Memorial Cemetery Perpetual Care Fund Investment Policy is to set forth the investment objectives and parameters for the management of the permanent maintenance fund. The Investment Policy is designed to ensure the prudent management of cemetery funds, an investment return competitive with comparable benchmarks and financial market indices, and the availability of operating and capital funds when needed. SECTION 3. APPLICABILITY The Investment Policy applies to all funds controlled by the City for the maintenance of the Beal Memorial Cemetery in perpetuity after all cemetery lots are sold. SECTION 4. EFFECTIVE DATE This Ordinance shall take effect immediately upon approval by the City Council. Mike Anderson, Mayor Attest, Approved for form, legal sufficiency Helen Spencer, City Clerk Hayward Dykes, Jr., City Attorney Additions are underlined; deletions are stF elie .  11a City of Fort Walton Beach, FL BEAL MEMORIAL CEMETERY INVESTMENT POLICY Table of Contents Page rn c