2008-049 Temporary Override of Authorized Investment Portfolio Composition• RESOLUTION 2008-49
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA AUTHORIZING AND DIRECTING
VILLAGE ADMINISTRATION TO INITIATE AN AMENDMENT TO THE
INVESTMENT POLICY OF THE VILLAGE AND APPROVING THE
IMPLEMENTATION OF TEMPORARY SAFEGUARDS TO ENSURE THE
SAFETY AND LIQUIDITY OF VILLAGE FUNDS; AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, Section 218.415, Florida Statutes, requires that a municipality's investment activity
be consistent with a written investment plan adopted by the governing body and that the plan be
consistent with the criteria enumerated in Section 218.415, Florida Statutes; and
WHEREAS, the Village has adopted a written investment plan, as codified in Section 2-4 ofthe
Village Code of Ordinances, placing the highest priority on the safety and liquidity of funds; and
WHEREAS, Section 2-4(h) of the Village Code allows for one hundred percent (100%) of the
Village's portfolio to be placed in aninterest-bearing checking or savings account or in the Local
Government Investment Pool ("Pool"), while restricting holdings in Securities and Exchange
Commission ("SEC") registered money market funds to fifty percent (50%); and
• WHEREAS, due to the multitude of issues facing the Pool, emanating from the downgrading of
a portion of the Pool's investment portfolio, the resulting large-scale withdrawals by government
entities, the eventual division of the Pool assets into two funds and the possibility of litigation
funded by Pool assets, the Village Council wishes to implement the recommendation of Village
Administration and the Village Audit Committee to immediately withdraw all available Village
funds from the Pool; and
WHEREAS, in accordance with the current investment plan, the Village could only invest fifty-
percent (50%) of its investment portfolio in registered money market funds and would be forced
to deposit the remainder of the portfolio withdrawn from the Pool, which far exceeds the FDIC
limits, into the Village's checking account; and
WHEREAS, in order to protect the Village's investment portfolio, as mandated by the
investment plan, the Village Council wishes to amend the allocations set forth in the Village
investment plan and temporarily authorize Village Administration to take measures to safeguard
the safety and liquidity of Village assets; and
WHEREAS, the Village Council determines that the adoption of this Resolution is in the best
interests ofthe residents and citizens ofthe Village ofNorth Palm Beach.
• NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE
OF NORTH PALM BEACH, FLORIDA as follows:
Section 1. The foregoing recitals are ratified as true and are incorporated herein.
Section 2. The Village Council hereby authorizes and directs Village Administration to
initiate an ordinance to amend the allocations set forth in the Village's written investment plan,
as provided in Section 2-4(h) ofthe Village Code ofOrdinances.
Section 3. Due to the need for immediate withdrawal of Village funds from the Local
Government Investment Pool, the Village Council hereby authorizes the Village Administration
to implement temporary safeguazds to protect Village funds until such time as the amendment to
the investment plan is adopted. The Village Council specifically authorizes the deposit of the
Village's investment portfolio in SEC registered money mazket funds, even if such deposits
exceed the fi8y percent (50%) limit currently set forth in Section 2-4(h) of the Village Code.
Section 4. This resolution shall take effect retroactive to June 23, 2008.
PASSED AND ADOPTED THIS 26th DAY OF JUNE, 2008.
(Village Sell) ~'l/ z!!i~ ~/~~~%~
MAYOR
ATTEST2'~
VILLAGE CLERK
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