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ITEM: RESOLUTION NO. R2024-24 (INVESTMENT POLICY UPDATE)
A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL ADOPTING A REVISED INVESTMENT POLICY FOR THE VILLAGE OF WELLINGTON AND ACME IMPROVEMENT DISTRICT; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Approval of Resolution No. R2024-24 to update the Investment Policy with an effective date of June 11, 2024.
EXPLANATION: The Village of Wellington is required to periodically review and update its adopted Investment Policy pursuant to Section 218.415, Florida Statutes. The Investment Policy addresses required standards, which must be commensurate with the nature and size of the public funds under a government’s custody. Investment policies are required to place the highest priority on safety of the principal and liquidity with return on investments a secondary consideration. The Village’s Investment Manager, Public Trust Advisors (PTA), reviewed and recommended changes to the existing policy which was last changed in 2018. During 2022, Governor Desantis signed into law HB3 which adds new language to Statute 218.415 regarding public funds investment decisions. Specifically, the new law, Ch. 218.415(24)(a)(b), requires public funds investment decisions be made solely based on pecuniary factors and may not subordinate the interests of the beneficiaries of the investments to other objectives.
The recommended updates are:
• Remove the following Appendices:
o A. Florida Statutes: The Investment Advisor will provide an update to any changes to the Statute and recommend changes as necessary.
o B. GFOA recommended practices: The Investment Advisor will provide an update to any changes to the Statute and recommend changes to the Investment Policy as necessary.
o C. Investment Certification Form: This is only necessary if the Village is purchasing securities directly, without a broker/dealer.
• Section V. Maturity and Liquidity Requirements: added a section to discuss the investment of Bond Proceeds.
• Section VI. Suitable and Authorized Investments:
o Increased allocation to AAA rated Intergovernmental Investment Pools from 25% to 35% for increased liquidity when necessary and updated ratings to include AAAm (stable) and AAAf (fluctuating) investment pool programs.
o Confirmed maximum combined amount of 35% to all corporate sectors (Commercial Paper, Corporate Notes, Asset Backed Securities).
o Changed the time to final maturity from purchase date to settle date to reflect the timeframe when the securities are received.
• Section VII. Updated language to confirm responsibilities for approving and maintaining a list of approved broker/dealers and establishing the qualifications. The language also provides minimum criteria for approved broker/dealers.
• Section XIV. Performance Measurements: updated language to provide flexibility for changing/adding benchmarks based on portfolio strategy.
• Section XV. Investment Decisions: Included a paragraph to reflect the new language in Florida Statute 218.415(24)(a)(b) to confirm the Village complies with the law.
A representative from Public Trust Advisors will be available to answer questions.
BUDGET AMENDMENT: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: N/A
WELLINGTON FUNDAMENTAL: Protecting Our Investment
RECOMMENDATION: Approval of Resolution No. R2024-24 to update the Investment Policy with an effective date of June 11, 2024.