LEGISLATIVE ACTION ITEM
SPONSOR: D.C. Reeves, Mayor
SUBJECT:
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RESOLUTION NO. 2023-010 - INTERLOCAL AGREEMENT: PARTICIPATION IN A LOCAL GOVERNMENT INVESTMENT POOL
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RECOMMENDATION:
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That City Council approve Resolution Number 2023-010
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PENSACOLA; APPROVING THE ENTRANCE INTO AN INTERLOCAL AGREEMENT WITH OTHER GOVERNMENTAL PARTICIPANTS FOR THE PURPOSE OF EXERCISING INVESTMENT POWER JOINTLY TO INVEST FUNDS IN CONCERT WITH OTHER PARTICIPANTS; PROVIDING FOR AN EFFECTIVE DATE.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
The City of Pensacola’s Investment Policy permits the City’s Finance Director to enter into investments authorized by Section 218.415(16), Florida Statutes including the Local Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act as provided in Section 163.01, Florida Statutes. In order to diversify the City’s portfolio while providing a high level of security for public assets, staff is recommending that the City enter into a local government investment pool.
The Florida Cooperative Liquid Assets Securities System (FLCLASS) is an independent local government investment pool authorized under Section 218.415, Florida Statutes and was created by an interlocal agreement by and among state public agencies (the Interlocal) as described in Section 163.01, Florida Statutes, as amended. FLCLASS is open to all governmental entities within the state of Florida and is designed to meet the cash management and short-term investment needs of Florida governmental entities. The management of FLCLASS is under the direction of an appointed Board of Trustees comprised of eligible Participants of the FLCLASS program. The general objective of the Trust is to generate additional investment income for the Participants while maintaining safety and liquidity.
FLCLASS may only be invested in a manner that is permitted pursuant to the laws of the state of Florida and Florida’s Investment of Local Government Surplus Funds Act, Florida Statutes, Chapter 218.415. Furthermore, investments will be made in accordance with the Trust’s own Investment Policy that is structured to meet ‘AAAm’ or equivalent NRSRO investment guidelines needed to maintain the highest attainable rating for a local government investment pool; this includes investments authorized under Section 218.415(16), Florida Statutes.
Approval of the Resolution will allow for the City’s participation in FLCLASS.
PRIOR ACTION:
September 6, 2002 - City Council approved Resolution 35-02 which sets forth the policy of the City of Pensacola with regard to the investment of funds in excess of those required to meet short-term expenditures.
FUNDING:
N/A
FINANCIAL IMPACT:
As of January 11, 2023, FLCLASS daily yield was 4.5499%.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
1/30/2023
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Lovoy, Finance Director
ATTACHMENTS:
1) Resolution No. 2023-010
2) Exhibit A-FLCLASS Interlocal Agreement
3) FLCLASS Investment Policy
4) FLCLASS Portfolio Composition
PRESENTATION: No end