(A) As part of the system there exists the fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the system.
(B) The actual custody and supervision of the fund (and assets thereof) shall be vested in the board. Payment of benefits and disbursements from the fund may be made by the custodian but only upon written authorization from the board.
(C) All funds of the system may be deposited by the board with the city, acting in a ministerial capacity only, which shall be liable in the same manner and to the same extent as it is liable for the safekeeping of funds for the city. However, any funds so deposited with the city shall be kept in a separate fund or clearly identified as such funds of the system. In lieu thereof, the board may deposit the funds of the system in a qualified public depository as defined in Fla. Stat. § 280.02, which depository with regard to such funds shall conform to and be bound by all of the provisions of Fla. Stat. Chapter 280. In order to fulfill its investment responsibilities as set forth herein, the board may retain the services of a custodian.
(D) All funds and securities of the system may be commingled in the fund, provided that accurate records are maintained at all times reflecting the financial composition of the fund, including accurate current accounts and entries as regards the following:
(1) Current amounts of accumulated contributions of members on both an individual and aggregate account basis; and
(2) Receipts and disbursements; and
(3) Benefit payments; and
(4) Current amounts clearly reflecting all movies, funds and assets whatsoever attributable to contributions and deposits from the city; and
(5) All interest, dividends and gains (or losses); and
(6) Such other entries as may be properly required so as to reflect a clear and complete financial report of the fund.
(E) An audit shall be performed annually by a certified public accountant for the most recent plan year of the system showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Said report shall include other items normally included in a certified audit.
(F) The Board, subject to the fiduciary standards in Fla. Stat. §§ 112.656, 112.661, and 518.11, and the Code of Ethics in Fla. Stat. §§ 112.311 through 112.3187, shall have the following investment powers and authority, which may be delegated to one or more investment advisors selected and supervised by the Board.
(1) The fund may be invested and reinvested in such securities or property real or personal wherever situated and of whatsoever kind, including but not limited to stocks, common or preferred, bonds and other evidences of indebtedness or ownership. Notwithstanding any other provision of law, the Board of Trustees may invest up to twenty-five percent (25%) of plan assets in foreign securities on a market-value basis.
(2) The board may retain in cash and keep unproductive of income such amount of the fund as it may deem advisable, having regard for cash requirements of the system.
(3) No person or entity shall be liable for the making, retention or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the fund, except that due to his or its own negligence, willful misconduct or lack of good faith.
(4) The board may cause any investment in securities held by it to be registered in or transferred into the name of the fund or into the name of such nominee as the board may direct, or it may retain them unregistered solely to permit transferability, but the books and records shall at all times show that all investments are part of the fund.
(5) The board is empowered, but is not required, to vote upon any stocks, bonds or securities of any corporation, association or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee or with the trustees or with depositories designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally, to exercise any of the powers of an owner with respect to stocks, bonds or other investments of the fund which it may deem to be to the best interest of the fund.
(6) At least once every three (3) years, and more often as determined by the board, the board shall retain a professionally qualified independent consultant, as defined in Fla. Stat. §§ 175.071 and 185.06, to evaluate the performance of all existing investment advisors and make recommendations regarding retention of all such investment advisors or selection of replacements or additional investment managers. These recommendations shall be considered by the board at its next regularly scheduled meeting.
(Ord. 2000-15, passed 5-5-00; Am. Ord. 2013-45, passed 8-13-13)