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HomeMy WebLinkAboutSubmittal-City of Miami's Investment Policy Proposed ResolutionPlease direct mad to Miami office: 200 South Biscayne Boulevard Sixth Floor Miami, Florida 33131-5310 Telephone: 305-379-7000 Toll Free: 800-999-ICPA (I272) Fax: 305-379-8200 BERKOWITZ DICKPOLLACK&BRANT CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS, LLP Direct Dial 305-960-1253 Email: berkowitz@bdpb.com. September 6, 2007 Honorable Marc D. Sarnoff, Commissioner City of Miami 3500 Pan Arnerican Drive Miami, Florida 33133 Dear Commissioner Sarnoff: 515 East Las Olas Boulevard Fifteenth Floor Fort Lauderdale, FL 33301-2281 Telephone: 9 5 4-712-700 0 Toll Free: 800-999-1CPA (1272) Fax: 954-712-7070 www.bdpb.com SUBMITTED INTO THE PUBLIC RECORD FOR ITEM na.iON 9-809. On September 6, 2007, at the regular meeting of the City of Miami Finance Committee, the Committee was asked to approve a proposed resolution of the Miami City Commission amending the City of Miami's Investment Policy. See the proposed resolution attached. The Committee appreciates the desire of the Commissioner to authorize the investment of surplus funds in rated or unrated bonds, notes or instruments backed by the full faith and credit of the government of Israel. The Committee wishes to bring to the attention of the Commissioner that the current Investment Policy of the City of Miami does not allow investments in foreign debt instruments. The Committee unanimously recommends amending the resolution to allow the City of Miami to invest in foreign debt rated AA or better by Moody's and Standard and Poors. The Committee recommends the following amendment to Section 2 of the proposed resolution: Section 2. The City's Investment Policy established and adopted May 10, 2001 pursuant to Resolution. No. 01-448, is amended to authorize investment of surplus funds in foreign bonds rated AA or better by Moody's and Standard and Poors. The Committee understands that the Commissioner wishes to give preference to bonds issued by the State of Israel. The Committee has no position with respect to this issue. Honorable Marc D. Samoff, Commissioner September 6, 2007 Page 2 The Committee has considered the language in the proposed resolutions' granting clauses which includes statements that are political and social in nature. The City of Miami's Investment Policy has no such statements. The Committee believes that the City of Miami's Investment Policy should not contain political or social statements, and therefore the Committee unanimously is opposed to including that language in the proposed resolution. Very truly yours, Ri,i and A. Berk6witz, J.D., C.P.A., Cl aa,„ On behalf of City of Miami Finance Committee cc: Eli Feinberg, Member, City of Miami Finance Committee Carol Gardner, Member, City of Miami Finance Committee Diana M. Gomez, Member, City of Miami Finance Committee Humberto Rodriguez, Member, City of Miami. Finance Committee Juan Martinez, Member, City of Miami Finance Committee Signed in Mr. Berkowitz's absence to prevent delay. SUBMITTED INTO THE PUBLIC RECORD FOR ITEMD2,(_ONq.1-.o. • City of Miami Legislation Resolution 3500 D2. I Mil www.miamigov.com File Number: 07-01092 Final Action Date: A RESOLUTION OF THE MIAMI CITY COMMISSION AMENDING THE CITY OF MIAMI'S INVESTMENT POLICY TO AUTHORIZE INVESTMENT OF SURPLUS FUNDS IN RATED OR UNRATED BONDS, NOTES, OR INSTRUMENTS BACKED BY THE FULL FAITH AND CREDIT OF THE GOVERNMENT OF ISRAEL, AND TO PROHIBIT INVESTMENTS IN ANY COMPANIES WITH BUSINESS OPERATIONS IN SUDAN OR IRAN PROVIDED THAT SUCH REVISIONS SATISFIES SPECIFIED FIDUCIARY STANDARDS. WHEREAS, the Florida State Legislature has authorized counties and cities in Florida to invest in, Israeli bonds, regardless of the bond rating; and WHEREAS, as a result of this Resolution, if acted upon, the invested money will provide the Jewish nation funding to invest in economic expansion and build up infrastructure; and WHEREAS, the City Commission finds that it is unconscionable for the City of Miami ("City") to 0 invest public funds in companies that have business operationsin or with foreign countries that sponsor terrorism and commit egregious human rights violations; and WHEREAS, as a result of this Resolution, if acted upon, none of the City's surplus dollars will support either the genocide in Sudan, or Iran's development of nuclear weapons; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2, The City's Investment Policy established and adopted May 10, 2001 pursuant to Resolution No. 01-448, is amended to authorize investment of surplus funds in rated or unrated bonds, notes or instruments backed by the full faith and credit of the government of Israel, and to prohibit investments in any companies with business operations in Sudan or Iran provided that such revisions satisfies specked fiduciary standards. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.{1} Cio, of Minmi Page I of 2 SUBMITTED INTO Th 'UBLIC RECORD FC ITEM 12i 'ONq'il" o7 Fite Number: 07-01082 APPROVED AS TO FORM AND CORRECTN8,SS: i JORGEL•`Fi+l`2NNDEZ CITY A;n ORNEY Footnotes: {1}.If the Mayor does not sign this Resolution, it shall become effective at the.'end of ten`cale% dardays from the date itwas passed and adopted. if the Mayor vetoes this Resolution; it shalt become effective immediately upon override of the veto py the City Commission: SUBMITTED INTO THE ?UBLIC RECORD FOR TEMtONHto� C7t3' of Miami Page 2 of 2 Printed On: 8/23/2007