Ordinance 15-43(S) Amend HCC 3.10 Permanent Fund for Management of Investments

CITY OF HOMER

HOMER, ALASKA

City Clerk/

Permanent Fund Committee

ORDINANCE 15-43

AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA, REPEALING HOMER CITY CODE CHAPTER 3.12, PERMANENT FUND, PLACING THE FUNDS IN A SELF-MANAGED BROKERAGE AND DISBANDING THE PERMANENT FUND COMMITTEE.

WHEREAS, The Homer Permanent Fund was established by Ordinance 05-14(S) for the purpose of receiving monies from the distribution of the Exxon Valdez Oil Spill settlement and other windfall funds, and serving as an endowment whose income would be used to support City government, and whose principal could be loaned to support City capital projects; and

WHEREAS, The amount that the City received from the distribution of the Exxon Valdez Oil Spill settlement and other windfall funds was substantially less than anticipated at the time the Homer Permanent Fund was established; and

WHEREAS, In the current investment environment, an excessive amount of the Homer Permanent Fund income is consumed by the cost of the fund’s administration; and

WHEREAS, The Homer Permanent Fund could be managed with less service fees and match the S&P 500 market returns by placing the Fund in a self-managed brokerage fund; and

WHEREAS, It is appropriate to repeal the Homer City Code provisions regarding the Homer Permanent Fund and to disband the Permanent Fund Committee.

NOW, THEREFORE, THE CITY OF HOMER ORDAINS:

Section 1. Homer City Code Chapter 3.12, Permanent Fund is repealed.

Section 2. The City Council hereby disbands the Permanent Fund Committee that was created by Ordinance 05-14(S).

Section 3.  Section 1 of this Ordinance is of a permanent and general character and shall be included in the City Code.  Section 2 of this Ordinance is temporary in nature and shall not be codified.

ENACTED BY THE CITY COUNCIL OF HOMER, ALASKA, this ____ day of ______________ 2015.

CITY OF HOMER

______________________
MARY E. WYTHE, MAYOR

ATTEST:

____________________________

JO JOHNSON, MMC, CITY CLERK

AYES:

NOES:

ABSTAIN:

ABSENT:

First Reading:

Public Hearing:

Second Reading:

Effective Date:

Reviewed and approved as to form:

Mary K. Koester, City Manager                                           Thomas F. Klinkner, City Attorney

Date: _________________________                               Date: _________________________