Resolution 17-044 Re-Adopting the Established Permanent Fund Investment Policy

CITY OF HOMER
HOMER, ALASKA

City Manager/Finance Director

RESOLUTION 17-044

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, RE-ADOPTING THE ESTABLISHED INVESTMENT POLICIES OF THE PERMANENT FUND.

WHEREAS, Pursuant to Homer City Code 3.10.130(b)(2) the City Council shall review the investment policies of the Permanent Fund at least once a year during the first quarter and shall by formal resolution, re-adopt or modify said policies; and

WHEREAS, The Finance Director and City Manager recommend maintaining the investment policies adopted under HCC 3.10.130 which states:

-The portfolio of the growth sub-fund will be invested primarily in equities

-The portfolio of the income sub-fund will be invested primarily in bonds and other fixed rate securities as authorized by HCC 3.10.040

WHEREAS, In 2016 earnings in the growth sub-fund outpaced the income sub-fund and the administration is directed to reallocate the distribution between grown and income sub-funds to the 40/60 split required under HCC 3.12.030(a); and

WHEREAS, It is the policy of the City to reinvest earnings at midyear into the respective funds; and

WHEREAS, In 2016 overall earnings of the Permanent fund did not outpace inflation and earnings should be reinvested in the corpus of the fund to help inflation proof it.

NOW, THEREFORE, BE IT RESOLVED that the City Council of Homer, Alaska, re-adopts the established investment policies of the Permanent Fund.

PASSED AND ADOPTED by the Homer City Council this 24th day of April 2017.

CITY OF HOMER
 

BRYAN ZAK, MAYOR
 

ATTEST:

JO JOHNSON, MMC, CITY CLERK

Fiscal Note: N/A