City of Gainesville - File #: 200515.

• File #: 200515.
• Version: 2
• Type: Staff Recommendation
• Status: Passed
• File created: 11/10/2020
• In control: City Commission
• On agenda: 12/3/2020
• Final action: 12/3/2020
• Title: Investment Performance Reports for the City of Gainesville Operating Fund, General Employees’ Pension Fund, Police Officers’ and Firefighters’ Pension Fund, Retiree Health Insurance Trust Fund, Evergreen Cemetery Trust Fund, and Gainesville Fuel Hedging Program(B) City Commission to review various 4th quarter fiscal year 2020 investment performance reports.

Date	Ver.	Action By	Action	Result
12/3/2020	1	City Commission	Approved as Recommended
11/16/2020	1	Audit and Finance Committee	Approved as Recommended

Title

Investment Performance Reports for the City of Gainesville Operating Fund, General Employees’ Pension Fund, Police Officers’ and Firefighters’ Pension Fund, Retiree Health Insurance Trust Fund, Evergreen Cemetery Trust Fund, and Gainesville Fuel Hedging Program(B)

City Commission to review various 4^th quarter fiscal year 2020 investment performance reports.

Explanation

The City’s Investment Policy requires that quarterly investment performance reports be submitted to the City Commission for review. On November 16, 2020, the Audit and Finance Committee reviewed and approved the following September 30, 2020 reports, and recommended them for submission to the City Commission:

1)                     General Government Operating Fund

2)                     General Employees’ Pension Fund

3)                     Police Officers’ & Firefighters’ Pension Fund

4)                     Retiree Health Insurance Trust Fund

5)                     Evergreen Cemetery Trust Fund

6)                     Fuel Hedging Program

Fiscal Note
General Government Operating Fund - Projected FY 2020 year-end balance is $155,677,281 with a total fiscal year interest earned of $1,585,925 and a fiscal year investment return of 1.18%.

General Employees’ Pension Fund - Projected FY 2020 year-end balance is $415,322,703 with a fiscal year return of 4.07%.

Police Officers’ & Firefighters’ Pension Fund - Projected FY 2020 year-end balance is $243,155,356 with a fiscal year return of 7.1%.

Retiree Health Insurance Trust Fund - Projected FY 2020 year-end balance is $59,301,272 with a fiscal year return of 0.98%.

Evergreen Cemetery Trust Fund - The projected FY 2020 year-end balance is $1,382,210 with a fiscal year return of 6.81%.

Fuel Hedging Program - During the fourth quarter, the Fuel Hedging Program produced a positive FY20 fuel cost (hedging realized loss) of approximately $9,750 or approximately $0.03 per gallon. As of September 30^th, there was an unrealized loss (contingent future positive fuel cost) of $154,119 that corresponds to the time period October 2020 through February 2022. This is an unrealized loss of about $0.07 per gallon on average for the time period for diesel and gasoline combined.

The projected returns of all the funds’ investments and the fuel hedging program are included in the City’s FY 2020 Budget.

Recommendation

The City Commission: 1) review and accept the submitted investment performance reports.