Title
City Commission Resolution No. 211008 Recommendations to the Board of Trustees for the City of Gainesville Retiree Health Insurance Trust Fund (B)
This item involves the City Commission Resolution No. 211008 recommendations concerning divestment and restriction of Russian and Belarusian investments in the City of Gainesville Retiree Health Insurance Trust Fund.
Explanation
The Gainesville City Commission approved Resolution No. 211008 at their March 17, 2022 meeting. The Resolution requests that the Board of Trustees of the Gainesville Retiree Health Insurance Trust Fund divest of any current holdings in Russian or Belarusian securities as soon as practicable, and that the Board consider a new investment policy opposed to future investment of City funds in Russian or Belarusian securities.
Fiscal Note
Divestment and restriction of Russian and Belarusian securities in the Retiree Health Insurance Trust Fund may impact the Fund’s investment returns, and thereby financially impact the City. However, because the Fund rarely invests in Russian or Belarusian securities, any financial impact is expected to be minimal. The actuarial assumed investment rate of return for the Retiree Health Insurance Trust Fund is 7.9% annually, and is included in the City’s annual budgets and the Fund’s actuarial valuations.
Recommendation
Recommended Motion: The Board of Trustees for the City of Gainesville Retiree Health Insurance Trust Fund: 1) consider City Commission Resolution No. 211008 requests for the Gainesville Retiree Health Insurance Trust Fund, and take any action deemed appropriate.