NUMB:
970387
VERS:
SUBSTITUTE 3
REF:
XXBY:
ALD. KALWITZ, MURPHY AND PRATT
TITLE:
A substitute charter ordinance relating to payment of expenses for investment management, and investment advisors and consultants for the employes' retirement system.
SECS:
36-08-2-a am
36-08-3 rc
36-08-5-a rc
ANLS:
- Analysis -
This charter ordinance provides that effective for budget year 1998 the investment income that is allocated to the retirement fund for the employes' retirement system shall be net of investment expenses which shall include all fees and costs associated with the investment of the assets of the retirement system. Investment expenses will no longer be paid from the expense fund from payments by the city and city agencies.
BODY:
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 36-08-2-a of the charter is amended to read:
36-08. Method of Financing.
2. RETIREMENT FUND.
a. Contributions. The retirement fund shall be the fund into which all member and city or city agency contributions >>,<< together with investment income >>net of investment expenses,<< shall be paid except as hereinafter otherwise provided. There shall also be paid into the retirement fund all other amounts received by the board as directed by it. All retirement allowances, death benefits, separation benefits and other benefits except as hereinafter otherwise provided shall be paid from the retirement fund.
Part 2. Section 36-08-3 of the charter is repealed and recreated to read:
3. EXPENSE FUND. The expense fund shall be the fund to which shall be credited all money to pay the expenses necessary in connection with the administration and operation of the retirement system and from which payments are made for those administratives expenses, provided, however, that the expenses for investing the assets of the retirement system shall be deducted from the invested assets in determining the net assets of the retirement system and shall not be funded by or paid from the expense fund. For purposes of this section, investment expenses shall include all fees and costs associated with investment of the retirement system assets, including fees for investment managers, investment advisors and investment consultants, and the costs of buying and selling securities or other investments.
a. Annually, the board shall estimate the amount of money which shall be deemed necessary to be paid into the expense fund during the ensuing year to provide for the expense of operation of the retirement system. Amounts for expenses other than for investment managers, investment advisors and investment consultants shall be paid to the expense fund for this purpose by the city and city agencies. On or before June 1 of each year the board shall file with the mayor a detailed statement of all estimated expenses which are to be incurred during the ensuing calendar year and which are to be paid by the city and city agencies, and such statement shall be reviewed and approved as are all other budgetary requests under ch. 18.
b. Excess revenue deposited in the expense fund in accordance with s. 36-09-6 shall be available for expenditure by the employes retirement system without budgetary authorization provided that such expenditure shall be approved in advance by the board and such expenditure for the prior year shall be reported to the mayor at the time the board files a detailed statement of all estimated expenses which are to be incurred during the ensuing calendar year. Excess revenue from security lending deposited in the expense fund which is not expended by the close of the calendar year next following the calendar year in which it is deposited shall be transferred to the retirement fund established under sub. 2.
Part 3. Section 36-08-5-a of the charter is repealed and recreated to read:
5. INVESTMENT FUND ACCOUNT. a. The board shall maintain as part of its accounts a separate and independent account known as the investment fund account. All gains realized by the board upon the sale, redemption or other disposition of securities during a calendar year shall be credited to such fund, and all investment expenses and losses sustained by the board through the sale, redemption or disposition of securities except sales of bonds referred to in par. b during a calendar year shall be charged against such fund. The board shall have approval over investment expenditure arrangements but shall file with the mayor a detailed statement of all estimated investment expenses which are to be incurred during the ensuing calendar year, similar to the expenses to be paid from the expense fund in sub. 3. Any remaining balance in such fund at the close of the calendar year shall be allocated to the various other funds established under this section based upon the weighted average fund balances at cost for the year for such funds.
Part 4. This is a charter ordinance and shall take effect 60 days after its passage and publication, unless within such 60 days a referendum petition is filed as provided in s. 66.01(5), Wis. Stats., in which event this ordinance shall not take effect until submitted to a referendum and approved by a majority of the electors voting thereon.
Part 5. The treatment of parts 1 to 3 of this charter ordinance takes effect on January 1, 1998.
LRB:
APPROVED AS TO FORM
____________________________
Legislative Reference Bureau
Date: _____________________
CATT:
IT IS OUR OPINION THAT THE ORDINANCE
IS LEGAL AND ENFORCEABLE
_________________________________
Office of the City Attorney
Date: _____________________
ZDPT:
DFTR:
LRB97366.5
BJZ:bsw
10/10/97