The municipal prefunding investment program (investment program) is established for the purpose of managing the funding necessary to meet the obligations of the municipality for the police and fire retiree medical funding program (funding program), and making contributions to the retiree medical funding program trust on the behalf of eligible members as provided in section 3.87.050B.
(AO No. 95-63, § 1, 3-7-1995)
A. 
It is the objective of the investment program that municipal assets be accumulated through a 34-year prefunding program of regular annual deposits by the municipality and accumulated interest earnings so that the municipal obligation is fully funded, requiring no further deposits. The 34-year prefunding period shall not be extended. Further, no provision of this chapter shall be interpreted to impair or diminish any of the various obligations or entitlements set out in chapter 3.87.
B. 
The assets of the investment program are restricted to the purposes outlined in this chapter unless two consecutive annual actuarial valuations indicate that surplus funds over and above those necessary to fully fund the municipality's projected obligations for the funding program have accumulated and are available.
C. 
Annual municipal deposit to the investment program will be established and adjusted as necessary to ensure full funding at the end of the year 2028, based on the results of actuarial valuations and recommendations of the investment board.
D. 
An actuarial valuation of the municipality's obligation to the funding program and the funding status of the investment program will be completed every three years as a minimum, until such time as the investment program first achieves full funding status per the actuarial valuation.
(AO No. 95-63, § 1, 3-7-1995; AO No. 2009-140, § 1, 1-12-2010; AO No. 2015-116(S), § 1, 11-10-2015)
A. 
The municipal prefunding investment board ("investment board") shall consist of five members.
B. 
The mayor, subject to assembly confirmation, shall appoint all members. All appointments shall be for three-year terms.
C. 
The municipal treasurer shall serve as program administrator.
D. 
The investment board will meet at least quarterly and will manage the investment of the funds of the investment program. The investment board may engage the services of qualified actuaries, financial advisors, trustees, investment managers and other support personnel deemed necessary to the performance of its duties. Required funding for these services will be included in the general government operating budget each year, as necessary.
E. 
Administrative staff support for the investment board and for the investment of funds shall be provided by the finance department.
F. 
The investment board will submit an annual report to the assembly each year not later than March 31. As a minimum, the report will contain the results of the prior year's operations and investment returns, the status of overall funding, results of the actuarial valuation if one was conducted, recommendations for revised current year deposits and the estimated amount of subsequent year's deposits and operational funding requirements for the investment program.
(AO No. 95-63, § 1, 3-7-1995; AO No. 2001-131, § 1, 7-24-2001; AO No. 2005-94, § 1, 8-23-2005; AO No. 2009-140, § 1, 1-12-2010)
A. 
The investment objective of the investment program is to achieve a return on investments which when combined with the amount and schedule of municipal deposits will be sufficient to accomplish the 34-year prefunding objective. The rate of return used to project the municipal obligation for the funding program was 6.9 percent.
B. 
The investment board shall develop and adopt written investment policies on such areas as they deem prudent, including diversification, quality and transaction restrictions.
C. 
Notwithstanding any other provision of the Anchorage Municipal Code, the chief fiscal officer is authorized to invest the funds of the investment program as determined by the investment board.
D. 
(Reserved)
(AO No. 95-63, § 1, 3-7-1995; AO No. 2009-140, § 1, 1-12-2010; AO No. 2015-116(S), § 1, 11-10-2015)
A. 
45-day notice of public hearing. Notice of ordinances proposing an amendment to this chapter 3.88 shall be published at least 45 days prior to the date of public hearing.
B. 
Special notice to boards. When publishing notice of an ordinance proposing an amendment to this chapter 3.88, the municipal clerk shall provide a copy of the ordinance to the Chair of the Board of Trustees of the Retiree Medical Funding Program Trust created by section 3.87.030B, and to the Chair of the Municipal Prefunding Investment Board, created by section 3.88.030.
C. 
Board protest. At least eight days prior to the public hearing on an ordinance proposing an amendment to this chapter 3.88, either the Board of Trustees of the Retiree Medical Funding Program Trust created by section 3.87.030B or the Municipal Prefunding Investment Board, created by section 3.88.030 may file a notice of protest with the Municipal Clerk outlining objections to the ordinance.
D. 
Eight votes required, upon timely protest. If a timely protest under subsection C is received by the Municipal Clerk, Assembly approval of an ordinance proposing changes to this chapter 3.88 shall require an affirmative vote of eight assembly members.
(AO No. 2016-112, § 1, 10-18-2016)