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VILLAGE OF NORTH PALM BEACH
SPECIAL SESSION AGENDA
VILLAGE HALL COUNCIL CHAMBERS THURSDAY, NOVEMBER 05, 2026
501 U.S. HIGHWAY 1 6:00 PM
Lisa Interlandi Orlando Puyol Susan Bickel Deborah Searcy Kendra Zellner
Mayor Vice Mayor President Pro Tem Councilmember Councilmember
Chuck Huff Leonard G. Rubin Jessica Green
Village Manager Village Attorney Village Clerk
INSTRUCTIONS FOR “WATCH LIVE” MEETING
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ROLL CALL
PLEDGE OF ALLEGIANCE
ADDITIONS, DELETIONS, AND MODIFICATIONS TO THE AGENDA
APPROVAL OF MINUTES
1. Minutes of the Regular Session held October 8, 2026
COUNCIL BUSINESS MATTERS
STATEMENTS FROM THE PUBLIC, PETITIONS AND COMMUNICATIONS
Members of the public may address the Council concerning items on the Consent Agenda or any non agenda item
under Statements from the Public. Time Limit: 3 minutes
Members of the public who wish to speak on any item listed on the Regular Session or Workshop Session Agenda
will be called on when the issue comes up for discussion. Time Limit: 3 minutes
Anyone wishing to speak should complete a Public Comment Card (on the table at back of Council Chambers) and
submit it to the Village Clerk prior to the beginning of the meeting.
REPORTS (SPECIAL COMMITTEES AND ADVISORY BOARDS)
CONSENT AGENDA
The Consent Agenda is for the purpose of expediting issues of a routine or pro -forma nature. Councilmembers
may remove any item from the Consent Agenda, which would automatically convey that item to the Regular
Agenda for separate discussion and vote.
2. RESOLUTION – Approving a Second Amendment to the Lease Agreement with Yard-Nique, Inc.
for property located at 9555 Old Dixie Highway; and authorizing the Village Manager to execute the
Second Amendment.
Special Session Agenda, November 05, 2026 Page 2 of 2
DECLARATION OF EX PARTE COMMUNICATIONS
PUBLIC HEARINGS AND QUASI-JUDICIAL MATTERS
3. 1ST READING OF ORDINANCE 2026-08 – CODE AMENDMENT – INVESTMENT POLICY Consider
a motion to adopt on first reading Ordinance 2026-08 amending Article I, "In General," of Chapter 2,
"Administration," of the Village Code of Ordinances by amending Section 2-4, "Investment Policy of
the Village; to comply with statutory requirements and incorporate best practices relating to
Investment Performance Benchmarks, Investment Limits and Maturity Requirements, and
Investment Procedures and Reporting.
4. 1ST READING OF ORDINANCES 2026-09 THROUGH 2026-16 – CHARTER AMENDMENTS
Consider motions to approve Ordinances 2026-09 through 2026-16 amending the Village Charter
and submitting the amendments to referendum vote.
OTHER VILLAGE BUSINESS MATTERS
COUNCIL AND ADMINISTRATION MATTERS
VILLAGE MANAGER MATTERS/REPORTS
5. MOTION – 713 Westwind Drive - Sale of Property
MAYOR AND COUNCIL MATTERS/REPORTS
ADJOURNMENT
If a person decides to appeal any decision by the Village Council with respect to any matter considered at the Village Counci l meeting,
he will need a record of the proceedings, and for such purpose he may need to ensure that a verbatim record of the proceedings is made,
which record includes the testimony and evidence upon which the appeal is to be based (F.S. 286.0105).
In accordance with the Americans with Disabilities Act, any person who may require special accommodation to participate in this meeting
should contact the Village Clerk’s office at 841-3355 at least 72 hours prior to the meeting date.
This agenda represents the tentative agenda for the scheduled meeting of the Village Council. Due to the nature of governmental duties
and responsibilities, the Village Council reserves the right to make additions to, or deletions from, the items contained in this agenda.
BACKUP INFORMATION FOR THIS
AGENDA ITEM TO BE PROVIDED.
VILLAGE OF NORTH PALM BEACH
VILLAGE ATTORNEY’S OFFICE
TO: Honorable Mayor and Council
THRU: Chuck Huff, Village Manager
FROM: Leonard G. Rubin, Village Attorney
DATE: November 5, 2026
SUBJECT: RESOLUTION – Approval of a Second Amendment to the Lease Agreement with Yard-
Nique, Inc. for Village-owned real property located at 9555 Old Dixie Highway
On February 13, 2025, the Village Council approved the Contract for the purchase of two parcels of real
property owned by Old Dixie Highway Realty, LLC located at 9555 Old Dixie Highway and occupied by
Precision Landscape Company. As an additional term, the Contract provided that the Village shall “lease
back the Property for 3 months post-closing with the option to extend the lease back for an additional 3
months.” The monthly rental amount was established at $6,000 per month. The Village acquired title to
the Property in April 2025, and the Village discovered that Precision Landscape Company had been
acquired by Yard-Nique, Inc. The Village then entered into a Lease Agreement with Yard-Nique in
accordance with the terms of the Contract.
The initial six-month term of the Lease expired on October 4, 2025, and through the adoption of
Resolution No. 2025-57 on November 13, 2025, the Village Council approved an extension of the Lease
Agreement through October 4, 2026, with a monthly rent of $6,500. Village Staff is requesting Village
Council approval of a Second Amendment to the Lease Agreement to extend the term through October
4, 2027 (retroactive to October 5, 2026). The monthly rent has been increased to $7,000 per month for
the extended term.
The attached Resolution and Second Amendment to the Lease Agreement have been prepared and/or
reviewed for legal sufficiency by this office.
As this is a revenue item, there is no financial impact.
Recommendation:
Village Staff recommends Village Council consideration and approval of the attached Resolution
approving a Second Amendment to the Lease Agreement with Yard-Nique, Inc. for the property
located at 9555 Old Dixie Highway and authorizing the Village Manager to execute the Second
Amendment in accordance with Village policies and procedures.
RESOLUTION 2026-____
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH
PALM BEACH, FLORIDA, APPROVING A SECOND AMENDMENT TO THE
LEASE AGREEMENT WITH YARD-NIQUE, INC. FOR THE PROPERTY
LOCATED AT 9555 OLD DIXIE HIGHWAY AND AUTHORIZING THE VILLAGE
MANAGER TO EXECUTE THE SECOND AMENDMENT; PROVIDING FOR
CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on April 4, 2025, the Village acquired title to the property located at 9555 Old Dixie
Highway and, in accordance with the terms of the Contract, executed a lease agreement with Yard-
Nique, Inc. (the parent company of Precision Landscape Company) for a six -month term through
October 4, 2025; and
WHEREAS, through the adoption of Resolution No. 2025-57 on November 13, 2025, the Village
Council approved an Amendment to the Lease Agreement to extend the term through October 4, 2026;
and
WHEREAS, Village Staff recommended executing a Second Amendment to the Lease Agreement to
extend the term through October 4, 2027, with an increase in the monthly rent from $6,500 to $7,000;
and
WHEREAS, the Village Council determines that the adoption of this Resolution is in the bes t interests
of the Village and its residents.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA, as follows:
Section 1. The foregoing recitals are hereby ratified as true and incorporated herein.
Section 2. The Village Council hereby approves a Second Amendment to the Lease Agreement with
Yard-Nique, Inc., a copy of which is attached hereto and incorporated herein, and authorizes the Village
Manager to execute the Second Amendment on behalf of the Village.
Section 3. All resolutions or parts of resolutions in conflict with this Resolution are hereby repealed
to the extent of such conflict.
Section 4. This Resolution shall become effective immediately upon adoption.
PASSED AND ADOPTED THIS DAY OF , 2026.
(Village Seal)
MAYOR
ATTEST:
VILLAGE CLERK
SECOND AMENDMENT TO LEASE
THIS SECOND AMENDMENT TO LEASE (“Amendment”), entered into on the ____
day of November, 2026, is by and between the Village of North Palm Beach, a municipal
corporation organized and existing under the laws of the State of Florida (hereinafter referred to
as “Landlord”), and Yard-Nique, Inc., a Delaware corporation (hereinafter referred to as
“Tenant”),
WITNESSES THAT:
WHEREAS, Landlord is the owner of those certain parcels of real property (including any
and all structures situated thereon) located at 9555 Old Dixie Highway, North Palm Beach, Florida
33403, Parcel ID #68-43-42-17-00-000-3100 and 9450 Old Dixie Highway, North Palm Beach,
Florida 33403, Parcel ID #68-43-42-17-00-000-3120 (“Leased Premises”); and
WHEREAS, on or about April 4, 2025, Landlord purchased the Leased Premises, and the
parties executed a Lease (“Lease”) whereby Tenant leased the Leased Premises from Landlord
for an initial term of three months through July 4, 2025, and an extension term through October 4,
2025; and
WHEREAS, Landlord and Tenant entered into an Amendment to Lease dated November
13, 2025, and pursuant to which the Term of the Lease was extended through October 4, 2026;
and
WHEREAS, Landlord and Tenant desire to amend the Lease to extend the term for an
additional one (1) year period through October 4, 2027.
NOW, THEREFORE, in consideration of mutual promises set forth in the Lease and other
good and valuable consideration, the receipt of which is hereby acknowledged by both parties,
Landlord and Tenant agree to amend the lease as follows:
1. Section 2.1 (Original Term) is deleted in its entirety and replaced as follows:
The term of this Lease (the “Term”) will be for a period commencing on April 4,
2025 (the “Commencement Date”) and ending on October 4, 2027 (the
“Expiration Date”).
2. Section 4.1 (Base Rent for the Leased Premises during Term) is deleted in its
entirety and replaced as follows:
During the period commencing on the Commencement Date and continuing
thereafter through October 4, 2025, Tenant shall pay, as Rent for the Leased
Premises, monthly base rent in the amount of $6,000.00 plus applicable sales tax in
the amount of $180.00, for a total of $6,180.00, which Tenant and Landlord each
acknowledge includes all applicable Landlord Taxes (defined below), Tenant Taxes
and premiums related to the Landlord’s Policy. Beginning on October 5, 2025, and
continuing on the first (1st) day of each succeeding month thereafter, Tenant shall
pay, as Rent for the Leased Premises, a monthly base rent in the amount of
$6,500.00, with no additional sales tax. Beginning on October 5, 2026, and
continuing on the first (1st) day of each succeeding month thereafter, Tenant shall
pay, as Rent for the Leased Premises, a monthly base rent in the amount of
$7,000.00, with no additional sales tax. The monthly base rent owed during the
applicable month shall be known as “Base Rent”. The Base Rent payment shall be
payable to the Landlord’s address as stated in Article 17.
3. All other provisions of the Lease, to the extent not expressly modified herein, shall
remain in full force and effect.
[Remainder of page intentionally blank]
IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first
above written.
LANDLORD
Village of North Palm Beach, a Florida municipal
corporation
By:
Printed: Chuck Huff
Title: Village Manager
TENANT
Yard-Nique, Inc.,
a Delaware corporation
By:
Printed: Rob Wood
Title: CFO
VILLAGE OF NORTH PALM BEACH
VILLAGE MANAGER’S OFFICE
TO: Honorable Mayor and Council
THRU: Chuck Huff, Village Manager
FROM: Samia Janjua, Deputy Village Manager
Erica Ramirez, Director of Finance
DATE: November 05, 2026
SUBJECT: ORDINANCE – 1ST Reading – Investment Policy Revision
The Village's investment advisor, PFM Asset Management (PFMAM), conducted a review of the
Village's Investment Policy to evaluate compliance with Florida Statutes and current investment
policy best practices.
On January 7, 2026, PFMAM presented its review and recommended Investment Policy revisions
to the Village's Audit Committee. The recommendations included updates to comply with Section
218.415, Florida Statutes, revisions to investment performance benchmarks, clarification of
investment limits and maturity requirements, and additional language relating to investment
procedures and reporting.
At its October 14, 2026 meeting, the Audit Committee approved the recommended revisions and
voted to forward them to Village Council for approval.
The proposed changes are intended to keep the Village's Investment Policy current with statutory
requirements and recommended practices while maintaining the Village's primary investment
objectives of safety, liquidity, and return.
The attached Ordinance has been prepared/reviewed by your Village Attorney and reviewed for
legal sufficiency.
Recommendation:
Village Staff recommends Village Council consideration and approval on first reading of
the attached Ordinance amending Section 2-4, “Investment Policy of the Village,” of the
Village Code of Ordinances to adopt revisions to the Investment Policy recommended by
the Village’s investment advisor and the Village’s Audit Committee.
Page 1 of 15
ORDINANCE NO. 2026-____ 1
2
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF 3
NORTH PALM BEACH, FLORIDA, AMENDING ARTICLE I, “IN 4
GENERAL,” OF CHAPTER 2, “ADMINISTRATION,” OF THE VILLAGE 5
CODE OF ORDINANCES BY AMENDING SECTION 2-4, “INVESTMENT 6
POLICY OF THE VILLAGE,” TO COMPLY WITH STATUTORY 7
REQUIREMENTS AND INCORPORATE BEST PRACTICES RELATING TO 8
INVESTMENT PERFORMANCE BENCHMARKS, INVESTMENT LIMITS 9
AND MATURITY REQUIREMENTS, AND INVESTMENT PROCEDURES 10
AND REPORTING; PROVIDING FOR CODIFICATION; PROVIDING FOR 11
SEVERABILITY; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN 12
EFFECTIVE DATE. 13
14
WHEREAS, upon recommendation of the Village’s investment advisor and the Village’s Audit 15
Committee, Village Administration recommended revising the Village’s Investment Policy, as set 16
forth in Section 2-4 of the Village Code of Ordinances, to comply with Section 218.415, Florida 17
Statutes, revise investment performance benchmarks, clarify investment limits and maturity 18
requirements, and incorporate additional language relating to investment policies and repo rting; 19
and 20
21
WHEREAS, Village Council determines that the adoption of this Ordinance is in the best interests 22
of the Village and its residents. 23
24
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 25
OF NORTH PALM BEACH, FLORIDA as follows: 26
27
Section 1. The foregoing recitals are ratified as true and correct and are incorporated herein. 28
29
Section 2. The Village Council hereby amends Article I, “In General,” of Chapter 2, 30
“Administration,” of the Village Code of Ordinances by amending Section 2-4, “Investment Policy 31
of the Village,” to read as follows (additional language is underlined and deleted language is 32
stricken through): 33
34
Sec. 2-4. - Investment policy of the village. 35
36
(a) Purpose. The purpose of this statement is to set forth the policy and 37
objectives governing the investment management of public funds of the 38
village that are in excess of the amounts needed to meet current expenses. 39
This investment policy places the highest priority on the safety and liquidity 40
of funds. 41
42
(b) Scope. In accordance with Section 218.415, Florida Statutes, Tthis 43
investment policy applies to all the investment activity of the village, except 44
for its employees' pension funds, which are organized and admini stered 45
separately, or for funds related to the issuance of debt where there are other 46
existing policies or indentures in effect for such funds. 47
48
Page 2 of 15
Funds included: 1
2
(1) General fund. 3
4
(2) Special revenue funds. 5
6
(3) Enterprise funds. 7
8
(4) Capital projects funds. 9
10
(5) Any new funds created by the governing body unless specifically 11
exempt. 12
13
(c) Investment Objectives. The primary objectives, in priority of order of 14
investment activities, shall be safety of principal, liquidity of funds, and 15
maximizing investment income. 16
17
(1) Safety. Safety of principal is the foremost objective of investment 18
activities. Investments shall be undertaken in a manner that seeks to 19
insure ensure preservation of capital in the overall portfolio. All 20
other investment objectives are secondary to the safety of principal. 21
The objective will be to mitigate credit risk and interest rate risk. 22
23
a. Credit risk. Credit risk, the risk of loss due to the failure of 24
the security issuer or backer, will be minimized by: 25
26
1. Limiting investments to safe types of securities. 27
28
2. Pre-qualifying the financial institutions, broker 29
dealers, intermediaries, and advisers with which the 30
village will do business. 31
32
3. Diversifying the investment portfolio so that 33
potential losses on individual securities will not place 34
an undue financial burden on the village, and 35
36
4. Monitoring all of the village's investments to 37
anticipate and respond appropriately to changing 38
market conditions. 39
40
5. Quarterly reporting, in comparative format, of all 41
market values of invested funds and instruments. 42
43
b. Interest rate risk. The village will minimize the risk that the 44
market value of securities in the portfolio will fall due to 45
changes in general interest rates, by: 46
47
1. Structuring the investment portfolio so that the 48
securities mature to meet cash requirements for 49
Page 3 of 15
ongoing operations, thereby avoiding the need to sell 1
securities on the open market prior to maturity; and 2
3
2. Investing operating funds primarily in short-term 4
securities, money market mutual funds, or similar 5
investment pools unless it is anticipated that long-6
term securities can be held to maturity without 7
jeopardizing the liquidity requirements. 8
9
(2) Liquidity. 10
11
a. General liquidity. The investment portfolio shall remain 12
sufficiently liquid to meet all operating requirements that 13
may be reasonably anticipated. This is accomplished by 14
structuring the portfolio so that the securities mature 15
concurrent with cash needs to meet anticipated demands. 16
Furthermore, since all possible cash demands cannot be 17
anticipated, the portfolio should consist largely of securities 18
with active secondary or resale markets. Portions of the 19
portfolio may be placed in interest-bearing checking/savings 20
accounts with qualified public depositories, Securities and 21
Exchange Commission registered money market funds with 22
the highest credit quality rating from a Nationally 23
Recognized Statistical Rating Organization (NRSRO), or 24
local government investment pools which offer same-day 25
liquidity for short-term funds. 26
27
b. Local liquidity. The chief financial officer of the village shall 28
establish and maintain a local, liquid fund in an amount 29
equal to, as a minimum, one-twelfth ( 1/12 ) of the 30
designated operating funds in the annual village budget. 31
32
(3) Investment income. Without compromising safety and liquidity, the 33
highest possible total return should be obtained on the village's 34
funds. Income will include interest/dividends received as well as any 35
realized or unrealized gains and losses of principal of the underlying 36
security. Return on investment is of least importance compared to 37
the safety and liquidity objectives described above. However, return 38
is attempted through active management where the investment 39
advisor utilizes a total return strategy (which includes both realized 40
and unrealized gains and losses in the portfolio). This total return 41
strategy seeks to increase the value of the portfolio through 42
reinvestment of income and capital gains. The core of investments 43
is limited to relatively low risk securities in anticipation of earning 44
a fair return relative to the risk being assumed. Despite this, an 45
investment advisor may trade to recognize a loss from time to time 46
to achieve a perceived relative value based on its potential to 47
enhance the total return of the portfolio. 48
49
Page 4 of 15
(d) Investment decisions. The village and the village’s investment advisor shall 1
comply with the applicable requirements for Chapter 2023-28, Laws of 2
Florida, including Section 218.415(24), Florida Statutes. The term 3
“pecuniary factor” as used in this subsection means a factor that the village 4
and investment advisor prudently determines is expected to have material 5
effect on the risk or returns of investment based on appropriate investment 6
horizons consistent with applicable investment objectives and funding 7
policy. The term does not include the consideration of the furtherance of 8
any social, political, or ideological interests. 9
10
(d e) Performance measurements. In order to assist in the evaluation of the 11
portfolio's performance, the village shall use nationally recognized 12
benchmarks for the short term and long term portfolios. Performance 13
calculations will not include any balances invested in overnight sweep 14
accounts. 15
16
(1) Operating Funds or Short term portfolio. Investment performance 17
of funds designated as short-term funds and other funds that must 18
maintain a high degree of liquidity will be compared to the return of 19
the S&P Rated GIP Index Government 30-Day Gross of Fees Yield. 20
Investments of current operating funds shall have maturities of no 21
longer than twelve (12) months. 22
23
(2) Core Funds or Long term portfolio. Investment performance of the 24
village portfolio will be compared to the Bank of America Merrill 25
Lynch ICE BofA 1—3 year United States Treasury Note Index or 26
the equivalent composed of U.S. Treasury or government securities, 27
with duration and asset mix that approximates the village portfolio. 28
The benchmark's performance will be compared to the portfolio's 29
total rate of return. Investments of long-term funds shall have a term 30
appropriate to the need for funds, but in no event shall exceed five 31
and one-half (5.50) years. 32
33
(3) Other indices may be used from time to time to measure portfolio 34
performance by approval of the chief financial officer. 35
36
(e f) Prudence and ethical standards. 37
38
(1) Prudence. The standard of prudence to be used shall be the "prudent 39
person rule," which states that: 40
41
Investments should be made with judgment and care, under 42
circumstances then prevailing, which persons of prudence, 43
discretion, and intelligence exercise in the management of their own 44
affairs, not for speculation, but for the investment, considering the 45
probable safety of their capital as well as the probable income to be 46
derived from the investment. 47
48
Page 5 of 15
The chief financial officer, or other persons performing the 1
investment functions, acting in accordance with written policies and 2
procedures, and exercising due diligence shall be relieved of 3
personal responsibility for an individual security's credit risk or 4
market price changes, provided deviations from expectations are 5
reported immediately and that appropriate action is taken to control 6
adverse developments. 7
8
While the standard of prudence to be used by authorized staff who 9
are officers or employees is the "prudent person" standard, any 10
person or firm hired or retained to invest, monitor, or advise 11
concerning these assets shall be held to the higher standard of 12
"prudent expert". The standard shall be that in investing and 13
reinvesting moneys and in acquiring, retaining, managing, and 14
disposing of investments of these funds, the investment advisor shall 15
exercise: the judgment, care, skill, prudence, and diligence under the 16
circumstances then prevailing, which persons of prudence, 17
discretion, and intelligence, acting in a like capacity and familiar 18
with such matters would use in the conduct of an enterprise of like 19
character and with like aims by diversifying the investments of the 20
funds, so as to minimize the risk, considering the probable income 21
as well as the probable safety of their capital. 22
23
(2) Ethical standards. Officers and employees involved in the 24
investment process shall refrain from personal business activity that 25
could conflict with the proper execution and management of the 26
investment program, or that could impair their ability to make 27
impartial decisions. Employees and investment officials shall 28
disclose any material interest in financial institutions with which 29
they conduct business. They shall further disclose any personal 30
financial/investment positions that could be related to the 31
performance of the investment portfolio. Employees and officers 32
shall refrain from undertaking personal investment transactions with 33
the same individual with whom business is conducted on behalf of 34
the village. 35
36
(f g) Authorized investments and pre-qualification. The village may invest and 37
reinvest, in accordance with the objectives stated in subsection (c), in the 38
financial instruments noted in the table insets below. The following are the 39
guidelines for investments and limits on security types, issuers, and 40
maturities as established by the village. The chief financial officer, or other 41
persons performing the investment functions shall have the option to further 42
restrict investment percentages from time to time based on market 43
conditions. The percentage allocations requirements for investment types 44
and issuers are calculated based on the original cost of each investment, at 45
the time of purchase. Investments not listed in this policy are prohibited. 46
47
(1) Banks. The Village shall only select a QPD (Qualified Public 48
Depository) with a collateral pledge level of twenty-five (25) 49
Page 6 of 15
percent or fifty (50) percent as established by the State Chief 1
Financial Officer pursuant to Section 280.04, Florida Statutes. 2
3
(2) U.S. Treasury & Government Guaranteed. U.S. Treasury 4
obligations, and obligations the principal and interest of which are 5
backed or guaranteed by the full faith and credit of the U.S. 6
Government. 7
8
(3) Federal Agency/GSE. Debt obligations, participations or other 9
instruments issued or fully guaranteed by any U.S. Federal agency, 10
instrumentality or government-sponsored enterprise (GSE). 11
12
(4) Supranationals. U.S. dollar denominated debt obligations of a 13
multilateral organization of governments where U.S. is a 14
shareholder and voting member. 15
16
(5) Corporates. U.S. dollar denominated corporate notes, bonds or other 17
debt obligations issued or guaranteed by a domestic or foreign 18
corporation, financial institution, non-profit, or other entity. 19
20
(6) Municipals. Obligations, including both taxable and tax-exempt, 21
issued or guaranteed by any State, territory or possession of the 22
United States, political subdivision, public corporation, authority, 23
agency board, instrumentality or other unit of local government of 24
any State or territory. 25
26
(7) Agency Mortgage Backed Securities. Mortgage-backed securities 27
(MBS), backed by residential, multi-family or commercial 28
mortgages, that are issued or fully guaranteed as to principal and 29
interest by a U.S. Federal agency or government sponsored 30
enterprise, including but not limited to pass-throughs, collateralized 31
mortgage obligations (CMOs) and REMICs. 32
33
(8) Asset-Backed Securities. Asset-backed securities (ABS) whose 34
underlying collateral consists of loans, leases or receivables, 35
including but not limited to auto loans/leases, credit card 36
receivables, student loans, equipment loans/leases, or home-equity 37
loans. 38
39
(9) Non-Negotiable Certificate of Deposit and Savings Accounts. Non-40
negotiable interest bearing time certificates of deposit, or savings 41
accounts in banks organized under the laws of this state or in 42
national banks organized under the laws of the United States and 43
doing business in this state, provided that any such deposits are 44
secured by the Florida Security for Public Deposits Act, Chapter 45
280, Florida Statutes. 46
47
(10) Commercial Paper. U.S. dollar denominated commercial paper 48
issued or guaranteed by a domestic or foreign corporation, company, 49
Page 7 of 15
financial institution, trust or other entity, including both unsecured 1
debt and asset-backed programs. 2
3
(11) Money Market Funds. Shares in open-end and no-load money 4
market mutual funds, provided such funds are registered under the 5
Investment Company Act of 1940 and operate in accordance with 6
Rule 2a-7. 7
8
A thorough investigation of any money market fund is required prior 9
to investing, and on an annual basis thereafter. The list of questions 10
that cover the major aspects of any investment pool/fund set forth in 11
the adopted Investment Pool/Fund Questionnaire must be asked 12
prior to investing. Additionally, a current prospectus must be 13
obtained. 14
15
(12) Local Government Investment Pools. State, local government or 16
privately-sponsored investment pools that are authorized pursuant 17
to state law. A thorough investigation of any intergovernmental 18
investment pool is required prior to investing, and on an annual 19
basis. The list of questions that cover the major aspects of any 20
investment pool/fund set forth in the adopted Investment Pool/Fund 21
Questionnaire must be asked prior to investing. Additionally, a 22
current prospectus must be obtained. 23
24
(13) The Florida Local Government Surplus Funds Trust Funds 25
("Florida Prime"). A thorough investigation of the Florida Prime is 26
required prior to investing, and on an annual basis. The list of 27
questions that cover the major aspects of any investment pool/fund 28
set forth in the adopted Investment Pool/Fund Questionnaire must 29
be asked prior to investing. Additionally, a current prospectus must 30
be obtained. 31
32
(g h) General investment and portfolio limits: 33
34
(1) General investment limitations: 35
36
a. Investments must be denominated in U.S. dollars and issued 37
for legal sale in U.S. markets. 38
39
b. Minimum ratings are based on the highest rating by any one 40
(1) Nationally Recognized Statistical Ratings Organization 41
("NRSRO"), unless otherwise specified. 42
43
c. All limits and rating requirements apply at time of purchase. 44
45
d. Should a security fall below the minimum credit rating 46
requirement for purchase, the investment advisor will notify 47
the chief financial officer. 48
49
Page 8 of 15
e. The maximum maturity (or average life for MBS/ABS) of 1
any investment is five and one-half (5.50) years. Maturity 2
and average life are measured from settlement date. The final 3
maturity date can be based on any mandatory call, put, pre-4
refunding date, or other mandatory redemption date. 5
6
(2) General portfolio limitations: 7
8
a. The maximum effective duration of the aggregate portfolio 9
is three (3) years. 10
11
b. Maximum exposure to issuers in any non-U.S. country 12
cannot exceed ten (10) percent per country. 13
14
(3) Investment in the following are permitted, provided they meet all 15
other policy requirements: 16
17
a. Callable, step-up callable, called, pre-refunded, putable and 18
extendable securities, as long as the effective final maturity 19
meets the maturity limits for the sector. 20
21
b. Variable-rate and floating-rate securities. 22
23
c. Subordinated, secured and covered debt, if it meets the 24
ratings requirements for the sector. 25
26
d. Zero coupon issues and strips, excluding agency mortgage-27
backed Interest-only structures (I/Os). 28
29
e. Treasury TIPS. 30
31
(4) The following are not permitted investments, unless specifically 32
authorized by statute and with prior approval of the village council: 33
34
a. Trading for speculation. 35
36
b. Derivatives (other than callables and traditional floating or 37
variable-rate instruments). 38
39
c. Mortgage-backed interest-only structures (I/Os). 40
41
d. Inverse or leveraged floating-rate and variable-rate 42
instruments. 43
44
e. Currency, equity, index and event-linked notes (e.g. range 45
notes), or other structures that could return less than par at 46
maturity. 47
48
Page 9 of 15
f. Private placements and direct loans, except as may be legally 1
permitted by Rule 144A or commercial paper issued under a 2
4(2) exemption from registration. 3
4
g. Convertible, high yield, and non-U.S. dollar denominated 5
debt. 6
7
h. Short sales. 8
9
i. Use of leverage. 10
11
j. Futures and options. 12
13
k. Mutual funds, other than fixed-income mutual funds and 14
ETFs, and money market funds. 15
16
l. Equities, commodities, currencies and hard assets. 17
18
(h i) Maturity and liquidity requirements. The village's investment portfolio shall 19
be structured to provide sufficient liquidity to pay obligations as they come 20
due. Furthermore, to the extent possible, an attempt will be made to match 21
investment maturities with known cash needs and anticipated cash flow 22
requirements. Unless matched to a specific cash flow, the village will not 23
directly invest in securities maturing more than five and one-half (5.50) 24
years from the date of purchase. 25
26
(i j) Portfolio composition. The following are the limits for investments and 27
limits on security issues, and maturities in the portfolio. The chief financial 28
officer has the option to further restrict investment in selected instruments, 29
to conform to the present market conditions. 30
31
Note, however, that the percentage allocation requirements do not apply to 32
the funds related to the issuance of debt. 33
34
Note: The table below defines two (2) types of village investments, 35
"operating" and "core": 36
37
Operating: Those liquid funds necessary to conduct routine village activity, 38
in addition to an amount determined by the village council and 39
administration sufficient to cover emergency situations and unforeseen 40
capital expenditures. 41
42
Core: All funds not included in operating funds. In general, these funds can 43
be invested in issues with longer-term maturities. 44
45
These terms shall be defined and the amounts will be designated at least 46
once a year during the village budget discussions. Changes during a year 47
shall only be made by resolution of the village council. These changes will 48
Page 10 of 15
apply to the end of the current fiscal year and must be reconfirmed or 1
changed as needed during the next annual budget process. 2
3
Table insets: 4
5
Operating Funds (Short-Term Portfolio Permitted Investments: 6
7
Authorized
Investments
Sector
Maximum (%)
Sector
Minimum (%)
Per Issuer
Maximum (%)
Minimum Ratings
Requirement
Maturity
Range5
Banks - Interest-
bearing checking
or savings
accounts
100%
8.33%
(1/12 of annual
Village
operating
budget)
50% N/A
N/A
Non-Negotiable
Certificate of
Deposits
91.67%
(11/12th of
annual Village
operating
budget)
0% 33.33% N/A 30 days
Florida Local
Government
Surplus Funds
Trust Funds
(“Florida Prime”)
25% 0% N/A
Highest Fund
Rating by all
NRSROs who rate
the fund
(AAAm/Aaa-mf,
or equivalent)
N/A
Intergovernmental
Pools (LGIPs) 25% 0% N/A
Highest Fund
Quality and
Volatility Rating
Categories by all
NRSROs who rate
the LGIP,
(AAAm/AAAf,
S1, or equivalent
N/A
Money Market
Funds (MMFs)
50%
0% 33.33%
Highest Fund
Rating by all
NRSROs who rate
the fund
(AAAm/Aaa-mf,
or equivalent)
N/A
U.S. Treasury 50% 0% N/A N/A 30 days
Commercial
Paper 5% 0% N/A
Highest ST Rating
Category
(A-1/P-1, or
equivalent)
30 Days
8
Core Funds (Long-Term Portfolio) Permitted Investments: 9
10
Sector Sector Maximum
(%)
Per Issuer
Maximum (%)
Minimum Ratings
Requirement1
Maximum
Security5
U.S. Treasury 100% 100% N/A
5.50 Years
(5.50 Years avg.
life4
for GNMA)
GNMA 40%
Page 11 of 15
Other U.S.
Government
Guaranteed (e.g.
AID, GTC)
10%
Federal
Agency/GSE:
FNMA, FHLMC,
FHLB, FFCB* 75%
40%3
N/A
5.50 Years
Federal
Agency/GSE
other than those
above
10%
Supranationals
where U.S. is a
shareholder and
voting member
25% 10%
Highest ST or Two
Highest LT Rating
Categories
(A-1/P-1, AA-
/Aa3, or
equivalent)
5.50 Years
Corporates 50%2 5%
Highest ST or
Three Highest LT
Rating Categories
(A-1/P-1, A-/A3 or
equivalent)
5.50 Years
Municipals 25% 5%
Highest ST or
Three Highest LT
Rating Categories
(SP-1/MIG 1, A-
/A3, or equivalent)
5.50 Years
Agency Mortgage-
Backed Securities
(MBS)
25% 40%3 N/A 5.50 Years
Avg. Life4
Asset-Backed
Securities (ABS) 25% 5%
Highest ST or LT
Rating
(A-1+/P-1,
AAA/Aaa, or
equivalent)
5.50 Years
Avg. Life4
Non-Negotiable
Certificate of
Deposit or Savings
Accounts
50% None, if fully
collateralized
None, if fully
collateralized. 2 Years
Commercial Paper
(CP) 50%2 5%
Highest ST Rating
Category
(A-1/P-1, or
equivalent)
270 Days
Money Market
Funds (MMFs) 50% 25%
Highest Fund
Rating by all
NRSROs who rate
the fund
(AAAm/Aaa-mf, or
equivalent)
N/A
Intergovernmental
Pools (LGIPs) 50% 25%
Highest Fund
Quality and
Volatility Rating
Categories by all
NRSROs who rate
the LGIP,
(AAAm/AAAf, S1,
or equivalent)
N/A
Page 12 of 15
Florida Local
Government
Surplus Funds
Trust Funds
(“Florida Prime”)
25% N/A
Highest Fund
Rating by all
NRSROs who rate
the fund
(AAAm/Aaa-mf,
or equivalent)
N/A
Notes:
1 Rating by at least one SEC-registered Nationally Recognized Statistical Rating Organization (“NRSRO”),
unless otherwise noted. ST=Short-term; LT=Long-term.
2 Maximum allocation to all corporate and bank credit instruments is 50% combined.
3 Maximum exposure to any one Federal agency, including the combined holdings of Agency debt and
Agency MBS, is 40%.
4 The maturity limit for MBS and ABS is based on the expected average life at time of settlement, measured
using Bloomberg or other industry standard methods.
5 Maximum maturity or weighted average life is from settlement date.
* Federal National Mortgage Association (FNMA); Federal Home Loan Mortgage Corporation (FHLMC);
Federal Home Loan Bank or its District banks (FHLB); Federal Farm Credit Bank (FFCB).
1
(j k) Risk and diversification. Assets held shall be diversified to control the risk of loss 2
resulting from the over-concentration of assets in a specific maturity, issuer, 3
instrument, dealer, or bank through which these instruments are bought and sold. 4
Diversification strategies shall be reviewed and revised periodically as deemed 5
necessary by the chief financial officer. 6
7
(k l) Authorized investment institutions and dealers. A list will be maintained of 8
financial institutions authorized to provide investment services. In addition, a list 9
also will be maintained of approved security brokers/dealers selected by 10
creditworthiness. Authorized staff shall only purchase securities from financial 11
institutions, which are qualified as public depositories by the Treasurer, or Chief 12
Financial Officer of the State of Florida, "Primary Dealers" as designated by the 13
Federal Reserve Bank of New York, or from direct issuers of commercial paper. 14
15
The village's investment advisor shall utilize and maintain its own list of approved 16
primary and non-primary dealers. 17
18
(l m) Third-party custodial agreements. All securities purchased by the village shall be 19
properly designated as an asset of the village and shall be held in an account 20
separate and apart from the assets of the financial institution. A third party 21
custodian is defined as any bank depository chartered by the Federal Government, 22
the State of Florida, or any other state or territory of the United States which has a 23
branch or principal place of business in the State of Florida as defined in Section 24
658.12, Florida Statutes, or by a national association organized and existing under 25
the laws of the United States which is authorized to accept and execute trusts and 26
which is doing business in the State of Florida. Certificates of deposits will be 27
placed in the provider's safekeeping department for the term of the deposit. The 28
third-party custodian will be required to designate all securities held as assets of the 29
village. No withdrawal of securities, in whole or in part, shall be made from 30
safekeeping, except by the chief financial officer, or his/her respective designees. 31
Securities transactions between a broker-dealer and the custodian involving 32
purchase or sale of securities by transfer of money or securities must be made on a 33
Page 13 of 15
"delivery vs. payment" basis, if applicable, to ensure that the custodian will have 1
the security or money, as appropriate, in hand at the conclusion of the transaction. 2
Securities held as collateral shall be held free and clear of any liens. 3
4
(m n) Master repurchase agreement. All approved institutions and dealers transacting 5
repurchase agreements shall execute and perform as stated in the Securities Industry 6
and Financial Markets Association (SIFMA) master repurchase agreement. All 7
repurchase agreement transactions shall adhere to the requirements of the SIFMA 8
master repurchase agreement. 9
10
(n o) Bid requirement. An appropriate maturity date will be determined for each 11
investment based on cash-flow needs and market conditions. Based on these 12
considerations, the chief financial officer will analyze and select one (1) or more 13
optimal types of investments, and a minimum of three (3) reputable, qualified and 14
financially sound banks and/or dealers must be contacted and asked to provide bids 15
on the securities in question when feasible and appropriate. Except as otherwise 16
required by law, the bid deemed to best meet the investment objectives specified in 17
subsection (c) must be selected. 18
19
(o p) Internal controls. 20
21
(1) The chief financial officer shall establish and maintain a written system of 22
internal controls made a part of the village's operational procedures. The 23
internal controls shall be designed to prevent losses of funds, which might 24
arise from fraud, employee error, misrepresentation by third parties, or 25
imprudent actions by employees of the village. No person shall engage in 26
an investment transaction except as authorized in this policy. 27
28
(2) Independent auditors, as a normal part of the annual financial audit to the 29
village, shall conduct a review of the system of internal controls to ensure 30
compliance with policies and procedures as may be required by the village. 31
32
(p q) Continuing education. The chief financial officer shall complete eight (8) hours of 33
continuing education annually in subjects or courses related to investment practices 34
and products. 35
36
(q r) Reporting. The chief financial officer or his or her respective designee shall prepare 37
a quarterly investment report, which shall include securities in the portfolio by class 38
and type, acquisition cost, income earned, yield, maturity date and market value as 39
of the report date. The report will be provided to the legislative and governing bod y 40
of the village and shall be available to the public. 41
42
(r s) Securities; dDisposition. Every security purchased on behalf of the Village must be 43
properly earmarked and: 44
45
(1) If registered with the issuer or agents, must be immediately placed for 46
safekeeping in a location that protects the village's interest in the security; 47
48
Page 14 of 15
(2) If in book entry form, must be held for the credit of the governing body by 1
a depository chartered by the federal government, the state, or any other 2
state or territory of the United States which has a branch or principal place 3
of business in the state as defined in Florida Statutes section 658.12, or by 4
national association organized and existing under the laws of the United 5
States which is authorized to accept and exercise trusts and which is doing 6
business in the state, and must be kept in the depository in an account 7
separate and apart from the assets of the financial institution, or 8
9
(3) If physically issued to the holder but not registered with the issuer or its 10
agents, must be immediately placed for safekeeping in a secured vault. 11
12
(s t) Sale of securities. When invested funds are needed in whole or in part for the 13
purposes originally intended or for more optimal investments, the chief financial 14
officer may sell such investments at the then-prevailing market price and place the 15
proceeds into the proper account or fund. 16
17
(t u) Policy considerations. 18
19
(1) Exemptions. Any investment held prior to the adoption of this policy that 20
does not meet the guidelines of this policy shall be exempted from the 21
requirements of this policy. At maturity or liquidation, such monies shall be 22
reinvested only as provided by this policy. 23
24
(2) Amendments. This policy shall be reviewed on an annual basis by the village 25
council at the "setting of council goals and objectives" session of the annual 26
budget. The village council must approve any changes. 27
28
(u v) Delegation of authority. The finance director is the chief financial officer of the 29
village and is responsible for investment decisions and activities. No person may 30
engage in an investment transaction except as provided under the terms of this 31
policy and the procedures established hereunder. 32
33
Nothing set forth herein shall preclude the village from utilizing an investment 34
advisor to assist in managing the village's portfolio. Such investment advisor must 35
be registered with the U.S. Securities and Exchange Commission (“SEC”) under 36
the Investment Advisor's Act of 1940. The investment advisor may invest funds on 37
behalf of the village in accordance with the mandates of this investment policy. 38
39
Authorized signatories are the chief financial officer, the village manager and the 40
village mayor. These individuals are also authorized to initiate wire transfers for 41
the village. All investment transactions require approval by two (2) of the 42
depository signatories. 43
44
(v w) Annual review. The chief financial officer shall review the investment policy 45
annually and, if necessary, present modifications to the village council for approval. 46
47
* * * 48
49
Page 15 of 15
Section 3. The provisions of this Ordinance shall become and be made a part of the Code of 1
Ordinances of the Village of North Palm Beach, Florida. 2
3
Section 4. If any section, paragraph, sentence, clause, phrase, or word of this Ordinance is for 4
any reason held by a court of competent jurisdiction to be unconstitutional, inoperative, or void, 5
such holding shall not affect the remainder of this Ordinance. 6
7
Section 5. All ordinances or parts of ordinances and resolutions or parts of resolutions in 8
conflict herewith are hereby repealed to the extent of such conflict. 9
10
Section 6. This Ordinance shall take effect immediately upon adoption. 11
12
PLACED ON FIRST READING THIS _____ DAY OF ________________, 2026. 13
14
PLACED ON SECOND, FINAL READING AND PASSED THIS ______ DAY OF 15
___________, 2026. 16
17
18
19
(Village Seal) 20
MAYOR 21
22
23
ATTEST: 24
25
26
VILLAGE CLERK 27
28
APPROVED AS TO FORM AND 29
LEGAL SUFFICIENCY: 30
31
32
VILLAGE ATTORNEY 33
pfmam.com
A Division of U.S. Bancorp Asset Management, Inc.
For Institutional Investor or Investment Professional Use Only –This material is
not for inspection by, distribution to, or quotation to the general public
Village of
North Palm Beach
Investment Policy Review
December 2025
Florida Statutes
Association of
Public Treasurers
of US & Canada
GFOA Best
Practices
Investment Policy Review Framework
2For illustrative purposes only.
1. https://aptusc.memberclicks.net/investment-policy-certification
2. https://www.gfoa.org/materials/investment-policy
PFMAM’s Investment Policy Review Framework
consists of three components:
Section 218.415 Florida Statutes Requirements
3For illustrative purposes only. See statute for full listing of requirements.
For consideration, existing
investment policy to include a
recent addition to legislation, as
per Section 218.415 Florida
Statutes Requirements
▸Scope▸Investment Objectives▸Performance Measurement▸Prudence and Ethical Standards▸Listing of Authorized Investments▸Maturity and Liquidity Requirements▸Portfolio Composition▸Risk and Diversification▸Authorized Investment Institutions and
Dealers▸Third-Party Custodial Agreements▸Master Repurchase Agreement▸Bid Requirement▸Internal Controls▸Continuing Education▸Reporting
APT US & C* Investment Policy Requirements
4
Based on PFMAM’s review, the
Villaeges’s investment policy
should consider adding or
updating these sections to be in
line with the APT US & C*
Investment Policy Requirements
▸Policy/Purpose▸Scope▸Prudence▸Objective (Safety, Liquidity, Yield)▸Delegation of Authority▸Ethics and Conflict of Interest▸Authorized Financial Dealers and Institutions▸Authorized & Suitable Investments▸Investment Pools/Mutual Fund Questionnaire ▸Collateralization▸Safekeeping and Custody ▸Diversification▸Maximum Maturities▸Internal Control▸Performance Standards▸Reporting▸Investment Policy Adoption▸Glossary
*Association of Public Treasurers of the United States and Canada (APT US & C). For illustrative purposes only. Please see full investment policy.
GFOA Investment Policy Best Practices
5For illustrative purposes only.
Based on PFMAM’s review, the
existing investment policy meets
the GFOA Investment Policy Best
Practices recommendations
▸Scope and investment objectives ▸Roles, responsibilities, and standards of care▸Suitable and authorized investments ▸Investment diversification ▸Safekeeping, custody, and internal controls ▸Authorized financial institutions, depositories,
and broker/dealers ▸Risk and performance standards ▸Reporting and disclosure standards
▸ Add and update sections under Section 218.415, Florida Statutes▹The 2023 Florida Legislature made changes to the investment statutes for local
governments. The changes became effective July 1, 2023 under 218.415(24).The changes
require that investment decisions be based solely on “pecuniary factors.” The term does not
include consideration of the furtherance of any social, political, or ideological interests.▸Performance Measurements:▹Update index name▹Include “other indices may be used from time to time to measure portfolio performance” in
the event the Village would like to change investment strategy and benchmarks without
having to update the investment policy. ▸Portfolio Composition:▹Note, however that the percentage allocation requirements do not apply to the funds related
to the issuance of debt.▹Add note to “maximum maturity” for clarification that the maximum maturity is from
settlement date.▸To be in line with the APT US&C, include sections: investment pools/fund questionnaire, glossary
and investment policy adoption. ▸Miscellaneous minor updates for formatting.
Key Observations & Recommendations
6
DisclaimerDisclaimer
The views expressed within this material constitute the perspective and judgment of U.S. Bancorp Asset
Management, Inc. at the time of distribution and are subject to change. Any forecast, projection, or
prediction of the market, the economy, economic trends, and equity or fixed-income markets are based
upon current opinion as of the date of issue and are also subject to change. Opinions and data presented
are not necessarily indicative of future events or expected performance. Information contained herein is
based on data obtained from recognized statistical services, issuer reports or communications, or other
sources, believed to be reliable. No representation is made as to its accuracy or completeness.
PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset
Management, Inc., which is the legal entity providing investment advisory services. U.S. Bancorp Asset
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7
Page 1 of 28
Sec. 2-4. Investment policy of the village.
I. Purpose
The purpose of this statement is to set forth the policy and objectives governing the
investment management of public funds of the village that are in excess of the amounts
needed to meet current expenses. This investment policy places the highest priority on the
safety and liquidity of funds.
II. Scope
In accordance with Section 218.415, Florida Statutes, this investment policy applies to all
the investment activity of the village, except for its employees' pension funds, which are
organized and administered separately, or for funds related to the issuance of debt where
there are other existing policies or indentures in effect for such funds.
Funds included:
(1) General fund.
(2) Special revenue funds.
(3) Enterprise funds.
(4) Capital projects funds.
(5) Any new funds created by the governing body unless specifically exempt.
III. Investment Objectives
The primary objectives, in priority of order of investment activities, shall be safety of
principal, liquidity of funds, and maximizing investment income.
(1) Safety. Safety of principal is the foremost objective of investment activities.
Investments shall be undertaken in a manner that seeks to ensure preservation of
capital in the overall portfolio. All other investment objectives are secondary to the
safety of principal. The objective will be to mitigate credit risk and interest rate risk.
a. Credit risk. Credit risk, the risk of loss due to the failure of the security issuer or
backer, will be minimized by:
1. Limiting investments to safe types of securities.
2. Pre-qualifying the financial institutions, broker dealers, intermediaries, and
advisers with which the village will do business.
3. Diversifying the investment portfolio so that potential losses on individual
securities will not place an undue financial burden on the village, and
4. Monitoring all of the village's investments to anticipate and respond
appropriately to changing market conditions.
5. Quarterly reporting, in comparative format, of all market values of invested
funds and instruments.
b. Interest rate risk. The village will minimize the risk that the market value of
securities in the portfolio will fall due to changes in general interest rates, by:
Page 2 of 28
1. Structuring the investment portfolio so that the securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to maturity; and
2. Investing operating funds primarily in short-term securities, money market
mutual funds, or similar investment pools unless it is anticipated that long-
term securities can be held to maturity without jeopardizing the liquidity
requirements.
(2) Liquidity.
a. General liquidity. The investment portfolio shall remain sufficiently liquid to
meet all operating requirements that may be reasonably anticipated. This is
accomplished by structuring the portfolio so that the securities mature concurrent
with cash needs to meet anticipated demands. Furthermore, since all possible cash
demands cannot be anticipated, the portfolio should consist largely of securities
with active secondary or resale markets. Portions of the portfolio may be placed in
interest-bearing checking/savings accounts with qualified public depositories,
Securities and Exchange Commission registered money market funds with the
highest credit quality rating from a Nationally Recognized Statistical Rating
Organization (NRSRO), or local government investment pools which offer same-
day liquidity for short-term funds.
b. Local liquidity. The chief financial officer of the village shall establish and
maintain a local, liquid fund in an amount equal to, as a minimum, one-twelfth (
1/12) of the designated operating funds in the annual village budget.
(3) Investment income. Without compromising safety and liquidity, the highest possible
total return should be obtained on the village's funds. Income will include
interest/dividends received as well as any realized or unrealized gains and losses of
principal of the underlying security. Return on investment is of least importance
compared to the safety and liquidity objectives described above. However, return is
attempted through active management where the investment advisor utilizes a total
return strategy (which includes both realized and unrealized gains and losses in the
portfolio). This total return strategy seeks to increase the value of the portfolio through
reinvestment of income and capital gains. The core of investments is limited to
relatively low risk securities in anticipation of earning a fair return relative to the risk
being assumed. Despite this, an investment advisor may trade to recognize a loss from
time to time to achieve a perceived relative value based on its potential to enhance the
total return of the portfolio.
IV. Investment Decisions
The village and investment advisor shall comply with the applicable requirements of
Chapter 2023-28, Laws of Florida, including Section 218.415(24). The term “pecuniary
factor” as used in this subsection means a factor that the village and investment advisor
prudently determines is expected to have material effect on the risk or returns of
investment based on appropriate investment horizons consistent with applicable
investment objectives and funding policy. The term does not include the consideration of
the furtherance of any social, political, or ideological interests.
Page 3 of 28
V. Performance Measurements
In order to assist in the evaluation of the portfolio's performance, the village shall use
nationally recognized benchmarks for the short term and long term portfolios.
Performance calculations will not include any balances invested in overnight sweep
accounts.
(1) Operating Funds or Short term portfolio. Investment performance of funds designated
as short-term funds and other funds that must maintain a high degree of liquidity will
be compared to the return of the S&P Rated GIP Index Government 30-Day Gross of
Fees Yield. Investments of current operating funds shall have maturities of no longer
than twelve (12) months.
(2) Core Funds or Long term portfolio. Investment performance of the village portfolio
will be compared to the ICE BofA 1—3 year United States Treasury Note Index or the
equivalent composed of U.S. Treasury or government securities, with duration and
asset mix that approximates the village portfolio. The benchmark's performance will be
compared to the portfolio's total rate of return. Investments of long-term funds shall
have a term appropriate to the need for funds, but in no event shall exceed five and
one-half (5.50) years.
(3) Other indices may be used from time to time to measure portfolio performance by
approval of the chief financial officer.
VI. Prudence and Ethical Standards
(1) Prudence. The standard of prudence to be used shall be the "prudent person rule,"
which states that:
Investments should be made with judgment and care, under circumstances then
prevailing, which persons of prudence, discretion, and intelligence exercise in the
management of their own affairs, not for speculation, but for the investment,
considering the probable safety of their capital as well as the probable income to be
derived from the investment.
The chief financial officer, or other persons performing the investment functions,
acting in accordance with written policies and procedures, and exercising due diligence
shall be relieved of personal responsibility for an individual security's credit risk or
market price changes, provided deviations from expectations are reported immediately
and that appropriate action is taken to control adverse developments.
While the standard of prudence to be used by authorized staff who are officers or
employees is the "prudent person" standard, any person or firm hired or retained to
invest, monitor, or advise concerning these assets shall be held to the higher standard
of "prudent expert". The standard shall be that in investing and reinvesting moneys and
in acquiring, retaining, managing, and disposing of investments of these funds, the
investment advisor shall exercise: the judgment, care, skill, prudence, and diligence
under the circumstances then prevailing, which persons of prudence, discretion, and
intelligence, acting in a like capacity and familiar with such matters would use in the
conduct of an enterprise of like character and with like aims by diversifying the
Page 4 of 28
investments of the funds, so as to minimize the risk, considering the probable income
as well as the probable safety of their capital.
(2) Ethical standards. Officers and employees involved in the investment process shall
refrain from personal business activity that could conflict with the proper execution
and management of the investment program, or that could impair their ability to make
impartial decisions. Employees and investment officials shall disclose any material
interest in financial institutions with which they conduct business. They shall further
disclose any personal financial/investment positions that could be related to the
performance of the investment portfolio. Employees and officers shall refrain from
undertaking personal investment transactions with the same individual with whom
business is conducted on behalf of the village.
VII. Authorized Investments and Pre-Qualification
The village may invest and reinvest, in accordance with the objectives stated in
subsection (c), in the financial instruments noted in the table insets below. The following
are the guidelines for investments and limits on security types, issuers, and maturities as
established by the village. The chief financial officer, or other persons performing the
investment functions shall have the option to further restrict investment percentages from
time to time based on market conditions. The percentage allocations requirements for
investment types and issuers are calculated based on the original cost of each investment,
at the time of purchase. Investments not listed in this policy are prohibited.
(1) Banks. The Village shall only select a QPD (Qualified Public Depository) with a
collateral pledge level of twenty-five (25) percent or fifty (50) percent as established
by the State Chief Financial Officer pursuant to Section 280.04, Florida Statutes.
(2) U.S. Treasury & Government Guaranteed. U.S. Treasury obligations, and obligations
the principal and interest of which are backed or guaranteed by the full faith and credit
of the U.S. Government.
(3) Federal Agency/GSE. Debt obligations, participations or other instruments issued or
fully guaranteed by any U.S. Federal agency, instrumentality or government-sponsored
enterprise (GSE).
(4) Supranationals. U.S. dollar denominated debt obligations of a multilateral organization
of governments where U.S. is a shareholder and voting member.
(5) Corporates. U.S. dollar denominated corporate notes, bonds or other debt obligations
issued or guaranteed by a domestic or foreign corporation, financial institution, non-
profit, or other entity.
(6) Municipals. Obligations, including both taxable and tax-exempt, issued or guaranteed
by any State, territory or possession of the United States, political subdivision, public
corporation, authority, agency board, instrumentality or other unit of local government
of any State or territory.
(7) Agency Mortgage Backed Securities. Mortgage-backed securities (MBS), backed by
residential, multi-family or commercial mortgages, that are issued or fully guaranteed
as to principal and interest by a U.S. Federal agency or government sponsored
Page 5 of 28
enterprise, including but not limited to pass-throughs, collateralized mortgage
obligations (CMOs) and REMICs.
(8) Asset-Backed Securities. Asset-backed securities (ABS) whose underlying collateral
consists of loans, leases or receivables, including but not limited to auto loans/leases,
credit card receivables, student loans, equipment loans/leases, or home-equity loans.
(9) Non-Negotiable Certificate of Deposit and Savings Accounts. Non-negotiable interest
bearing time certificates of deposit, or savings accounts in banks organized under the
laws of this state or in national banks organized under the laws of the United States and
doing business in this state, provided that any such deposits are secured by the Florida
Security for Public Deposits Act, Chapter 280, Florida Statutes.
(10) Commercial Paper. U.S. dollar denominated commercial paper issued or guaranteed
by a domestic or foreign corporation, company, financial institution, trust or other
entity, including both unsecured debt and asset-backed programs.
(11) Money Market Funds. Shares in open-end and no-load money market mutual funds,
provided such funds are registered under the Investment Company Act of 1940 and
operate in accordance with Rule 2a-7.
A thorough investigation of any money market fund is required prior to investing, and
on an annual basis thereafter. The list of questions that cover the major aspects of any
investment pool/fund set forth in the adopted Investment Pool/Fund Questionnaire
must be asked prior to investing. Additionally, a current prospectus must be obtained.
(12) Local Government Investment Pools. State, local government or privately-sponsored
investment pools that are authorized pursuant to state law. A thorough investigation of
any intergovernmental investment pool is required prior to investing, and on an annual
basis. The list of questions that cover the major aspects of any investment pool/fund set
forth in the adopted Investment Pool/Fund Questionnaire must be asked prior to
investing. Additionally, a current prospectus must be obtained.
(13) The Florida Local Government Surplus Funds Trust Funds ("Florida Prime"). A
thorough investigation of the Florida Prime is required prior to investing, and on an
annual basis. The list of questions that cover the major aspects of any investment
pool/fund set forth in the adopted Investment Pool/Fund Questionnaire must be asked
prior to investing. Additionally, a current prospectus must be obtained.
VIII. General investment and portfolio limits:
(1) General investment limitations:
a. Investments must be denominated in U.S. dollars and issued for legal sale in U.S.
markets.
b. Minimum ratings are based on the highest rating by any one (1) Nationally
Recognized Statistical Ratings Organization ("NRSRO"), unless otherwise
specified.
c. All limits and rating requirements apply at time of purchase.
d. Should a security fall below the minimum credit rating requirement for purchase,
the investment advisor will notify the chief financial officer.
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e. The maximum maturity (or average life for MBS/ABS) of any investment is five
and one-half (5.50) years. Maturity and average life are measured from settlement
date. The final maturity date can be based on any mandatory call, put, pre-
refunding date, or other mandatory redemption date.
(2) General portfolio limitations:
a. The maximum effective duration of the aggregate portfolio is three (3) years.
b. Maximum exposure to issuers in any non-U.S. country cannot exceed ten (10)
percent per country.
(3) Investment in the following are permitted, provided they meet all other policy
requirements:
a. Callable, step-up callable, called, pre-refunded, putable and extendable securities,
as long as the effective final maturity meets the maturity limits for the sector.
b. Variable-rate and floating-rate securities.
c. Subordinated, secured and covered debt, if it meets the ratings requirements for
the sector.
d. Zero coupon issues and strips, excluding agency mortgage-backed Interest-only
structures (I/Os).
e. Treasury TIPS.
(4) The following are not permitted investments, unless specifically authorized by statute
and with prior approval of the village council:
a. Trading for speculation.
b. Derivatives (other than callables and traditional floating or variable-rate
instruments).
c. Mortgage-backed interest-only structures (I/Os).
d. Inverse or leveraged floating-rate and variable-rate instruments.
e. Currency, equity, index and event-linked notes (e.g. range notes), or other
structures that could return less than par at maturity.
f. Private placements and direct loans, except as may be legally permitted by Rule
144A or commercial paper issued under a 4(2) exemption from registration.
g. Convertible, high yield, and non-U.S. dollar denominated debt.
h. Short sales.
i. Use of leverage.
j. Futures and options.
k. Mutual funds, other than fixed-income mutual funds and ETFs, and money market
funds.
l. Equities, commodities, currencies and hard assets.
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IX. Maturity and liquidity requirements
The village's investment portfolio shall be structured to provide sufficient liquidity to pay
obligations as they come due. Furthermore, to the extent possible, an attempt will be
made to match investment maturities with known cash needs and anticipated cash flow
requirements. Unless matched to a specific cash flow, the village will not directly invest
in securities maturing more than five and one-half (5.50) years from the date of purchase.
X. Portfolio Composition
The following are the limits for investments and limits on security issues, and maturities
in the portfolio. The chief financial officer has the option to further restrict investment in
selected instruments, to conform to the present market conditions.
Note, however that the percentage allocation requirements do not apply to the funds
related to the issuance of debt.
Note: The table below defines two (2) types of village investments, "operating" and
"core":
Operating: Those liquid funds necessary to conduct routine village activity, in addition to
an amount determined by the village council and administration sufficient to cover
emergency situations and unforeseen capital expenditures.
Core: All funds not included in operating funds. In general, these funds can be invested
in issues with longer-term maturities.
These terms shall be defined and the amounts will be designated at least once a year
during the village budget discussions. Changes during a year shall only be made by
resolution of the village council. These changes will apply to the end of the current fiscal
year and must be reconfirmed or changed as needed during the next annual budget
process.
Table insets:
Operating Funds (Short-Term Portfolio Permitted Investments):
Authorized
Investments
Sector
Maximum
(%)
Sector
Minimum
(%)
Per Issuer
Maximum
(%)
Minimum
Ratings
Requirement
Maturity
Range5
Banks — Interest-
bearing checking
or savings
accounts
100%
8.33% (1/12
of annual
Village
operating
budget)
50% N/A N/A
Non-Negotiable
Certificate of
Deposits
91.67%
(11/12th of
annual
Village
operating
budget)
0% 33.33% N/A 30 days
Page 8 of 28
Florida Local
Government
Surplus Fund
Trust Funds
("Florida Prime")
50% 0% N/A
Highest Fund
Rating by all
NRSROs who
rate the fund
(AAAm/Aaa-
mf, or
equivalent)
N/A
Intergovernmental
Pools (LGIPs) 50% 0% N/A
Highest Fund
Quality and
Volatility
Rating
Categories by
all NRSROs
who rate the
LGIP,
(AAAm/AAAf,
S1, or
equivalent
N/A
Money Market
Funds (MMFs) 50% 0% 33.33%
Highest Fund
Rating by all
NRSROs who
rate the fund
(AAAm/Aaa-
mf, or
equivalent)
N/A
U.S. Treasury 50% 0% N/A N/A 30 days
Commercial
Paper 5% 0% N/A
Highest ST
Rating
Category (A-
1/P-1, or
equivalent)
30 Days
Core Funds (Long-Term Portfolio) Permitted Investments:
Sector Sector
Maximum
(%)
Per Issuer
Maximum (%)
Minimum
Ratings
Requirement1
Maximum
Maturity5
U.S. Treasury
100%
100%
N/A
5.50 Years (5.50
Years avg. life4
for GNMA)
GNMA 40%
Other U.S.
Government
Guaranteed (e.g.
AID, GTC)
10%
Federal
Agency/GSE: 75% 40%3 N/A 5.50 Years
Page 9 of 28
FNMA, FHLMC,
FHLB, FFCB*
Federal
Agency/GSE
other than those
above
10%
Supranationals
where U.S. is a
shareholder and
voting member
25% 10%
Highest ST or
Two Highest LT
Rating
Categories (A-
1/P-1, AA-/Aa3,
or equivalent)
5.50 Years
Corporates 50%2 5%
Highest ST or
Three Highest
LT Rating
Categories (A-
1/P-1, A-/A3 or
equivalent)
5.50 Years
Municipals 25% 5%
Highest ST or
Three Highest
LT Rating
Categories (SP-
1/MIG 1, A-
/A3, or
equivalent)
5.50 Years
Agency
Mortgage-Backed
Securities (MBS)
25% 40%3 N/A 5.50 Years Avg.
Life4
Asset-Backed
Securities (ABS) 25% 5%
Highest ST or
LT Rating (A-
1+/P-1,
AAA/Aaa, or
equivalent)
5.50 Years Avg.
Life4
Non-Negotiable
Certificate of
Deposit or
Savings Accounts
50% None, if fully
collateralized
None, if fully
collateralized. 2 Years
Commercial
Paper (CP) 50%2 5%
Highest ST
Rating Category
(A-1/P-1, or
equivalent)
270 Days
Money Market
Funds (MMFs) 50% 25%
Highest Fund
Rating by all
NRSROs who
rate the fund
N/A
Page 10 of 28
(AAAm/Aaa-
mf, or
equivalent)
Intergovernmental
Pools (LGIPs) 50% 25%
Highest Fund
Quality and
Volatility Rating
Categories by
all NRSROs
who rate the
LGIP,
(AAAm/AAAf,
S1, or
equivalent)
N/A
Florida Local
Government
Surplus Funds
Trust Funds
("Florida Prime")
25% N/A
Highest Fund
Rating by all
NRSROs who
rate the fund
(AAAm/Aaa-
mf, or
equivalent)
N/A
Notes:
1 Rating by at least one (1) SEC-registered Nationally Recognized Statistical Rating
Organization ("NRSRO"), unless otherwise noted. ST=Short-term; LT=Long-term.
2 Maximum allocation to all corporate and bank credit instruments is fifty (50) percent
combined.
3 Maximum exposure to any one (1) Federal agency, including the combined holdings of
Agency debt and Agency MBS, is forty (40) percent.
4 The maturity limit for MBS and ABS is based on the expected average life at time of
settlement, measured using Bloomberg or other industry standard methods.
5 Maximum maturity or weighted average life is from settlement date.
* Federal National Mortgage Association (FNMA); Federal Home Loan Mortgage
Corporation (FHLMC); Federal Home Loan Bank or its District banks (FHLB); Federal
Farm Credit Bank (FFCB).
XI. Risk and diversification
Assets held shall be diversified to control the risk of loss resulting from the over-
concentration of assets in a specific maturity, issuer, instrument, dealer, or bank through
which these instruments are bought and sold. Diversification strategies shall be reviewed
and revised periodically as deemed necessary by the chief financial officer.
Page 11 of 28
XII. Authorized investment institutions and dealers
A list will be maintained of financial institutions authorized to provide investment
services. In addition, a list also will be maintained of approved security brokers/dealers
selected by creditworthiness. Authorized staff shall only purchase securities from
financial institutions, which are qualified as public depositories by the Treasurer, or Chief
Financial Officer of the State of Florida, "Primary Dealers" as designated by the Federal
Reserve Bank of New York, or from direct issuers of commercial paper.
The village's investment advisor shall utilize and maintain its own list of approved
primary and non-primary dealers.
XIII. Third-Party Custodial Agreements
All securities purchased by the village shall be properly designated as an asset of the
village and shall be held in an account separate and apart from the assets of the financial
institution. A third party custodian is defined as any bank depository chartered by the
Federal Government, the State of Florida, or any other state or territory of the United
States which has a branch or principal place of business in the State of Florida as defined
in Section 658.12, Florida Statutes, or by a national association organized and existing
under the laws of the United States which is authorized to accept and execute trusts and
which is doing business in the State of Florida. Certificates of deposits will be placed in
the provider's safekeeping department for the term of the deposit. The third-party
custodian will be required to designate all securities held as assets of the village. No
withdrawal of securities, in whole or in part, shall be made from safekeeping, except by
the chief financial officer, or his/her respective designees. Securities transactions between
a broker-dealer and the custodian involving purchase or sale of securities by transfer of
money or securities must be made on a "delivery vs. payment" basis, if applicable, to
ensure that the custodian will have the security or money, as appropriate, in hand at the
conclusion of the transaction. Securities held as collateral shall be held free and clear of
any liens.
XIV. Master Repurchase Agreement
All approved institutions and dealers transacting repurchase agreements shall execute and
perform as stated in the Securities Industry and Financial Markets Association (SIFMA)
master repurchase agreement. All repurchase agreement transactions shall adhere to the
requirements of the SIFMA master repurchase agreement.
XV. Bid Requirement
An appropriate maturity date will be determined for each investment based on cash-flow
needs and market conditions. Based on these considerations, the chief financial officer
will analyze and select one (1) or more optimal types of investments, and a minimum of
three (3) reputable, qualified and financially sound banks and/or dealers must be
contacted and asked to provide bids on the securities in question when feasible and
appropriate. Except as otherwise required by law, the bid deemed to best meet the
investment objectives specified in subsection (c) must be selected.
Page 12 of 28
XVI. Internal Controls
(1) The chief financial officer shall establish and maintain a written system of internal
controls made a part of the village's operational procedures. The internal controls shall
be designed to prevent losses of funds, which might arise from fraud, employee error,
misrepresentation by third parties, or imprudent actions by employees of the village.
No person shall engage in an investment transaction except as authorized in this policy.
(2) Independent auditors, as a normal part of the annual financial audit to the village, shall
conduct a review of the system of internal controls to ensure compliance with policies
and procedures as may be required by the village.
XVII. Continuing Education
The chief financial officer shall complete eight (8) hours of continuing education
annually in subjects or courses related to investment practices and products.
XVIII. Reporting
The chief financial officer or his or her respective designee shall prepare a quarterly
investment report, which shall include securities in the portfolio by class and type,
acquisition cost, income earned, yield, maturity date and market value as of the report
date. The report will be provided to the legislative and governing body of the village and
shall be available to the public.
XIX. Securities Disposition
Every security purchased on behalf of the Village must be properly earmarked and:
(1) If registered with the issuer or agents, must be immediately placed for safekeeping in a
location that protects the village's interest in the security;
(2) If in book entry form, must be held for the credit of the governing body by a depository
chartered by the federal government, the state, or any other state or territory of the
United States which has a branch or principal place of business in the state as defined
in Florida Statutes section 658.12, or by national association organized and existing
under the laws of the United States which is authorized to accept and exercise trusts
and which is doing business in the state, and must be kept in the depository in an
account separate and apart from the assets of the financial institution, or
(3) If physically issued to the holder but not registered with the issuer or its agents, must
be immediately placed for safekeeping in a secured vault.
XX. Sale of Securities
When invested funds are needed in whole or in part for the purposes originally intended
or for more optimal investments, the chief financial officer may sell such investments at
the then-prevailing market price and place the proceeds into the proper account or fund.
XXI. Policy considerations
(1) Exemptions. Any investment held prior to the adoption of this policy that does not meet
the guidelines of this policy shall be exempted from the requirements of this policy. At
maturity or liquidation, such monies shall be reinvested only as provided by this
policy.
Page 13 of 28
(2) Amendments. This policy shall be reviewed on an annual basis by the village council at
the "setting of council goals and objectives" session of the annual budget. The village
council must approve any changes.
XXII. Delegation of Authority
The finance director is the chief financial officer of the village and is responsible for
investment decisions and activities. No person may engage in an investment transaction
except as provided under the terms of this policy and the procedures established
hereunder.
Nothing set forth herein shall preclude the village from utilizing an investment advisor to
assist in managing the village's portfolio. Such investment advisor must be registered
with the U.S. Securities and Exchange Commission (“SEC”) under the Investment
Advisor's Act of 1940. The investment advisor may invest funds on behalf of the village
in accordance with the mandates of this investment policy.
Authorized signatories are the chief financial officer, the village manager and the village
mayor. These individuals are also authorized to initiate wire transfers for the village. All
investment transactions require approval by two (2) of the depository signatories.
XXIII. Annual Review
The chief financial officer shall review the investment policy annually and, if necessary,
present modifications to the village council for approval.
APPROVED AND ADOPTED BY VILLAGE COUNCIL ON _________.
Page 14 of 28
Investment Pool/Fund Questionnaire
Prior to investing in a money market fund/local government investment pool, proper due diligence is required.
General Fund/Pool Information:
1. Does the fund/pool attempt to maintain a stable net asset value or floating net asset value?
2. How is interest distributed, and how are gains and losses treated?
3. How often are statements and portfolio holdings distributed?
4. Is the fund/pool eligible for bond proceeds and/or will it accept such proceeds?
Oversight:
5. What are the fund/pool ratings by the Nationally Recognized Statistical Rating Organizations such
as S&P, Moody’s, Fitch, Kroll, etc.?
6. What are the eligible investment securities? Is there a written statement of investment policy and
objectives?
7. How are the securities safeguarded (including the settlement processes)? How often are the
securities priced? How often is the fund/pool audited?
8. Is there any additional oversight outside of the Board of Trustees?
Fund/Pool Statistics:
9. What is the current sector allocation of the fund/pool?
10. What is the fee schedule, and how and when is it assessed?
Liquidity:
11. Does the fund/pool follow GASB 79?
12. Does the fund/pool have any liquidity fees? If so, describe the terms.
13. Does the fund/pool have redemption gates? If so, describe them.
Investor Requirements
14. Who may invest in the program, how often, and what size deposits and withdrawals are allowed?
Page 15 of 28
Is there a limit regarding investor concentration? If so, what is it?
Glossary of Cash and Investment Management Terms
The following is a glossary of key investing terms, many of which appear in the Village of North Palm
Beach’s investment policy. This glossary clarifies the meaning of investment terms generally used in cash
and investment management. This glossary has been adapted from the GFOA Sample Investment Policy
and the Association of Public Treasurers of the United States and Canada’s Model Investment Policy.
Accrued Interest. Interest earned but which has not yet been paid or received.
Agency. See "Federal Agency Securities."
Ask Price. Price at which a broker/dealer offers to sell a security to an investor. Also known as “offered
price.”
Asset Backed Securities (ABS). A fixed-income security backed by notes or receivables against assets
other than real estate. Generally issued by special purpose companies that “own” the assets and issue the
ABS. Examples include securities backed by auto loans, credit card receivables, home equity loans,
manufactured housing loans, farm equipment loans, and aircraft leases.
Average Life. The average length of time that an issue of serial bonds and/or term bonds with a mandatory
sinking fund feature is expected to be outstanding.
Bankers' Acceptance (BA's). A draft or bill of exchange drawn upon and accepted by a bank. Frequently
used to finance shipping of international goods. Used as a short-term credit instrument, bankers' acceptances
are traded at a discount from face value as a money market instrument in the secondary market on the basis
of the credit quality of the guaranteeing bank.
Basis Point. One hundredth of one percent, or 0.01%. Thus 1% equals 100 basis points.
Bearer Security. A security whose ownership is determined by the holder of the physical security.
Typically, there is no registration on the issuer’s books. Title to bearer securities is transferred by delivery
of the physical security or certificate. Also known as “physical securities.”
Benchmark Bills: In November 1999, FNMA introduced its Benchmark Bills program, a short-term debt
securities issuance program to supplement its existing discount note program. The program includes a
schedule of larger, weekly issues in three- and six-month maturities and biweekly issues in one-year for
Benchmark Bills. Each issue is brought to market via a Dutch (single price) auction. FNMA conducts a
weekly auction for each Benchmark Bill maturity and accepts both competitive and non -competitive bids
through a web based auction system. This program is in addition to the variety of other discount note
maturities, with rates posted on a daily basis, which FNMA offers. FNMA's Benchmark Bills are unsecured
general obligations that are issued in book-entry form through the Federal Reserve Banks. There are no
periodic payments of interest on Benchmark Bills, which are sold at a discount from the principal amount
and payable at par at maturity. Issues under the Benchmark program constitute the same credit standing as
other FNMA discount notes; they simply add organization and liquidity to the short-term Agency discount
note market.
Page 16 of 28
Benchmark Notes/Bonds: Benchmark Notes and Bonds are a series of FNMA “bullet” maturities (non-
callable) issued according to a pre-announced calendar. Under its Benchmark Notes/Bonds program, 2, 3,
5, 10, and 30-year maturities are issued each quarter. Each Benchmark Notes new issue has a minimum
size of $4 billion, 30-year new issues having a minimum size of $1 billion, with re-openings based on
investor demand to further enhance liquidity. The amount of non-callable issuance has allowed FNMA to
build a yield curve in Benchmark Notes and Bonds in maturities ranging from 2 to 30 years. The liquidity
emanating from these large size issues has facilitated favorable financing opportunities through the
development of a liquid overnight and term repo market. Issues under the Benchmark program constitute
the same credit standing as other FNMA issues; they simply add organization and liquidity to the
intermediate- and long-term Agency market.
Benchmark. A market index used as a comparative basis for measuring the performance of an investment
portfolio. A performance benchmark should represent a close correlation to investment guidelines, risk
tolerance, and duration of the actual portfolio's investments.
Bid Price. Price at which a broker/dealer offers to purchase a security from an investor.
Bond. Financial obligation for which the issuer promises to pay the bondholder (the purchaser or owner
of the bond) a specified stream of future cash-flows, including periodic interest payments and a principal
repayment.
Book Entry Securities. Securities that are recorded in a customer’s account electronically through one of
the financial markets electronic delivery and custody systems, such as the Fed Securities wire, DTC, and
PTC
(as opposed to bearer or physical securities). The trend is toward a certificate-free society in order to cut
down on paperwork and to diminish investors’ concerns about the certificates themselves. The vast majority
of securities are now book entry securities.
Book Value. The value at which a debt security is reflected on the holder's records at any point in time.
Book value is also called “amortized cost” as it represents the original cost of an investment adjusted for
amortization of premium or accretion of discount. Also called “carrying value.” Book value can vary over
time as an investment approaches maturity and differs from “market value” in that it is not affected by
changes in market interest rates.
Broker/Dealer. A person or firm transacting securities business with customers. A “br oker” acts as an
agent between buyers and sellers, and receives a commission for these services. A “dealer” buys and sells
financial assets from its own portfolio. A dealer takes risk by owning inventory of securities, whereas a
broker merely matches up buyers and sellers. See also "Primary Dealer."
Bullet Notes/Bonds. Notes or bonds that have a single maturity date and are non-callable.
Call Date. Date at which a call option may be or is exercised.
Call Option. The right, but not the obligation, of an issuer of a security to redeem a security at a specified
value and at a specified date or dates prior to its stated maturity date. Most fixed-income calls are a par, but
can be at any previously established price. Securities issued with a call provision typically carry a higher
yield than similar securities issued without a call feature. There are three primary types of call options (1)
European - one-time calls, (2) Bermudan - periodically on a predetermined schedule (quarterly, semi-
annual, annual), and (3) American - continuously callable at any time on or after the call date. There is
usually a notice period of at least 5 business days prior to a call date.
Page 17 of 28
Callable Bonds/Notes. Securities which contain an imbedded call option giving the issuer the right to
redeem the securities prior to maturity at a predetermined price and time.
Certificate of Deposit (CD). Bank obligation issued by a financial institution generally offering a fixed
rate of return (coupon) for a specified period of time (maturity). Can be as long as 10 years to maturity, but
most CDs purchased by public agencies are one year and under.
Collateral. Investment securities or other property that a borrower pledges to secure repayment of a loan,
secure deposits of public monies, or provide security for a repurchase agreement.
Collateralization. Process by which a borrower pledges securities, property, or other deposits for securing
the repayment of a loan and/or security.
Collateralized Mortgage Obligation (CMO). A security that pools together mortgages and separates
them into short, medium, and long-term positions (called tranches). Tranches are set up to pay different
rates of interest depending upon their maturity. Interest payments are usually paid monthly. In “plain
vanilla” CMOs, principal is not paid on a tranche until all shorter tranches have been paid off. This system
provides interest and principal in a more predictable manner. A single pool of mortgages can be carved up
into numerous tranches each with its own payment and risk characteristics.
Commercial Paper. Short term unsecured promissory note issued by a company or financial institution.
Issued at a discount and matures for par or face value. Usually a maximum maturity of 270 days and given
a short-term debt rating by one or more NRSROs.
Convexity. A measure of a bond's price sensitivity to changing interest rates. A high convexity indicates
greater sensitivity of a bond's price to interest rate changes.
Corporate Note. A debt instrument issued by a corporation with a maturity of greater than one year and
less than ten years.
Counterparty. The other party in a two party financial transaction. "Counterparty risk" refers to the risk
that the other party to a transaction will fail in its related obligations. For example, the bank or broker/dealer
in a repurchase agreement.
Coupon Rate. Annual rate of interest on a debt security, expressed as a percentage of the bond’s face
value.
Current Yield. Annual rate of return on a bond based on its price. Calculated as (coupon rate / price), but
does not accurately reflect a bond’s true yield level.
Custody. Safekeeping services offered by a bank, financial institution, or trust company, referred to as the
“custodian.” Service normally includes the holding and reporting of the customer's securities, the collection
and disbursement of income, securities settlement, and market values.
Dealer. A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for
his/her own account.
Delivery Versus Payment (DVP). Settlement procedure in which securities are delivered versus payment
of cash, but only after cash has been received. Most security transactions, including those through the Fed
Securities Wire system and DTC, are done DVP as a protection for both the buyer and seller of securities.
Depository Trust Company (DTC). A firm through which members can use a computer to arrange for
securities to be delivered to other members without physical delivery of certificates. A member of the
Page 18 of 28
Federal Reserve System and owned mostly by the New York Stock Exchange, the Depository Trust
Company uses computerized debit and credit entries. Most corporate securities, commercial paper, CDs,
and BAs clear through DTC.
Derivatives. (1) Financial instruments whose return profile is linked to, or derived from, the movement of
one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts
based upon notional amounts whose value is derived from an underlying index or security (interest rates,
foreign exchange rates, equities, or commodities). For hedging purposes, common derivatives are options,
futures, interest rate swaps, and swaptions.
Derivative Security. Financial instrument created from, or whose value depends upon, one or more
underlying assets or indexes of asset values.
Designated Bond. FFCB’s regularly issued, liquid, non-callable securities that generally have a 2 or 3 year
original maturity. New issues of Designated Bonds are $1 billion or larger. Re-openings of existing
Designated Bond issues are generally a minimum of $100 million. Designated Bonds are offered through a
syndicate of two to six dealers. Twice each month the Funding Corporation announces its intention to issue
a new Designated Bond, reopen an existing issue, or to not issue or reopen a Designated Bond. Issues under
the Designated Bond program constitute the same credit standing as other FFCB issues; they simply add
organization and liquidity to the intermediate- and long-term Agency market.
Discount Notes. Unsecured general obligations issued by Federal Agencies at a discount. Discount notes
mature at par and can range in maturity from overnight to one year. Very large primary (new issue) and
secondary markets exist.
Discount Rate. Rate charged by the system of Federal Reserve Banks on overnight loans to member banks.
Changes to this rate are administered by the Federal Reserve and closely mirror changes to the “fed funds
rate.”
Discount Securities. Non-interest bearing money market instruments that are issued at discount and
redeemed at maturity for full face value. Examples include: U.S. Treasury Bills, Federal Agency Discount
Notes, Bankers' Acceptances, and Commercial Paper.
Discount. The amount by which a bond or other financial instrument sells below its face value. See also
"Premium."
Diversification. Dividing investment funds among a variety of security types, maturities, industries, and
issuers offering potentially independent returns.
Dollar Price. A bond’s cost expressed as a percentage of its face value. For example, a bond quoted at a
dollar price of 95 ½, would have a principal cost of $955 per $1,000 of face value.
Duff & Phelps. One of several NRSROs that provide credit ratings on corporate and bank debt issues.
Duration. The weighted average maturity of a security’s or portfolio’s cash-flows, where the present
values of the cash-flows serve as the weights. The greater the duration of a security/portfolio, the greater
its percentage price volatility with respect to changes in interest rates. Used as a measure of risk and a key
tool for managing a portfolio versus a benchmark and for hedging risk. There are also different kinds of
duration used for different purposes (e.g. MacAuley Duration, Modified Duration).
Fannie Mae. See "Federal National Mortgage Association."
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Fed Money Wire. A computerized communications system that connects the Federal Reserve System with
its member banks, certain U. S. Treasury offices, and the Washington D.C. office of the Commodity Credit
Corporation. The Fed Money Wire is the book entry system used to transfer cash balances between banks
for themselves and for customer accounts.
Fed Securities Wire. A computerized communications system that facilitates book entry transfer of
securities between banks, brokers and customer accounts, used primarily for settlement of U.S. Treasury
and Federal Agency securities.
Fed. See "Federal Reserve System."
Federal Agency Security. A debt instrument issued by one of the Federal Agencies. Federal Agencies
are considered second in credit quality and liquidity only to U.S. Treasuries.
Federal Agency. Government sponsored/owned entity created by the U.S. Congress, generally for the
purpose of acting as a financial intermediary by borrowing in the marketplace and directing proceeds to
specific areas of the economy considered to otherwise have restricted access to credit markets. The largest
Federal Agencies are GNMA, FNMA, FHLMC, FHLB, FFCB, SLMA, and TVA.
Federal Deposit Insurance Corporation (FDIC). Federal agency that insures deposits at commercial
banks, currently to a limit of $250,000 per depositor per bank.
Federal Farm Credit Bank (FFCB). One of the large Federal Agencies. A government sponsored
enterprise (GSE) system that is a network of cooperatively-owned lending institutions that provides credit
services to farmers, agricultural cooperatives and rural utilities. The FFCBs act as financial intermediaries
that borrow money in the capital markets and use the proceeds to make loans and provide other assistance
to farmers and farm-affiliated businesses. Consists of the consolidated operations of the Banks for
Cooperatives, Federal Intermediate Credit Banks, and Federal Land Banks. Frequent issuer of discount
notes, agency notes and callable agency securities. FFCB debt is not an obligation of, nor is it guaranteed
by the U.S. government, although it is considered to have minimal credit risk due to its importance to the
U.S. financial system and agricultural industry. Also issues notes under its “designated note” program.
Federal Funds (Fed Funds). Funds placed in Federal Reserve Banks by depository institutions in excess
of current reserve requirements, and frequently loaned or borrowed on an overnight basis between
depository institutions.
Federal Funds Rate (Fed Funds Rate). The interest rate charged by a depository institution lending
Federal Funds to another depository institution. The Federal Reserve influences this rate by establishing a
"target" Fed Funds rate associated with the Fed's management of monetary policy.
Federal Home Loan Bank System (FHLB). One of the large Federal Agencies. A government sponsored
enterprise (GSE) system, consisting of wholesale banks (currently twelve district banks) owned by their
member banks, which provides correspondent banking services and credit to various financial institutions,
financed by the issuance of securities. The principal purpose of the FHLB is to add liquidity to the mortgage
markets. Although FHLB does not directly fund mortgages, it provides a stable supply of credit to thrift
institutions that make new mortgage loans. FHLB debt is not an obligation of, nor is it guaranteed by the
U.S. government, although it is considered to have minimal credit risk due to its importance to the U.S.
financial system and housing market. Frequent issuer of discount notes, agency notes and callable agency
securities. Also issues notes under its “global note” and “TAP” programs.
Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac"). One of the large Federal
Agencies. A government sponsored public corporation (GSE) that provides stability and assistance to the
secondary market for home mortgages by purchasing first mortgages and participation interests financed
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by the sale of debt and guaranteed mortgage backed securities. FHLMC debt is not an obligation of, nor is
it guaranteed by the U.S. government, although it is considered to have minimal credit risk due to its
importance to the U.S. financial system and housing market. Frequent issuer of discount notes, agency
notes, callable agency securities, and MBS. Also issues notes under its “reference note” program.
Federal National Mortgage Association (FNMA or "Fannie Mae"). One of the large Federal Agencies.
A government sponsored public corporation (GSE) that provides liquidity to the residential mortgage
market by purchasing mortgage loans from lenders, financed by the issuance of debt securities and MBS
(pools of mortgages packaged together as a security). FNMA debt is not an obligation of, nor is it guaranteed
by the U.S. government, although it is considered to have minimal credit risk due to its importance to the
U.S. financial system and housing market. Frequent issuer of discount notes, agency notes, callable agency
securities and MBS. Also issues notes under its “benchmark note” program.
Federal Reserve Bank. One of the 12 distinct banks of the Federal Reserve System.
Federal Reserve System (the Fed). The independent central bank system of the United States that
establishes and conducts the nation's monetary policy. This is accomplished in three major ways: (1) raising
or lowering bank reserve requirements, (2) raising or lowering the target Fed Funds Rate and Discount
Rate, and (3) in open market operations by buying and selling government securities. The Federal Reserve
System is made up of twelve Federal Reserve District Banks, their branches, and many national and state
banks throughout the nation. It is headed by the seven member Board of Governors known as the “Federal
Reserve Board” and headed by its Chairman.
Financial Industry Regulatory Authority, Inc. (FINRA). A private corporation that acts as a
self-regulatory organization (SRO). FINRA is the successor to the National Association of Securities
Dealers, Inc. (NASD). Though sometimes mistaken for a government agency, it is a non-governmental
organization that performs financial regulation of member brokerage firms and exchange markets. The
government also has a regulatory arm for investments, the Securities and Exchange Commission (SEC).
Fiscal Agent/Paying Agent. A bank or trust company that acts, under a trust agreement with a corporation
or municipality, in the capacity of general treasurer. The agent performs such duties as making coupon
payments, paying rents, redeeming bonds, and handling taxes relating to the issuance of bonds.
Fitch Investors Service, Inc. One of several NRSROs that provide credit ratings on corporate and
municipal debt issues.
Floating Rate Security (FRN or “floater”). A bond with an interest rate that is adjusted according to
changes in an interest rate or index. Differs from variable-rate debt in that the changes to the rate take place
immediately when the index changes, rather than on a predetermined schedule. See als o “Variable Rate
Security.”
Freddie Mac. See "Federal Home Loan Mortgage Corporation."
Ginnie Mae. See "Government National Mortgage Association."
Global Notes: Notes designed to qualify for immediate trading in both the domestic U.S. capital market
and in foreign markets around the globe. Usually large issues that are sold to investors worldwide and
therefore have excellent liquidity. Despite their global sales, global notes sold in the U.S. are typically
denominated in U.S. dollars.
Government National Mortgage Association (GNMA or "Ginnie Mae"). One of the large Federal
Agencies. Government-owned Federal Agency that acquires, packages, and resells mortgages and mortgage
purchase commitments in the form of mortgage-backed securities. Largest issuer of mortgage pass-through
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securities. GNMA debt is guaranteed by the full faith and credit of the U.S. government (one of the few
agencies that are actually full faith and credit of the U.S. government).
Government Securities. An obligation of the U.S. government, backed by the full faith and credit of the
government. These securities are regarded as the highest quality of investment securities available in the
U.S. securities market. See "Treasury Bills, Notes, Bonds, and SLGS."
Government Sponsored Enterprise (GSE). Privately owned entity subject to federal regulation and
supervision, created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the
economy such as students, farmers, and homeowners. GSEs carry the implicit backing of the U.S.
government, but they are not direct obligations of the U.S. government. For this reason, these securities
will offer a yield premium over U.S. Treasuries. Examples of GSEs include: FHLB, FHLMC, FNMA, and
SLMA.
Government Sponsored Enterprise Security. A security issued by a Government Sponsored Enterprise.
Considered Federal Agency Securities.
Index. A compilation of statistical data that tracks changes in the economy or in financial markets.
Interest-Only (IO) STRIP. A security based solely on the interest payments from the bond. After the
principal has been repaid, interest payments stop and the value of the security falls to nothing. Therefore,
IOs are considered risky investments. Usually associated with mortgage-backed securities.
Internal Controls. An internal control structure ensures that the assets of the entity are protected from
loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these
objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not
exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and
judgments by management. Internal controls should address the following points:
1. Control of collusion - Collusion is a situation where two or more employees are working in
conjunction to defraud their employer.
2. Separation of transaction authority from accounting and record keeping - A separation of
duties is achieved by separating the person who authorizes or performs the transaction from the
people who record or otherwise account for the transaction.
3. Custodial safekeeping - Securities purchased from any bank or dealer including appropriate
collateral (as defined by state law) shall be placed with an independent third party for custodial
safekeeping.
4. Avoidance of physical delivery securities - Book-entry securities are much easier to transfer and
account for since actual delivery of a document never takes place. Delivered securities must be
properly safeguarded against loss or destruction. The potential for fraud and loss increases with
physically delivered securities.
5. Clear delegation of authority to subordinate staff members - Subordinate staff members must
have a clear understanding of their authority and responsibilities to avoid improper actions. Clear
delegation of authority also preserves the internal control structure that is contingent on the various
staff positions and their respective responsibilities.
6. Written confirmation of transactions for investments and wire transfers - Due to the potential
for error and improprieties arising from telephone and electronic transactions, all transactions
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should be supported by written communications and approved by the appropriate person. Written
communications may be via fax if on letterhead and if the safekeeping institution has a list of
authorized signatures.
7. Development of a wire transfer agreement with the lead bank and third-party custodian - The
designated official should ensure that an agreement will be entered into and will address the
following points: controls, security provisions, and responsibilities of each party making and
receiving wire transfers.
Inverse Floater. A floating rate security structured in such a way that it reacts inversely to the direction
of interest rates. Considered risky as their value moves in the opposite direction of normal fixed -income
investments and whose interest rate can fall to zero.
Investment Advisor. A company that provides professional advice managing portfolios, investment
recommendations, and/or research in exchange for a management fee.
Investment Adviser Act of 1940. Federal legislation that sets the standards by which investment
companies, such as mutual funds, are regulated in the areas of advertising, promotion, performance
reporting requirements, and securities valuations.
Investment Grade. Bonds considered suitable for preservation of invested capital, including bonds rated
a minimum of Baa3 by Moody’s, BBB- by Standard & Poor’s, or BBB- by Fitch. Although “BBB” rated
bonds are considered investment grade, most public agencies cannot invest in securities rated below “A.”
Liquidity. Relative ease of converting an asset into cash without significant loss of value. Also, a relative
measure of cash and near-cash items in a portfolio of assets. Additionally, it is a term describing the
marketability of a money market security correlating to the narrowness of the spread between the bid and
ask prices.
Local Government Investment Pool (LGIP). An investment by local governments in which their money
is pooled as a method for managing local funds, (e.g., Florida State Board of Administration’s Florida Prime
Fund).
Long-Term Core Investment Program. Funds that are not needed within a one-year period.
Market Value. The fair market value of a security or commodity. The price at which a willing buyer and
seller would pay for a security.
Mark-to-market. Adjusting the value of an asset to its market value, reflecting in the process unrealized
gains or losses.
Master Repurchase Agreement. A widely accepted standard agreement form published by the Securities
Industry and Financial Markets Association (SIFMA) that is used to govern and document Repurchase
Agreements and protect the interest of parties in a repo transaction.
Maturity Date. Date on which principal payment of a financial obligation is to be paid.
Medium Term Notes (MTN's). Used frequently to refer to corporate notes of medium maturity (5-years
and under). Technically, any debt security issued by a corporate or depository institution with a maturity
from 1 to 10 years and issued under an MTN shelf registration. Usually issued in smaller issues with varying
coupons and maturities, and underwritten by a variety of broker/dealers (as opposed to large corporate deals
issued and underwritten all at once in large size and with a fixed coupon and maturity).
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Money Market. The market in which short-term debt instruments (bills, commercial paper, bankers’
acceptance, etc.) are issued and traded.
Money Market Mutual Fund (MMF). A type of mutual fund that invests solely in money market
instruments, such as: U.S. Treasury bills, commercial paper, bankers' acceptances, and repurchase
agreements. Money market mutual funds are registered with the SEC under the Investment Company Act
of 1940 and are subject to “rule 2a-7” which significantly limits average maturity and credit quality of
holdings. MMF’s are managed to maintain a stable net asset value (NAV) of $1.00. Many MMFs carry
ratings by a NRSRO.
Moody's Investors Service. One of several NRSROs that provide credit ratings on corporate and
municipal debt issues.
Mortgage Backed Securities (MBS). Mortgage-backed securities represent an ownership interest in a
pool of mortgage loans made by financial institutions, such as savings and loans, commercial banks, or
mortgage companies, to finance the borrower's purchase of a home or other real estate. The majority of
MBS are issued and/or guaranteed by GNMA, FNMA, and FHLMC. There are a variety of MBS structures
with varying levels of risk and complexity. All MBS have reinvestment risk as actual principal and interest
payments are dependent on the payment of the underlying mortgages which can b e prepaid by mortgage
holders to refinance and lower rates or simply because the underlying property was sold.
Mortgage Pass-Through Securities. A pool of residential mortgage loans with the monthly interest and
principal distributed to investors on a pro-rata basis. The largest issuer is GNMA.
Municipal Note/Bond. A debt instrument issued by a state or local government unit or public agency.The
vast majority of municipals are exempt from state and federal income tax, although some non -qualified
issues are taxable.
Mutual Fund. Portfolio of securities professionally managed by a registered investment company that
issues shares to investors. Many different types of mutual funds exist (e.g., bond, equity, and money market
funds); all except money market funds operate on a variable net asset value (NAV).
Negotiable Certificate of Deposit (Negotiable CD). Large denomination CDs ($100,000 and larger) that
are issued in bearer form and can be traded in the secondary market.
Net Asset Value. The market value of one share of an investment company, such as a mutual fund. This
figure is calculated by totaling a fund's assets including securities, cash, and any accrued earnings, then
subtracting the total assets from the fund's liabilities, and dividing this total by the number of shares
outstanding. This is calculated once a day based on the closing price for each security in the fund's portfolio.
(See below.)
[(Total assets) - (Liabilities)]/(Number of shares outstanding)
NRSRO. A “Nationally Recognized Statistical Rating Organization” (NRSRO) is a designated rating
organization that the SEC has deemed a strong national presence in the U.S. NRSROs provide credit ratings
on corporate and bank debt issues. Only ratings of a NRSRO may be used for the regulatory purposes of
rating. Includes Moody’s, S&P, Fitch, and Duff & Phelps.
Offered Price. See also "Ask Price."
Open Market Operations. A Federal Reserve monetary policy tactic entailing the purchase or sale of
government securities in the open market by the Federal Reserve System from and to primary dealers in
order to influence the money supply, credit conditions, and interest rates.
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Par Value. The face value, stated value, or maturity value of a security.
Physical Delivery. Delivery of readily available underlying assets at contract maturity.
Portfolio. Collection of securities and investments held by an investor.
Premium. The amount by which a bond or other financial instrument sells above its face value. See also
"Discount."
Primary Dealer. A designation given to certain government securities dealer by the Federal Reserve Bank
of New York. Primary dealers can buy and sell government securities directly with the Fed. Primary dealers
also submit daily reports of market activity and security positions held to the Fed and are subject to its
informal oversight. Primary dealers are the largest buyers and sellers by volume in the U.S. Treasury
securities market.
Prime Paper. Commercial paper of high quality. Highest rated paper is A-1+/A-1 by S&P and P-1 by
Moody’s.
Principal. Face value of a financial instrument on which interest accrues. May be less than par value if
some principal has been repaid or retired. For a transaction, principal is par value times price and includes
any premium or discount.
Prudent Expert Rule. Standard that requires that a fiduciary manage a portfolio with the care, skill,
prudence, and diligence, under the circumstances then prevailing, that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of an enterprise of a like character and
with like aims. This statement differs from the “prudent person” rule in that familiarity with such matters
suggests a higher standard than simple prudence.
Prudent Investor Standard. Standard that requires that when investing, reinvesting, purchasing,
acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and
diligence under the circumstances then prevailing, including, but not limited to, the general economic
conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and
familiarity with those matters would use in the conduct of funds of a like character and with like aims, to
safeguard the principal and maintain the liquidity needs of the agency. More stringent than the “prudent
person” standard as it implies a level of knowledge commensurate with the responsibility at hand.
Qualified Public Depository - Per Subsection 280.02(26), F.S., “qualified public depository” means any
bank, savings bank, or savings association that:
1. Is organized and exists under the laws of the United States, the laws of this state or any other state
or territory of the United States.
2. Has its principal place of business in this state or has a branch office in this state which is authorized
under the laws of this state or of the United States to receive deposits in this state.
3. Has deposit insurance under the provision of the Federal Deposit Insurance Act, as amended, 12
U.S.C. ss.1811 et seq.
4. Has procedures and practices for accurate identification, classification, reporting, and
collateralization of public deposits.
5. Meets all requirements of Chapter 280, F.S.
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6. Has been designated by the Chief Financial Officer as a qualified public depository.
Range Note. A type of structured note that accrues interest daily at a set coupon rate that is tied to an
index. Most range notes have two coupon levels; a higher accrual rate for the period the index is within a
designated range, the lower accrual rate for the period that the index falls outside the designated range. This
lower rate may be zero and may result in zero earnings.
Rate of Return. Amount of income received from an investment, expressed as a percentage of the amount
invested.
Realized Gains (Losses). The difference between the sale price of an investment and its book value.
Gains/losses are “realized” when the security is actually sold, as compared to “unrealized” gains/losses
which are based on current market value. See “Unrealized Gains (Losses).”
Reference Bills: FHLMC’s short-term debt program created to supplement its existing discount note
program by offering issues from one month through one year, auctioned on a weekly or on an alternating
four-week basis (depending upon maturity) offered in sizeable volumes ($1 billion and up) on a cycle of
regular, standardized issuance. Globally sponsored and distributed, Reference Bill issues are intended to
encourage active trading and market -making and facilitate the development of a term repo market. The
program was designed to offer predictable supply, pricing transparency, and liquidity, thereby providing
alternatives to U.S. Treasury bills. FHLMC’s Reference Bills are unsecured general corporate obligations.
This program supplements the corporation’s existing discount note program. Issues under the Reference
program constitute the same credit standing as other FHLMC discount notes; they simply add organization
and liquidity to the short-term Agency discount note market.
Reference Notes: FHLMC’s intermediate-term debt program with issuances of 2, 3, 5, 10, and 30-year
maturities. Initial issuances range from $2 - $6 billion with re-openings ranging $1 - $4 billion.
The notes are high-quality bullet structures securities that pay interest semiannually. Issues under the
Reference program constitute the same credit standing as other FHLMC notes; they simply add organization
and liquidity to the intermediate- and long-term Agency market.
Repurchase Agreement (Repo). A short-term investment vehicle where an investor agrees to buy
securities from a counterparty and simultaneously agrees to resell the securities back to the counterparty at
an agreed upon time and for an agreed upon price. The difference between the purchase price and the sale
price represents interest earned on the agreement. In effect, it represents a collateralized loan to the investor,
where the securities are the collateral. Can be DVP, where securities are delivered to the investor’s custodial
bank, or “tri-party” where the securities are delivered to a third party intermediary. Any type of security
can be used as “collateral,” but only some types provide the investor with special bankruptcy protection
under the law. Repos should be undertaken only when an appropriate Securities Industry and Financial
Markets Association (SIFMA) approved master repurchase agreement is in place.
Reverse Repurchase Agreement (Reverse Repo). A repo from the point of view of the original seller of
securities. Used by dealers to finance their inventory of securities by essentially borrowing at short -term
rates. Can also be used to leverage a portfolio and in this sense, can be considered risky if used improperly.
Safekeeping. Service offered for a fee, usually by financial institutions, for the holding of securities and
other valuables. Safekeeping is a component of custody services.
Secondary Market. Markets for the purchase and sale of any previously issued financial instrument.
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Securities Industry and Financial Markets Association (SIFMA). The bond market trade association
representing the largest securities markets in the world. In addition to publishing a Master Repurchase
Agreement, widely accepted as the industry standard document for Repurchase Agreements, the SIFMA
also recommends bond market closures and early closes due to holidays.
Securities Lending. An arrangement between and investor and a custody bank that allows the custody
bank to “loan” the investors investment holdings, reinvest the proceeds in permitted investments, and shares
any profits with the investor. Should be governed by a securities lending agreement. Can increase the risk
of a portfolio in that the investor takes on the default risk on the reinvestment at the discretion of the
custodian.
Sinking Fund. A separate accumulation of cash or investments (including earnings on investments) in a
fund in accordance with the terms of a trust agreement or indenture, funded by periodic deposits by the
issuer (or other entity responsible for debt service), for the purpose of assuring timely availability of moneys
for payment of debt service. Usually used in connection with term bonds.
Spread. The difference between the price of a security and similar maturity U.S. Treasury investments,
expressed in percentage terms or basis points. A spread can also be the absolute difference in yield between
two securities. The securities can be in different markets or within the same securities market between
different credits, sectors, or other relevant factors.
Standard & Poor's. One of several NRSROs that provide credit ratings on corporate and municipal debt
issues.
STRIPS (Separate Trading of Registered Interest and Principal of Securities). Acronym applied to
U.S. Treasury securities that have had their coupons and principal repayments separated into individual
zero-coupon Treasury securities. The same technique and "strips" description can be applied to non -
Treasury securities (e.g., FNMA strips).
Structured Notes. Notes that have imbedded into their structure options such as step-up coupons or
derivative-based returns.
Supranational. Supranational organizations are international financial institutions that are generally
established by agreements among nations, with member nations contributing capital and participating in
management. These agreements provide for limited immunity from the laws of member countries. Bonds
issued by these institutions are part of the broader class of Supranational, Sovereign, and Non-U.S. Agency
(SSA) sector bonds. Supranational bonds finance economic and infrastructure development and support
environmental protection, poverty reduction, and renewable energy around the globe. For example, the
World Bank, International Finance Corporation (IFC), and African Development Bank (AfDB) have “green
bond” programs specifically designed for energy resource conservation and management. Supranational
bonds, which are issued by multi-national organizations that transcend national boundaries. Examples
include the World Bank, African Development Bank, and European Investment Bank.
Swap. Trading one asset for another.
TAP Notes: Federal Agency notes issued under the FHLB TAP program. Launched in 6/99 as a refinement
to the FHLB bullet bond auction process. In a break from the FHLB’s traditional practice of bringing
numerous small issues to market with similar maturities, the TAP Issue Program uses the four most common
maturities and reopens them up regularly through a competitive auction. These maturities (2, 3, 5, and 10
year) will remain open for the calendar quarter, after which they will be closed and a new series of TAP
issues will be opened to replace them. This reduces the number of separate bullet bonds issued, but
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generates enhanced awareness and liquidity in the marketplace through increased issue size and secondary
market volume.
Tennessee Valley Authority (TVA). One of the large Federal Agencies. A wholly owned corporation of
the United States government that was established in 1933 to develop the resources of the Tennessee Valley
region in order to strengthen the regional and national economy and the national defense. Power operations
are separated from non-power operations. TVA securities represent obligations of TVA, payable solely
from TVA's net power proceeds, and are neither obligations of nor guaranteed by the United States. TVA
is currently authorized to issue debt up to $30 billion. Under this authorization, TVA may also obtain
advances from the U.S. Treasury of up to $150 million. Frequent issuer of discount notes, agency notes,
and callable agency securities.
Total Return. Investment performance measured over a period of time that includes coupon interest,
interest on interest, and both realized and unrealized gains or losses. Total return includes, therefore, any
market value appreciation/depreciation on investments held at period end.
Treasuries. Collective term used to describe debt instruments backed by the U.S. government and issued
through the U.S. Department of the Treasury. Includes Treasury bills, Treasury notes, and Treasury bonds.
Also a benchmark term used as a basis by which the yields of non-Treasury securities are compared (e.g.,
"trading at 50 basis points over Treasuries").
Treasury Bills (T-Bills). Short-term direct obligations of the United States government issued with an
original term of one year or less. Treasury bills are sold at a discount from face value and do not pay interest
before maturity. The difference between the purchase price of the bill and the maturity value is the interest
earned on the bill. Currently, the U.S. Treasury issues 4-week, 13-week, and 26-week T-Bills.
Treasury Bonds. Long-term interest-bearing debt securities backed by the U.S. government and issued
with maturities of ten years and longer by the U.S. Department of the Treasury.
Treasury Notes. Intermediate interest-bearing debt securities backed by the U.S. government and issued
with maturities ranging from one to ten years by the U.S. Department o f the Treasury. The Treasury
currently issues 2-year, 3-year, 5-year, and 10-year Treasury Notes.
Trustee. A bank designated by an issuer of securities as the custodian of funds and official representative
of bondholders. Trustees are appointed to insure compliance with the bond documents and to represent
bondholders in enforcing their contract with the issuer.
Uniform Net Capital Rule. SEC Rule 15c3-1 that outlines the minimum net capital ratio (ratio of
indebtedness to net liquid capital) of member firms and non-member broker/dealers.
Unrealized Gains (Losses). The difference between the market value of an investment and its book value.
Gains/losses are “realized” when the security is actually sold, as compared to “unrealized” gains/losses
which are based on current market value. See also “Realized Gains (Losses).”
Variable-Rate Security. A bond that bears interest at a rate that varies over time based on a specified
schedule of adjustment (e.g., daily, weekly, monthly, semi -annually, or annually). See also “Floating Rate
Note.”
Weighted Average Maturity (or just “Average Maturity”). The average maturity of all securities and
investments of a portfolio, determined by multiplying the par or principal value of each security or
investment by its maturity (days or years), summing the products, and dividing the sum by the total principal
value of the portfolio. A simple measure of risk of a fixed-income portfolio.
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Weighted Average Maturity to Call. The average maturity of all securities and investments of a portfolio,
adjusted to substitute the first call date per security for maturity date for those securities with call provisions.
Yield Curve. A graphic depiction of yields on like securities in relation to remaining maturities spread
over a time line. The traditional yield curve depicts yields on U.S. Treasuries, although yield curves exist
for Federal Agencies and various credit quality corporates as well. Yield curves can be positively sloped
(normal) where longer-term investments have higher yields, or “inverted” (uncommon) where longer-term
investments have lower yields than shorter ones.
Yield to Call (YTC). Same as “Yield to Maturity,” except the return is measured to the first call date rather
than the maturity date. Yield to call can be significantly higher or lower than a security’s yield to maturity.
Yield to Maturity (YTM). Calculated return on an investment, assuming all cash-flows from the security
are reinvested at the same original yield. Can be higher or lower than the coupon rate depending on market
rates and whether the security was purchased at a premium or discount. There are different conventions for
calculating YTM for various types of securities.
Yield. There are numerous methods of yield determination. In this glossary, see also "Current Yield,”
"Yield Curve," "Yield to Call," and "Yield to Maturity."
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Sec. 2-4. Investment policy of the village.
I. (a) Purpose.
The purpose of this statement is to set forth the policy and objectives governing the
investment management of public funds of the village that are in excess of the amounts
needed to meet current expenses. This investment policy places the highest priority on the
safety and liquidity of funds.
II. (b) Scope
. In accordance with Section 218.415, Florida Statutes, tThis investment policy applies to
all the investment activity of the village, except for its employees' pension funds, which
are organized and administered separately, or for funds related to the issuance of debt
where there are other existing policies or indentures in effect for such funds.
Funds included:
(1) General fund.
(2) Special revenue funds.
(3) Enterprise funds.
(4) Capital projects funds.
(5) Any new funds created by the governing body unless specifically exempt.
III. (c) Investment Objectives
. The primary objectives, in priority of order of investment activities, shall be safety of
principal, liquidity of funds, and maximizing investment income.
(1) Safety. Safety of principal is the foremost objective of investment activities.
Investments shall be undertaken in a manner that seeks to insureensure preservation of
capital in the overall portfolio. All other investment objectives are secondary to the
safety of principal. The objective will be to mitigate credit risk and interest rate risk.
a. Credit risk. Credit risk, the risk of loss due to the failure of the security issuer or
backer, will be minimized by:
1. Limiting investments to safe types of securities.
2. Pre-qualifying the financial institutions, broker dealers, intermediaries, and
advisers with which the village will do business.
3. Diversifying the investment portfolio so that potential losses on individual
securities will not place an undue financial burden on the village, and
4. Monitoring all of the village's investments to anticipate and respond
appropriately to changing market conditions.
5. Quarterly reporting, in comparative format, of all market values of invested
funds and instruments.
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b. Interest rate risk. The village will minimize the risk that the market value of
securities in the portfolio will fall due to changes in general interest rates, by:
1. Structuring the investment portfolio so that the securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to maturity; and
2. Investing operating funds primarily in short-term securities, money market
mutual funds, or similar investment pools unless it is anticipated that long -
term securities can be held to maturity without jeopardizing the liqui dity
requirements.
(2) Liquidity.
a. General liquidity. The investment portfolio shall remain sufficiently liquid to
meet all operating requirements that may be reasonably anticipated. This is
accomplished by structuring the portfolio so that the securities mature concurrent
with cash needs to meet anticipated demands. Furthermore, since all possible cash
demands cannot be anticipated, the portfolio should consist largely of securities
with active secondary or resale markets. Portions of the portfolio may be placed in
interest-bearing checking/savings accounts with qualified public depositories,
Securities and Exchange Commission registered money market funds with the
highest credit quality rating from a Nationally Recognized Statistical Rating
Organization (NRSRO), or local government investment pools which offer same-
day liquidity for short-term funds.
b. Local liquidity. The chief financial officer of the village shall establish and
maintain a local, liquid fund in an amount equal to, as a minimum, one -twelfth (
1/12) of the designated operating funds in the annual village budget.
(3) Investment income. Without compromising safety and liquidity, the highest possible
total return should be obtained on the village's funds. Income will include
interest/dividends received as well as any realized or unrealized gains and losses of
principal of the underlying security. Return on investment is of least importance
compared to the safety and liquidity objectives described above. However, return is
attempted through active management where the investment advisor utilizes a total
return strategy (which includes both realized and unrealized gains and losses in the
portfolio). This total return strategy seeks to increase the value of the portfolio through
reinvestment of income and capital gains. The core of investments is limited to
relatively low risk securities in anticipation of earning a fair return relative to the risk
being assumed. Despite this, an investment advisor may trade to recognize a loss from
time to time to achieve a perceived relative value based on its potential to enhance the
total return of the portfolio.
IV. Investment Decisions
The village and investment advisor shall comply with the applicable requirements of
Chapter 2023-28, Laws of Florida, including Section 218.415(24). The term “pecuniary
factor” as used in this subsection means a factor that the village and investment advisor
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Page 3 of 29
prudently determines is expected to have material effect on the risk or returns of
investment based on appropriate investment horizons consistent with applicable
investment objectives and funding policy. The term does not include the consideration of
the furtherance of any social, political, or ideological interests.
V. (d) Performance Mmeasurements
. In order to assist in the evaluation of the portfolio's performance, the village shall use
nationally recognized benchmarks for the short term and long term portfolios.
Performance calculations will not include any balances invested in overnight sweep
accounts.
(1) Operating Funds or Short term portfolio. Investment performance of funds designated
as short-term funds and other funds that must maintain a high degree of liquidity will
be compared to the return of the S&P Rated GIP Index Government 30-Day Gross of
Fees Yield. Investments of current operating funds shall have maturities of no longer
than twelve (12) months.
(2) Core Funds or Long term portfolio. Investment performance of the village portfolio
will be compared to the Bank of America Merrill Lynch ICE BofA 1—3 year United
States Treasury Note Index or the equivalent composed of U.S. Treasury or
government securities, with duration and asset mix that approximates the village
portfolio. The benchmark's performance will be compared to the portfolio's total rate of
return. Investments of long-term funds shall have a term appropriate to the need for
funds, but in no event shall exceed five and one-half (5.50) years.
(3) Other indices may be used from time to time to measure portfolio performance by
approval of the chief financial officer.
VI. (e) Prudence and Eethical Sstandards.
(1) Prudence. The standard of prudence to be used shall be the "prudent person rule,"
which states that:
Investments should be made with judgment and care, under circumstances then
prevailing, which persons of prudence, discretion, and intelligence exercise in the
management of their own affairs, not for speculation, but for the investment,
considering the probable safety of their capital as well as the probable income to be
derived from the investment.
The chief financial officer, or other persons performing the investment functions,
acting in accordance with written policies and procedures, and exercising d ue diligence
shall be relieved of personal responsibility for an individual security's credit risk or
market price changes, provided deviations from expectations are reported immediately
and that appropriate action is taken to control adverse developments.
While the standard of prudence to be used by authorized staff who are officers or
employees is the "prudent person" standard, any person or firm hired or retained to
invest, monitor, or advise concerning these assets shall be held to the higher standard
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of "prudent expert". The standard shall be that in investing and reinvesting moneys and
in acquiring, retaining, managing, and disposing of investments of these funds, the
investment advisor shall exercise: the judgment, care, skill, prudence, and diligenc e
under the circumstances then prevailing, which persons of prudence, discretion, and
intelligence, acting in a like capacity and familiar with such matters would use in the
conduct of an enterprise of like character and with like aims by diversifying the
investments of the funds, so as to minimize the risk, considering the probable income
as well as the probable safety of their capital.
(2) Ethical standards. Officers and employees involved in the investment process shall
refrain from personal business activity that could conflict with the proper execution
and management of the investment program, or that could impair their ability to make
impartial decisions. Employees and investment officials shall disclose any material
interest in financial institutions with which they conduct business. They shall further
disclose any personal financial/investment positions that could be related to the
performance of the investment portfolio. Employees and officers shall refrain from
undertaking personal investment transactions with the same individual with whom
business is conducted on behalf of the village.
VII. (f) Authorized Iinvestments and Ppre-Qqualification
. The village may invest and reinvest, in accordance with the objectives stated in
subsection (c), in the financial instruments noted in the table insets below. The following
are the guidelines for investments and limits on security types, issuers, and maturities as
established by the village. The chief financial officer, or other persons performing the
investment functions shall have the option to further restrict investment percentages from
time to time based on market conditions. The percentage allocations requirements for
investment types and issuers are calculated based on the original cost of each investment,
at the time of purchase. Investments not listed in this policy are prohibited.
(1) Banks. The Village shall only select a QPD (Qualified Public Depository) with a
collateral pledge level of twenty-five (25) percent or fifty (50) percent as established
by the State Chief Financial Officer pursuant to Section 280.04, Florida Statutes.
(2) U.S. Treasury & Government Guaranteed. U.S. Treasury obligations, and obligations
the principal and interest of which are backed or guaranteed by the full faith and credit
of the U.S. Government.
(3) Federal Agency/GSE. Debt obligations, participations or other instruments issued or
fully guaranteed by any U.S. Federal agency, instrumentality or government-sponsored
enterprise (GSE).
(4) Supranationals. U.S. dollar denominated debt obligations of a multilateral organization
of governments where U.S. is a shareholder and voting member.
(5) Corporates. U.S. dollar denominated corporate notes, bonds or other debt obligations
issued or guaranteed by a domestic or foreign corporation, financial institution, non -
profit, or other entity.
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(6) Municipals. Obligations, including both taxable and tax-exempt, issued or guaranteed
by any State, territory or possession of the United States, political subdivision, pub lic
corporation, authority, agency board, instrumentality or other unit of local government
of any State or territory.
(7) Agency Mortgage Backed Securities. Mortgage-backed securities (MBS), backed by
residential, multi-family or commercial mortgages, that are issued or fully guaranteed
as to principal and interest by a U.S. Federal agency or government sponsored
enterprise, including but not limited to pass-throughs, collateralized mortgage
obligations (CMOs) and REMICs.
(8) Asset-Backed Securities. Asset-backed securities (ABS) whose underlying collateral
consists of loans, leases or receivables, including but not limited to auto loans/leases,
credit card receivables, student loans, equipment loans/leases, or home -equity loans.
(9) Non-Negotiable Certificate of Deposit and Savings Accounts. Non-negotiable interest
bearing time certificates of deposit, or savings accounts in banks organized under the
laws of this state or in national banks organized under the laws of the United States and
doing business in this state, provided that any such deposits are secured by the Florida
Security for Public Deposits Act, Chapter 280, Florida Statutes.
(10) Commercial Paper. U.S. dollar denominated commercial paper issued or guaranteed
by a domestic or foreign corporation, company, financial institution, trust or other
entity, including both unsecured debt and asset-backed programs.
(11) Money Market Funds. Shares in open-end and no-load money market mutual funds,
provided such funds are registered under the Investment Company Act of 1940 and
operate in accordance with Rule 2a-7.
A thorough investigation of any money market fund is required prior to investing, and
on an annual basis thereafter. The list of questions that cover the major aspects of any
investment pool/fund set forth in the adopted Investment Pool/Fund Questionnaire
must be asked prior to investing. Additionally, a current prospectus must be obtained.
(12) Local Government Investment Pools. State, local government or privately-sponsored
investment pools that are authorized pursuant to state law. A thorough investigation of
any intergovernmental investment pool is required prior to investing, and on an annua l
basis. The list of questions that cover the major aspects of any investment pool/fund set
forth in the adopted Investment Pool/Fund Questionnaire must be asked prior to
investing. Additionally, a current prospectus must be obtained.
(13) The Florida Local Government Surplus Funds Trust Funds ("Florida Prime"). A
thorough investigation of the Florida Prime is required prior to investing, and on an
annual basis. The list of questions that cover the major aspects of any investment
pool/fund set forth in the adopted Investment Pool/Fund Questionnaire must be asked
prior to investing. Additionally, a current prospectus must be obtained.
VIII. (g) General investment and portfolio limits:
(1) General investment limitations:
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a. Investments must be denominated in U.S. dollars and issued for legal sale in U.S.
markets.
b. Minimum ratings are based on the highest rating by any one (1) Nationally
Recognized Statistical Ratings Organization ("NRSRO"), unless otherwise
specified.
c. All limits and rating requirements apply at time of purchase.
d. Should a security fall below the minimum credit rating requirement for purchase,
the investment advisor will notify the chief financial officer.
e. The maximum maturity (or average life for MBS/ABS) of any investment is five
and one-half (5.50) years. Maturity and average life are measured from settlement
date. The final maturity date can be based on any mandatory call, put, pre -
refunding date, or other mandatory redemption date.
(2) General portfolio limitations:
a. The maximum effective duration of the aggregate portfolio is three (3) years.
b. Maximum exposure to issuers in any non-U.S. country cannot exceed ten (10)
percent per country.
(3) Investment in the following are permitted, provided they meet all other policy
requirements:
a. Callable, step-up callable, called, pre-refunded, putable and extendable securities,
as long as the effective final maturity meets the maturity limits for the sector.
b. Variable-rate and floating-rate securities.
c. Subordinated, secured and covered debt, if it meets the ratings requirements for
the sector.
d. Zero coupon issues and strips, excluding agency mortgage-backed Interest-only
structures (I/Os).
e. Treasury TIPS.
(4) The following are not permitted investments, unless specifically authorized by statute
and with prior approval of the village council:
a. Trading for speculation.
b. Derivatives (other than callables and traditional floating or variable -rate
instruments).
c. Mortgage-backed interest-only structures (I/Os).
d. Inverse or leveraged floating-rate and variable-rate instruments.
e. Currency, equity, index and event-linked notes (e.g. range notes), or other
structures that could return less than par at maturity.
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f. Private placements and direct loans, except as may be legally permitted by Rule
144A or commercial paper issued under a 4(2) exemption from registration.
g. Convertible, high yield, and non-U.S. dollar denominated debt.
h. Short sales.
i. Use of leverage.
j. Futures and options.
k. Mutual funds, other than fixed-income mutual funds and ETFs, and money market
funds.
l. Equities, commodities, currencies and hard assets.
IX. (h) Maturity and liquidity requirements.
The village's investment portfolio shall be structured to provide sufficient liquidity to pay
obligations as they come due. Furthermore, to the extent possible, an attempt will be
made to match investment maturities with known cash needs and anticipated cash flow
requirements. Unless matched to a specific cash flow, the village will not directly invest
in securities maturing more than five and one -half (5.50) years from the date of purchase.
X. (i) Portfolio Ccomposition.
The following are the limits for investments and limits on security issues, and maturities
in the portfolio. The chief financial officer has the option to further restrict investment in
selected instruments, to conform to the present market conditions.
Note, however that the percentage allocation requirements do not apply to the funds
related to the issuance of debt.
Note: The table below defines two (2) types of village investments, "operating" and
"core":
Operating: Those liquid funds necessary to conduct routine village activity, in addition to
an amount determined by the village council and administration sufficient to cover
emergency situations and unforeseen capital expenditures.
Core: All funds not included in operating funds. In general, these funds can be invested
in issues with longer-term maturities.
These terms shall be defined and the amounts will be designated at least once a year
during the village budget discussions. Changes during a year shall only be made by
resolution of the village council. These changes will apply to the end of the current fiscal
year and must be reconfirmed or changed as needed during the next annual budget
process.
Table insets:
Operating Funds (Short-Term Portfolio Permitted Investments):
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Authorized
Investments
Sector
Maximum
(%)
Sector
Minimum
(%)
Per Issuer
Maximum
(%)
Minimum
Ratings
Requirement
Maturity
Range5
Banks — Interest-
bearing checking
or savings
accounts
100%
8.33% (1/12
of annual
Village
operating
budget)
50% N/A N/A
Non-Negotiable
Certificate of
Deposits
91.67%
(11/12th of
annual
Village
operating
budget)
0% 33.33% N/A 30 days
Florida Local
Government
Surplus Fund
Trust Funds
("Florida Prime")
50% 0% N/A
Highest Fund
Rating by all
NRSROs who
rate the fund
(AAAm/Aaa-
mf, or
equivalent)
N/A
Intergovernmental
Pools (LGIPs) 50% 0% N/A
Highest Fund
Quality and
Volatility
Rating
Categories by
all NRSROs
who rate the
LGIP,
(AAAm/AAAf,
S1, or
equivalent
N/A
Money Market
Funds (MMFs) 50% 0% 33.33%
Highest Fund
Rating by all
NRSROs who
rate the fund
(AAAm/Aaa-
mf, or
equivalent)
N/A
U.S. Treasury 50% 0% N/A N/A 30 days
Commercial
Paper 5% 0% N/A
Highest ST
Rating
Category (A-
30 Days
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1/P-1, or
equivalent)
Core Funds (Long-Term Portfolio) Permitted Investments:
Sector Sector
Maximum
(%)
Per Issuer
Maximum (%)
Minimum
Ratings
Requirement1
Maximum
Maturity5
U.S. Treasury
100%
100%
N/A
5.50 Years (5.50
Years avg. life4
for GNMA)
GNMA 40%
Other U.S.
Government
Guaranteed (e.g.
AID, GTC)
10%
Federal
Agency/GSE:
FNMA, FHLMC,
FHLB, FFCB* 75%
40%3
N/A 5.50 Years Federal
Agency/GSE
other than those
above
10%
Supranationals
where U.S. is a
shareholder and
voting member
25% 10%
Highest ST or
Two Highest LT
Rating
Categories (A-
1/P-1, AA-/Aa3,
or equivalent)
5.50 Years
Corporates 50%2 5%
Highest ST or
Three Highest
LT Rating
Categories (A-
1/P-1, A-/A3 or
equivalent)
5.50 Years
Municipals 25% 5%
Highest ST or
Three Highest
LT Rating
Categories (SP-
1/MIG 1, A-
/A3, or
equivalent)
5.50 Years
Agency
Mortgage-Backed
Securities (MBS)
25% 40%3 N/A 5.50 Years Avg.
Life4
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Asset-Backed
Securities (ABS) 25% 5%
Highest ST or
LT Rating (A-
1+/P-1,
AAA/Aaa, or
equivalent)
5.50 Years Avg.
Life4
Non-Negotiable
Certificate of
Deposit or
Savings Accounts
50% None, if fully
collateralized
None, if fully
collateralized. 2 Years
Commercial
Paper (CP) 50%2 5%
Highest ST
Rating Category
(A-1/P-1, or
equivalent)
270 Days
Money Market
Funds (MMFs) 50% 25%
Highest Fund
Rating by all
NRSROs who
rate the fund
(AAAm/Aaa-
mf, or
equivalent)
N/A
Intergovernmental
Pools (LGIPs) 50% 25%
Highest Fund
Quality and
Volatility Rating
Categories by
all NRSROs
who rate the
LGIP,
(AAAm/AAAf,
S1, or
equivalent)
N/A
Florida Local
Government
Surplus Funds
Trust Funds
("Florida Prime")
25% N/A
Highest Fund
Rating by all
NRSROs who
rate the fund
(AAAm/Aaa-
mf, or
equivalent)
N/A
Notes:
1 Rating by at least one (1) SEC-registered Nationally Recognized Statistical Rating
Organization ("NRSRO"), unless otherwise noted. ST=Short-term; LT=Long-term.
2 Maximum allocation to all corporate and bank credit instruments is fifty (50) percent
combined.
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3 Maximum exposure to any one (1) Federal agency, including the combined holdings of
Agency debt and Agency MBS, is forty (40) percent.
4 The maturity limit for MBS and ABS is based on the expected average life at time of
settlement, measured using Bloomberg or other industry standard methods.
5 Maximum maturity or weighted average life is from settlement date.
* Federal National Mortgage Association (FNMA); Federal Home Loan Mortgage
Corporation (FHLMC); Federal Home Loan Bank or its District banks (FHLB); Federal
Farm Credit Bank (FFCB).
XI. (j) Risk and diversification
. Assets held shall be diversified to control the risk of loss resulting from the over-
concentration of assets in a specific maturity, issuer, instrument, dealer, or bank through
which these instruments are bought and sold. Diversification strategies shall be reviewed
and revised periodically as deemed necessary by the chief financial officer.
XII. (k) Authorized investment institutions and dealers
. A list will be maintained of financial institutions authorized to provide investment
services. In addition, a list also will be maintained of appr oved security brokers/dealers
selected by creditworthiness. Authorized staff shall only purchase securities from
financial institutions, which are qualified as public depositories by the Treasurer, or Chief
Financial Officer of the State of Florida, "Primary Dealers" as designated by the Federal
Reserve Bank of New York, or from direct issuers of commercial paper.
The village's investment advisor shall utilize and maintain its own list of approved
primary and non-primary dealers.
XIII. (l) Third-Pparty Ccustodial Aagreements
. All securities purchased by the village shall be properly designated as an asset of the
village and shall be held in an account separate and apart from the assets of the financial
institution. A third party custodian is defined as an y bank depository chartered by the
Federal Government, the State of Florida, or any other state or territory of the United
States which has a branch or principal place of business in the State of Florida as defined
in Section 658.12, Florida Statutes, or by a national association organized and existing
under the laws of the United States which is authorized to accept and execute trusts and
which is doing business in the State of Florida. Certificates of deposits will be placed in
the provider's safekeeping department for the term of the deposit. The third-party
custodian will be required to designate all securities held as assets of the village. No
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withdrawal of securities, in whole or in part, shall be made from safekeeping, except by
the chief financial officer, or his/her respective designees. Securities transactions between
a broker-dealer and the custodian involving purchase or sale of securities by transfer of
money or securities must be made on a "delivery vs. payment" basis, if applicable, to
ensure that the custodian will have the security or money, as appropriate, in hand at the
conclusion of the transaction. Securities held as collateral shall be held free and clear of
any liens.
XIV. (m) Master Rrepurchase Aagreement
. All approved institutions and dealers transacting repurchase agreements shall execute
and perform as stated in the Securities Industry and Financial Markets Association
(SIFMA) master repurchase agreement. All repurchase agreement transactions shall
adhere to the requirements of the SIFMA master repurchase agreement.
XV. (n) Bid Rrequirement
. An appropriate maturity date will be determined for each investment based on cash -flow
needs and market conditions. Based on these considerations, the chief financial of ficer
will analyze and select one (1) or more optimal types of investments, and a minimum of
three (3) reputable, qualified and financially sound banks and/or dealers must be
contacted and asked to provide bids on the securities in question when feasible a nd
appropriate. Except as otherwise required by law, the bid deemed to best meet the
investment objectives specified in subsection (c) must be selected.
XVI. (o) Internal Ccontrols.
(1) The chief financial officer shall establish and maintain a written system of internal
controls made a part of the village's operational procedures. The internal controls shall
be designed to prevent losses of funds, which might arise from fraud, employee error,
misrepresentation by third parties, or imprudent actions by employees of the village.
No person shall engage in an investment transaction except as authorized in this policy.
(2) Independent auditors, as a normal part of the annual financial audit to the village, shall
conduct a review of the system of internal controls to ensure compliance with policies
and procedures as may be required by the village.
XVII. (p) Continuing Eeducation
. The chief financial officer shall complete eight (8) hours of continu ing education
annually in subjects or courses related to investment practices and products.
XVIII. (q) Reporting
. The chief financial officer or his or her respective designee shall prepare a quarterly
investment report, which shall include securities in the portfolio by class and type,
acquisition cost, income earned, yield, maturity date and market value as of the r eport
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date. The report will be provided to the legislative and governing body of the village and
shall be available to the public.
XIX. (r) Securities ; Ddisposition
. Every security purchased on behalf of the Village must be properly earmarked and:
(1) If registered with the issuer or agents, must be immediately placed for safekeeping in a
location that protects the village's interest in the security;
(2) If in book entry form, must be held for the credit of the governing body by a depository
chartered by the federal government, the state, or any other state or territory of the
United States which has a branch or principal place of business in the state as defined
in Florida Statutes section 658.12, or by national association organized and existing
under the laws of the United States which is authorized to accept and exercise trusts
and which is doing business in the state, and must be kept in the depository in an
account separate and apart from the assets of the financial institution, or
(3) If physically issued to the holder but not registered with the issuer or its agents, must
be immediately placed for safekeeping in a secured vault.
XX. (s) Sale of Ssecurities
. When invested funds are needed in whole or in part for the purposes originally intended
or for more optimal investments, the chief financial officer may sell such investments at
the then-prevailing market price and place the proceeds into the proper account or fund.
XXI. (t) Policy considerations.
(1) Exemptions. Any investment held prior to the adoption of this policy that does not meet
the guidelines of this policy shall be exempted from the requirements of this policy. At
maturity or liquidation, such monies shall be reinvested only as provided by this
policy.
(2) Amendments. This policy shall be reviewed on an annual basis by the village council at
the "setting of council goals and objectives" session of the annual budget. The village
council must approve any changes.
XXII. (u) Delegation of Aauthority
. The finance director is the chief financial officer of the village and is responsible for
investment decisions and activities. No person may engage in an investment transaction
except as provided under the terms of this policy and the procedures established
hereunder.
Nothing set forth herein shall preclude the village from utilizing an investment advisor to
assist in managing the village's portfolio. Such investment advisor must be registered
with the U.S. Securities and Exchange Commission (“SEC”) under the Investment
Advisor's Act of 1940. The investment advisor may invest funds on behalf of the village
in accordance with the mandates of this investment policy.
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Authorized signatories are the chief financial officer, the village manager and the village
mayor. These individuals are also authorized to initiate wire transfers for the village. All
investment transactions require approval by two (2) of the depository signatories.
XXIII. Annual Review
I. (v) The chief financial officer shall review the investment policy annually
and, if necessary, present modifications to the village council for approval.
APPROVED AND ADOPTED BY VILLAGE COUNCIL ON _________.
Investment Pool/Fund Questionnaire
Prior to investing in a money market fund/local government investment pool, proper due diligence is required.
General Fund/Pool Information:
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1. Does the fund/pool attempt to maintain a stable net asset value or floating net asset value?
2. How is interest distributed, and how are gains and losses treated?
3. How often are statements and portfolio holdings distributed?
4. Is the fund/pool eligible for bond proceeds and/or will it accept such proceeds?
Oversight:
5. What are the fund/pool ratings by the Nationally Recognized Statistical Rating Organizations such
as S&P, Moody’s, Fitch, Kroll, etc.?
6. What are the eligible investment securities? Is there a written statement of investment policy and
objectives?
7. How are the securities safeguarded (including the settlement processes)? How often are the
securities priced? How often is the fund/pool audited?
8. Is there any additional oversight outside of the Board of Trustees?
Fund/Pool Statistics:
9. What is the current sector allocation of the fund/pool?
10. What is the fee schedule, and how and when is it assessed?
Liquidity:
11. Does the fund/pool follow GASB 79?
12. Does the fund/pool have any liquidity fees? If so, describe the terms.
13. Does the fund/pool have redemption gates? If so, describe them.
Investor Requirements
14. Who may invest in the program, how often, and what size deposits and withdrawals are allowed?
Is there a limit regarding investor concentration? If so, what is it?
(Ord. No. 31-95, § 1, 10-26-96; Ord. No. 15-2001, §§ 1, 2, 6-28-01; Ord. No. 2008-17, § 2, 11-
13-08; Ord. No. 2012-04, § 2, 5-10-2012; Ord. No. 2013-07, § 2, 4-11-13; Ord. No. 2014-14, §
2, 12-11-14; Ord. No. 2018-01, § 2, 1-11-18)
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Glossary of Cash and Investment Management Terms
The following is a glossary of key investing terms, many of which appear in the Village of North Palm
Beach’s investment policy. This glossary clarifies the meaning of investment terms generally used in cash
and investment management. This glossary has been adapted from the GFOA Sample Investment Policy
and the Association of Public Treasurers of the United States and Canada’s Model Investment Policy.
Accrued Interest. Interest earned but which has not yet been paid or received.
Agency. See "Federal Agency Securities."
Ask Price. Price at which a broker/dealer offers to sell a security to an investor. Also known as “offered
price.”
Asset Backed Securities (ABS). A fixed-income security backed by notes or receivables against assets
other than real estate. Generally issued by special purpose companies that “own” the assets and issue the
ABS. Examples include securities backed by auto loans, credit card receivables, home equity loans,
manufactured housing loans, farm equipment loans, and aircraft leases.
Average Life. The average length of time that an issue of serial bonds and/or term bonds with a mandatory
sinking fund feature is expected to be outstanding.
Bankers' Acceptance (BA's). A draft or bill of exchange drawn upon and accepted by a bank. Frequently
used to finance shipping of international goods. Used as a short-term credit instrument, bankers' acceptances
are traded at a discount from face value as a money market instrument in the secondary market on the basis
of the credit quality of the guaranteeing bank.
Basis Point. One hundredth of one percent, or 0.01%. Thus 1% equals 100 basis points.
Bearer Security. A security whose ownership is determined by the holder of the physical security.
Typically, there is no registration on the issuer’s books. Title to bearer securities is transferred by delivery
of the physical security or certificate. Also known as “physical securities.”
Benchmark Bills: In November 1999, FNMA introduced its Benchmark Bills program, a short-term debt
securities issuance program to supplement its existing discount note program. The program includes a
schedule of larger, weekly issues in three- and six-month maturities and biweekly issues in one-year for
Benchmark Bills. Each issue is brought to market via a Dutch (single price) auction. FNMA conducts a
weekly auction for each Benchmark Bill maturity and accepts both competitive and non-competitive bids
through a web based auction system. This program is in addition to the variety of other discount note
maturities, with rates posted on a daily basis, which FNMA offers. FNMA's Benchmark Bills are unsecured
general obligations that are issued in book-entry form through the Federal Reserve Banks. There are no
periodic payments of interest on Benchmark Bills, which are sold at a discount from the principal amount
and payable at par at maturity. Issues under the Benchmark program constitute the same credit standing as
other FNMA discount notes; they simply add organization and liquidity to the short-term Agency discount
note market.
Benchmark Notes/Bonds: Benchmark Notes and Bonds are a series of FNMA “bullet” maturities (non-
callable) issued according to a pre-announced calendar. Under its Benchmark Notes/Bonds program, 2, 3,
5, 10, and 30-year maturities are issued each quarter. Each Benchmark Notes new issue has a minimum
size of $4 billion, 30-year new issues having a minimum size of $1 billion, with re-openings based on
investor demand to further enhance liquidity. The amount of non-callable issuance has allowed FNMA to
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build a yield curve in Benchmark Notes and Bonds in maturities ranging from 2 to 30 years. The liquidity
emanating from these large size issues has facilitated favorable financing opportunities through the
development of a liquid overnight and term repo market. Issues under the Benchmark program constitute
the same credit standing as other FNMA issues; they simply add organization and liquidity to the
intermediate- and long-term Agency market.
Benchmark. A market index used as a comparative basis for measuring the performance of an investment
portfolio. A performance benchmark should represent a close correlation to investment guidelines, risk
tolerance, and duration of the actual portfolio's investments.
Bid Price. Price at which a broker/dealer offers to purchase a security from an investor.
Bond. Financial obligation for which the issuer promises to pay the bondholder (the purchaser or owner
of the bond) a specified stream of future cash-flows, including periodic interest payments and a principal
repayment.
Book Entry Securities. Securities that are recorded in a customer’s account electronically through one of
the financial markets electronic delivery and custody systems, such as the Fed Securities wire, DTC, and
PTC
(as opposed to bearer or physical securities). The trend is toward a certificate-free society in order to cut
down on paperwork and to diminish investors’ concerns about the certificates themselves. The vast majority
of securities are now book entry securities.
Book Value. The value at which a debt security is reflected on the holder's records at any point in time.
Book value is also called “amortized cost” as it represents the original cost of an investment adjusted for
amortization of premium or accretion of discount. Also called “carrying value.” Book value can vary over
time as an investment approaches maturity and differs from “market value” in that it is not affected by
changes in market interest rates.
Broker/Dealer. A person or firm transacting securities business with customers. A “broker” acts as an
agent between buyers and sellers, and receives a commission for these services. A “dealer” buys and sells
financial assets from its own portfolio. A dealer takes risk by owning inventory of securities, whereas a
broker merely matches up buyers and sellers. See also "Primary Dealer."
Bullet Notes/Bonds. Notes or bonds that have a single maturity date and are non-callable.
Call Date. Date at which a call option may be or is exercised.
Call Option. The right, but not the obligation, of an issuer of a security to redeem a security at a specified
value and at a specified date or dates prior to its stated maturity date. Most fixed-income calls are a par, but
can be at any previously established price. Securities issued with a call provision typically carry a higher
yield than similar securities issued without a call feature. There are three primary types of call options (1)
European - one-time calls, (2) Bermudan - periodically on a predetermined schedule (quarterly, semi-
annual, annual), and (3) American - continuously callable at any time on or after the call date. There is
usually a notice period of at least 5 business days prior to a call date.
Callable Bonds/Notes. Securities which contain an imbedded call option giving the issuer the right to
redeem the securities prior to maturity at a predetermined price and time.
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Certificate of Deposit (CD). Bank obligation issued by a financial institution generally offering a fixed
rate of return (coupon) for a specified period of time (maturity). Can be as long as 10 years to maturity, but
most CDs purchased by public agencies are one year and under.
Collateral. Investment securities or other property that a borrower pledges to secure repayment of a loan,
secure deposits of public monies, or provide security for a repurchase agreement.
Collateralization. Process by which a borrower pledges securities, property, or other deposits for securing
the repayment of a loan and/or security.
Collateralized Mortgage Obligation (CMO). A security that pools together mortgages and separates
them into short, medium, and long-term positions (called tranches). Tranches are set up to pay different
rates of interest depending upon their maturity. Interest payments are usually paid monthly. In “plain
vanilla” CMOs, principal is not paid on a tranche until all shorter tranches have been paid off. This system
provides interest and principal in a more predictable manner. A single pool of mortgages can be carved up
into numerous tranches each with its own payment and risk characteristics.
Commercial Paper. Short term unsecured promissory note issued by a company or financial institution.
Issued at a discount and matures for par or face value. Usually a maximum maturity of 270 days and given
a short-term debt rating by one or more NRSROs.
Convexity. A measure of a bond's price sensitivity to changing interest rates. A high convexity indicates
greater sensitivity of a bond's price to interest rate changes.
Corporate Note. A debt instrument issued by a corporation with a maturity of greater than one year and
less than ten years.
Counterparty. The other party in a two party financial transaction. "Counterparty risk" refers to the risk
that the other party to a transaction will fail in its related obligations. For example, the bank or broker/dealer
in a repurchase agreement.
Coupon Rate. Annual rate of interest on a debt security, expressed as a percentage of the bond’s face
value.
Current Yield. Annual rate of return on a bond based on its price. Calculated as (coupon rate / price), but
does not accurately reflect a bond’s true yield level.
Custody. Safekeeping services offered by a bank, financial institution, or trust company, referred to as the
“custodian.” Service normally includes the holding and reporting of the customer's securities, the collection
and disbursement of income, securities settlement, and market values.
Dealer. A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for
his/her own account.
Delivery Versus Payment (DVP). Settlement procedure in which securities are delivered versus payment
of cash, but only after cash has been received. Most security transactions, including those through the Fed
Securities Wire system and DTC, are done DVP as a protection for both the buyer and seller of securities.
Depository Trust Company (DTC). A firm through which members can use a computer to arrange for
securities to be delivered to other members without physical delivery of certificates. A member of the
Federal Reserve System and owned mostly by the New York Stock Exchange, the Depository Trust
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Company uses computerized debit and credit entries. Most corporate securities, commercial paper, CDs,
and BAs clear through DTC.
Derivatives. (1) Financial instruments whose return profile is linked to, or derived from, the movement of
one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts
based upon notional amounts whose value is derived from an underlying index or security (interest rates,
foreign exchange rates, equities, or commodities). For hedging purposes, common derivatives are options,
futures, interest rate swaps, and swaptions.
Derivative Security. Financial instrument created from, or whose value depends upon, one or more
underlying assets or indexes of asset values.
Designated Bond. FFCB’s regularly issued, liquid, non-callable securities that generally have a 2 or 3 year
original maturity. New issues of Designated Bonds are $1 billion or larger. Re-openings of existing
Designated Bond issues are generally a minimum of $100 million. Designated Bonds are offered through a
syndicate of two to six dealers. Twice each month the Funding Corporation announces its intention to issue
a new Designated Bond, reopen an existing issue, or to not issue or reopen a Designated Bond. Issues under
the Designated Bond program constitute the same credit standing as other FFCB issues; they simply add
organization and liquidity to the intermediate- and long-term Agency market.
Discount Notes. Unsecured general obligations issued by Federal Agencies at a discount. Discount notes
mature at par and can range in maturity from overnight to one year. Very large primary (new issue) and
secondary markets exist.
Discount Rate. Rate charged by the system of Federal Reserve Banks on overnight loans to member banks.
Changes to this rate are administered by the Federal Reserve and closely mirror changes to the “fed funds
rate.”
Discount Securities. Non-interest bearing money market instruments that are issued at discount and
redeemed at maturity for full face value. Examples include: U.S. Treasury Bills, Federal Agency Discount
Notes, Bankers' Acceptances, and Commercial Paper.
Discount. The amount by which a bond or other financial instrument sells below its face value. See also
"Premium."
Diversification. Dividing investment funds among a variety of security types, maturities, industries, and
issuers offering potentially independent returns.
Dollar Price. A bond’s cost expressed as a percentage of its face value. For example, a bond quoted at a
dollar price of 95 ½, would have a principal cost of $955 per $1,000 of face value.
Duff & Phelps. One of several NRSROs that provide credit ratings on corporate and bank debt issues.
Duration. The weighted average maturity of a security’s or portfolio’s cash-flows, where the present
values of the cash-flows serve as the weights. The greater the duration of a security/portfolio, the greater
its percentage price volatility with respect to changes in interest rates. Used as a measure of risk and a key
tool for managing a portfolio versus a benchmark and for hedging risk. There are also different kinds of
duration used for different purposes (e.g. MacAuley Duration, Modified Duration).
Fannie Mae. See "Federal National Mortgage Association."
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Fed Money Wire. A computerized communications system that connects the Federal Reserve System with
its member banks, certain U. S. Treasury offices, and the Washington D.C. office of the Commodity Credit
Corporation. The Fed Money Wire is the book entry system used to transfer cash balances between banks
for themselves and for customer accounts.
Fed Securities Wire. A computerized communications system that facilitates book entry transfer of
securities between banks, brokers and customer accounts, used primarily for settlement of U.S. Treasury
and Federal Agency securities.
Fed. See "Federal Reserve System."
Federal Agency Security. A debt instrument issued by one of the Federal Agencies. Federal Agencies
are considered second in credit quality and liquidity only to U.S. Treasuries.
Federal Agency. Government sponsored/owned entity created by the U.S. Congress, generally for the
purpose of acting as a financial intermediary by borrowing in the marketplace and directing proceeds to
specific areas of the economy considered to otherwise have restricted access to credit markets. The largest
Federal Agencies are GNMA, FNMA, FHLMC, FHLB, FFCB, SLMA, and TVA.
Federal Deposit Insurance Corporation (FDIC). Federal agency that insures deposits at commercial
banks, currently to a limit of $250,000 per depositor per bank.
Federal Farm Credit Bank (FFCB). One of the large Federal Agencies. A government sponsored
enterprise (GSE) system that is a network of cooperatively-owned lending institutions that provides credit
services to farmers, agricultural cooperatives and rural utilities. The FFCBs act as financial intermediaries
that borrow money in the capital markets and use the proceeds to make loans and provide other assistance
to farmers and farm-affiliated businesses. Consists of the consolidated operations of the Banks for
Cooperatives, Federal Intermediate Credit Banks, and Federal Land Banks. Frequent issuer of discount
notes, agency notes and callable agency securities. FFCB debt is not an obligation of, nor is it guaranteed
by the U.S. government, although it is considered to have minimal credit risk due to its importance to the
U.S. financial system and agricultural industry. Also issues notes under its “designated note” program.
Federal Funds (Fed Funds). Funds placed in Federal Reserve Banks by depository institutions in excess
of current reserve requirements, and frequently loaned or borrowed on an overnight basis between
depository institutions.
Federal Funds Rate (Fed Funds Rate). The interest rate charged by a depository institution lending
Federal Funds to another depository institution. The Federal Reserve influences this rate by establishing a
"target" Fed Funds rate associated with the Fed's management of monetary policy.
Federal Home Loan Bank System (FHLB). One of the large Federal Agencies. A government sponsored
enterprise (GSE) system, consisting of wholesale banks (currently twelve district banks) owned by their
member banks, which provides correspondent banking services and credit to various financial institutions,
financed by the issuance of securities. The principal purpose of the FHLB is to add liquidity to the mortgage
markets. Although FHLB does not directly fund mortgages, it provides a stable supply of credit to thrift
institutions that make new mortgage loans. FHLB debt is not an obligation of, nor is it guaranteed by the
U.S. government, although it is considered to have minimal credit risk due to its importance to the U.S.
financial system and housing market. Frequent issuer of discount notes, agency notes and callable agency
securities. Also issues notes under its “global note” and “TAP” programs.
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Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac"). One of the large Federal
Agencies. A government sponsored public corporation (GSE) that provides stability and assistance to the
secondary market for home mortgages by purchasing first mortgages and participation interests financed
by the sale of debt and guaranteed mortgage backed securities. FHLMC debt is not an obligation of, nor is
it guaranteed by the U.S. government, although it is considered to have minimal credit risk due to its
importance to the U.S. financial system and housing market. Frequent issuer of discount notes, agency
notes, callable agency securities, and MBS. Also issues notes under its “reference note” program.
Federal National Mortgage Association (FNMA or "Fannie Mae"). One of the large Federal Agencies.
A government sponsored public corporation (GSE) that provides liquidity to the residential mortgage
market by purchasing mortgage loans from lenders, financed by the issuance of debt securities and MBS
(pools of mortgages packaged together as a security). FNMA debt is not an obligation of, nor is it guaranteed
by the U.S. government, although it is considered to have minimal credit risk due to its importance to the
U.S. financial system and housing market. Frequent issuer of discount notes, agency notes, callable agency
securities and MBS. Also issues notes under its “benchmark note” program.
Federal Reserve Bank. One of the 12 distinct banks of the Federal Reserve System.
Federal Reserve System (the Fed). The independent central bank system of the United States that
establishes and conducts the nation's monetary policy. This is accomplished in three major ways: (1) raising
or lowering bank reserve requirements, (2) raising or lowering the target Fed Funds Rate and Discount
Rate, and (3) in open market operations by buying and selling government securities. The Federal Reserve
System is made up of twelve Federal Reserve District Banks, their branches, and many national and state
banks throughout the nation. It is headed by the seven member Board of Governors known as the “Federal
Reserve Board” and headed by its Chairman.
Financial Industry Regulatory Authority, Inc. (FINRA). A private corporation that acts as a
self-regulatory organization (SRO). FINRA is the successor to the National Association of Securities
Dealers, Inc. (NASD). Though sometimes mistaken for a government agency, it is a non-governmental
organization that performs financial regulation of member brokerage firms and exchange markets. The
government also has a regulatory arm for investments, the Securities and Exchange Commission (SEC).
Fiscal Agent/Paying Agent. A bank or trust company that acts, under a trust agreement with a corporation
or municipality, in the capacity of general treasurer. The agent performs such duties as making coupon
payments, paying rents, redeeming bonds, and handling taxes relating to the issuance of bonds.
Fitch Investors Service, Inc. One of several NRSROs that provide credit ratings on corporate and
municipal debt issues.
Floating Rate Security (FRN or “floater”). A bond with an interest rate that is adjusted according to
changes in an interest rate or index. Differs from variable-rate debt in that the changes to the rate take place
immediately when the index changes, rather than on a predetermined schedule. See also “Variable Rate
Security.”
Freddie Mac. See "Federal Home Loan Mortgage Corporation."
Ginnie Mae. See "Government National Mortgage Association."
Global Notes: Notes designed to qualify for immediate trading in both the domestic U.S. capital market
and in foreign markets around the globe. Usually large issues that are sold to investors worldwide and
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therefore have excellent liquidity. Despite their global sales, global notes sold in the U.S. are typically
denominated in U.S. dollars.
Government National Mortgage Association (GNMA or "Ginnie Mae"). One of the large Federal
Agencies. Government-owned Federal Agency that acquires, packages, and resells mortgages and mortgage
purchase commitments in the form of mortgage-backed securities. Largest issuer of mortgage pass-through
securities. GNMA debt is guaranteed by the full faith and credit of the U.S. government (one of the few
agencies that are actually full faith and credit of the U.S. government).
Government Securities. An obligation of the U.S. government, backed by the full faith and credit of the
government. These securities are regarded as the highest quality of investment securities available in the
U.S. securities market. See "Treasury Bills, Notes, Bonds, and SLGS."
Government Sponsored Enterprise (GSE). Privately owned entity subject to federal regulation and
supervision, created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the
economy such as students, farmers, and homeowners. GSEs carry the implicit backing of the U.S.
government, but they are not direct obligations of the U.S. government. For this reason, these securities
will offer a yield premium over U.S. Treasuries. Examples of GSEs include: FHLB, FHLMC, FNMA, and
SLMA.
Government Sponsored Enterprise Security. A security issued by a Government Sponsored Enterprise.
Considered Federal Agency Securities.
Index. A compilation of statistical data that tracks changes in the economy or in financial markets.
Interest-Only (IO) STRIP. A security based solely on the interest payments from the bond. After the
principal has been repaid, interest payments stop and the value of the security falls to nothing. Therefore,
IOs are considered risky investments. Usually associated with mortgage-backed securities.
Internal Controls. An internal control structure ensures that the assets of the entity are protected from
loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these
objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not
exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and
judgments by management. Internal controls should address the following points:
1. Control of collusion - Collusion is a situation where two or more employees are working in
conjunction to defraud their employer.
2. Separation of transaction authority from accounting and record keeping - A separation of
duties is achieved by separating the person who authorizes or performs the transaction from the
people who record or otherwise account for the transaction.
3. Custodial safekeeping - Securities purchased from any bank or dealer including appropriate
collateral (as defined by state law) shall be placed with an independent third party for custodial
safekeeping.
4. Avoidance of physical delivery securities - Book-entry securities are much easier to transfer and
account for since actual delivery of a document never takes place. Delivered securities must be
properly safeguarded against loss or destruction. The potential for fraud and loss increases with
physically delivered securities.
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5. Clear delegation of authority to subordinate staff members - Subordinate staff members must
have a clear understanding of their authority and responsibilities to avoid improper actions. Clear
delegation of authority also preserves the internal control structure that is contingent on the various
staff positions and their respective responsibilities.
6. Written confirmation of transactions for investments and wire transfers - Due to the potential
for error and improprieties arising from telephone and electronic transactions, all transactions
should be supported by written communications and approved by the appropriate person. Written
communications may be via fax if on letterhead and if the safekeeping institution has a list of
authorized signatures.
7. Development of a wire transfer agreement with the lead bank and third-party custodian - The
designated official should ensure that an agreement will be entered into and will address the
following points: controls, security provisions, and responsibilities of each party making and
receiving wire transfers.
Inverse Floater. A floating rate security structured in such a way that it reacts inversely to the direction
of interest rates. Considered risky as their value moves in the opposite direction of normal fixed-income
investments and whose interest rate can fall to zero.
Investment Advisor. A company that provides professional advice managing portfolios, investment
recommendations, and/or research in exchange for a management fee.
Investment Adviser Act of 1940. Federal legislation that sets the standards by which investment
companies, such as mutual funds, are regulated in the areas of advertising, promotion, performance
reporting requirements, and securities valuations.
Investment Grade. Bonds considered suitable for preservation of invested capital, including bonds rated
a minimum of Baa3 by Moody’s, BBB- by Standard & Poor’s, or BBB- by Fitch. Although “BBB” rated
bonds are considered investment grade, most public agencies cannot invest in securities rated below “A.”
Liquidity. Relative ease of converting an asset into cash without significant loss of value. Also, a relative
measure of cash and near-cash items in a portfolio of assets. Additionally, it is a term describing the
marketability of a money market security correlating to the narrowness of the spread between the bid and
ask prices.
Local Government Investment Pool (LGIP). An investment by local governments in which their money
is pooled as a method for managing local funds, (e.g., Florida State Board of Administration’s Florida Prime
Fund).
Long-Term Core Investment Program. Funds that are not needed within a one-year period.
Market Value. The fair market value of a security or commodity. The price at which a willing buyer and
seller would pay for a security.
Mark-to-market. Adjusting the value of an asset to its market value, reflecting in the process unrealized
gains or losses.
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Master Repurchase Agreement. A widely accepted standard agreement form published by the Securities
Industry and Financial Markets Association (SIFMA) that is used to govern and document Repurchase
Agreements and protect the interest of parties in a repo transaction.
Maturity Date. Date on which principal payment of a financial obligation is to be paid.
Medium Term Notes (MTN's). Used frequently to refer to corporate notes of medium maturity (5-years
and under). Technically, any debt security issued by a corporate or depository institution with a maturity
from 1 to 10 years and issued under an MTN shelf registration. Usually issued in smaller issues with varying
coupons and maturities, and underwritten by a variety of broker/dealers (as opposed to large corporate deals
issued and underwritten all at once in large size and with a fixed coupon and maturity).
Money Market. The market in which short-term debt instruments (bills, commercial paper, bankers’
acceptance, etc.) are issued and traded.
Money Market Mutual Fund (MMF). A type of mutual fund that invests solely in money market
instruments, such as: U.S. Treasury bills, commercial paper, bankers' acceptances, and repurchase
agreements. Money market mutual funds are registered with the SEC under the Investment Company Act
of 1940 and are subject to “rule 2a-7” which significantly limits average maturity and credit quality of
holdings. MMF’s are managed to maintain a stable net asset value (NAV) of $1.00. Many MMFs carry
ratings by a NRSRO.
Moody's Investors Service. One of several NRSROs that provide credit ratings on corporate and
municipal debt issues.
Mortgage Backed Securities (MBS). Mortgage-backed securities represent an ownership interest in a
pool of mortgage loans made by financial institutions, such as savings and loans, commercial banks, or
mortgage companies, to finance the borrower's purchase of a home or other real estate. The majority of
MBS are issued and/or guaranteed by GNMA, FNMA, and FHLMC. There are a variety of MBS structures
with varying levels of risk and complexity. All MBS have reinvestment risk as actual principal and interest
payments are dependent on the payment of the underlying mortgages which can be prepaid by mortgage
holders to refinance and lower rates or simply because the underlying property was sold.
Mortgage Pass-Through Securities. A pool of residential mortgage loans with the monthly interest and
principal distributed to investors on a pro-rata basis. The largest issuer is GNMA.
Municipal Note/Bond. A debt instrument issued by a state or local government unit or public agency.The
vast majority of municipals are exempt from state and federal income tax, although some non-qualified
issues are taxable.
Mutual Fund. Portfolio of securities professionally managed by a registered investment company that
issues shares to investors. Many different types of mutual funds exist (e.g., bond, equity, and money market
funds); all except money market funds operate on a variable net asset value (NAV).
Negotiable Certificate of Deposit (Negotiable CD). Large denomination CDs ($100,000 and larger) that
are issued in bearer form and can be traded in the secondary market.
Net Asset Value. The market value of one share of an investment company, such as a mutual fund. This
figure is calculated by totaling a fund's assets including securities, cash, and any accrued earnings, then
subtracting the total assets from the fund's liabilities, and dividing this total by the number of shares
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outstanding. This is calculated once a day based on the closing price for each security in the fund's portfolio.
(See below.)
[(Total assets) - (Liabilities)]/(Number of shares outstanding)
NRSRO. A “Nationally Recognized Statistical Rating Organization” (NRSRO) is a designated rating
organization that the SEC has deemed a strong national presence in the U.S. NRSROs provide credit ratings
on corporate and bank debt issues. Only ratings of a NRSRO may be used f or the regulatory purposes of
rating. Includes Moody’s, S&P, Fitch, and Duff & Phelps.
Offered Price. See also "Ask Price."
Open Market Operations. A Federal Reserve monetary policy tactic entailing the purchase or sale of
government securities in the open market by the Federal Reserve System from and to primary dealers in
order to influence the money supply, credit conditions, and interest rates.
Par Value. The face value, stated value, or maturity value of a security.
Physical Delivery. Delivery of readily available underlying assets at contract maturity.
Portfolio. Collection of securities and investments held by an investor.
Premium. The amount by which a bond or other financial instrument sells above its face value. See also
"Discount."
Primary Dealer. A designation given to certain government securities dealer by the Federal Reserve Bank
of New York. Primary dealers can buy and sell government securities directly with the Fed. Primary dealers
also submit daily reports of market activity and security positions held to the Fed and are subject to its
informal oversight. Primary dealers are the largest buyers and sellers by volume in the U.S. Treasury
securities market.
Prime Paper. Commercial paper of high quality. Highest rated paper is A-1+/A-1 by S&P and P-1 by
Moody’s.
Principal. Face value of a financial instrument on which interest accrues. May be less than par value if
some principal has been repaid or retired. For a transaction, principal is par value times price and includes
any premium or discount.
Prudent Expert Rule. Standard that requires that a fiduciary manage a portfolio with the care, skill,
prudence, and diligence, under the circumstances then prevailing, that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of an enterprise of a like character and
with like aims. This statement differs from the “prudent person” rule in that familiarity with such matters
suggests a higher standard than simple prudence.
Prudent Investor Standard. Standard that requires that when investing, reinvesting, purchasing,
acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and
diligence under the circumstances then prevailing, including, but not limited to, the general economic
conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and
familiarity with those matters would use in the conduct of funds of a like character and with like aims, to
safeguard the principal and maintain the liquidity needs of the agency. More stringent than the “prudent
person” standard as it implies a level of knowledge commensurate with the responsibility at hand.
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Qualified Public Depository - Per Subsection 280.02(26), F.S., “qualified public depository” means any
bank, savings bank, or savings association that:
1. Is organized and exists under the laws of the United States, the laws of this state or any other state
or territory of the United States.
2. Has its principal place of business in this state or has a branch office in this state which is authorized
under the laws of this state or of the United States to receive deposits in this state.
3. Has deposit insurance under the provision of the Federal Deposit Insurance Act, as amended, 12
U.S.C. ss.1811 et seq.
4. Has procedures and practices for accurate identification, classification, reporting, and
collateralization of public deposits.
5. Meets all requirements of Chapter 280, F.S.
6. Has been designated by the Chief Financial Officer as a qualified public depository.
Range Note. A type of structured note that accrues interest daily at a set coupon rate that is tied to an
index. Most range notes have two coupon levels; a higher accrual rate for the period the index is within a
designated range, the lower accrual rate for the period that the index falls outside the designated range. This
lower rate may be zero and may result in zero earnings.
Rate of Return. Amount of income received from an investment, expressed as a percentage of the amount
invested.
Realized Gains (Losses). The difference between the sale price of an investment and its book value.
Gains/losses are “realized” when the security is actually sold, as compared to “unrealized” gains/losses
which are based on current market value. See “Unrealized Gains (Losses).”
Reference Bills: FHLMC’s short-term debt program created to supplement its existing discount note
program by offering issues from one month through one year, auctioned on a weekly or on an alternating
four-week basis (depending upon maturity) offered in sizeable volumes ($1 billion and up) on a cycle of
regular, standardized issuance. Globally sponsored and distributed, Reference Bill issues are intended to
encourage active trading and market-making and facilitate the development of a term repo market. The
program was designed to offer predictable supply, pricing transparency, and liquidity, thereby providing
alternatives to U.S. Treasury bills. FHLMC’s Reference Bills are unsecured general corporate obligations.
This program supplements the corporation’s existing discount note program. Issues under the Reference
program constitute the same credit standing as other FHLMC discount notes; they simply add organization
and liquidity to the short-term Agency discount note market.
Reference Notes: FHLMC’s intermediate-term debt program with issuances of 2, 3, 5, 10, and 30-year
maturities. Initial issuances range from $2 - $6 billion with re-openings ranging $1 - $4 billion.
The notes are high-quality bullet structures securities that pay interest semiannually. Issues under the
Reference program constitute the same credit standing as other FHLMC notes; they simply add organization
and liquidity to the intermediate- and long-term Agency market.
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Repurchase Agreement (Repo). A short-term investment vehicle where an investor agrees to buy
securities from a counterparty and simultaneously agrees to resell the securities back to the counterparty at
an agreed upon time and for an agreed upon price. The difference between the purchase price and the sale
price represents interest earned on the agreement. In effect, it represents a collateralized loan to the investor,
where the securities are the collateral. Can be DVP, where securities are delivered to the investor’s custodial
bank, or “tri-party” where the securities are delivered to a third party intermediary. Any type of security
can be used as “collateral,” but only some types provide the investor with special bankruptcy protection
under the law. Repos should be undertaken only when an appropriate Securities Industry and Financial
Markets Association (SIFMA) approved master repurchase agreement is in place.
Reverse Repurchase Agreement (Reverse Repo). A repo from the point of view of the original seller of
securities. Used by dealers to finance their inventory of securities by essentially borrowing at short-term
rates. Can also be used to leverage a portfolio and in this sense, can be considered risky if used improperly.
Safekeeping. Service offered for a fee, usually by financial institutions, for the holding of securities and
other valuables. Safekeeping is a component of custody services.
Secondary Market. Markets for the purchase and sale of any previously issued financial instrument.
Securities Industry and Financial Markets Association (SIFMA). The bond market trade association
representing the largest securities markets in the world. In addition to publishing a Master Repurchase
Agreement, widely accepted as the industry standard document for Repurchase Agreements, the SIFMA
also recommends bond market closures and early closes due to holidays.
Securities Lending. An arrangement between and investor and a custody bank that allows the custody
bank to “loan” the investors investment holdings, reinvest the proceeds in permitted investments, and shares
any profits with the investor. Should be governed by a securities lending agreement. Can increase the risk
of a portfolio in that the investor takes on the default risk on the reinvestment at the discretion of the
custodian.
Sinking Fund. A separate accumulation of cash or investments (including earnings on investments) in a
fund in accordance with the terms of a trust agreement or indenture, funded by periodic deposits by the
issuer (or other entity responsible for debt service), for the purpose of assuring timely availability of moneys
for payment of debt service. Usually used in connection with term bonds.
Spread. The difference between the price of a security and similar maturity U.S. Treasury investments,
expressed in percentage terms or basis points. A spread can also be the absolute difference in yield between
two securities. The securities can be in different markets or within the same securities market between
different credits, sectors, or other relevant factors.
Standard & Poor's. One of several NRSROs that provide credit ratings on corporate and municipal debt
issues.
STRIPS (Separate Trading of Registered Interest and Principal of Securi ties). Acronym applied to
U.S. Treasury securities that have had their coupons and principal repayments separated into individual
zero-coupon Treasury securities. The same technique and "strips" description can be applied to non-
Treasury securities (e.g., FNMA strips).
Structured Notes. Notes that have imbedded into their structure options such as step-up coupons or
derivative-based returns.
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Supranational. Supranational organizations are international financial institutions that are generally
established by agreements among nations, with member nations contributing capital and participating in
management. These agreements provide for limited immunity from the laws of member countries. Bonds
issued by these institutions are part of the broader class of Supranational, Sovereign, and Non-U.S. Agency
(SSA) sector bonds. Supranational bonds finance economic and infrastructure development and support
environmental protection, poverty reduction, and renewable energy around the globe. For example, the
World Bank, International Finance Corporation (IFC), and African Development Bank (AfDB) have “green
bond” programs specifically designed for energy resource conservation and management. Supranational
bonds, which are issued by multi-national organizations that transcend national boundaries. Examples
include the World Bank, African Development Bank, and European Investment Bank.
Swap. Trading one asset for another.
TAP Notes: Federal Agency notes issued under the FHLB TAP program. Launched in 6/99 as a refinement
to the FHLB bullet bond auction process. In a break from the FHLB’s traditional practice of bringing
numerous small issues to market with similar maturities, the TAP Issue Program uses the four most common
maturities and reopens them up regularly through a competitive auction. These maturities (2, 3, 5, and 10
year) will remain open for the calendar quarter, after which they will be closed and a new series of TAP
issues will be opened to replace them. This reduces the number of separate bullet bonds issued, but
generates enhanced awareness and liquidity in the marketplace through increased issue size and secondary
market volume.
Tennessee Valley Authority (TVA). One of the large Federal Agencies. A wholly owned corporation of
the United States government that was established in 1933 to develop the resources of the Tennessee Valley
region in order to strengthen the regional and national economy and the national defense. Power operations
are separated from non-power operations. TVA securities represent obligations of TVA, payable solely
from TVA's net power proceeds, and are neither obligations of nor guaranteed by the United States. TVA
is currently authorized to issue debt up to $30 billion. Under this authorization, TVA may also obtain
advances from the U.S. Treasury of up to $150 million. Frequent issuer of discount notes, agency notes,
and callable agency securities.
Total Return. Investment performance measured over a period of time that includes coupon interest,
interest on interest, and both realized and unrealized gains or losses. Total return includes, therefore, any
market value appreciation/depreciation on investments held at period end.
Treasuries. Collective term used to describe debt instruments backed by the U.S. government and issued
through the U.S. Department of the Treasury. Includes Treasury bills, Treasury notes, and Treasury bonds.
Also a benchmark term used as a basis by which the yields of non-Treasury securities are compared (e.g.,
"trading at 50 basis points over Treasuries").
Treasury Bills (T-Bills). Short-term direct obligations of the United States government issued with an
original term of one year or less. Treasury bills are sold at a discount from face value and do not pay interest
before maturity. The difference between the purchase price of the bill and the maturity value is the interest
earned on the bill. Currently, the U.S. Treasury issues 4-week, 13-week, and 26-week T-Bills.
Treasury Bonds. Long-term interest-bearing debt securities backed by the U.S. government and issued
with maturities of ten years and longer by the U.S. Department of the Treasury.
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Treasury Notes. Intermediate interest-bearing debt securities backed by the U.S. government and issued
with maturities ranging from one to ten years by the U.S. Department of the Treasury. The Treasury
currently issues 2-year, 3-year, 5-year, and 10-year Treasury Notes.
Trustee. A bank designated by an issuer of securities as the custodian of funds and official representative
of bondholders. Trustees are appointed to insure compliance with the bond documents and to represent
bondholders in enforcing their contract with the issuer.
Uniform Net Capital Rule. SEC Rule 15c3-1 that outlines the minimum net capital ratio (ratio of
indebtedness to net liquid capital) of member firms and non-member broker/dealers.
Unrealized Gains (Losses). The difference between the market value of an investment and its book value.
Gains/losses are “realized” when the security is actually sold, as compared to “unrealized” gains/losses
which are based on current market value. See also “Realized Gains (Losses).”
Variable-Rate Security. A bond that bears interest at a rate that varies over time based on a specified
schedule of adjustment (e.g., daily, weekly, monthly, semi-annually, or annually). See also “Floating Rate
Note.”
Weighted Average Maturity (or just “Average Maturity”). The average maturity of all securities and
investments of a portfolio, determined by multiplying the par or principal value of each security or
investment by its maturity (days or years), summing the products, and dividing the sum by the total principal
value of the portfolio. A simple measure of risk of a fixed-income portfolio.
Weighted Average Maturity to Call. The average maturity of all securities and investments of a portfolio,
adjusted to substitute the first call date per security for maturity date for those securities with call provisions.
Yield Curve. A graphic depiction of yields on like securities in relation to remaining maturities spread
over a time line. The traditional yield curve depicts yields on U.S. Treasuries, although yield curves exist
for Federal Agencies and various credit quality corporates as well. Yield curves can be positively sloped
(normal) where longer-term investments have higher yields, or “inverted” (uncommon) where longer-term
investments have lower yields than shorter ones.
Yield to Call (YTC). Same as “Yield to Maturity,” except the return is measured to the first call date rather
than the maturity date. Yield to call can be significantly higher or lower than a security’s yield to maturity.
Yield to Maturity (YTM). Calculated return on an investment, assuming all cash-flows from the security
are reinvested at the same original yield. Can be higher or lower than the coupon rate depending on market
rates and whether the security was purchased at a premium or discount. There are different conventions for
calculating YTM for various types of securities.
Yield. There are numerous methods of yield determination. In this glossary, see also "Current Yield,”
"Yield Curve," "Yield to Call," and "Yield to Maturity."
Editor's note(s)—Ord. No. 31-95, adopted Oct. 26, 1996, has been codified herein at the
discretion of the editor as § 2-4.
Formatted: Section
Formatted: Font: (Default) Times New Roman, 12
Page 1 of 7
VILLAGE OF NORTH PALM BEACH
VILLAGE ATTORNEY’S OFFICE
TO: Honorable Mayor and Council
THRU: Chuck Huff, Village Manager
FROM: Leonard G. Rubin, Village Attorney
DATE: November 5, 2026
SUBJECT: ORDINANCES 1st Reading – Ordinances amending the Village Charter and submitting
the amendments to referendum vote.
A. Background:
At its October 8, 2026 meeting, the Village Council reviewed the recommendations of the Charter Review
Committee and directed this office to move forward with the drafting the necessary Ordinances.
Each Ordinance amends the Charter (in strike through and underline format), subject to approval by the
Village’s electors at the March 9, 2027 election. If the amendment is not approved by the electors, it is
automatically repealed. As required by Section 101.161, Florida Statutes, each Ordinance must contain
a ballot title and ballot summary. The ballot title identifies the measure and is limited to fifteen (15) words.
The ballot summary is an explanatory statement of the measure’s chief purpose and is limited to seventy-
five (75) words. The summary is not required to describe every detail or consequence; rather, it must
provide voters with sufficient information to cast an informed ballot.
Pursuant to Section 166.031(2), Florida Statutes, a charter amendment is adopted when it is approved
by a majority of the electors voting in the referendum election. Unlike amendments to the State
Constitution, there is no 60% requirement.
Each substantive amendment must be presented as a separate ballot question. Consequently, there are
eight Ordinances presented for the Council’s consideration, seven substantive amendments and one
non-substantive (or housekeeping) amendment.
B. Proposed Ordinances:
1. Term of Office:
The first Ordinance extends the terms of Village Councilmembers from two years to three years and, if
approved, amends Article III, Section 2 of the Village Charter to read as follows (stricken through
language omitted):
On the second Tuesday in March of each year a general election shall be held to elect
members of the village council. The selection of members of the village council shall be
by groups to be known as Groups 1, 2, 3, 4 and 5. Commencing in March of 2028, the
term of office of council members in Groups 1, 3 and 5 shall commence upon the
member’s election and qualification and shall continue for successive three (3) year terms
Page 2 of 7
thereafter and until the member’s successor is elected and qualified. Commencing in
March of 2029, the term of office of council members in Groups 2 and 4 shall commence
upon the member’s election and qualification and shall continue for successive three (3)
year terms thereafter until the member’s successor is elected and qualified.
The proposed ballot title and ballot summary are as f ollows:
AN AMENDMENT TO ARTICLE III OF THE VILLAGE CHARTER
EXTENDING COUNCIL MEMBER TERMS
THIS AMENDMENT EXTENDS THE TERMS OF COUNCIL MEMBERS FROM TWO TO
THREE YEARS COMMENCING WITH THOSE MEMBERS ELECTED AT THE MARCH
2028 GENERAL ELECTION (GROUPS 1, 3 AND 5) AND THE MARCH 2029 GENERAL
ELECTION (GROUPS 2 AND 4) AND CONTINUING THEREAFTER.
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED?
YES NO
2. Filling of Council Vacancies:
The second Ordinance amends the procedures for the filling of Council vacancies to eliminate special
elections, and if approved, amends Article III, Section 5(c) of the Village Charter to read as follows
(stricken through language omitted):
(c) Filling of vacancies.
(1) In the event of a vacancy on the village council, the village council may, by majority
vote, appoint a person to fill a vacant seat until the date of the next general election,
when an election will be held to fill the formerly vacant seat for the remainder of
the unexpired term.
(2) If the membership of the village council is reduced to less than a quorum,
vacancies on the council shall be filled as follows:
(a) If only one member of the council remains, the chairperson of the planning,
zoning and adjustment board shall be appointed as the second member of
the village council. The two members shall then select a third council
member, and once a quorum is reached, all remaining vacancies shall be
filled as provided in subsection (c)(1).
(b) If two members of the council remain, the two members shall select a third
council member, and once a quorum is reached, all remaining vacancies
shall be filled as provided in subsection (c)(1).
(c) All persons appointed to fill a vacant seat shall serve until the date of the
next general election, when an election will be held to fill the formerly vacant
seat for the remainder of unexpired term.
(3) Any person appointed to the village council to fill a vacancy pursuant to this
subsection shall meet all qualifications for office prescribed by this charter.
Page 3 of 7
The proposed ballot title and ballot summary are as follows:
AN AMENDMENT TO ARTICLE III OF THE VILLAGE CHARTER
FILLING OF COUNCIL VACANCIES BY APPOINTMENT
THIS AMENDMENT PROVIDES THAT THE COUNCIL MAY FILL ANY VACANT SEAT
BY MAJORITY VOTE UNTIL THE DATE OF THE NEXT GENERAL ELECTION
WITHOUT REQUIRING A SPECIAL ELECTION. IT ALSO PROVIDES PROCEDURES
FOR FILLING VACANT SEATS WHERE LESS THAN THREE MEMBERS OF THE
COUNCIL REMAIN. ALL PERSONS APPOINTED SHALL MEET ALL QUALIFICATIONS
FOR THE OFFICE OF COUNCIL MEMBER AND ALL PERSONS ELECTED TO FILL
FORMERLY VACANT SEATS SHALL SERVE THE REMAINDER OF THE UNEXPIRED
TERM.
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED?
YES NO
3. Election to the Council by Plurality Vote:
The third Ordinance eliminates the requirement that a candidate receives a majority of the votes cast so
long as the prevailing candidate receives at least 30% of the vote. If no candidate receives 30% of the
vote or if the top two candidates receive the same number of votes, the Village will conduct a runoff
election. If approved, the Ordinance amends Article V, Section 4 of the Village Charter to read as follows
(stricken through language omitted):
Whenever a general or special election is held to f ill any elective office in the Village of
North Palm Beach, the candidate receiving the greatest number of the votes cast at such
election to fill such office shall be declared to be duly elected provided that the candidate
receives at least thirty percent of the votes cast. In the event no candidate for a particular
elective office shall receive thirty percent of the votes cast at such election to fill such office
or if the top two candidates receive the same number of votes, then a runoff election shall
be held two weeks after the original election to elect a candidate to fill such office. In the
event of a runoff election, only the names of the two candidates having received the
greatest number of votes or the candidates receiving the same number of votes in the
election for such office shall be submitted to the voters and the one receiving the majority
number of votes in such runoff election shall be declared to be duly elected to such office.
The proposed ballot title and ballot summary are as follows:
AN AMENDMENT TO ARTICLE V OF THE VILLAGE CHARTER
PROVIDING FOR ELECTION BY PLURALITY VOTE
THIS AMENDMENT PROVIDES THAT THE CANDIDATE RECEIVING THE GREATEST
NUMBER OF VOTES SHALL BE ELECTED TO THE VILLAGE COUNCIL IF THE
CANDIDATE RECEIVES THIRTY PERCENT OF THE VOTES CAST AND REQUIRES A
RUNOFF ONLY WHEN NO CANDIDATE RECEIVES THIRTY PERCENT OF THE
VOTES CAST OR THE TOP TWO CANDIDATES RECEIVE THE SAME NUMBER OF
VOTES.
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED?
Page 4 of 7
YES NO
4. Elimination of Power of the Mayor to Suspend Officers:
The fourth Ordinance eliminates the power of the Mayor to suspend any officer or official appointed by
the Village Council, and if approved, would remove the following language from Article III, Section 3 of
the Village Charter:
The mayor shall have power, for sufficient cause, to suspend any Village officer or official
appointed by the council. In case of the suspension of any such person, the mayor shall,
within fifteen (15) days thereafter, deliver to the village clerk, or his deputy, a specification
in writing of the charges preferred to the officer suspended; and it shall be the duty of said
clerk to present such charges to the council at its next meeting following the receipt of
such charges by him. Thereafter the council shall proceed to hear and determine the said
charges after reasonable notice of such hearing to the suspended officer, who shall be
given an opportunity to be heard with his witnesses. If upon such hearing the charges
preferred against such officer shall not be sustained by the council, the officer shall be
thereby immediately restored to office unless the council shall decide to terminate the
services of such officer for other cause, or without cause.
In the event that any village officer shall be suspended by the mayor as herein provided,
the mayor shall have power to appoint some person or some other officer of the Village
temporarily to perform the duties of the officer suspended, until the charges against such
suspended officer are heard and determined by the council.
The proposed ballot title and ballot summary are as follows:
AN AMENDMENT TO ARTICLE III OF THE VILLAGE CHARTER
REMOVING MAYOR’S POWER TO SUSPEND OFFICIALS
THIS AMENDMENT REMOVES THE MAYOR’S POWER TO UNILATERALLY
SUSPEND ANY VILLAGE OFFICER OR OFFICIAL APPOINTED BY THE VILLAGE
COUNCIL.
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED?
YES NO
5. Require Mandatory Charter Review:
The fifth Ordinance adds a new provision to the Village Charter to require mandatory review of the Village
Charter at least every ten years, and if approved, amends the Charter by adopting a new Article VII to
read as follows:
ARTICLE VII. CHARTER REVIEW
At least once every ten (10) years, the village council shall initiate a comprehensive review
of this charter for the purpose of identifying any provisions that may require clarification or
revision and determining whether amendments are advisable to promote the effective and
efficient governance of the village. The review shall be conducted by a charter review
Page 5 of 7
committee appointed by the village council, or by such other review process as the village
council may establish. Nothing in this section shall require the village council to propose
any charter amendment or require the submission of any proposed amendment to the
electors. Additionally, the periodic review required by this section shall not limit the
authority of the village council or the electors to initiate or consider charter amendments
at any other time in accordance with applicable law.
The proposed ballot title and ballot summary are as follows:
AN AMENDMENT TO THE VILLAGE CHARTER
REQUIRING CHARTER REVIEW
THIS AMENDMENT ADDS A NEW ARTICLE VII TO THE VILLAGE CHARTER TO
REQUIRE THE VILLAGE COUNCIL TO INITIATE A COMPREHENSIVE REVIEW OF
THE VILLAGE CHARTER AT LEAST ONCE EVERY TEN YEARS.
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED?
YES NO
6. Additional Qualifications for Office:
At its October 8th meeting, the Council indicated that it wished to impose a three-year, continuous
residency requirement for Village Council candidates. While municipalities have the home rule authority
to impose “reasonable” residency requirements, Florida courts have stricken down residency
requirements of more than one year as violating the equal protection clause. See Board of
Commissioners of Sarasota County v. Gustafson, 616 So. 2d 1165 (Fla. 2d DCA 1993) (candidate
residency requirement that candidates for elected county office be residents of the county for two years
immediately prior to qualifying for election is not necessary to a compelling state interest and therefore
violates the equal protection clause). Because residency requirements of one-year have been upheld
by the courts, the sixth Ordinance imposes a one-year continuous residency requirement, and if
approved, amends Article I, Section 1 of the Village Charter to add a new subsection (b) to read as
follows:
Only electors of the village who have been continuous, bona fide residents of the village
for at least one (1) year immediately preceding the date of filing of their notice of candidacy
shall be eligible to hold the office of council member. Ownership of real property within
the village, without actual residency or domicile therein, shall not satisfy this requirement.
The proposed ballot title and ballot summary are as follows:
AN AMENDMENT TO ARTICLE III OF THE VILLAGE CHARTER
RESIDENCY REQUIREMENT FOR COUNCIL CANDIDATES
THIS AMENDMENT REQUIRES THAT CANDIDATES FOR VILLAGE COUNCIL BE
CONTINUOUS, BONA FIDE RESIDENTS OF THE VILLAGE FOR AT LEAST ONE YEAR
PRIOR TO THE FILING OF THEIR NOTICE OF CANDIDACY.
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED?
YES NO
Page 6 of 7
7. Expand Lease Limitation at the Country Club for Food and Beverage Operations:
The seventh Ordinance provides an exception to the Charter provision that prohibits the Village from
leasing any park and recreation property, including the North Palm Beach Country Club, for more than
five years without a four-fifths vote of the Village Council and approval by two-thirds of the electors voting
in a referendum election. This restriction has proven to be problematic when attempting to secure food
and beverage vendors for the Country Club. If adopted, the Ordinance amends Article III, Section 11(a)
of the Village Charter to add the following language (additional language underlined):
(a) Any disposition of village owned real property dedicated or used for parks or
recreational purposes within the corporate limits of the Village of North Palm
Beach; improvements of same by other than the village government by way of
placing structures thereon; any lease of said real property by the village as lessor
for a period exceeding five (5) years shall first require a four -fifths majority vote of
the members of the Village Council and shall further require approval by vote of
66⅔ percent of the Village electors who vote in a referendum election called and
held as provided by law. This section shall apply to real property acquired by the
Village subsequent to the date of adoption of this charter, which real property is
dedicated or used for parks or recreational purposes. Notwithstanding the
foregoing, the Village Council may approve the lease of property within the North
Palm Beach Country Club for food and beverage operations for a period not
exceeding ten (10) years by majority vote without the need for a referendum
election.
The proposed ballot title and ballot summary are as follows:
AN AMENDMENT TO ARTICLE III OF THE VILLAGE CHARTER
LEASE OF COUNTRY CLUB PROPERTY
THIS AMENDMENT ALLOWS THE VILLAGE COUNCIL TO APPROVE A LEASE AT THE
NORTH PALM BEACH COUNTRY CLUB FOR FOOD AND BEVERAGE OPERATIONS
FOR PERIOD NOT TO EXCEED TEN YEARS BY MAJORITY VOTE AND WITHOUT
THE NEED FOR A REFERENDUM ELECTION. LEASES EXCEEDING FIVE YEARS
CURRENTLY REQUIRE A FOURTH-FIFTHS VOTE OF THE COUNCIL AND
APPROVAL BY TWO-THIRDS OF THE VOTES CAST IN A REFERENDUM ELECTION.
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED?
YES NO
8. Housekeeping Amendments:
The eighth Ordinance is a “catch-all” amendment to address non-substantive revisions to the Village
Charter. If approved, the Ordinance amends the Village Charter as follows:
Amends the last section of the Vision Statement set forth in Article I.A. of the Village Charter to
provide: “Only an informed citizenry and properly motivated public servants can preserve and
widen the vision of the best (in lieu of “greatest”) place to live under the sun.”
Page 7 of 7
Makes the entire Village Charter gender-neutral, specifically removing masculine pronouns and
referring to Council members in lieu of the term “Councilman.”
Amends Article III, Section 8 to remove the reference to the Council’s appointment of judges and
prosecutors.
Amends Article III, Section 9 to indicate that voting on ordinances and resolutions shall be
recorded in the minutes (in lieu of the “journal”).
Amends Article III, Section 11 to eliminate references to the Village Marina and the Herb Watt
Recreational Center.
Amends Article III, Section 12 to reference: the Police and Fire Rescue Departments (in lieu of
the “Public Safety Department”); the Public Works and Community Development Departments (in
lieu of the “Public Services Department”); and the Parks and Recreation Department (in lieu of
the “Recreation Department”).
The proposed ballot title and ballot summary are as follows:
AN AMENDMENT TO THE VILLAGE CHARTER
HOUSEKEEPING AMENDMENTS
THIS AMENDMENT REVISES THE VILLAGE’S VISION STATEMENT TO CONFORM
WITH THE VILLAGE’S CURRENT SLOGAN, REMOVES OUTDATED PROCEDURES
AND LANGUAGE, UPDATES THE NAMES OF VILLAGE DEPARTMENTS, REMOVES
REFERENCES TO PROPERTIES NO LONGER IN EXISTENCE OR OW NED BY THE
VILLAGE, AND PROVIDES FOR GENDER NEUTRAL LANGUAGE.
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED?
YES NO
C. Procedure:
The Council is free to modify the proposed language or otherwise amend the Ordinances on first reading.
Once adopted, the Ordinances will be advertised and presented to the Village Council for adoption on
second and final reading at its December 10, 2026 meeting. Once adopted on second reading, the
Charter Amendments will be placed on the March ballot for consideration by the Village’s electors.
The attached Ordinances have been prepared by this office and reviewed for legal sufficiency.
There is no fiscal impact (other than the potential cost of the election if neither of the two Council seats
up for election in March 2027 are contested).
Recommendation:
Village Staff requests Village Council consideration on first reading of the attached Ordinances
amending the Village Charter and placing the amendments on the March 9, 2027 ballot for
referendum approval in accordance with statutory requirements.
Page 1 of 3
ORDINANCE NO. 2026- 1
2
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF 3
NORTH PALM BEACH, FLORIDA, SUBMITTING TO REFERENDUM AN 4
AMENDMENT TO ARTICLE III, “LEGISLATIVE,” SECTION 2, “ELECTION 5
AND TERMS,” OF THE VILLAGE CHARTER TO EXTEND THE TERMS OF 6
COUNCIL MEMBERS FROM TWO TO THREE YEARS COMMENCING IN 7
2028 AND 2029; PROVIDING FOR THE FORM OF THE QUESTION; 8
PROVIDING FOR THE BALLOT TITLE AND EXPLANATORY LANGUAGE; 9
PROVIDING FOR ADVERTIS ING; PROVIDING FOR CODIFICATION, 10
SEVERABILITY, CONFLICTS AND AN EFFECTIVE DATE; PROVIDING 11
FOR A REPEALER; AND FOR OTHER PURPOSES. 12
13
WHEREAS, the Village Council appointed a Charter Review Committee to conduct a 14
comprehensive review of the Village Charter and to recommend such amendments as the 15
Committee determined appropriate for consideration by the Village Council and, if approved, 16
submission to the electors; and 17
18
WHEREAS, the Committee recommended a revision to Article III, Section 2 of the Village 19
Charter to extend the terms of Council members from two years and three years; and 20
21
WHEREAS, the Village Council determines that it is in the best interests of the residents of the 22
Village of North Palm Beach to submit the proposed Village Charter amendment to referendum 23
vote. 24
25
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 26
OF NORTH PALM BEACH, FLORIDA as follows: 27
28
Section 1. The foregoing “Whereas” clauses are hereby ratified as true and correct and are 29
incorporated herein. 30
31
Section 2. The Village Council hereby amends Article III, Section 2 of the Village Charter to 32
read as follows (additional language is underlined and deleted language is stricken through): 33
34
ARTICLE III. LEGISLATIVE 35
36
* * * 37
38
Section 2. Election and terms. 39
40
On the second Tuesday in March of each year a general election shall be 41
held to elect members of the village council. The selection of members of the 42
village council shall be by groups to be known as Groups 1, 2, 3, 4 and 5. The 43
councilmen in Groups 1, 3 and 5 shall be elected in the even years and councilmen 44
in Groups 2 and 4 shall be elected in the odd years. Commencing in March of 2028, 45
The the term of office of a councilman council members in Groups 1, 3 and 5 shall 46
commence upon his the member’s election and qualification and shall continue for 47
Page 2 of 3
two (2) successive three (3) years terms thereafter and until his the member’s 1
successor is elected and qualified; provided, however, that the terms of office of 2
those councilmen whose terms expire in March of 1981 and March of 1982 shall 3
be shortened by a period of one week. Commencing in March of 2029, the term of 4
office of council members in Groups 2 and 4 shall commence upon the member’s 5
election and qualification and shall continue for successive three (3) year terms 6
thereafter and until the member’s successor is elected and qualified. 7
8
Section 3. The amendment to the Village Charter set forth in Section 2 above shall not take 9
effect unless and until it is submitted to the electors of the Village of North Palm Beach. The 10
amendment shall be submitted at the Village’s general election to be held on Tuesday, March 9, 11
2027. 12
13
Section 4. The title of the ballot and explanatory statement setting forth the substance of the 14
amendment to the Village Charter shall appear on the ballot and shall read as follows: 15
16
AN AMENDMENT TO ARTICLE III OF THE VILLAGE CHARTER 17
EXTENDING COUNCIL MEMBER TERMS 18
19
THIS AMENDMENT EXTENDS THE TERMS OF COUNCIL MEMBERS 20
FROM TWO TO THREE YEARS COMMENCING WITH THOSE MEMBERS 21
ELECTED AT THE MARCH 2028 GENERAL ELECTION (GROUPS 1, 3 AND 22
5) AND THE MARCH 2029 GENERAL ELECTION (GROUPS 2 AND 4) AND 23
CONTINUING THEREAFTER. 24
25
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED? 26
27
YES NO 28
29
Section 5. The Village Clerk is hereby authorized and directed to advertise the referendum 30
election contemplated herein in accordance with Section 100.342, Florida Statutes. 31
32
Section 6. The provisions of this Ordinance shall become and be made part of the Charter of 33
the Village of North Palm Beach, Florida. 34
35
Section 7. If any section, paragraph, sentence, clause, phrase, or word of this Ordinance is for 36
any reason held by a court of competent jurisdiction to be unconstitutional, inoperative, or void, 37
such holding shall not affect the remainder of the Ordinance. 38
39
Section 8. All ordinances or parts of ordinances of the Village of North Palm Beach, Florida, 40
which conflict with this Ordinance, are hereby repealed to the extent of such conflict. 41
42
Section 9. This Ordinance shall become effective upon approval of a majority of the electors 43
casting their votes at the March 9, 2027, election. If not approved by a majority of the voters 44
voting in the election, this Ordinance shall be automatically repealed. 45
46
47
Page 3 of 3
PLACED ON FIRST READING THIS 5TH DAY OF NOVEMBER, 2026. 1
2
PLACED ON SECOND, FINAL READING AND PASSED THIS 10TH DAY OF DECEMBER, 3
2026. 4
5
6
7
(Village Seal) MAYOR 8
9
10
ATTEST: 11
12
13
VILLAGE CLERK 14
15
APPROVED AS TO FORM AND 16
LEGAL SUFFICIENCY: 17
18
19
VILLAGE ATTORNEY 20
21
Page 1 of 4
ORDINANCE NO. 2026- 1
2
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF 3
NORTH PALM BEACH, FLORIDA, SUBMITTING TO REFERENDUM AN 4
AMENDMENT TO ARTICLE III, “LEGISLATIVE,” SECTION 5, 5
“VACANCIES; FORFEITURE OF OFFICE; FILLING OF VACANCIES,” OF 6
THE VILLAGE CHARTER TO ELIMINATE THE SPECIAL ELECTION 7
REQUIREMENT AND TO PROVIDE PROCEDURES TO FILL VACANCIES 8
WHERE THE COUNCIL IS REDUCED TO LESS THAN A QUORUM; 9
PROVIDING FOR THE FORM OF THE QUEST ION; PROVIDING FOR THE 10
BALLOT TITLE AND EXPLANATORY LANGUAGE; PROVIDING FOR 11
ADVERTISING; PROVIDING FOR CODIFICATION, SEVERABILITY, 12
CONFLICTS AND AN EFFECTIVE DATE; PROVIDING FOR A REPEALER; 13
AND FOR OTHER PURPOSES. 14
15
WHEREAS, the Village Council appointed a Charter Review Committee to conduct a 16
comprehensive review of the Village Charter and to recommend such amendments as the 17
Committee determined appropriate for consideration by the Village Council and, if approved, 18
submission to the electors; and 19
20
WHEREAS, the Committee recommended a revision to Article III, Section 5 of the Village 21
Charter to provide for the filling of all Council vacancies by appointment in lieu of special election 22
and to provide procedures for appointment of Council members where less than a quorum remains; 23
and 24
25
WHEREAS, the Village Council determines that it is in the best interests of the residents of the 26
Village of North Palm Beach to submit the proposed Village Charter amendment to referendum 27
vote. 28
29
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 30
OF NORTH PALM BEACH, FLORIDA as follows: 31
32
Section 1. The foregoing “Whereas” clauses are hereby ratified as true and correct and are 33
incorporated herein. 34
35
Section 2. The Village Council hereby amends Article III, Section 5 of the Village Charter to 36
read as follows (additional language is underlined and deleted language is stricken through): 37
38
ARTICLE III. LEGISLATIVE 39
40
* * * 41
42
Section 5. Vacancies; forfeiture of office; filling of vacancies. 43
44
(a) Vacancies. The office of a council member shall become vacant upon his 45
death, resignation, removal from office in any manner authorized by law or 46
Page 2 of 4
forfeiture of his office, such forfeiture to be declared by the remaining 1
members of the council. 2
3
(b) Forfeiture of office. A council member shall forfeit his office if he lacks at 4
any time during his term of office any qualification for the office prescribed 5
by this charter or by law. 6
7
(c) Filling of vacancies. 8
9
(1) In the event of a vacancy on the village council, the village council 10
may, by majority vote, appoint a person to fill a vacant seat until the 11
date of the next general election, when an election will be held to fill 12
the formerly vacant seat for the remainder of the unexpired term. 13
14
(2) If the membership of the village council is reduced to less than a 15
quorum, vacancies on the council shall be filled as follows: 16
17
(a) If only one member of the council remains, the chairperson 18
of the planning, zoning and adjustment board shall be 19
appointed as the second member of the village council. The 20
two members shall then select a third council member, and 21
once a quorum is reached, all remaining vacancies shall be 22
filled as provided in subsection (c)(1). 23
24
(b) If two members of the council remain, the two members 25
shall select a third council member, and once a quorum is 26
reached, all remaining vacancies shall be filled as provided 27
in subsection (c)(1). 28
29
(c) All persons appointed to fill a vacant seat shall serve until 30
the date of the next general election, when an election will 31
be held to fill the formerly vacant seat for the remainder of 32
unexpired term. 33
34
(3) Any person appointed to the village council to fill a vacancy 35
pursuant to this subsection shall meet all qualifications for office 36
prescribed by this charter. 37
38
A vacancy of the council shall be filled in one of the following ways: (1) If 39
there are less than six (6) months remaining in the unexpired term or if there 40
are less than six (6) months before the next regular village election, the 41
council by a majority vote of the remaining members shall choose a 42
successor to serve until the newly elected council member is qualified. (2) 43
If there are more than six (6) months remaining in the unexpired term and 44
no regular village election is scheduled within six (6) months, the council 45
shall fill the vacancy on an interim basis as provided in (1), and shall 46
schedule a special election to be held not sooner than sixty (60) days, nor 47
more than ninety (90) days following the occurrence of the vacancy and if 48
Page 3 of 4
a runoff election is necessary, it shall be scheduled two (2) weeks after the 1
special election. Notwithstanding any quorum requirements established 2
herein, if at any time the membership of the council is reduced to less than 3
a quorum, the remaining members may by majority vote, appoint additional 4
members under either (1) or (2) above. 5
6
(d) Extraordinary vacancies. In the event that all members of the council are 7
removed by death, disability, law or forfeiture of office, the governor shall 8
appoint an interim council that shall call a special election as provided in 9
(c) above and such election shall be held in the same manner as the first 10
(1st) election under this charter. 11
12
(e) Vacancies when no candidates. There may be an occasion when there are 13
no candidates for a normal council vacancy at the time of a regularly 14
scheduled or special election. In the event this occurs, a majority of the 15
council shall fill the vacancy as noted in (c)(1) above and shall schedule any 16
necessary election as noted in (c)(2) above. 17
18
Section 3. The amendment to the Village Charter set forth in Section 2 above shall not take 19
effect unless and until it is submitted to the electors of the Village of North Palm Beach. The 20
amendment shall be submitted at the Village’s general election to be held on Tuesday, March 9, 21
2027. 22
23
Section 4. The title of the ballot and explanatory statement setting forth the substance of the 24
amendment to the Village Charter shall appear on the ballot and shall read as follows: 25
26
AN AMENDMENT TO ARTICLE III OF THE VILLAGE CHARTER 27
FILLING OF COUNCIL VACANCIES BY APPOINTMENT 28
29
THIS AMENDMENT PROVIDES THAT THE COUNCIL MAY FILL ANY 30
VACANT SEAT BY MAJORITY VOTE UNTIL THE DATE OF THE NEXT 31
GENERAL ELECTION WITHOUT REQUIRING A SPECIAL ELECTION. IT 32
ALSO PROVIDES PROCEDURES FOR FILLING VACANT SEATS WHERE 33
LESS THAN THREE MEMBERS OF THE COUNCIL REMAIN. ALL 34
PERSONS APPOINTED SHALL MEET ALL QUALIFICATIONS FOR THE 35
OFFICE OF COUNCIL MEMBER AND ALL PERSONS ELECTED TO FILL 36
FORMERLY VACANT SEATS SHALL SERVE THE REMAINDER OF THE 37
UNEXPIRED TERM. 38
39
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED? 40
41
YES NO 42
43
Section 5. The Village Clerk is hereby authorized and directed to advertise the referendum 44
election contemplated herein in accordance with Section 100.342, Florida Statutes. 45
46
Section 6. The provisions of this Ordinance shall become and be made part of the Charter of 47
the Village of North Palm Beach, Florida. 48
Page 4 of 4
Section 7. If any section, paragraph, sentence, clause, phrase, or word of this Ordinance is for 1
any reason held by a court of competent jurisdiction to be unconstitutional, inoperative, or void, 2
such holding shall not affect the remainder of the Ordinance. 3
4
Section 8. All ordinances or parts of ordinances of the Village of North Palm Beach, Florida, 5
which conflict with this Ordinance, are hereby repealed to the extent of such conflict. 6
7
Section 9. This Ordinance shall become effective upon approval of a majority of the electors 8
casting their votes at the March 9, 2027, election. If not approved by a majority of the voters 9
voting in the election, this Ordinance shall be automatically repealed. 10
11
PLACED ON FIRST READING THIS 5TH DAY OF NOVEMBER, 2026. 12
13
PLACED ON SECOND, FINAL READING AND PASSED THIS 10TH DAY OF DECEMBER, 14
2026. 15
16
17
18
(Village Seal) MAYOR 19
20
ATTEST: 21
22
23
VILLAGE CLERK 24
25
APPROVED AS TO FORM AND 26
LEGAL SUFFICIENCY: 27
28
29
VILLAGE ATTORNEY 30
Page 1 of 3
ORDINANCE NO. 2026- 1
2
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF 3
NORTH PALM BEACH, FLORIDA, SUBMITTING TO REFERENDUM AN 4
AMENDMENT TO ARTICLE V, “QUALIFICATIONS AND ELECTIONS,” 5
SECTION 4, “GENERAL AND RUNOFF ELECTION,” OF THE VILLAGE 6
CHARTER TO PROVIDE FOR ELECTION TO THE VILLAGE COUNCIL BY 7
PLURALITY VOTE IF THE PREVAILING CANDIDATE RECEIVES AT 8
LEAST THIRTY PERCENT OF THE VOTES CAST AND PROVIDE FOR 9
LIMITED RUNOFF ELECTIONS; PROVIDING FOR THE BALLOT TITLE 10
AND EXPLANATORY LANGUAGE; PROVIDING FOR ADVERTISING; 11
PROVIDING FOR CODIFICATION, SEVERABILITY, CONFLICTS AND AN 12
EFFECTIVE DATE; PROVIDING FOR A REPEALER; AND FOR OTHER 13
PURPOSES. 14
15
WHEREAS, the Village Council appointed a Charter Review Committee to conduct a 16
comprehensive review of the Village Charter and to recommend such amendments as the 17
Committee determined appropriate for consideration by the Village Council and, if approved, 18
submission to the electors; and 19
20
WHEREAS, the Committee recommended a revision to Article V, Section 4 of the Village Charter 21
to eliminate runoff elections and allow elections by plurality vote so long as the prevailing 22
candidate receives thirty percent of the votes cast, thereby limiting the amount of runoff elections; 23
and 24
25
WHEREAS, the Village Council determines that it is in the best interests of the residents of the 26
Village of North Palm Beach to submit the proposed Village Charter amendment to referendum 27
vote. 28
29
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 30
OF NORTH PALM BEACH, FLORIDA as follows: 31
32
Section 1. The foregoing “Whereas” clauses are hereby ratified as true and correct and are 33
incorporated herein. 34
35
Section 2. The Village Council hereby amends Article V, Section 4 of the Village Charter to 36
read as follows (additional language is underlined and deleted language is stricken through): 37
38
ARTICLE V. QUALIFICATIONS AND ELECTIONS 39
40
* * * 41
42
Section 4. General and runoff election. 43
44
Whenever a general or special election is held to fill any elective office in 45
the Village of North Palm Beach, the candidate receiving a majority the greatest 46
number of the votes cast at such election to fill such office shall be declared to be 47
Page 2 of 3
duly elected; provided that the candidate receives at least thirty percent of the votes 1
cast. in In the event no candidate for a particular elective office shall receive a 2
majority thirty percent of the votes cast at such election to fill such office or if the 3
top two candidates receive the same number of votes, then a runoff election shall 4
be held two weeks after the original election to elect a candidate to fill such office;. 5
provided further that in such In the event of a runoff election, only the names of the 6
two candidates having received the greatest number of votes or the candidates 7
receiving the same number of votes in the election for such office shall be submitted 8
to the voters and the one receiving the majority number of votes in such runoff 9
election shall be declared to be duly elected to such office.; provided further that 10
should two or more candidates receive an equal number of votes to any such office, 11
so that it cannot be determined which two had received the greatest and the next 12
greatest number of votes, then the names of all such candidates shall be submitted 13
at the runoff election and the candidate receiving the greatest number of votes at 14
such election shall be declared elected to such office, regardless of whether such 15
candidate received a majority of the votes cast to fill such office at such runoff 16
election. 17
18
Section 3. The amendment to the Village Charter set forth in Section 2 above shall not take 19
effect unless and until it is submitted to the electors of the Village of North Palm Beach. The 20
amendment shall be submitted at the Village’s general election to be held on Tuesday, March 9, 21
2027. 22
23
Section 4. The title of the ballot and explanatory statement setting forth the substance of the 24
amendment to the Village Charter shall appear on the ballot and shall read as follows: 25
26
AN AMENDMENT TO ARTICLE V OF THE VILLAGE CHARTER 27
PROVIDING FOR ELECTION BY PLURALITY VOTE 28
29
THIS AMENDMENT PROVIDES THAT THE CANDIDATE RECEIVING THE 30
GREATEST NUMBER OF VOTES SHALL BE ELECTED TO THE VILLAGE 31
COUNCIL IF THE CANDIDATE RECEIVES THIRTY PERCENT OF THE 32
VOTES CAST AND REQUIRES A RUNOFF ONLY WHEN NO CANDIDATE 33
RECEIVES THIRTY PERCENT OF THE VOTES CAST OR THE TOP TWO 34
CANDIDATES RECEIVE THE SAME NUMBER OF VOTES. 35
36
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED? 37
38
YES NO 39
40
Section 5. The Village Clerk is hereby authorized and directed to advertise the referendum 41
election contemplated herein in accordance with Section 100.342, Florida Statutes. 42
43
Section 6. The provisions of this Ordinance shall become and be made part of the Charter of 44
the Village of North Palm Beach, Florida. 45
46
Page 3 of 3
Section 7. If any section, paragraph, sentence, clause, phrase, or word of this Ordinance is for 1
any reason held by a court of competent jurisdiction to be unconstitutional, inoperative, or void, 2
such holding shall not affect the remainder of the Ordinance. 3
4
Section 8. All ordinances or parts of ordinances of the Village of North Palm Beach, Florida, 5
which conflict with this Ordinance, are hereby repealed to the extent of such conflict. 6
7
Section 9. This Ordinance shall become effective upon approval of a majority of the electors 8
casting their votes at the March 9, 2027, election. If not approved by a majority of the voters 9
voting in the election, this Ordinance shall be automatically repealed. 10
11
PLACED ON FIRST READING THIS 5TH DAY OF NOVEMBER, 2026. 12
13
PLACED ON SECOND, FINAL READING AND PASSED THIS 10TH DAY OF DECEMBER, 14
2026. 15
16
17
18
(Village Seal) MAYOR 19
20
ATTEST: 21
22
23
VILLAGE CLERK 24
25
APPROVED AS TO FORM AND 26
LEGAL SUFFICIENCY: 27
28
29
VILLAGE ATTORNEY 30
31
Page 1 of 3
ORDINANCE NO. 2026- 1
2
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF 3
NORTH PALM BEACH, FLORIDA, SUBMITTING TO REFERENDUM AN 4
AMENDMENT TO ARTICLE III, “LEGISLATIVE,” SECTION 3, “MAYOR,” 5
OF THE VILLAGE CHARTER TO REMOVE THE POWER OF THE MAYOR 6
TO SUSPEND ANY VILLAGE OFFICER OR OFFICIAL APPOINTED BY THE 7
COUNCIL; PROVIDING FOR THE FORM OF THE QUESTION; PROVIDING 8
FOR THE BALLOT TITLE AND EXPLANATORY LANGUAGE; PROVIDING 9
FOR ADVERTISING; PROVIDING FOR CODIFICATION, SEVERABILITY, 10
CONFLICTS AND AN EFFECTIVE DATE; PROVIDING FOR A REPEALER; 11
AND FOR OTHER PURPOSES. 12
13
WHEREAS, the Village Council appointed a Charter Review Committee to conduct a 14
comprehensive review of the Village Charter and to recommend such amendments as the 15
Committee determined appropriate for consideration by the Village Council and, if approved, 16
submission to the electors; and 17
18
WHEREAS, the Committee recommended a revision to Article III, Section 3 of the Village 19
Charter to remove the Mayor’s authority to suspend any Village officer or official appointed by 20
the Village Council because such decisions should be made by the entire Council; and 21
22
WHEREAS, the Village Council determines that it is in the best interests of the residents of the 23
Village of North Palm Beach to submit the proposed Village Charter amendment to referendum 24
vote. 25
26
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 27
OF NORTH PALM BEACH, FLORIDA as follows: 28
29
Section 1. The foregoing “Whereas” clauses are hereby ratified as true and correct and are 30
incorporated herein. 31
32
Section 2. The Village Council hereby amends Article III, Section 3 of the Village Charter to 33
read as follows (deleted language is stricken through): 34
35
ARTICLE III. LEGISLATIVE 36
37
* * * 38
39
Section 3. Mayor. 40
41
The council shall elect from among its members a mayor, a vice mayor, and 42
a president pro tem to serve at the pleasure of the council. Election of the mayor, 43
vice mayor and president pro tem shall be done annually at the first (1st) regular 44
council meeting after the village election. The mayor shall preside at meetings of 45
the council, shall be recognized as head of village government for all ceremonial 46
purposes, by the governor for purposes of military law, for service of process, 47
Page 2 of 3
execution of contracts, deeds and other documents, and as the village official 1
designated to represent the village in all agreements with other governmental 2
entities or certifications to other governmental entities, but shall have no 3
administrative duties except as required to carry out the responsibilities herein. The 4
vice mayor shall act as mayor during the absence or disability of the mayor. The 5
president pro tem shall preside at council meetings in the absence of the mayor and 6
vice mayor. 7
8
The mayor shall have power, for sufficient cause, to suspend any Village 9
officer or official appointed by the council. In case of the suspension of any such 10
person, the mayor shall, within fifteen (15) days thereafter, deliver to the village 11
clerk, or his deputy, a specification in writing of the charges preferred to the officer 12
suspended; and it shall be the duty of said clerk to present such charges to the 13
council at its next meeting following the receipt of such charges by him. Thereafter 14
the council shall proceed to hear and determine the said charges after reasonable 15
notice of such hearing to the suspended officer, who shall be given an opportunity 16
to be heard with his witnesses. If upon such hearing the charges preferred against 17
such officer shall not be sustained by the council, the officer shall be thereby 18
immediately restored to office unless the council shall decide to terminate the 19
services of such officer for other cause, or without cause. 20
21
In the event that any village officer shall be suspended by the mayor as 22
herein provided, the mayor shall have power to appoint some person or some other 23
officer of the Village temporarily to perform the duties of the officer suspended, 24
until the charges against such suspended officer are heard and determined by the 25
council. 26
27
Section 3. The amendment to the Village Charter set forth in Section 2 above shall not take 28
effect unless and until it is submitted to the electors of the Village of North Palm Beach. The 29
amendment shall be submitted at the Village’s general election to be held on Tuesday, March 9, 30
2027. 31
32
Section 4. The title of the ballot and explanatory statement setting forth the substance of the 33
amendment to the Village Charter shall appear on the ballot and shall read as follows: 34
35
AN AMENDMENT TO ARTICLE III OF THE VILLAGE CHARTER 36
REMOVING MAYOR’S POWER TO SUSPEND OFFICIALS 37
38
THIS AMENDMENT REMOVES THE MAYOR’S POWER TO 39
UNILATERALLY SUSPEND ANY VILLAGE OFFICER OR OFFICIAL 40
APPOINTED BY THE VILLAGE COUNCIL. 41
42
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED? 43
44
YES NO 45
46
Section 5. The Village Clerk is hereby authorized and directed to advertise the referendum 47
election contemplated herein in accordance with Section 100.342, Florida Statutes. 48
Page 3 of 3
Section 6. The provisions of this Ordinance shall become and be made part of the C harter of 1
the Village of North Palm Beach, Florida. 2
3
Section 7. If any section, paragraph, sentence, clause, phrase, or word of this Ordinance is for 4
any reason held by a court of competent jurisdiction to be unconstitutional, inoperative, or void, 5
such holding shall not affect the remainder of the Ordinance. 6
7
Section 8. All ordinances or parts of ordinances of the Village of North Palm Beach, Florida, 8
which conflict with this Ordinance, are hereby repealed to the extent of such conflict. 9
10
Section 9. This Ordinance shall become effective upon approval of a majority of the electors 11
casting their votes at the March 9, 2027, election. If not approved by a majority of the voters 12
voting in the election, this Ordinance shall be automatically repealed. 13
14
PLACED ON FIRST READING THIS 5TH DAY OF NOVEMBER, 2026. 15
16
PLACED ON SECOND, FINAL READING AND PASSED THIS 10TH DAY OF DECEMBER, 17
2026. 18
19
20
21
(Village Seal) MAYOR 22
23
ATTEST: 24
25
26
VILLAGE CLERK 27
28
APPROVED AS TO FORM AND 29
LEGAL SUFFICIENCY: 30
31
32
VILLAGE ATTORNEY 33
34
Page 1 of 3
ORDINANCE NO. 2026- 1
2
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF 3
NORTH PALM BEACH, FLORIDA, SUBMITTING TO REFERENDUM AN 4
AMENDMENT TO THE VILLAGE CHARTER TO ADD A NEW ARTICLE 5
VII, “CHARTER REVIEW,” TO REQUIRE A REVIEW OF THE CHARTER AT 6
LEAST ONCE EVERY TEN YEARS; PROVIDING FOR THE FORM OF THE 7
QUESTION; PROVIDING FOR THE BALLOT TITLE AND EXPLANATORY 8
LANGUAGE; PROVIDING FOR ADVERTISING; PROVIDING FOR 9
CODIFICATION, SEVERABILITY, CONFLICTS AND AN EFFECTIVE 10
DATE; PROVIDING FOR A REPEALER; AND FOR OTHER PURPOSES. 11
12
WHEREAS, the Village Council appointed a Charter Review Committee to conduct a 13
comprehensive review of the Village Charter and to recommend such amendments as the 14
Committee determined appropriate for consideration by the Village Council and, if approved, 15
submission to the electors; and 16
17
WHEREAS, the Committee recommended a revision to the Village Charter to add a provision 18
requiring that the Charter be reviewed at least once every ten years; and 19
20
WHEREAS, the Village Council determines that it is in the best interests of the residents of the 21
Village of North Palm Beach to submit the proposed Village Charter amendment to referendum 22
vote. 23
24
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 25
OF NORTH PALM BEACH, FLORIDA as follows: 26
27
Section 1. The foregoing “Whereas” clauses are hereby ratified as true and correct and are 28
incorporated herein. 29
30
Section 2. The Village Council hereby amends the Village Charter to add a new Article VII 31
to read as follows (additional language is underlined): 32
33
ARTICLE VII. CHARTER REVIEW 34
35
At least once every ten (10) years, the village council shall initiate a 36
comprehensive review of this charter for the purpose of identifying any provisions 37
that may require clarification or revision and determining whether amendments are 38
advisable to promote the effective and efficient governance of the village. The 39
review shall be conducted by a charter review committee appointed by the village 40
council, or by such other review process as the village council may establish. 41
Nothing in this section shall require the village council to propose any charter 42
amendment or require the submission of any proposed amendment to the electors. 43
Additionally, the periodic review required by this section shall not limit the 44
authority of the village council or the electors to initiate or consider charter 45
amendments at any other time in accordance with applicable law. 46
47
Page 2 of 3
Section 3. The amendment to the Village Charter set forth in Section 2 above shall not take 1
effect unless and until it is submitted to the electors of the Village of North Palm Beach. The 2
amendment shall be submitted at the Village’s general election to be held on Tuesday, March 9, 3
2027. 4
5
Section 4. The title of the ballot and explanatory statement setting forth the substance of the 6
amendment to the Village Charter shall appear on the ballot and shall read as follows: 7
8
AN AMENDMENT TO THE VILLAGE CHARTER 9
REQUIRING CHARTER REVIEW 10
11
THIS AMENDMENT ADDS A NEW ARTICLE VII TO THE VILLAGE 12
CHARTER TO REQUIRE THE VILLAGE COUNCIL TO INITIATE A 13
COMPREHENSIVE REVIEW OF THE VILLAGE CHARTER AT LEAST 14
ONCE EVERY TEN YEARS. 15
16
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED? 17
18
YES NO 19
20
Section 5. The Village Clerk is hereby authorized and directed to advertise the referendum 21
election contemplated herein in accordance with Section 100.342, Florida Statutes. 22
23
Section 6. The provisions of this Ordinance shall become and be made part of the Charter of 24
the Village of North Palm Beach, Florida. 25
26
Section 7. If any section, paragraph, sentence, clause, phrase, or word of this Ordinance is for 27
any reason held by a court of competent jurisdiction to be unconstitutional, inoperative, or void, 28
such holding shall not affect the remainder of the Ordinance. 29
30
Section 8. All ordinances or parts of ordinances of the Village of North Palm Beach, Florida, 31
which conflict with this Ordinance, are hereby repealed to the extent of such conflict. 32
33
Section 9. This Ordinance shall become effective upon approval of a majority of the electors 34
casting their votes at the March 9, 2027, election. If not approved by a majority of the voters 35
voting in the election, this Ordinance shall be automatically repealed. 36
37
PLACED ON FIRST READING THIS 5TH DAY OF NOVEMBER, 2026. 38
39
PLACED ON SECOND, FINAL READING AND PASSED THIS 10TH DAY OF DECEMBER, 40
2026. 41
42
43
(Village Seal) MAYOR 44
45
ATTEST: 46
47
48
Page 3 of 3
VILLAGE CLERK 1
APPROVED AS TO FORM AND 2
LEGAL SUFFICIENCY: 3
4
5
VILLAGE ATTORNEY 6
7
Page 1 of 3
ORDINANCE NO. 2026- 1
2
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF 3
NORTH PALM BEACH, FLORIDA, SUBMITTING TO REFERENDUM AN 4
AMENDMENT TO ARTICLE III, “LEGISLATIVE,” SECTION 1, “VILLAGE 5
COUNCIL; POWERS AND COMPOSITION,” OF THE VILLAGE CHARTER 6
TO REQUIRE THAT A CANDIDATE FOR VILLAGE COUNCIL 7
CONTINUOUSLY RESIDE WITHIN THE VILLAGE FOR ONE YEAR PRIOR 8
TO FILING A NOTICE OF CANDIDACY; PROVIDING FOR THE BALLOT 9
TITLE AND EXPLANATORY LANGUAGE; PROVIDING FOR 10
ADVERTISING; PROVIDING FOR CODIFICATION, SEVERABILITY, 11
CONFLICTS AND AN EFFECTIVE DATE; PROVIDING FOR A REPEALER; 12
AND FOR OTHER PURPOSES. 13
14
WHEREAS, the Village Council appointed a Charter Review Committee to conduct a 15
comprehensive review of the Village Charter and to recommend such amendments as the 16
Committee determined appropriate for consideration by the Village Council and, if approved, 17
submission to the electors; and 18
19
WHEREAS, the Committee recommended a revision to Article III, Section 1 of the Village 20
Charter to require that candidates for Village Council continuously reside within the Village for at 21
least one year prior to filing to run for office; and 22
23
WHEREAS, the Village Council determines that it is in the best interests of the residents of the 24
Village of North Palm Beach to submit the proposed Village Charter amendment to referendum 25
vote. 26
27
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 28
OF NORTH PALM BEACH, FLORIDA as follows: 29
30
Section 1. The foregoing “Whereas” clauses are hereby ratified as true and correct and are 31
incorporated herein. 32
33
Section 2. The Village Council hereby amends Article I, Section 1 of the Village Charter to 34
read as follows (additional language is underlined and deleted language is stricken through): 35
36
ARTICLE I. LEGISLATIVE 37
38
Section 1. Village council; powers and composition.; qualification. 39
40
(a) There shall be a village council with all legislative powers of the 41
village vested therein consisting of five (5) members who shall be electors of the 42
village, who shall be elected by the electors of the village. 43
44
Page 2 of 3
(b) Only electors of the village who have been continuous, bona fide 1
residents of the village for at least one (1) year immediately preceding the date of 2
filing of their notice of candidacy shall be eligible to hold the office of council 3
member. Ownership of real property within the village, without actual residency 4
or domicile therein, shall not satisfy this requirement. 5
6
Section 3. The amendment to the Village Charter set forth in Section 2 above shall not take 7
effect unless and until it is submitted to the electors of the Village of North Palm Beach. The 8
amendment shall be submitted at the Village’s general election to be held on Tuesday, March 9, 9
2027. 10
11
Section 4. The title of the ballot and explanatory statement setting forth the substance of the 12
amendment to the Village Charter shall appear on the ballot and shall read as follows: 13
14
AN AMENDMENT TO ARTICLE III OF THE VILLAGE CHARTER 15
RESIDENCY REQUIREMENT FOR COUNCIL CANDIDATES 16
17
THIS AMENDMENT REQUIRES THAT CANDIDATES FOR VILLAGE 18
COUNCIL BE CONTINUOUS, BONA FIDE RESIDENTS OF THE VILLAGE 19
FOR AT LEAST ONE YEAR PRIOR TO THE FILING OF THEIR NOTICE OF 20
CANDIDACY. 21
22
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED? 23
24
YES NO 25
26
Section 5. The Village Clerk is hereby authorized and directed to advertise the referendum 27
election contemplated herein in accordance with Section 100.342, Florida Statutes. 28
29
Section 6. The provisions of this Ordinance shall become and be made part of the Charter of 30
the Village of North Palm Beach, Florida. 31
32
Section 7. If any section, paragraph, sentence, clause, phrase, or word of this Ordinance is for 33
any reason held by a court of competent jurisdiction to be unconstitutional, inoperative, or void, 34
such holding shall not affect the remainder of the Ordinance. 35
36
Section 8. All ordinances or parts of ordinances of the Village of North Palm Beach, Florida, 37
which are in conflict with this Ordinance, are hereby repealed to the extent of such conflict. 38
39
Section 9. This Ordinance shall become effective upon approval of a majority of the electors 40
casting their votes at the March 9, 2027, election. If not approved by a majority of the voters 41
voting in the election, this Ordinance shall be automatically repealed. 42
Page 3 of 3
PLACED ON FIRST READING THIS 5TH DAY OF NOVEMBER, 2026. 1
2
PLACED ON SECOND, FINAL READING AND PASSED THIS 10TH DAY OF DECEMBER, 3
2026. 4
5
6
7
(Village Seal) MAYOR 8
9
ATTEST: 10
11
12
VILLAGE CLERK 13
14
APPROVED AS TO FORM AND 15
LEGAL SUFFICIENCY: 16
17
18
VILLAGE ATTORNEY 19
Page 1 of 3
ORDINANCE NO. 2026- 1
2
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF 3
NORTH PALM BEACH, FLORIDA, SUBMITTING TO REFERENDUM AN 4
AMENDMENT TO ARTICLE III, “LEGISLATIVE,” SECTION 11, “SALE OF 5
PROPERTY; REFERENDUM REQUIRED,” OF THE VILLAGE CHARTER TO 6
ALLOW THE LEASE OF PROPERTY FOR FOOD AND BEVERAGE 7
OPERATIONS AT THE NORTH PALM BEACH COUNTRY CLUB FOR A 8
PERIOD NOT EXCEEDING TEN YEARS BY MAJORITY VOTE AND 9
WITHOUT A REFERENDUM ELECTION; PROVIDING FOR THE FORM OF 10
THE QUESTION; PROVIDING FOR THE BALLOT TITLE AND 11
EXPLANATORY LANGUAGE; PROVIDING FOR ADVERTISING; 12
PROVIDING FOR CODIFICATION, SEVERABILITY, CONFLICTS AND AN 13
EFFECTIVE DATE; PROVIDING FOR A REPEALER; AND FOR OTHER 14
PURPOSES. 15
16
WHEREAS, the Village Council appointed a Charter Review Committee to conduct a 17
comprehensive review of the Village Charter and to recommend such amendments as the 18
Committee determined appropriate for consideration by the Village Council and, if approved, 19
submission to the electors; and 20
21
WHEREAS, the Committee recommended a revision to Article III, Section 11 of the Village 22
Charter to allow the Village Council to approve a lease for food and beverage operations at the 23
North Palm Beach Country Club for a period not to exceed ten years by majority vote and without 24
the need for a referendum election; and 25
26
WHEREAS, the Village Council determines that it is in the best interests of the residents of the 27
Village of North Palm Beach to submit the proposed Village Charter amendment to referendum 28
vote. 29
30
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 31
OF NORTH PALM BEACH, FLORIDA as follows: 32
33
Section 1. The foregoing “Whereas” clauses are hereby ratified as true and correct and are 34
incorporated herein. 35
36
Section 2. The Village Council hereby amends Article III, Section 11 of the Village Charter 37
to read as follows (additional language is underlined): 38
39
ARTICLE III. LEGISLATIVE 40
41
* * * 42
43
Section 11. Sale of property; referendum required. 44
45
(a) Any disposition of village owned real property dedicated or used for parks 46
or recreational purposes within the corporate limits of the Village of North 47
Page 2 of 3
Palm Beach; improvements of same by other than the village government 1
by way of placing structures thereon; any lease of said real property by the 2
village as lessor for a period exceeding five (5) years shall first require a 3
four-fifths majority vote of the members of the Village Council and shall 4
further require approval by vote of 66⅔ percent of the Village electors who 5
vote in a referendum election called and held as provided by law. This 6
section shall apply to real property acquired by the Village subsequent to 7
the date of adoption of this charter, which real property is dedicated or used 8
for parks or recreational purposes. Notwithstanding the foregoing, the 9
Village Council may approve the lease of property within the North Palm 10
Beach Country Club for food and beverage operations for a period not 11
exceeding ten (10) years by majority vote without the need for a referendum 12
election. 13
14
(b) The limitation of power to dispose of property shall embrace sale, exchange, 15
lease, mortgage, pledge, or other encumbrance of such real property; but 16
shall not embrace abandonment, gift or donation to a charity of such real 17
property officially determined to be of no further use to the Village and of 18
nominal sale value or no value. 19
20
(c) The parks or recreational property to which this section presently applies 21
are depicted on the map of the Village attached hereto and shown by 22
crosshatching thereon, together with the following descriptions for the 23
crosshatched areas: North Palm Beach Community Center and Park, 24
Anchorage Park, Lakeside Park, Osborne Park, North Palm Beach Country 25
Club, Village Marina and Herb Watt Recreational Center. 26
27
Section 3. The amendment to the Village Charter set forth in Section 2 above shall not take 28
effect unless and until it is submitted to the electors of the Village of North Palm Beach. The 29
amendment shall be submitted at the Village’s general election to be held on Tuesday, March 9, 30
2027. 31
32
Section 4. The title of the ballot and explanatory statement setting forth the substance of the 33
amendment to the Village Charter shall appear on the ballot and shall read as follows: 34
35
AN AMENDMENT TO ARTICLE III OF THE VILLAGE CHARTER 36
LEASE OF COUNTRY CLUB PROPERTY 37
38
THIS AMENDMENT ALLOWS THE VILLAGE COUNCIL TO APPROVE A 39
LEASE AT THE NORTH PALM BEACH COUNTRY CLUB FOR FOOD AND 40
BEVERAGE OPERATIONS FOR PERIOD NOT TO EXCEED TEN YEARS BY 41
MAJORITY VOTE AND WITHOUT THE NEED FOR A REFERENDUM 42
ELECTION. LEASES EXCEEDING FIVE YEARS CURRENTLY REQUIRE A 43
FOURTH-FIFTHS VOTE OF THE COUNCIL AND APPROVAL BY TWO-44
THIRDS OF THE VOTES CAST IN A REFERENDUM ELECTION. 45
46
47
Page 3 of 3
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED? 1
2
YES NO 3
4
Section 5. The Village Clerk is hereby authorized and directed to advertise the referendum 5
election contemplated herein in accordance with Section 100.342, Florida Statutes. 6
7
Section 6. The provisions of this Ordinance shall become and be made part of the Charter of 8
the Village of North Palm Beach, Florida. 9
10
Section 7. If any section, paragraph, sentence, clause, phrase, or word of this Ordinance is for 11
any reason held by a court of competent jurisdiction to be unconstitutional, inoperative, or void, 12
such holding shall not affect the remainder of the Ordinance. 13
14
Section 8. All ordinances or parts of ordinances of the Village of North Palm Beach, Florida, 15
which conflict with this Ordinance, are hereby repealed to the extent of such conflict. 16
17
Section 9. This Ordinance shall become effective upon approval of a majority of the electors 18
casting their votes at the March 9, 2027, election. If not approved by a majority of the voters 19
voting in the election, this Ordinance shall be automatically repealed. 20
21
PLACED ON FIRST READING THIS 5TH DAY OF NOVEMBER, 2026. 22
23
PLACED ON SECOND, FINAL READING AND PASSED THIS 10TH DAY OF DECEMBER, 24
2026. 25
26
27
28
(Village Seal) MAYOR 29
30
ATTEST: 31
32
33
VILLAGE CLERK 34
35
APPROVED AS TO FORM AND 36
LEGAL SUFFICIENCY: 37
38
39
VILLAGE ATTORNEY 40
Page 1 of 7
ORDINANCE NO. 2026- 1
2
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF 3
NORTH PALM BEACH, FLORIDA, SUBMITTING TO REFERENDUM 4
VARIOUS NON-SUBSANTIVE AMENDMENTS TO THE VILLAGE 5
CHARTER TO REMOVE OUTDATED LANGUAGE, UPDATE VILLAGE 6
PROPERTIES AND DEPARTMENTS, REVISE THE VISION STATEMENT, 7
AND INCORPORATE GENDER NEUTRALITY; AMENDING ARTICLE I.A, 8
“VISION STATEMENT,” ARTICLE III, “LEGISLATIVE,” ARTICLE IV, 9
“ADMINISTRATIVE,” AND ARTICLE V, “QUALIFICATIONS AND 10
ELECTIONS;” PROVIDING FOR THE FORM OF THE QUESTION; 11
PROVIDING FOR THE BALLOT TITLE AND EXPLANATORY LANGUAGE; 12
PROVIDING FOR ADVERTISING; PROVIDING FOR CODIFICATION, 13
SEVERABILITY, CONFLICTS AND AN EFFECTIVE DATE; PROVIDING 14
FOR A REPEALER; AND FOR OTHER PURPOSES. 15
16
WHEREAS, the Village Council appointed a Charter Review Committee to conduct a 17
comprehensive review of the Village Charter and to recommend such amendments as the 18
Committee determined appropriate for consideration by the Village Council and, if approved, 19
submission to the electors; and 20
21
WHEREAS, the Committee recommended various non-substantive or housekeeping amendments 22
to eliminate gender-specific language, remove references to positions no longer appointed by the 23
Village Council, remove references to property no longer in existence or owned by the Village, 24
and update references to Village departments; and 25
26
WHEREAS, the Village Council requested additional amendments relating to the Village vision 27
statement and outdated procedures; and 28
29
WHEREAS, the Village Council determines that it is in the best interests of the residents of the 30
Village of North Palm Beach to submit the proposed Village Charter amendment to referendum 31
vote. 32
33
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 34
OF NORTH PALM BEACH, FLORIDA as follows: 35
36
Section 1. The foregoing “Whereas” clauses are hereby ratified as true and correct and are 37
incorporated herein. 38
39
Section 2. The Village Council hereby amends the Village Charter to read as follows 40
(additional language is underlined and deleted language is stricken through): 41
42
ARTICLE I.A VISION STATEMENT 43
44
* * * 45
46
Page 2 of 7
Since being incorporated in 1956, the Village of North Palm Beach has been a 1
beacon in community spirit, citizen service, and continuous improvement. Each 2
article in this Charter is aimed at sustaining that light. Only an informed citizenry 3
and properly motivated public servants can preserve and widen the vision of the 4
greatest best place to live under the sun. 5
6
* * * 7
8
ARTICLE III. LEGISLATIVE 9
10
* * * 11
12
Section 2. Election and terms.1 13
14
On the second Tuesday in March of each year a general election shall be 15
held to elect members of the village council. The selection of members of the 16
village council shall be by groups to be known as Groups 1, 2, 3, 4 and 5. The 17
councilmen members in Groups 1, 3 and 5 shall be elected in the even years and 18
councilmen members in Groups 2 and 4 shall be elected in the odd years. The term 19
of office of a councilman member shall commence upon his the member’s election 20
and qualification and shall continue for two (2) years thereafter and until his the 21
member’s successor is elected and qualified; provided, however, that the terms of 22
office of those councilmen whose terms expire in March of 1981 and March of 23
1982 shall be shortened by a period of one week. 24
25
* * * 26
27
Section 5. Vacancies; forfeiture of office; filling of vacancies. 28
29
(a) Vacancies. The office of a council member shall become vacant upon his 30
the member’s death, resignation, removal from office in any manner 31
authorized by law or forfeiture of his the member’s office, such forfeiture 32
to be declared by the remaining members of the council. 33
34
(b) Forfeiture of office. A council member shall forfeit his or her office if he 35
the member lacks at any time during his term of office any qualification for 36
the office prescribed by this charter or by law. 37
38
* * * 39
40
Section 6. Prohibitions. 41
42
(a) Appointment and removals. Neither the council nor any of its members shall 43
in any manner dictate the appointment or removal of any village 44
administrative officers or employees whom the manager or any of his the 45
1 The revision to this Section shall be automatically repealed in the event that the accompanying
Charter Amendment relating to the terms of Council members is approved by referendum vote.
Page 3 of 7
manager’s subordinates are empowered to appoint, but the council may 1
express its views and fully and freely discuss with the manager anything 2
pertaining to appointment and removal of such officers and employees. 3
4
* * * 5
6
Section 7. Turnover of documents. 7
8
It shall be the duty of every officer of the village within ten (10) days after 9
the expiration of his or her term of office or of his or her removal therefrom, to 10
deliver to his successor in office, or to such person as the council may designate, 11
all books, records, papers, vouchers and property of every kind in his or her 12
possession or control, belonging to the municipality. 13
14
Section 8. Council-appointed officials. 15
16
The council shall have power to employ and retain engineers, judges, 17
prosecutors, accountants and attorneys. The council shall have the power to create 18
and abolish all offices and fix and determine the authority, duties and compensation 19
of all appointed officers, assistants and employees. 20
21
Section 9. Procedure. 22
23
* * * 24
25
(c) Voting. Voting, on ordinances and resolutions, shall be recorded in the 26
journal minutes. A majority of the council shall constitute a quorum; but a 27
smaller number may adjourn from time to time and may compel the 28
attendance of absent members in the manner and subject to the penalties 29
prescribed by the rules of the council. No action of the council except as 30
otherwise provided in the preceding sentence and in § 5, shall be valid or 31
binding unless adopted by the affirmative vote of the majority of a quorum 32
present, and no ordinance or resolution shall be adopted unless by the 33
affirmative vote of at least three (3) council members. 34
35
* * * 36
37
Section 11. Sale of property; referendum required. 38
39
* * * 40
41
(c) The parks or recreational property to which this section presently applies 42
are depicted on the map of the Village attached hereto and shown by 43
crosshatching thereon, together with the following descriptions for the 44
crosshatched areas: North Palm Beach Community Center and Park, 45
Anchorage Park, Lakeside Park, Osborne Park, and the North Palm Beach 46
Country Club, Village Marina and Herb Watt Recreational Center. 47
48
Page 4 of 7
Section 12. Contracting of village services; referendum required. 1
2
No contract or interlocal agreement shall be entered into between the 3
Village and a third-party public or private entity whereby the third party is to take 4
over the management and perform the duties and responsibilities of either the 5
Public Safety Police, Fire or Emergency Medical Services Divisions Police 6
Department, Fire Department, the Public Services Works Department 7
Administration, Building or Sanitation Divisions, the Community Development 8
Department Building Division, the Finance Department, the Parks and Recreation 9
Department or the Library unless the proposed contract or interlocal agreement first 10
receives a four-fifths vote of the Village Council and the approval of two-thirds of 11
the Village electors who vote in a referendum election called for and held as 12
provided by law. This section is not intended nor shall it be construed as a 13
prohibition against the Village entering into contracts and interlocal agreements 14
with public or private entities for services and assistance within one or more of the 15
specified Village departments. 16
17
ARTICLE IV. ADMINISTRATIVE 18
19
Section 1. Village manager. 20
21
There shall be a village manager who shall be the chief administrative 22
officer of the village. The manager shall be responsible to the council for the 23
administration of all village affairs placed in his the manager’s charge by or under 24
this charter. 25
26
* * * 27
28
Section 4. Acting village manager. 29
30
By letter filed with the council, the manager shall designate, subject to 31
approval of the council, a qualified village administrative officer to exercise the 32
powers and perform the duties of manager during his the manager’s temporary 33
absence or disability. During such absence or disability, the council may revoke 34
such designation at any time and appoint another officer of the village to serve until 35
the manager shall return or his the manager’s disability shall cease. 36
37
Section 5. Powers and duties of the village manager. 38
39
The Village Manager shall: 40
41
(a) Appoint, and when he deems it necessary for the good of the village, 42
suspend or remove all village employees and appointive administrative 43
officers provided for by or under this charter, except as otherwise provided 44
by law, this charter or personnel rules adopted pursuant to this charter. He 45
may authorize any administrative officer who is subject to his the manager’s 46
direction and supervision to exercise these powers with respect to 47
subordinates in that officer's department, office or agency; 48
Page 5 of 7
1
(b) Direct and supervise the administration of all departments, offices and 2
agencies of the village, except as otherwise provided by this charter or by 3
law; 4
5
(c) Attend all council meetings and shall have the right to take part in discussion 6
but may not vote; 7
8
(d) See that all laws, provisions of this charter and acts of the council, subject 9
to enforcement by him or by officers subject to his the manager’s direction 10
and supervision, are faithfully executed; 11
12
(e) Prepare and submit the annual budget, budget message, and capital program 13
to the council in a form provided by ordinance; 14
15
(f) Submit to the council and make available to the public a complete report on 16
the finances and administrative activities of the village as of the end of each 17
fiscal year; 18
19
(g) Make such other reports as the council may require concerning the 20
operations of village departments, offices and agencies, subject to his the 21
manager’s direction and supervision; 22
23
* * * 24
25
ARTICLE V. QUALIFICATIONS AND ELECTIONS 26
27
* * * 28
29
Section 2. Qualifications. 30
31
Candidates for the office of village councilman member shall qualify for 32
such office by the filing of a written notice of candidacy with the designated official 33
at such time and in such manner as may be prescribed by ordinance. 34
35
* * * 36
37
Section 5. Unopposed candidates. 38
39
In the event not more than one (1) person qualified as a candidate for a 40
designated seat on the village council to be filled at an election, that seat shall not 41
be listed on the regular village election ballot. Each unopposed candidate shall be 42
deemed to have voted for himself or herself. 43
44
* * * 45
46
47
Page 6 of 7
Section 3. The amendments to the Village Charter set forth in Section 2 above shall not take 1
effect unless and until it is submitted to the electors of the Village of North Palm Beach. The 2
amendment shall be submitted at the Village’s general election to be held on Tuesday, March 9, 3
2027. 4
5
Section 4. The title of the ballot and explanatory statement setting forth the substance of the 6
amendment to the Village Charter shall appear on the ballot and shall read as follows: 7
8
AN AMENDMENT TO THE VILLAGE CHARTER 9
HOUSEKEEPING AMENDMENTS 10
11
THIS AMENDMENT REVISES THE VILLAGE’S VISION STATEMENT TO 12
CONFORM WITH THE VILLAGE’S CURRENT SLOGAN, REMOVES 13
OUTDATED PROCEDURES AND LANGUAGE, UPDATES THE NAMES OF 14
VILLAGE DEPARTMENTS, REMOVES REFERENCES TO PROPERTIES NO 15
LONGER IN EXISTENCE OR OWNED BY THE VILLAGE, AND PROVIDES 16
FOR GENDER NEUTRAL LANGUAGE. 17
18
SHALL THE ABOVE-DESCRIBED AMENDMENT BE ADOPTED? 19
20
YES NO 21
22
Section 5. The Village Clerk is hereby authorized and directed to advertise the referendum 23
election contemplated herein in accordance with Section 100.342, Florida Statutes. 24
25
Section 6. The provisions of this Ordinance shall become and be made part of the Charter of 26
the Village of North Palm Beach, Florida. 27
28
Section 7. If any section, paragraph, sentence, clause, phrase, or word of this Ordinance is for 29
any reason held by a court of competent jurisdiction to be unconstitutional, inoperative, or void, 30
such holding shall not affect the remainder of the Ordinance. 31
32
Section 8. All ordinances or parts of ordinances of the Village of North Palm Beach, Florida, 33
which conflict with this Ordinance, are hereby repealed to the extent of such conflict. 34
35
Section 9. This Ordinance shall become effective upon approval of a majority of the electors 36
casting their votes at the March 9, 2027, election. If not approved by a majority of the voters 37
voting in the election, this Ordinance shall be automatically repealed. 38
39
PLACED ON FIRST READING THIS 5TH DAY OF NOVEMBER, 2026. 40
41
PLACED ON SECOND, FINAL READING AND PASSED THIS 10TH DAY OF DECEMBER, 42
2026. 43
44
45
46
(Village Seal) MAYOR 47
48
Page 7 of 7
ATTEST: 1
2
3
VILLAGE CLERK 4
5
APPROVED AS TO FORM AND 6
LEGAL SUFFICIENCY: 7
8
9
VILLAGE ATTORNEY 10
North Palm Beach, Florida, Code of Ordinances
PART I CHARTER
North Palm Beach, Florida, Code of Ordinances Created: 2025-10-25 17:24:57 [EST]
(Supp. No. 92)
Page 1 of 24
PART I
CHARTER1
ARTICLE I. CORPORATE NAME
The municipality hereby established shall be known as "The Village of North Palm Beach, Florida."
ARTICLE I.A. VISION STATEMENT
VISION STATEMENT
This vision statement for the Charter of the Village of North Palm Beach, Florida, defines for all those interested
the intentions and aims of the government of this municipality. Consistent with the applicable laws of the State of
Florida and the United States of America, this Charter provides the governing statutes of the Village. The
underlying thrust of this Charter is to make clear that this government is established and maintained with its
primary goal service to all residents and all who have occasion to be affected by its actions. Responsibility is placed
on both the government and the governed to continually seek appropriate means to advance the progress of the
Village of North Palm Beach.
Since being incorporated in 1956, the Village of North Palm Beach has been a beacon in community spirit, citizen
service, and continuous improvement. Each article in this Charter is aimed at sustaining that light. Only an
informed citizenry and properly motivated public servants can preserve and widen the vision o f the greatest place
to live under the sun.
(Ord. No. 31-2002, § 1, 12-12-02)
ARTICLE II. TERRITORIAL BOUNDARIES
Section 1. [Described.]
The Territorial Limits of said Municipality are hereby defined and shall be as follows:
BEGINNING at the intersection of the waters edge along the west shore of Lake Worth, with the south line of
Government Lot 1, Section 21, Township 42 South, Range 43 East, Palm Beach County, Florida; thence westerly,
along the south line of said Government Lot 1, to the southwest corner thereof; thence northerly, along the west
line of said Government Lot 1, also being the north-south one-quarter section line of said Section 21, to a point
68.90 feet south of the north one-quarter corner of said Section 21, (as measured along said one-quarter section
line). Said point being on the north side of the concrete curb on the south side of the center median of Northlake
Boulevard (S.R. No. 850), said point also being 7.75 feet south of the centerline of Northlake Boulevard (S.R. No.
1Editor's note(s)—The charter of the village, ch. 31481, Laws of Florida (1956) as revised by Ord. No. 1-76 of Feb.
19, 1976, is set out in this Part as enacted. Amendments have been worked in and are indicated by history
notes following amended sections. Material enclosed in brackets [ ] has been inserted where necessary to
correct obvious errors or for purposes of clarification where an ambiguity appears.
Created: 2025-10-25 17:24:56 [EST]
(Supp. No. 92)
Page 2 of 24
850) as now laid out and in use; thence S-89°-48′-00″-W, along a line which is 7.75 feet south of and parallel with
the centerline of said Northlake Boulevard (S.R. No. S-850), a distance of 1094.60 feet to the beginning of a curve,
concave to the north, having a radius of 4009.75 feet and a central angle of 10°-37′-48″; thence westerly and
northwesterly along the arc of said curve, a distance of 743.92 feet to the end of said curve and the beginning of a
curve, concave to the south, having a radius of 4019.52 feet and a central angle of 8°-40′-40″; thence westerly
along the arc of said curve, a distance of 608.78 feet to the end of said curve; thence N -88°-14′52″-W, a distance of
200 feet, more or less, to a point; said point being on the west line of said Section 21 and 15.75 feet south of the
northwest corner of said Section 21; thence N-88°-04′-04″-W, along a line which is 7.75 feet south of and parallel
with the centerline of said Northlake Boulevard (S.R. No. 850), a distance of 2654.1 feet, more or less to a point in
the north and south quarter section line of Section 20, Township 42 South, Range 43 East, Palm Beach County,
Florida; thence northerly along the said north and south quarter section line, a distance of 15.75 feet, more or less,
to the quarter corner in the north line of said Section 20; thence northerly along the north and south quarter
section line of Section 17 of said Township and Range to a point in the easterly extension of the northerly right -of-
way line of the Earman River Canal as described in Deed Book 1047, Page 359, Public Records of Palm Beach
County, Florida; thence N-67°-25′-24″-W a distance of 42.89 feet to a point in the northerly right-of-way line of
said Earman River Canal; thence westerly along said northerly right -of-way line of the Earman River Canal, to the
west line of said Section 17; thence northerly along the west line of said Section 17, to the northwest corner of said
Section 17; thence easterly along the north line of said Section 17, to the southwest corner of Cromwell Estates
according to the Plat thereof, recorded in Plat Book 29, page 110, Public Records of Palm Beach County, Florida;
thence northerly along the west line of said Cromwell Estates to the northwest corner thereof; thence easterly
along the north line of said Cromwell Estates to the west line of the southeast one-quarter (SE ¼) of the southwest
one-quarter (SW ¼) of Section 8 of said Township and Range; thence northerly along the west line of the southeast
one-quarter (SE ¼) of the southwest one-quarter (SW ¼) of Section 8 to the northwest corner thereof; thence
easterly along the north line of the southeast one-quarter (SE ¼) of the southwest one-quarter (SW ¼) of Section 8
to the west line of Pepperwood Subdivision as recorded in Palm Beach County Records, Plat Book 33, page 184,
thence northerly along the west line of said Pepperwood Subdivision to the northwest corner thereof; thence
easterly along the north line of said Pepperwood Subdivision to a point in a line lying 260 feet west and parallel to
the north-south quarter section line of Section 8, Township 42 South, Range 43 East, Palm Beach County, Florida;
thence northerly along said line a distance of 1085 feet; thence east along a line parallel to the south line of the
southeast one-quarter (SE ¼) of the southeast one-quarter (SE ¼) of the northwest one-quarter (NW ¼) of said
Section 8 to a point in the north-south quarter section line of said Section 8; thence northerly along the north and
south quarter section line of said Section 8 to the north line of said Section 8; thence easterly along the north line
of said Section 8 to a point in the east right-of-way line of Prosperity Farms Road; thence northerly along the east
right-of-way line of Prosperity Farms Road to a point in the north right-of-way line of Monet Road as laid out and in
use; thence easterly along the North right-of-way line of Monet Road as laid out and in use to its intersection with
the west line of the east ½ of the W ½ of the SE ¼ of the SW ¼ of the SE ¼ of Section 5, Township 42 South, Range
43 East, thence N-00°-34′-04″ East a distance of 611.46 feet; thence easterly along the North line of the SE ¼ of the
SW ¼ of the SE ¼ of said Section 5 a distance of 499.70 feet; thence S -00°-09′-50″-W a distance of 168.05 feet,
thence easterly along the north line of the SE ¾ of the S ½ of the SE ¼ of said Section 5, a dista nce of 615.95 feet;
thence southerly along the west right-of-way line of the Intracoastal Waterway (as shown on amended Plat Section
5, Township 43 South, Range 43 East, Plat Book 17, Page 29, Palm Beach County, Florida) to the North line of
Section 8, Township 43 South, Range 43 East; thence easterly, along the north line of Sections 8 and 9 of said
Township and Range, as shown on Florida Inland Navigation Districts Right -of-Way Map on pages 10 and 29 of Plat
Book 17, Public Records of Palm Beach County, Florida, to the center line of the R/W of State Road No. 5 (U.S.
Highway #1) as shown on Florida State Road Department's Right-of-Way Map recorded in State and County Road
Plat Book 2, pages 43 to 56, inclusive; thence northerly, along the center line of said State Road No. 5, to its
intersection with the easterly projection of the North line of Lot 6, Plat of Subdivision of Government Lot 8, Section
4 of said Township and Range; thence North 88°-08′-06″ West, distance of 63.12 feet to the Northeast corner of
said Lot 6; thence North 88°-08′-06″ West along the North line of said Lot 6 and the easterly projection thereof, a
distance of 231.75 feet; thence North 03°-04′-10″ West, a distance of 125.20 feet; thence South 89°-49′-50″ East
Created: 2025-10-25 17:24:56 [EST]
(Supp. No. 92)
Page 3 of 24
along a line 25 feet, more or less, North of the centerline of Caroline Avenue, as now laid out and in use, a distance
of 500.00 feet to a point of intersection with the Easterly Right-of-Way Line of Ellison-Wilson Road, as now laid out
and in use having a total Right-of-Way width of 66.00 feet; thence North 01°-22′-26″ West along the Easterly Right-
of-Way Line of Ellison-Wilson Road, same line being the Westerly line of Lots 6 and 7 of said "Plat of Subdivision of
Government Lot 8," a distance of 492.84 feet to the Northwest corner of said Lot 7 of the "Plat of Subdivision of
Government Lot 8," thence North 87°-20′-06″ West along the South line of said Government Lot 7 same line also
being the North Line of said "Plat of Subdivision of Government Lot 8," a distance of 102.48 feet t o the Southwest
Corner of Government Lot 7, Section 4 of said Township and Range; thence North 01°-35′-39″ East along the West
line of said Government Lot 7, a distance of 356.07 feet; thence South 85°-38′-02″ East, a distance of 765.13 feet to
a point of intersection with the Westerly Right-of-Way line of State Road Number 5; less the 66.00 foot Right-of-
Way for Ellison-Wilson Road; thence Southeasterly along the Westerly Right-of-Way line of State Road Number 5
to a point of intersection with the north line of Government Lot 8, Section 4 of said Township and Range; thence
easterly, along the north line of said Government Lot 8, to a point lying on the northerly line of Government Lot 8,
at its intersection with the southwesterly corner of the Plat of Twelve Oaks, as recorded in Plat Book 31, Pages 48
and 49, said Public Records; thence northerly along the westerly line of said Plat of Twelve Oaks a distance of
719.70 feet, thence westerly along a line parallel to the North line of Lot 8 to a point in the we sterly right of way
line of State Road 5 (US #1), thence northerly along the westerly right of way line of State Road 5 (US #1), a
distance of 200 feet, thence run easterly along a line parallel to the north line of Lot 8 to a point in the westerly
line of said Plat of Twelve Oaks, thence northeasterly along said westerly line and its northeasterly prolongation
thereof to its intersection with the southerly Right-of-Way line of State Road 703, as recorded in Road Plat Book 5,
Pages 12 and 13, said Public Records; thence easterly along said southerly Right-of-Way line to its intersection with
the southerly prolongation of the westerly line of the Plat of Hidden Key, as recorded in Plat Book 27, Page 243,
said Public Records; thence northerly along said southerly prolongation to the southwesterly corner of said Plat of
Hidden Key and a point on the north Right-of-Way line, to a point at right angles to centerline station 362 + 62.00
as said stationing is shown on the Plat of Bulkhead line in the north end of th e Waters of Lake Worth, as recorded
in Plat Book 26, page 135, Public Records of Palm Beach County, Florida; thence southerly at right angles to said
north Right-of-Way line, a distance of 53.00 feet to a point on said centerline of State Road No. 703 and the
northerly prolongation of the bulkhead line as shown on said plat; thence southerly and southwesterly, along said
northerly prolongation and said bulkhead line to its intersection with the easterly prolongation of the north line of
said Government Lot 8; thence continue easterly along the same course, to a point in the southerly extension of
the line between Government Lots 3 and 5 of said Section 4, as shown on Plat of Seminole Beach recorded in Plat
Book 22, page 37, Public Records of Palm Beach County, Florida; thence southerly, along said southerly extension
to a point in the westerly extension of the north line of Section 10 of said Township and Range; thence easterly,
along said westerly extension of the north line of said Section 10 and along the north line of said Section 10; to the
waters of Lake Worth; thence southerly, along the waters of Lake Worth, to the south line of the Marshall Morton
Estates, according to the Replat thereof recorded in Plat Book 24, page 1, Public Records of Palm Beach County,
Florida; thence easterly, along the south line of said Marshall Morton Estates, to the east boundary of said
Marshall Morton Estates at the waters of a lagoon; thence northerly, along the easterly boundary of said Marshall
Morton Estates and along the waters of said lagoon, to the north line of said Section 10; thence easterly, along the
north line of said Section 10, to the waters of the Atlantic Ocean; thence southerly, along the waters of the Atlantic
Ocean, to a point in a line parallel to, and 8,000 feet southerly from, measured at right angles to, the north line of
said Section 10; thence westerly, along said parallel line, to a point in the westerly boundary of the submerged
land area conveyed by the Trustees of the Internal Improvement Fund of the State of Florida, to Lake Worth Realty
Company, a Florida corporation, by Trustees' Deed No. 17,146, recorded in Deed Book 205, page 82, Public
Records of Palm Beach County, Florida; thence southerly, along said westerly boundary to a point in the eas terly
extension of the south line of Government Lot 1 of said Section 21, thence westerly, along said easterly extension
across Lake Worth to the point of beginning, at the waters edge on the west shore of said Lake Worth.
And a tract of land in Lots 3 and 4 of a subdivision of Government Lot 8, Section 4, Township 42 South, Range 43
East, Palm Beach County, Florida, according to the Plat thereof, recorded in Plat Book 18, page 4, Public Records of
Palm Beach County, Florida, said tract of land being more particularly described as follows:
Created: 2025-10-25 17:24:56 [EST]
(Supp. No. 92)
Page 4 of 24
Begin at the point of intersection of the north right -of-way line of McLaren Road with the east right-of-way
line of Ellison-Wilson Road, said point being the southwest corner of Lot 3; thence run N°3 -04′-10″-W along the
east right-of-way line of Ellison-Wilson Road 303.89 feet to the northwest corner of the said Lot 3; thence run S -
89°-54′-29″-E, along the north line of Lot 3 a distance of 7.01 feet thence run North 03°-04′-10″ west a distance of
303.93 feet, thence run North 89°-49′-50″ West a distance of 7.01 feet, thence run North 03°-04′-10″ West a
distance of 125 feet, thence run South 89°-49′-50″ East a distance of 620 feet, thence run North 03°-04′-10″ West a
distance of 125.20 feet, thence run South 89°-49′-50″ east a distance of 125.06 feet, thence run South 0°-12′-26″
West a distance of 74.91 feet, thence run South 23°-48′-04″ East 248.69 feet, thence run South 89°-54′-29″ East a
distance of 14.89 feet; thence run south 190.18 feet; thence run easterly parallel with the north line of Lot 4 a
distance of 50 feet, thence southerly parallel to the west line of Lot 4 a distance of 112.41 feet to a point in the
north right-of-way line of McLaren Road; thence run west along the north right-of-way line of McLaren Road,
727.33 feet to the point of beginning.
And a tract of land described as follows: A parcel of land lying in Section 5, Township 42 South, Range 43 East, Palm
Beach County, Florida, and being more particularly described as follows:
That part of the North Half (N ½) of the South Half (S ½) of the Southeast Quarter (SE¼) of said Section 5 lying
westerly of the West Right-of-Way line of the Intracoastal Waterway and lying East of the easterly Right-of-Way
line of Prosperity Farms Road, as shown in Road Plat Book 2, pages 136 and 137;
TOGETHER with the Northeast Quarter (NE ¼) of the Southwest Quarter (SW ¼) of the Southwest Quarter (SW ¼)
of the Southeast Quarter (SE ¼) of Section 5:
TOGETHER WITH that part of the North 169.5 feet of the West Half (W ½) of the Southwest Quarter (SW ¼) of the
Southwest Quarter (SW ¼) of the Southeast Quarter (SE ¼) of Section 5 lying easterly of the East line of those lands
described in Deed Book 877, Page 439, Palm Beach County records:
TOGETHER WITH the West Half (W ½) of the West Half (W ½) of the Southeast Qu arter (SE ¼) of the Southwest
Quarter (SW ¼) of the Southeast Quarter (SE ¼) of the said Section 5:
TOGETHER WITH the West thirty feet (30′) of the following described parcel:
Commencing at the center of said Section 5: thence easterly along the East-West Quarter Section line a distance of
1,293.76 feet to the Northwest corner of the Northeast Quarter (NE ¼) of the Southeast Quarter (SE ¼) of said
Section 5: thence South 00°-08′-30″ West along the West line of the Northeast Quarter (NE ¼) of the Southeast
Quarter (SE ¼) of Section 5, (the west line of the Northeast Quarter (NE ¼) of the Southeast Quarter (SE ¼) of
Section 5 is assumed to bear South 00-°-08′-30″ West and all other bearings are relative thereto) a distance of
1.343.65 feet to the Southwest corner of the Northeast Quarter (NE ¼) of the Southeast Quarter (SE ¼) of Section 5
and the POINT OF BEGINNING of the herein described parcel: thence South 88°-16′-41″ East along the South line of
the Southwest Quarter (SW ¼) of the Northeast Quarter (NE ¼) of the Southeast Quarter (SE ¼) of Section 5 a
distance of 144.46 feet: thence North 02°-13′-54″ West, a distance of 157.46 feet; thence North 88°-16′-41″ West,
a distance of 137.95 feet; thence South 00°-08′-30″ West, a distance of 157.15 feet to the POINT OF BEGINNING.
TOGETHER WITH the following described parcel:
Begin at the Northeast corner of Lot 5, according to the Plat of subdivision of Government Lot 8, Section 4,
Township 42 South, Range 43 East, as recorded in Plat Book 18, Page 4, in and for the records of Palm Beach
County, Florida; Thence N 89° 47′ 58″ W along the North line of said Lot 5, a distance of 250.12 feet to a point:
Thence Southerly, at right angles bearing South 0° 12′ 02″ West, a distance of 74.91 feet; Thence South 23° 47′ 30″
East, a distance of 200.65 feet; Thence South 89° 54′ 40″ East, a distance of 283.22 feet to a point in the East line of
said Lot 5; Thence North 23° 47′ 30″ West along East line of said Lot 5; a distance of 282.04 feet to the Point of
Beginning.
TOGETHER WITH the following described parcel:
Created: 2025-10-25 17:24:56 [EST]
(Supp. No. 92)
Page 5 of 24
A parcel of land lying in the southeast quarter of Section 5, Township 42 South, Range 43 East, Palm Beach County,
Florida, more particularly described as follows:
Commencing at the southwest corner of the southeast quarter of said Section 5; thence South 88°-34′-32″ East
along the South line of the southeast quarter (the South line of the southeast quarter is taken to bear South 88°-
34′-32″ East and all other bearings stated herein are relative thereto) a distance of 841.10 feet to the East line of
the West half of the West half of the southeast quarter of the southwest quarter of the southeast quarter of said
Section 5; thence North 00°-06′-53″ East along said East line and along the West line of the Plat of Harbour Point
Marina, recorded in Plat Book 73, Pages 99 and 100, Public Records of Palm Beach County, Florida, a distance of
671.39 feet to the northwest corner of said plat; thence South 88°-37′-59′ East along the North line of said plat a
distance of 499.75 feet to the most northeasterly corner of said plat and the POINT OF BEGINNING of the
hereinafter described parcel; thence continue South 88°-37′-59″ East along the North line of the South half of the
southeast quarter of the southeast quarter of said Section 5 a distance of 594.98 feet to a point of intersection
with the West right-of-way line of the Intracoastal Waterway as shown on the Amended Plat of Section 5 -42-43 of
the Intracoastal Waterway, as recorded in Plat Book 17, Page 29, Public Records of Palm B each County, Florida;
thence South 07°-20′-49″ East along said right-of-way line a distance of 166.93 feet to a point on the South line of
the North 165.00 feet of the South half of the southeast quarter of the southeast quarter of said Section 5; thence
North 88°-37′-59″ West along said South line a distance of 615.50 feet to the southwest corner of the North 165.00
feet of the South half of the southeast quarter of the southeast quarter of said Section 5, said point lying on the
East line of said Plat of Harbour Point Marina; thence North 00°-17′-18″ West along said plat line and the West line
of the North 165.00 feet of the South half of the southeast quarter of the southeast quarter of said Section 5 a
distance of 165.07 feet to the POINT OF BEGINNING.
TOGETHER WITH the following described parcel:
A parcel of land lying in the Southwest Quarter of Section 17, Township 42 South, Range 43 East, Palm Beach
County, Florida, being more particularly described as follows:
Begin at the Southeast corner of said Southwest Quarter of Section 17; thence Northerly, along the North-South
quarter section line of said Section 17, a distance of 1748.3 feet, more or less, to a point on the Easterly
prolongation of the North line of Lot 29, according to the Plat of Kelsey Acres, as recorded in Plat Book 22, Page 16,
Public Records of Palm Beach County, Florida; thence Westerly, along said prolongation and the North line of Lot
16 and Lots 18 through 29, a distance of 1446.5 feet more or less, to a point on the Easterly right of way line of
State Road Alternate A-1-A, as recorded in Road Plat Book 6, Page 180, Public Records of Palm Beach County,
Florida; thence Southerly along said Easterly right of way line, a distance of 889.3 feet to a point; thence Westerly,
at right angles to the preceding course, a distance of 106 feet to a point on the Westerly right of way line of said
State Road Alternate A-1-A; thence Northerly, along said right of way line, a distance of 100.00 feet, more or less,
to a point in the South line of that certain parcel described in Official Record Book 2865, Page 1178, Public Records
of Palm Beach County, Florida; thence Westerly, along said South line, a distance of 282.8 feet, more or less, to a
point in the Easterly right of way line of the Florida East Coast Railroad; thence Southerly, along said Easterly right
of way line, a distance of 983 feet, more or less, to a point in the South line of said Southwest Quarter of Section
17; thence Easterly, along said South line, a distance of 1096 feet, more or less, to said Southeast corner of the
Southwest Quarter and the Point of Beginning.
TOGETHER WITH the following described parcel:
Lots 14 and 15, Kelsey Acres, according to the plat recorded in plat book 22, page 16, Public Records of Palm Beach
County, FL.
DESCRIPTION: A parcel of land lying in Section 5, Township 42S, Range 43E, Palm Beach County, Florida, being
more particularly described as follows:
Commencing at the South Quarter Corner of Section 5, thence South 88°34'23" East, a distance of 33 6.51 feet;
thence North 0°30'48" East, a distance of 60.00 feet to the POINT OF BEGINNING, thence continue North 0°30'48"
East, a distance of 275.38 feet; thence South 88°33'45" East, a distance of 334.55 feet; thence South 0°13'21"
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West, a distance of 275.35 feet; thence North 88°34'23" West, a distance of 335.95 feet to the POINT OF
BEGINNING.
Containing 2.119 acres more or less.
DESCRIPTION: The East one-half, of the South one-half, of the East one-half, of the Southwest one-quarter, of the
Southwest one-quarter, of the Southeast one-quarter, of Section 5, Township 42 South, Range 43 East, Palm Beach
County, Florida, less the South 60 feet thereof for the right -of-way of Monet Road.
TOGETHER WITH: The West one-half, of Southeast one-quarter, of Southwest one-quarter, of Southwest one-
quarter, of Southeast one-quarter, of Section 5, Township 42 South, Range 43 East, Less the South 60 feet thereof
for right-of-way of Monet Road.
LEGAL DESCRIPTION: A parcel of land lying in Section 16 and 21, Township 42 South, Range 43 East, Palm Beach
County, Florida, more particularly described as follows:
BEGINNING at a point in the center line of the right-of-way of Central and Southern Florida Flood Control District
(now known as South Florida Water Management Distr ict) Canal C-17 as said right-of-way is described in easement
deed recorded in Deed Book 1156, Page 186, of the Public Records of Palm Beach County, Florida, said point being
624.66 feet Westerly, measured along said center line, from the Westerly right -of-way line of State Road No. 5
(U.S. Highway No. 1) as said right-of-way line is shown on State Road Department Right-of-Way Map as recorded in
Road Plat Book 2, Pages 105 to 108, inclusive, Public Records of Palm Beach County, Florida; thence Westerly alon g
said center line a distance of 325 feet; thence Southerly at right angles to said center line, a distance of 359 feet to
a point in the Northerly right-of-way line of Northlake Boulevard as said right-of-way is described in Official Record
Book 178, Page 458, of the Public Records of Palm Beach County, Florida; thence Easterly along said Northerly
right-of-way line a distance of 400 feet; thence Northerly at right angles to said Northerly right -of-way line a
distance of 244 feet to the Southerly right-of-way line of Central and Southern Florida Flood Control District (now
known as South Florida Water Management District) Canal C-17, as said right-of-way is described in easement
deed recorded in Deed Book 1156, Page 186, of the Public Records of Palm Beach County, Florida; thence Westerly
along said Southerly right-of-way line a distance of 75.00 feet; thence Northerly at right angles to said Southerly
right-of-way line 115 feet to the POINT OF BEGINNING.
SUBJECT TO RIGHT-OF-WAY OF C-17 CANAL.
TRACT I: A certain parcel of land in Section 21, Township 42 South, Range 43 East, Palm Beach County, Florida,
being more particularly described as follows:
Beginning at the intersection of the westerly right -of-way line of State Road No. 5 as described in a deed from
Tasdem, Inc. to the State of Florida as same is recorded in Deed Book 838, Page 25, Public Records of Palm Beach
County, Florida with the northerly right-of-way of Palmetto Road as shown on the Plat of Kesley City (now Lake
Park) as same is recorded in Plat Book 8, Page 35, Public Records of Palm Beach County, Florida, and from said
point of intersection run (for convenience the said northerly right -of-way line of Palmetto Road is assumed to bear
North 59°57'15" West and all other bearings mentioned herein are relative thereto). North 89°57'15" West
running along the said northerly right-of-way line a distance of 468.28 feet; thence North 7°27'45" West, a
distance of 247.44 feet; thence South 88°43'22" West a distance of 249.34 feet to a point in a line pa rallel with and
one foot westerly from (measured at right angles to) the westerly wall of the Truck Wall so called at the westerly
end of the J.M. Fields Store Building, so called; thence North 01°19'04" West, along said parallel line, a distance of
152.42 feet, more or less, to a point in the westerly extension of the North face of the South wall of the Garden
Shop so called, said Garden Shop located in the Northwesterly corner of the said J.M. Fields Store Building; thence
North 88°40'58" East along the just said westerly extension and along the just said North face of the South wall a
distance of 41 feet, more or less, to a point in the West face of the East wall of said Garden Shop; thence North
01°19'04" West running along the just said West face of the East wall and the northerly extension thereof a
distance of 120.27 feet, more or less to a point in the face of the curb, said curb being 20.26 feet northerly from
and parallel with the face of the North wall of said building; thence North 88°40'56" East running along the said
face of the curve and its Easterly extension of a distance of 537.31 feet, more or less, to a point in the said westerly
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Page 7 of 24
right-of-way line of State Road No. 5, said point being also a point on a curve concave to the West, having a ra dius
of 11384.22 feet and whose tangent passing through said point bears South 10°13'29" East; thence southerly
running along the arc of the just described curve and along the said westerly right -of-way line subtending a central
angle of 01°48'07", a distance of 358.34 feet, more or less, to the end of said curve; thence South 81°34'38" West
running along a line radial to the just described curve and radial to the next described curve and continuing along
said westerly right-of-way line a distance of 5 feet to a point in a curve concave to the West, being concentric with
the last described curve and having a radius of 11389.22 feet; thence southerly running along the arc of the just
described curve and continuing along the said westerly right -of-way line; subtending a central angle of 00°25'22", a
distance of 84.04 feet to the end of said curve; thence south 08°00'00" East along the westerly right -of-way line a
distance of 91.77 feet, more or less, to the POINT OF BEGINNING.
TRACT II
A parcel of land lying in Section 21, Township 42 South, Range 43 East, Palm Beach County, Florida, being more
particularly described as follows:
Commence at the intersection of the Westerly Right-of-way line of State Road No. 5, as described in Deed from
Tasdem, Incorporated to the State of Florida, recorded in Deed Book 838, Page 25, Public Records of Palm Beach
County, Florida, with the Northerly right-of-way line of Palmetto Road, as shown on the Plat of Kelsey City (now
Lake Park), recorded in Plat Book 8, Page 35, Public Records of Palm Beach County, Florida; thence Westerly, along
said Northerly right-of-way line, a distance of 488.28 feet to a point on a portion of the Westerly boundary of that
certain parcel of land described in Official Records Book 3343, Page 1786, Public Records of Palm Beach County,
Florida, and the point of beginning of the hereinafter described parcel; thence Northerly along said Westerly
boundary, making an angle with the preceding course, measured from East to North of 87°30 '30", a distance of
247.44 feet to a point thence Westerly, making an angle with the preceding course, measured from South to West
of 96°11'07", a distance of 208.80 feet to the of the Easterly boundary of that certain parcel of land described in
Official Records Book 3259, Page 278, Public Records of Palm Beach County, Florida; thence Southerly, along said
Easterly boundary, making an angle with the preceding course, measured from East to South of 89°58'58", a
distance of 240.58 feet to a point on said Northerly right-of-way line, making an angle with the preceding course,
measured from North to East of 91°20'25", a distance of 235.45 feet to the point of beginning.
Parcel A:
A parcel of land lying in Section 17, Township 42 South, Range 43 East, Palm Beach County, Florida, more
particularly described as follows:
Commencing at the point of intersection of the easterly right-of-way line of the Florida East Coast Railroad with the
westerly extension of the southerly right-of-way line of Richard Road as said right-of-way is shown on the plat of
Kelsey Acres, as recorded in Plat Book 22, Page 16, Public Records of Palm Beach County, Florida; thence south
20°55'46" east along the easterly right-of-way line of the Florida East Coast Railroad (the easterly right-of-way line
of the Florida East Coast Railroad is assumed to bear south 20°55'48" east and all other bearings stated herein are
relative thereto) a distance of 530.00 feet to the point of beginning of the hereinafter described parcel; thence
continue south 20°56'48" east along said right-of-way line, a distance of 465.00 feet; thence north 68°01'45" east,
a distance of 217.03 feet to the point of intersection with the east line of northeast quarter of the southwest
quarter of the southwest quarter of said section 17; thence north 01°33'28" east along said east line, a distance of
157.90 feet to the point of intersection with the westerly right-of-way line of state road alternate a-1-a, as shown
on road plat Book 6, Pages 180 through 187, Public Records of Palm Beach County, Florida, said point lying on a
curve concave to the west, having a radius of 6195.45 feet, a central angle of 03°07'42" and a radial bearing at this
point of north 86°59'21" east; thence northerly along the arc of said curve and said weste rly right-of-way line, a
distance of 338.27 feet; thence departing said right-of-way line south 64°04'34" west, a distance of 258.88 feet to
the point of beginning.
Containing in all 2.85 acres. 124,146.0+/- square feet
Subject to easements and rights-of-way of record.
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Page 8 of 24
Parcel B:
A parcel of land lying in the southwest quarter of Section 17, Township 42 south, Range 43 east, Palm Beach
County, Florida, lying easterly of the Florida East Coast Railroad and westerly of the westerly right -of-way line of
State Road Alternate A1A, being more particularly described as follows:
Commencing at the southeast corner of the southwest quarter of said Section 17; thence north 88°29'38" west
along the south line of said Section 17 (the south line of said Section 17 is assumed to bear north 88°29'38" west
and all other bearings stated herein are relative thereto), a distance of 733.66 feet to a point on the baseline of
survey for State Road Alternate A1A as shown on Road Plat Book 8, Pages 180 through 187, Public Records of Palm
Beach County, Florida; thence north 20°60'16" west along said baseline a distance of 1184.25 feet to a point;
thence south 69°09'44" west a distance of 55.00 feet to the point of curvature of a curve concave to the
southwest, having a radius of 6195.45 feet and a central angle of 00°15'19"; thence northwesterly along the arc of
said curve and westerly right-of-way line of State Road Alternate A1A, a distance of 27.60 feet to the point of
beginning of the hereinafter described parcel; thence continu ing along the arc of said curve and right-of-way
through a central angle of 01°54'58", an arc distance of 207.19 feet to the point of intersection with the west line
of the southeast quarter of the southwest quarter of said section 17, having a radial bear ing at this point of south
66°59'21" west; thence south 01°33'29" west along said west line, a distance of 224.02 feet to a point; thence
north 69°09'44" east, a distance of 89.75 feet to the point of beginning.
Containing in all 0.2161 acres 9,413.3 +/- square feet
Subject to easements and rights-of-way of record.
Parcel "C": A parcel of land in the Southwest Quarter of Section 17, Township 42 South, Range 43 East, Palm Beach
County, Florida, more particularly described as follows:
Commencing at the intersection of the Easterly right-of-way line of Florida East Coast Railway and the Westerly
extension of the Southerly right-of-way line of Richard Road as said right-of-way is shown on Plat of Kelsey Acres
recorded in Plat Book 22, page 16, Public Records of Palm Beach County, Florida; thence Southerly along said
Easterly right-of-way line of the F.E.C. Railway a distance of 995.00 feet to the Point of Beginning; thence Southerly
along said Easterly right-of-way line of the F.E.C. Railway a distance of 156.93 feet; thence in a Northeasterly
direction along the line making an angle with the preceding course, measured from North to East of 90°01'09" a
distance of 148.06 feet to a point on the East line of the Northeast Quarter of the Southwest Quarter of the
Southwest Quarter of Section 17, thence North along said East line a distance of 174.20 feet to a point, thence in a
Southwesterly direction along the line making an angle with the preceding course measured from South to West of
66°21'06", a distance of 215.08 feet to the point of beginning.
PARCEL I: A parcel of land in Section 17, Township 42 South, Range 43 East, more particularly described as follows:
Beginning at a point in the westerly right-of-way line of State Road A1A, formerly State Road 176, said westerly
right-of-way line being herein assumed to be a line parallel to and 40 feet westerly from the centerline of said
road, and also being parallel to and 7 feet westerly from the westerly right -of-way line of said road, as per Plat of
Rivard Subdivision, as recorded in Plat Book 21, page 12, and said point of beginning being 1145.6 feet northerly,
measured along said right-of-way line, from the South line of said Section 17; thence westerly, at right angles to
the preceding course, 128.06 feet, more or less, to a point in the westerly line of the Southeast Quarter of the
Southwest Quarter of said Section 17; thence northerly along said westerly line, 54.15 feet, more or less, to a point
in a line parallel to, and 50 feet northerly from, measured at right angles to, the South line of the herein described
parcel, thence easterly along said parallel line, 107 feet more or less, to a point in said westerly right -of-way line of
State Road A1A; thence southerly along said westerly right-of-way line, 50 feet, more or less, to the point of
beginning.
PARCEL II: A parcel of land in Section 17, Township 42 South, Range 43 East, more particularly described as follows:
Beginning at a point in the westerly right-of-way line of State Road A1A, formerly State Road 176, said westerly
right-of-way line being herein assumed to be a line parallel to and 40 feet westerly from the centerline of said
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Page 9 of 24
road, and also being parallel to, and 7 feet westerly from the westerly right -of-way line of said road, Plat of Rivard
Subdivision, Plat Book 21, Page 12, and said point of beginning being 1095.6 feet northerly, measured along said
right-of-way line, from the South line of said Section 17, then northerly along said westerly right -of-way line 50
feet; then westerly at right angles to the preceding course, 128.06 feet, more or less, to a point in the westerly line
of the Southeast Quarter of Southwest Quarter of said Section 17; then southerly along said westerly line, 53.96
feet, more or less to a point in a line parallel to, and 50 feet southerly from, measured at right angles to, the north
line of the herein described parcel, thence easterly along said parallel line 144 feet, more or less, to a point of
beginning.
Subject to restrictions, reservations, easements and covenants o f record, if any, to the extent that same are valid
and enforceable.
Lots 43, 44, 45 and 46, KELSEY ACRES, PLAT NO. 2 (LESS AND EXCEPT that land taken or conveyed to the
Department of Transportation for Highway Purposes as shown on Road Plat Book 4, page 22 and as appear in
instruments recorded in Official Record Book 3538, page 1834 and in Official Record Book 3543, page 332),
according to the plat thereof on file in the Office of the Clerk of the Circuit court in and for Palm Beach County,
Florida, as in Plat Book 24, page 47.
Lot 47, KELSEY ACRES # 2, according to the Plat thereof on file in the Office of the Clerk of the Circuit Court in and
for Palm Beach County, Florida, recorded in Plat Book 24, Page 47, less and except the following described
property conveyed to the State of Florida by instrument recorded at Official Record Book 3697, Page 355 of Official
Records of Palm Beach County, Florida: Commence at the Northwest corner of said Lot 47, thence South 38°22'23"
West along the Westerly line of said Lot 47, a distance of 68.64 feet to the POINT OF BEGINNING; thence continue
South 38°22'23" West along said Westerly line a distance of 29.69 feet to a point on a curve concave
Southwesterly having a tangent bearing of South 36°18'02" East through said point; thence southeasterly along
said curve having a radius of 5769.58 feet, through an angle of 01°27'35" an arc distance of 146.99 feet to the
Southeast corner of said Lot 47; thence North 50°46'22" East along the Easterly line of said Lot 47 a distance of
25.83 feet to a point on a curve concave Southwesterly and having a tangent bearing of North 33°50'47" West
through said point; thence Northwesterly along said curve having a radius of 6305.45 feet through an angle of
01°23'44" an arc distance of 153.58 feet to the POINT OF BEGINNING.
A parcel of land in the southwest quarter of Section 17, Township 42 South, Range 43 East, Palm Beach County,
more particularly described as follows:
Beginning at the intersection of the easterly right-of-way line of the Florida East Coast Railroad and the westerly
extension of the southerly right-of-way line of Richard Road as said right-of-way is shown on the plat of Kelsey
Acres recorded in Plat Book 22, Page 16, Public Records of Palm Beach County, Florida; thence southerly along the
easterly right-of-way l1ne of the F.E.C. Railroad a distance of 530.00 feet; thence easterly making an angle with the
preceding course measured from North to East of 85°00′20″, a distance of 271.47 feet, more or less, to the
westerly right-of-way line of State Road A-1-A, said right-of-way line being also the arc of a curve concave to the
Southwest and having a radius of 5689.58 feet; thence northwesterly, along the arc of said curve and the westerly
right-of-way line of state road A-1-A, through an angle of 4°14′13″ a distance of 430.73 feet to the said westerly
extension of the southerly right-of-way line of Richard Road; thence westerly along said westerly extension a
distance of 232.47 feet to the point of beginning. Less additional right -of-way acquired by the department of
transportation in that order of taking recorded in Official Record Book 3666, Page 141.
Exhibit "A"
LEGAL DECRIPTION
PARCEL A
That portion of the south 271.54 feet of the Northwest ¼ of the southwest ¼ of Section 17, Township 42 South,
Range 43 East, Palm Beach County, Florida, lying between the Easterly Right of Way line of Old Dixie Highway and
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(Supp. No. 92)
Page 10 of 24
the Westerly Right of Way line of the Florida East Coast Railroad. LESS and EXCEPT that portion conveyed to Palm
Beach County in Official Record Book 5487, page 757, Public Records of Palm Beach County, Florida.
PARCEL B
That portion of the Northwest ¼ of the Southwest ¼ of Section 17, Township 42 South , Range 43 East, Palm Beach
County, Florida, lying South of the Southerly Right of Way line of Richard Road, between the Easterly Right of Way
line of Old Dixie Highway and the Westerly Right of Way line of the Florida East Coast Railroad, LESS there from the
South 271.54 feet, LESS and EXCEPT that portion conveyed to Palm Beach County in Official Record Book 5487,
page 757, Public Records of Palm Beach County, Florida.
This property is vacant land and is no part of the homestead of the Grantor herein.
Exhibit "A"
LEGAL DECRIPTION
Parcel 1
That portion of the Southwest 1/4 of the Southwest 1/4 of the Northwest 1/4; and that portion of the Northwest
1/4 of the Northwest 1/4 of the Southwest 1/4, less the south 10.0 feet thereof, of Section 17, Township 42 South,
Range 43 East, lying between the Florida East Coast Railroad right of way on the east and a County Road, 40 feet
wide, (Old Dixie Highway) on the west, in Palm Beach County, Florida; and being more particularly described as
follows:
Beginning at a point where the Westerly right of way line of the Florida East Coast Railroad intersects the West line
of Section 17, Township 42 South, Range 43 East; said point being 382.05 Feet North of the West Quarter Corner of
said Section 17; run thence along the following numbered courses:
1. Along the West line of Section 17, S. 1°34'38"W. 45.62 Feet; Thence
2. S. 39°32'25"E. 216.07 Feet; Thence
3. S. 31°52'20"E. 478.43 Feet; Thence
4. S. 14°56'36"E. 443.52 Feet to the North line of a public right of way 20.0 feet wide, known as Richard
Road; Thence
5. Along said North Right of Way line S. 88°17'20"E. 85.92 Feet to the West Right of Way line of the
Florida East Coast Railroad; Thence
6. Along said West Right of Way line N. 20°54'37" W. 368.10 Feet to the beginning of a curve to the left,
having a radius of 1859.96 Feet; Thence
7. Along the arc of said curve 604.77 Feet, through a central angle of 18°37'48" to the Point of Tangent;
Thence
8. Along the Tangent N. 39°32'25"W. 250.45 Feet to the Point of Beginning.
Parcel Control Number: 00-43-42-17-00-00-000-3030
Parcel 2
The part of the Southwest 1/4 of the Northwest 1/4 lying west of Old Dixie Highway, LESS the South 110 feet of
Section 17, Township 42 South, Range 43 East, Palm Beach County, Florida.
Also described as:
ALL that part of the Northwest one-quarter of Section Seventeen, Township Forty-two South, Range Forty-three
east, lying south and west of the Old Dixie Highway, as originally constructed, along the west side of the Florida
East Coast Railroad, except the south one hundred and ten feet thereof, which is reserved to the grantors herein.
Created: 2025-10-25 17:24:56 [EST]
(Supp. No. 92)
Page 11 of 24
Parcel Control Number: 00-43-42-17-00-000-3100
Parcel 3
The Southwest Quarter (SE 1/4) of the Northeast Quarter (NE 1/4) of Section 18, Township 42 Sou th, Range 43
East, Palm Beach County, Florida, lying west of Old Dixie Highway and Southeast of Canal C -17, less the south 150
feet thereof and less parcel described in Official Record Book 712, Page 163 and Official Record Book 4503, Page
1421, both of the Public Records of Palm Beach County, Florida.
Parcel Control Number: 00-43-42-17-00-000-1030
Parcel 4
A parcel of land in the Northeast quarter (NE 1/4) of Section 18, Township 42 South, Range 43 East, Palm Beach
County, Florida. Being more particularly described as follows:
Commencing at the Southeast corner of said Northeast quarter (NE 1/4) of Section 18; thence North 01°34'38"
East along the East line of said Northeast quarter (NE 1/4) a distance of 150.24 feet; thence North 88°25'22" West
departing said east line a distance of 150.23 feet to the Point of Beginning of the hereinafter described parcel of
land; thence North 88°25'22" West of distance of 295.23 feet to a point on the Southeasterly right -of-way line of
the C-17 canal as shown on South Florida Water Management District Right-of-Way Map No. C-17-13 Sheet 5 of 6.
Said point being on a curve concave to the Southeast with a radius of 800.00 feet and a radial bearing at this point
of South 42°56'51" East; thence Northeasterly along the arc of said curve and said right-of-way line through a
central angle of 19°43'52" a distance of 275.50 feet; thence South 22°34'12" East departing said right -of-way line a
distance of 170.46 feet to the Point of Beginning.
Together with a 20 foot wide ingress and egress easement being more particularly described as follows:
Commencing at the Southeast corner of said Northeast quarter (NE 1/4) of said Section 18; thence North 01°34'38"
East along the East line of said Northeast quarter (NE 1/4) a distance of 150.24 feet; thence North 88°25'22" West
departing said East line a distance of 150.23 feet to a point on the easterly line of the above described parcel of
land; thence North 22°34'12" West along said Easterly line a distance of 170.46 feet to the Point of B eginning of
the hereinafter described easement; thence continue North 22°34'12" West of distance of 20.00 feet to a point on
the said Southeasterly right-of-way line of the C-17 Canal said point being on a curve concave to the Southeast
with a radius 800.00 feet and a central angle of 3°40'57"; thence Northeasterly along the arc of said curve and said
right-of-way line a distance of 51.42 feet to a point of tangency; thence North 70°27'58" East of distance of 108.89
feet to a point in the westerly right-of-way line of Old Dixie Highway according to the minutes of the Board of
County Commissioners of February 6, 1917, Page 107; thence South 39°34'33" East along said right-of-way line a
distance of 21.29 feet; thence South 70°27'58" West departing said right -of-way line a distance of 116.19 feet to a
point of curve concave to the Southeast having a radius of 780.00 feet and a central angle of 3°41'57"; thence
Southwesterly along the arc of said curve a distance of 50.36 feet to the Point of Beginning.
Parcel Control Number: 00-43-42-18-00-000-1050
Parcel 5
Parcel No. One: From the Southeast corner of the Southeast 1/4 of the North 1/4 of Section 18, Township 42
South, Range 43 East, run North 88°26'55" West along the South line of the Southeast 1/4 of the Northeast 1/4 of
said Section 18, a distance of 210 feet to the Southwest corner of the parcel conveyed to Vernon G. Luckey, et ux,
by deed recorded in Official Record Book 2003, Page 1841, being the Point of Beginning: thence Northerly and
along the western line of said parcel conveyed to Vernon G. Luckey, et ux, a distance of 149.97 feet; thence North
88°28'50" West, a distance of 93.0 feet; thence Southerly, parallel with the West line of said parcel conveyed to
Vernon G. Luckey, et ux, a distance of 149.92 feet to the intersection with the South line of s aid Southeast 1/4 of
the Northeast 1/4 of said Section 18; thence easterly along said south line a distance of 93.0 feet to the Point of
Beginning.
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Parcel No. Two: From the Southeast corner of the Southeast 1/4 of the Northeast 1/4 of Section 18, Township 42
South, Range 43 East, run North 38°26'55" West along the South line of the Southeast 1/4 of the Northeast 1/4 of
said Section 18, a distance of 303.0 feet to the Point of Beginning; thence Northerly and parallel with the western
line of the parcel conveyed to Vernon G. Luckey, et ux, by deed recorded in Official Record Book 2003, Page 1841,
a distance of 149.92 feet; thence North 88°28'50" West, a distance of 142.01 feet to a point on the Southerly right -
of-way of Canal C-17 of the Central and Southern Florida Flood Control District as described in Deed Book 1075,
Page 360; thence Southwesterly along the arc of a curve concave to the Southeast, having a radius of 800.0 feet a
distance of 192.32 feet (chord 191.96) to the intersection of said curve with t he South line of said Southeast 1/4 of
the Northeast 1/4 of said Section 18; thence Easterly along said South line a distance of 262.28 feet to the Point of
Beginning.
PARCEL ONE & TWO being subject to and together with rights of ingress and egress over and across the following
described easements
Together with the following easements for ingress and egress:
1. Right of way and easement over the North 30 feet of the East 256.55 feet of the parcel of land
described in Deed recorded in Official Record Book 2003, Page 1841.
2. Easement for access over the North 20 feet of the South 170 feet of the East 150 feet of the Southeast
1/4 of the Northeast 1/4 of Section 18, Township 42 South, Range 43 East.
3. Easement for access over the following described parcel:
Commencing at the Southeast corner of the Southeast 1/4 of the Northeast 1/4 of Section 18, Township 42 South,
Range 43 East; thence North along the East line of said Section a distance of 170 feet; thence West along the North
line of a 20 foot easement a distance of 150 feet to the Point of Beginning; thence West on a westerly projection of
the last described line, a distance of 15 feet more or less to the east line of the parcel of land conveyed to Hykel N.
Sarkes, et ux, by deed recorded in Deed Book 1090, Page 450; thence Southeasterly along the east line of said
Sarkes parcel a distance of 25 feet, more or less to the Southwest corner of said 20 foot easement; thence North
along the West line of said 20 foot easement a distance of 20 feet to the Point of Beginning.
4. Easement for access over the following described parcel:
Commencing at the Southeast corner of the Southeast 1/4 of the Northeast 1/4 of Section 18, Township 42 South,
Range 43 East; thence north along the East line of said Section a distance of 150 feet to the South line of a 20 foot
easement; thence West along the south line of a 20 foot easement a distance of 150 feet to the Point of Beginning,
said point being the Southeast corner of the parcel of land conveyed to Hykel N. Sarkes, et ux, by deed recorded in
Deed Book 1090, Page 453; thence West along the South line of said Sarkes parcel a distance of 20 feet, thence
North, parallel to the East line of said Section 18, a distance of 20 feet; thence East 18 feet more or less to the E ast
line of said Sarkes parcel; thence Southeasterly along said East line of the Sarkes parcel to the Point of Beginning.
5. An easement for access described as follows:
From the Southeast corner of the Southeast 1/4 of the Northeast 1/4 of Section 18, Township 42 South, Range 43
East, run thence North 1°35'20" East along the East line of said Section 18 a distance of 170 feet to the Point of
Beginning; thence continue Northerly on the same course to a point in the Southwesterly right of way line of the
Old Dixie Highway; thence run Northwesterly along said Southwesterly right of way line to a point which is 20 feet
West of measured at right angles to, the East line of said Section 18; thence run South, parallel to the East line of
said Section 18, to a point 170 feet North of the South line of the Southeast 1/4 of the Northeast 1/4 of said
Section 18, thence run east 20 feet to the Point of Beginning.
PARCEL ONE AND PARCEL TWO ARE ALSO KNOWN AS THE FOLLOWING DESCRIBED PROPERTY:
A Parcel of land in Section 18, Township 42 South, Range 43, East, more particularly described as follows:
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From the Southeast corner of the Southeast 1/4 of the Northeast 1/4 of Section 18, Township 42 South, Range 43
East, continue Westerly along the south line of the Southeast 1/4 of the Northeast 1/4 (a/k/a 1/4 Section Line)
North 88°39'20" West, 210.00 feet to the Point of Beginning of said parcel; (Point of Beginning); thence North
88°39'20" West, 356.50 feet to the Southeasterly right of way of the C-17 canal; thence North 40°21'04" East,
192.82 feet along the chord of a curve and the Southeasterly right of way of the C -17 Canal, having a radius of 800
feet, a length of 193.29 feet, and a delta angle of 13°50'36" to the Northwest corner of said parcel; thence South
88°41'14" East, 235.23 feet along the North line of said parcel; thence South 01°22'56" West, 149.97 (feet) to the
Point of Beginning of said parcel.
Parcel Control Number: 00-43-42-18-00-000-1060
Parcel 6
The following property in PALM BEACH County, Florida:
A parcel of land in the Southeast quarter (SE 1/4) of the Northeast quarter (NE 1/4) of Section 18, Township 42
South, Range 43 East, Palm Beach County, Florida, described as follows:
From the Southeast corner of the Southeast quarter (SE 1/4) of the Northeast quarter (NE 1/4) of Section 18,
Township 42 South, Range 43 East. Run North 88°26'55" West along the South line of said Southeast quarter (SE
1/4) of the Northeast quarter (NE 1/4) of Section 18, a distance of 150 feet to the Point of Beginning; thence North
1°35'20" East parallel to the East line of Section 18, a distance of 150 feet; thence North 88°28'50" West a distance
of 60 feet to a point: thence Southerly, parallel to the east line of Section 18, a distance of 150.04 fee t to a point;
thence Easterly along the South line of the said Southeast quarter (SE 1/4) of the Northeast quarter (NE 1/4) of
Section 18, a distance of 60 feet to the Point of Beginning. Also an easement for access over the North 20 feet of
the South 170 feet of the East 150 feet of the said Southeast quarter (SE 1/4) of the Northeast quarter (NE 1/4) of
Section 18; also an easement for access as described in Deed Book 1117, Pages 281 and 284. Public Records of
Palm Beach County, Florida.
Parcel Control Number: 00-43-42-18-00-000-1200
Parcel 7
Beginning at the Southeast corner of the Southeast 1/4 of the Northeast 1/4 of Section 18, Township 42 South,
Range 43 East, as a Point of Beginning; thence North along the Easterly section line a distance of 150 f eet; thence
Westerly parallel to the Southerly boundary of this section line a distance of 150 feet; thence Southerly parallel to
the Eastern section line a distance of 150 feet; thence easterly to the Point of Beginning.
Parcel Control Number: 00-43-42-18-00-000-1040
(Laws of Fla., Ch. 73-564, § 1; Ord. No. 03-95, 2-9-95; Ord. No. 24-96, 7-11-96; Ord. No. 33-96, 8-22-96; Ord. No.
20-99, § 1, 5-27-99; Ord. No. 16-2002, § 1, 5-23-02; Ord. No. 27-2002, § 1, 9-26-02; 03-2003, § 1, 2-13-03; Ord. No.
10-2004, §§ 1(Exh. A), 7-8-04; Ord. No. 33-2004, § 1(Exh. A), 12-9-04; Ord. No. 2007-04, § 2, 3-8-07; Ord. No. 2007-
05, § 2, 3-8-07; Ord. No. 2008-10, § 2(Exh. A), 9-11-08; Ord. No. 2010-05, § 2(Exh. A), 3-11-10; Ord. No. 2010-18, §
2(Exh. A), 10-28-10)
ARTICLE III. LEGISLATIVE
Section 1. Village council; powers and composition.
There shall be a village council with all legislative powers of the village vested therein consisting of five (5)
members who shall be electors of the village, who shall be elected by the electors of the village.
(Ord. No. 1-76, § 1, 2-19-76)
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Section 2. Election and terms.
On the second Tuesday in March of each year a general election shall be held to elect members of the village
council. The selection of members of the village council shall be by groups to be known as Groups 1, 2, 3, 4 and 5.
The councilmen in Groups 1, 3 and 5 shall be elected in the even years and councilmen in Groups 2 and 4 shall be
elected in the odd years. The term of office of a councilman shall commence upon his election and qualification
and shall continue for two (2) years thereafter and until his successor is elected and qualified; provided, however,
that the terms of office of those councilmen whose terms expire in March of 1981 and March of 1982 shall be
shortened by a period of one week.
(Ord. No. 1-76, § 1, 2-19-76; Ord. No. 29-80, § 1, 10-9-80)
Section 3. Mayor.
The council shall elect from among its members a mayor, a vice mayor, and a president pro tem to serve at
the pleasure of the council. Election of the mayor, vice mayor and president pro tem shall be done annually at the
first (1st) regular council meeting after the village election. The mayor shall preside at meetings of the council,
shall be recognized as head of village government for all ceremonial purposes, by the governor for purposes of
military law, for service of process, execution of contracts, deeds and other documents, and as the village official
designated to represent the village in all agreements with other governmental entities or certifications to other
governmental entities, but shall have no administrative duties except as required to carry out the responsibilities
herein. The vice mayor shall act as mayor during the absence or di sability of the mayor. The president pro tem
shall preside at council meetings in the absence of the mayor and vice mayor.
The mayor shall have power, for sufficient cause, to suspend any Village officer or official appointed by the
council. In case of the suspension of any such person, the mayor shall, within fifteen (15) days thereafter, deliver to
the village clerk, or his deputy, a specification in writing of the charges preferred to the officer suspended; and it
shall be the duty of said clerk to present such charges to the council at its next meeting following the receipt of
such charges by him. Thereafter the council shall proceed to hear and determine the said charges after reasonable
notice of such hearing to the suspended officer, who shall be given an opportunity to be heard with his witnesses.
If upon such hearing the charges preferred against such officer shall not be sustained by the council, the officer
shall be thereby immediately restored to office unless the council shall decide to terminat e the services of such
officer for other cause, or without cause.
In the event that any village officer shall be suspended by the mayor as herein provided, the mayor shall
have power to appoint some person or some other officer of the Village temporarily to perform the duties of the
officer suspended, until the charges against such suspended officer are heard and determined by the council.
(Ord. No. 1-76, § 1, 2-19-76)
Section 4. Compensation and expenses.
The council may determine the annual salary of council members by ordinance, but no ordinance increasing
such salary shall become effective until the date of commencement of the terms of the council members elected
at the next regular election, provided that such election follows the adoption of such ordinance by at least six (6)
months.
(Ord. No. 1-76, § 1, 2-19-76)
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Section 5. Vacancies; forfeiture of office; filling of vacancies.
(a) Vacancies. The office of a council member shall become vacant upon his death, resignation, removal from
office in any manner authorized by law or forfeiture of his office, such forfeiture to be declared by the
remaining members of the council.
(b) Forfeiture of office. A council member shall forfeit his office if he lacks at any time during his term of office
any qualification for the office prescribed by this charter or by law.
(c) Filling of vacancies. A vacancy of the council shall be filled in one of the following ways: (1) If there are less
than six (6) months remaining in the unexpired term or if there are less than six (6) month s before the next
regular village election, the council by a majority vote of the remaining members shall choose a successor to
serve until the newly elected council member is qualified. (2) If there are more than six (6) months remaining
in the unexpired term and no regular village election is scheduled within six (6) months, the council shall fill
the vacancy on an interim basis as provided in (1), and shall schedule a special election to be held not sooner
than sixty (60) days, nor more than ninety (90) days following the occurrence of the vacancy and if a runoff
election is necessary, it shall be scheduled two (2) weeks after the special election. Notwithstanding any
quorum requirements established herein, if at any time the membership of the council is reduced to less
than a quorum, the remaining members may by majority vote, appoint additional members under either (1)
or (2) above.
(d) Extraordinary vacancies. In the event that all members of the council are removed by death, disability, law or
forfeiture of office, the governor shall appoint an interim council that shall call a special election as provided
in (c) above and such election shall be held in the same manner as the first (1st) election under this charter.
(e) Vacancies when no candidates. There may be an occasion when there are no candidates for a normal council
vacancy at the time of a regularly scheduled or special election. In the event this occurs, a majority of the
council shall fill the vacancy as noted in (c)(1) above and shall schedule any necessary election as noted in
(c)(2) above.
(Ord. No. 1-76, § 1, 2-19-76; Ord. No. 33-2002, § 1, 12-12-02; Ord. No. 2015-06, § 2, 4-9-15)
Editor's note(s)—Ord. No. 33-2002, was passed by vote in an election held March 11, 2003.
Section 6. Prohibitions.
(a) Appointment and removals. Neither the council nor any of its members shall in any manner dictate the
appointment or removal of any village administrative officers or employees whom the manager or any of his
subordinates are empowered to appoint, but the council may express its vie ws and fully and freely discuss
with the manager anything pertaining to appointment and removal of such officers and employees.
(b) Interference with administration. Except for the purpose of inquiries and investigations, the council or its
members shall deal with village officers and employees who are subject to the direction and supervision of
the manager solely through the manager, and neither the council nor its members shall give orders to any
such officer or employee, either publicly or privately. Nothing in the foregoing is to be construed to prohibit
individual members of the council from closely scrutinizing by questions and personal observation, all
aspects of village government operations so as to obtain independent information to assist the memb ers in
the formulation of sound policies to be considered by the council. It is the express intent of this charter,
however, that recommendations for improvement in village government operations by individual council
members be made to and through the village manager, so that the manager may coordinate efforts of all
village departments to achieve the greatest possible savings through the most efficient and sound means
available.
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(c) Holding other office. No former elected village official shall hold any compensated appointive village office or
employment until one (1) year after the expiration of the term for which he was elected.
(Ord. No. 1-76, § 1, 2-19-76)
Section 7. Turnover of documents.
It shall be the duty of every officer of the village within ten (10) days after the expiration of his term of office
or of his removal therefrom, to deliver to his successor in office, or to such person as the council may designate, all
books, records, papers, vouchers and property of every kind in his possession or control, belonging to the
municipality.
(Ord. No. 1-76, § 1, 2-19-76)
Section 8. Council-appointed officials.
The council shall have power to employ and retain engineers, judges, prosecutors, accountants and
attorneys. The council shall have the power to create and abolish all offices and fix and determine the authority,
duties and compensation of all appointed officers, assistants and employees.
(Ord. No. 1-76, § 1, 2-19-76)
Section 9. Procedure.
(a) Meetings. The council shall meet regularly at least once in every month at such times and places as the
council may prescribe by rule. Special meetings may be held on the call of the mayor or of a majority of the
members and, whenever practicable, upon no less than forty-eight (48) hours' notice to each member and
the public.
(b) Rules and journal. The council shall determine its own rules and order of business.
(c) Voting. Voting, on ordinances and resolutions, shall be recorded in the journal. A majority of the council shall
constitute a quorum; but a smaller number may adjourn from time to time and may compel the attendance
of absent members in the manner and subject to the penalties prescribed by the rules of the council. No
action of the council except as otherwise provided in the preceding sentence and in § 5, shall be valid or
binding unless adopted by the affirmative vote of the majority of a quorum present, and no ordinance or
resolution shall be adopted unless by the affirmative vote of at least three (3) council members.
(Ord. No. 1-76, § 1, 2-19-76; Ord. No. 34-2002, § 1, 12-12-02)
Editor's note(s)—Ord. No. 34-2002, was passed by vote in an election held March 11, 2003.
Section 10. Initiative and referendum.
(a) (1) Initiative. The qualified voters of the village shall have power to propose ordinances to the council and, if the
council fails to adopt an ordinance so proposed without any change in substance, to adopt or reject it at a
village election, provided that such power shall not extend to the budget or capital program or any ordinance
relating to appropriation of money, levy of taxes or salaries of village officers or employees.
(2) Referendum. The qualified voters of the village shall have power to require reconsideratio n by the
council of any adopted ordinance and, if the council fails to repeal an ordinance so reconsidered, to
approve or reject it at a village election, provided that such power shall not extend to the budget or
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capital program or any emergency ordinance or ordinance relating to appropriation of money, levy of
taxes or salaries of village officers or employees.
(b) Commencement of proceedings. Any five (5) qualified voters may commence initiative or referendum
proceedings by filing with the village clerk or other official designated by the council an affidavit stating they
will constitute the petitioners' committee and be responsible for circulating the petition and filing it in proper
form, stating their names and addresses and specifying the address to which all notices to the committee are
to be sent, and setting out in full the proposed initiative ordinance or citing the ordinance sought to be
reconsidered.
Promptly after the affidavit of the petitioners' committee is filed, the clerk or other officia l designated by the
council may, at the committee's request, issue the appropriate petition blanks to the petitioners' committee at the
committee's expense.
(c) Petitions.
(1) Number of signatures. Initiative and referendum petitions must be signed by qualified voters of the
village equal in number to at least fifteen percent (15%) of the total number of qualified voters
registered to vote at the last regular village election.
(2) Form and content. All papers of a petition shall be uniform in size and style and shall be assembled as
one instrument for filing. Each signature shall be executed in ink or indelible pencil and shall be
followed by the address of the person signing. Petitions shall contain or have attached thereto
throughout their circulation the full text of the ordinance proposed or sought to be reconsidered.
(3) Affidavit of circulator. Each paper of a petition shall have attached to it when filed an affidavit executed
by the circulator thereof stating that he personally circulated the paper, the number of signatures
thereon, that all the signatures were affixed in his presence, that he believes them to be the genuine
signature of the persons whose names they purport to be and that each signer had an opportunity
before signing to read the full text of the ordinance proposed or sought to be reconsidered.
(4) Time for filing referendum petitions. Referendum petitions must be filed within thirty (30) days after
adoption by the council of the ordinance sought to be reconsidered.
(d) Procedure for filing.
(1) Certificate of clerk; amendment. Within twenty (20) days after the initiative petition is filed and twenty
(20) days for a referendum petition, the village clerk or other official designated by the council shall
complete a certificate as to its sufficiency, specifying, if it is insufficient, the particulars wherein it is
defective and shall promptly send a copy of the certificate to the petitioners' committee by certified
mail, return receipt requested. Grounds for insufficiency are only those specified in subsection (c). A
petition certified insufficient for lack of the required number of valid signatures may be amended once
if the petitioners' committee files a notice of intention to amend it with the clerk or other official
designated by the council within two (2) days after receiving the copy of the certificate and files a
supplementary petition upon additional papers within ten (10) days after receiving the copy of such
certificate. Such supplementary petition shall comply with the requirements of subsections (2) and (3)
of Section 10(c), and within five (5) days after it is filed the clerk or other official designated by the
council shall complete a certificate as to the sufficiency of the petition as amended and promptly send
a copy of such certificate to the petitioners' committee by certified mail, return receipt requested, as in
the case of an original petition. If a petition or amended petition is certified sufficient, or if a petition or
amended petition is certified insufficient and the petitioners' committee does not elect to amend or
request council review under subsection (2) of this section within the time required, the clerk or other
official designated by the council shall promptly present his certificate to the council and the certificate
shall then be a final determination as to the sufficiency of the petition.
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(2) Council review. If a petition has been certified insufficient and the petitioners' committee does not file
notice of intention to amend it or if an amended petition has been certified insufficient, the committee
may within two (2) days after receiving the copy of such certificate, file a request that it be reviewed by
the council. The council shall review the certificate at its next meeting following the filing of such
request and approve or disapprove it, and the council's determination shall then be a final
determination as to the sufficiency of the petition.
(e) Referendum petitions; suspension of effect of ordinance. When a referendum petition is filed with the village
clerk or other official designated by the council, the ordinance sought to be reconsidered s hall be suspended
from taking effect. Such suspension shall terminate when:
(1) There is a final determination of insufficiency of the petition, or;
(2) The petitioners' committee withdraws the petition, or;
(3) The council repeals the ordinance, or;
(4) After a vote of the village on the ordinance has been certified.
(f) Action on petitions.
(1) Action by council. When an initiative or referendum petition has been finally determined sufficient, the
council shall promptly consider the proposed initiative ordinance in the manner provided in Article III
or reconsider the referred ordinance by voting its repeal. If the council fails to adopt a proposed
initiative ordinance without any change in substance within sixty (60) days or fails to repeal the
referred ordinance within thirty (30) days, it shall submit the proposed or referred ordinance to the
voters of the village.
(2) Submission to voters. The vote of the village on a proposed or referred ordinance shall be held not less
than thirty (30) days and not later than sixty (60) days from the date that the petition was determined
sufficient. If no regular village election is to be held within the period described in this subsection, the
council shall provide for a special election; except that the council may, in its discretion, provide for a
special election at an earlier date within the described period. Copies of the proposed or referred
ordinance shall be made available at the polls.
(3) Withdrawal of petitions. An initiative or referendum petition may be withdrawn at any time prior to
the fifteenth (15th) day preceding the day scheduled for a vote of the village by filing with the village
clerk or other official designated by the council a request for withdrawal signed by at least four (4)
members of the petitioners' committee. Upon the filing of such request the petition shall have no
further force or effect and all proceedings thereon shall be terminated.
(g) Results of election.
(1) Initiative. If a majority of the qualified electors voting on a proposed initiative ordinance vote in its
favor, it shall be considered adopted upon certification of the election results and shall be treated in all
respects in the same manner as ordinances of the same kind adopted by the council. If conflicting
ordinances are approved at the same election, the one receiving the greatest number of affirmative
votes shall prevail to the extent of such conflict.
(2) Referendum. If a majority of the qualified electors voting on a referred ordinance vote against it, it shall
be considered repealed upon certification of the election results.
(Ord. No. 1-76, § 1, 2-19-76; Ord. No. 35-2002, § 1, 12-12-02)
Editor's note(s)—Ord. No. 35-2002, was passed by vote in an election held March 11, 2003.
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Section 11. Sale of property; referendum required.
(a) Any disposition of village owned real property dedicated or used for parks or recreational purposes within
the corporate limits of the Village of North Palm Beach; improvements of same by other than the village
government by way of placing structures thereon; any lease of said real property by the village as lessor for a
period exceeding five (5) years shall first require a four-fifths majority vote of the members of the Village
Council and shall further require approval by vote of 66⅔ percent of the Villag e electors who vote in a
referendum election called and held as provided by law. This section shall apply to real property acquired by
the Village subsequent to the date of adoption of this charter, which real property is dedicated or used for
parks or recreational purposes.
(b) The limitation of power to dispose of property shall embrace sale, exchange, lease, mortgage, pledge, or
other encumbrance of such real property; but shall not embrace abandonment, gift or donation to a charity
of such real property officially determined to be of no further use to the Village and of nominal sale value or
no value.
(c) The parks or recreational property to which this section presently applies are depicted on the map of the
Village attached hereto and shown by crosshatching thereon, together with the following descriptions for
the crosshatched areas: North Palm Beach Community Center and Park, Anchorage Park, Lakeside Park,
Osborne Park, North Palm Beach Country Club, Village Marina and Herb Watt Recreational Center.
(Ord. No. 11-86, § 1, 9-11-86; Ord. No. 36-2002, § 1, 12-12-02)
Editor's note(s)—Ord. No. 36-2002, was passed by vote in an election held March 11, 2003.
Section 12. Contracting of village services; referendum required.
No contract or interlocal agreement shall be entered into between the Village and a third -party public or
private entity whereby the third party is to take over the management and perform the duties and responsibilities
of either the Public Safety Police, Fire or Emergency Medical Services Divisions, the Public Services Department
Administration, Building or Sanitation Divisions, Finance Department, Recreation Department or Library unless the
proposed contract or interlocal agreement first receives a four -fifths vote of the Village Council and the approval of
two-thirds of the Village electors who vote in a referendum election called for and held as provided by law. Thi s
section is not intended nor shall it be construed as a prohibition against the Village entering into contracts and
interlocal agreements with public or private entities for services and assistance within one or more of the specified
Village departments
(Ord. No. 37-2002, § 1, 12-12-02
Editor's note(s)—Ord. No. 37-2002, was passed by vote in an election held March 11, 2003.
Editor's note(s)—Ord. No. 2006-24, § 3, adopted Nov. 9, 2006, provided the following: "The duties and
responsibilities of the Public Services Department have been allocated to the Public Works Department and
the Community Development Department. Consequently, the reference to the Public Services Department
Administration in § 12 herein shall be construed to include both the Public Work s Department
Administration and the Community Development Department Administration, thereby retaining its existing
meaning and avoiding the need for a referendum vote to amend the Charter to conform to Ordinance No.
2006-23."
ARTICLE IV. ADMINISTRATIVE
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Section 1. Village manager.
There shall be a village manager who shall be the chief administrative officer of the village. The manager
shall be responsible to the council for the administration of all village affairs placed in his charge by or under this
charter.
(Ord. No. 1-76, § 1, 2-19-76)
Section 2. Appointment; removal; compensation [of manager].
(a) Appointment. The council shall appoint a village manager for an indefinite term by a majority vote of all the
council members.
(b) Removal. The council may remove the manager by a majority vote of all the council members and the
manager shall hold office at the pleasure of the council.
(c) Compensation. The compensation of the manager shall be fixed by the council.
(Ord. No. 1-76, § 1, 2-19-76)
Section 3. Vacancy [in office of manager].
During any vacancy in the office of village manager, the council may designate any competent person, except
the mayor or any member of the council, to execute the functions of the office of village manager.
(Ord. No. 1-76, § 1, 2-19-76)
Section 4. Acting village manager.
By letter filed with the council, the manager shall designate, subject to approval of the council, a qualified
village administrative officer to exercise the powers and perform the duties of manager during his temporary
absence or disability. During such absence or disability, the council may revoke such designation at any time and
appoint another officer of the village to serve until the manager shall return or his disability shall cease.
(Ord. No. 1-76, § 1, 2-19-76)
Section 5. Powers and duties of the village manager.
The Village Manager shall:
(a) Appoint, and when he deems it necessary for the good of the village, suspend or remove all v illage
employees and appointive administrative officers provided for by or under this charter, except as
otherwise provided by law, this charter or personnel rules adopted pursuant to this charter. He may
authorize any administrative officer who is subject to his direction and supervision to exercise these
powers with respect to subordinates in that officer's department, office or agency;
(b) Direct and supervise the administration of all departments, offices and agencies of the village, except
as otherwise provided by this charter or by law;
(c) Attend all council meetings and shall have the right to take part in discussion but may not vote;
(d) See that all laws, provisions of this charter and acts of the council, subject to enforcement by him or by
officers subject to his direction and supervision, are faithfully executed;
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(e) Prepare and submit the annual budget, budget message, and capital program to the council in a form
provided by ordinance;
(f) Submit to the council and make available to the public a complete report on the finances and
administrative activities of the village as of the end of each fiscal year;
(g) Make such other reports as the council may require concerning the operations of village departments,
offices and agencies, subject to his direction and supervision;
(h) Keep the council fully advised as to the financial condition and future needs of the village and make
such recommendations to the council concerning the affairs of the village as he deems desirable;
(i) Sign contracts on behalf of the village pursuant to the provisions of appropriations ordinances;
(j) Perform such other duties as are specified in this charter or may be required by the council.
(Ord. No. 1-76, § 1, 2-19-76)
Section 6. Country club administrator.
The council shall have the power by ordinance to provide for the management and/or adm inistration of any
village owned or operated country club and its related activities, in whole or in part, separate from the office of the
Village Manager and to specify the authority, if any, that the Village Manager shall have over employment,
management, administration or other matters in any way connected with the operation of any village owned or
operated country club.
(Ord. No. 1-76, § 1, 2-19-76)
Section 7. Village clerk.
There shall be a Village Clerk who shall be responsible to the council for the proper administration of all
affairs of the village coming under the clerk's control as defined in Article IV, Section 10.
(Ord. No. 38-2002, § 1, 12-12-02)
Editor's note(s)—Ord. No. 38-2002, § 1, adopted Dec. 12, 2002, repealed Art. IV, § 7, in its entirety and enacted
new provisions to read as herein set out. Prior to amendment § 7 pertained to similar subject matter and
derived from Ord. No. 1-76, § 1, adopted Feb. 19, 1976.
Ord. No. 38-2002, was passed by vote in an election held March 11, 2003.
Section 8. Appointment; removal; compensation of village clerk.
(a) Appointment. The council shall appoint a village clerk for an indefinite term by a majority vote of all the
council members.
(b) Removal. The council may remove the clerk by a majority vote of all the council members, and the clerk shall
hold office at the pleasure of the council.
(c) Compensation. The compensation of the clerk shall be fixed by the council.
(Ord. No. 38-2002, § 2, 12-12-02)
Editor's note(s)—Ord. No. 38-2002, was passed by vote in an election held March 11, 2003.
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Section 9. Vacancy in the office of clerk.
During any vacancy in the office of village clerk, the deputy village clerk shall assume the duties of the village
clerk. If there is no deputy village clerk, the council may designate any competent person, except the mayor or any
member of the council, to execute the functions of the office of village clerk.
(Ord. No. 38-2002, § 3, 12-12-02)
Editor's note(s)—Ord. No. 38-2002, was passed by vote in an election held March 11, 2003.
Section 10. Powers and duties of the village clerk.
The powers and duties of the village clerk are and shall be:
(a) To attend all official meetings of the council in person or by deputy and keep minutes of its proceedings,
which, after being approved, shall be engrossed in a well-bound book, or other permanent record, and
signed by the village clerk.
(b) To be the custodian of the Village Seal and of all records and papers of a general or permanent charact er
pertaining to the affairs of the municipality.
(c) To attest all executory contracts made in behalf of the village as evidence of the authorization of such
contracts by the council; and no executory contracts made in behalf of the village or to which t he village is a
party shall be valid unless attested by the village clerk.
(d) To preserve, file and index all contracts to which the village is a party, which file and record shall be open to
the inspection of all interested persons at all reasonable times, in the clerk's office.
(e) To furnish the council at any time such reports, data and information as may be necessary to fully inform the
Council as to the affairs of the village, furnishing the Council regularly with such detailed reports of the
village government as may be necessary
(Ord. No. 38-2002, § 4, 12-12-02)
Editor's note(s)—Ord. No. 38-2002, was passed by vote in an election held March 11, 2003.
ARTICLE V. QUALIFICATIONS AND ELECTIONS
Section 1. Nonpartisan elections.
All qualifications and elections for the office of village councilman shall be conducted on a nonpartisan basis
without regard for or designation of political party affiliation of any nominee on any nomination petition or ballot.
(Ord. No. 1-76, § 1, 2-19-76)
Section 2. Qualifications.
Candidates for the office of village councilman shall qualify for such office by the filing of a written notice of
candidacy with the designated official at such time and in such manner as may be prescribed by ordinance.
(Ord. No. 1-76, § 1, 2-19-76)
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Section 3. Form of ballots.
The council by ordinance shall prescribe the method for listing candidates for village council elections and
any other village election. A charter amendment to be voted on by the village shall be presented for voting by
ballot title. The ballot title of a measure may differ from its legal title and shall be a clear, concise statement
describing the substance of the measure without argument or prejudice.
(Ord. No. 1-76, § 1, 2-19-76; Ord. No. 39-2002, § 1, 12-12-02)
Editor's note(s)—Ord. No. 39-2002, was passed by vote in an election held March 11, 2003.
Section 4. General and runoff election.
Whenever a general or special election is held to fill any elective office in the Village of North Palm Beach,
the candidate receiving a majority of the votes cast at such election to fill such office shall be declared to be duly
elected; provided that in the event no candidate for a particular elective office shall receive a majority of the votes
cast at such election to fill such office, then a runoff election shall be held two weeks after the original election to
elect a candidate to fill such office; provided further that in such event only the names of the two candidates
having received the greatest number of votes in the election for such office shall be submitted to the voters and
the one receiving the majority number of votes in such runoff election shall be declared to be duly elected to such
office; provided further that should two or more candidates receive an equal number of votes to any such office,
so that it cannot be determined which two had received the greatest and the next greatest number o f votes, then
the names of all such candidates shall be submitted at the runoff election and the candidate receiving the greatest
number of votes at such election shall be declared elected to such office, regardless of whether such candidate
received a majority of the votes cast to fill such office at such runoff election.
(Ord. No. 1-76, § 1, 2-19-76)
Section 5. Unopposed candidates.
In the event not more than one (1) person qualified as a candidate for a designated seat on the village
council to be filled at an election, that seat shall not be listed on the regular village election ballot. Each unopposed
candidate shall be deemed to have voted for himself.
(Ord. No. 1-76, § 1, 2-19-76)
Section 6. Recall.
The qualified voters of the village shall have the power to recall and to remove from office any elected
official of the village as provided by general law.
(Ord. No. 1-76, § 1, 2-19-76)
ARTICLE VI. TRANSITION SCHEDULE
Section 1. Continuation of former charter provisions.
All provisions of Chapter 31481, Laws of Florida, Extraordinary Session 1956, (the former charter) as
amended by special law or otherwise which are not embraced herein and which are not inconsistent with this
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charter shall become ordinances of the village subject to modification or repeal in the same manner as other
ordinances of the village.
(Ord. No. 1-76, § 1, 2-19-76)
Section 2. Ordinances preserved.
All ordinances in effect upon the adoption of this charter, to the extent not inconsistent with it, shall remain
in force until repealed or changed as provided herein.
(Ord. No. 1-76, § 1, 2-19-76)
Section 3. Rights of officers and employees.
Nothing in this charter except as otherwise specifically provided shall affect or impair the rights or privileges
of persons who are village officers or employees at the time of adoption. Elected officers shall continue to hold
their offices and discharge the duties thereof until their successors are elected.
(Ord. No. 1-76, § 1, 2-19-76)
Section 4. Pending matters.
All rights, claims, actions, orders, contracts and legal or administrative proceedings involving the village shall
continue except as modified pursuant to the provisions of this charter.
(Ord. No. 1-76, § 1, 2-19-76)
Section 5. Miscellaneous provisions.
In case any one or more of the sections or provisions of this Charter or the application of such secti ons or
provisions to any situation shall for any reason be held to be unconstitutional, such unconstitutionality shall not
affect any other sections or provisions of this Charter or the application of such sections or provisions as to any
other situation and it is intended that this Charter shall be construed and applied as if such unconstitutional
section or provision had not been included herein.
(Ord. No. 1-76, § 1, 2-19-76)
Section 6. Deletion of obsolete schedule items.
The council shall have power, by resolution, to delete from this article VI any section, including this one,
when all events to which the section to be deleted is or could become applicable have occurred.
(Ord. No. 1-76, § 1, 2-19-76)
Section 7. Gender
Any word importing the masculine gender shall extend and be applied to females as well as to males.
(Ord. No. 40-2002, § 1, 12-12-02)
Editor's note(s)—Ord. No. 40-2002, was passed by vote in an election held March 11, 2003.