4.20.360 Fund--Disposition and investment of monies.
A. The City Treasurer shall be custodian of the fund, which shall consist of the monies contributed by the City and the monies contributed by the members of the Fire Department, and may deposit any monies of the fund in accordance with the laws of the state and the Charter of the City.
B. Reserves in the fund not needed in any fiscal year for current payments of pensions and expenses of the board may be invested for the benefit of the fund as follows:
1. In any depository in which the monies are guaranteed by an agency of the federal government;
2. In real property or improvements constructed or to be constructed on real property when such real property or such improvements are acquired for sale or lease to a public agency, provided:
(a) The board is owner in fee title of, or acquires fee title to, the real property or real property and improvements in and upon which such investment is to be made,
(b) Before making such an investment, an appraiser shall be appointed who shall examine the property or the plans and specifications of any improvement proposed to be constructed and who shall determine whether the project in their opinion will have a fair rental value sufficient to return the investment together with interest over a period of time not to exceed fifty years,
(c) Before making such an investment, the board shall enter into a lease or lease-option agreement with the public agency lessee under which such public agency agrees to rent the property at a monthly rental and for a period not to exceed fifty years,
(d) "Public agency" as used herein means a city, school district, political subdivision or political corporation of this state,
(e) In order to make the provisions of this subdivision 2 relating to the investment of pension fund reserves completely effective, the board is authorized for investment purposes only to purchase, sell or lease real property or to enter into options therefor, and when necessary for investment purposes, to enter into contracts for the construction of buildings and may repair and maintain such property and do any and all things necessary to protect the investment including, but not limited to, purchasing insurance against the loss of the property or the loss of use and occupancy of the property. It may also take any other action necessary to carry out the investment provisions hereof. In the construction of buildings the board shall follow substantially and insofar as applicable, the procedure and limitations prescribed by law for the construction of buildings by the City;
3. In first mortgages and first deeds of trust;
4. In common stocks and preferred stocks, as in the informed opinion of the board, or, if an investment counselling firm or firms have been employed by the board for the management of the pension fund reserves, in the informed opinion of such investment counseling firm or firms it is prudent to invest pension fund reserves;
5. Except as herein otherwise provided, investment of all reserves of the pension fund shall be subject to the terms, conditions, limitations and restrictions imposed by the laws of the state upon the making of investments by savings banks, except that the provisions of the law limiting the amount which a savings bank may invest in securities to a specific percent of its paid-up capital and surplus, or savings deposits, shall not apply to investments authorized by the terms of this subdivision 5.
C. Any and all interest earned by the monies deposited or invested in accordance with the provisions of this section shall be paid into the fund and become a part thereof.
D. Except as herein provided, no member or employee of the board shall have any interest, direct or indirect, in the making of any investments or in any manner use the same, except to make such current and necessary payments as are authorized by the board. (Ord. 4961-NS §§ 1, 2, 1977: Ord. 4890-NS §§ 1, 2, 1976: Ord. 4486-NS (part), 1970: Ord. 4143-NS (part), 1966: Ord. 3411-NS (part), 1954: Ord. 3307-NS (part), 1953: Ord. 2374-NS (part), 1940: Ord. 2188-NS § 31, 1938)