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AN ORDINANCE TO AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE A FUND SELECTION SERVICE AGREEMENT WITH PRINCIPAL FINANCIAL GROUP
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WHEREAS, it is the desire of the City of Jonesboro to acquire professional financial services for the investment of assets of the City’s non-uniform pension plan, and
WHEREAS, Principal Financial Group offers a Fund Selection Service Agreement which provides such services
NOW THEREFORE BE IT ORDAINED by the City Council for the City of Jonesboro, Arkansas, that:
SECTION 1: The Mayor and City Clerk are authorized to execute a Fund Selection Service Agreement with Principal Financial Group, which includes the following provisions:
The Fund Selection Service Agreement service charge will be deducted from assets of the non-uniform pension plan.
FEE SCHEDULE
A quarterly charge equal to a Base Fee plus the amount calculated by multiplying the Ending Balance by the Basis Point Fee divided by four. Ending Balance means the total funds invested at the end of each quarter of the year. The Basis Point Fee for a quarter is determined by using total funds invested as of the last day of the quarter. Charges shall be determined in accordance with the following schedule:
IF TOTAL FUNDS ARE:
Over But Not Over Base Fee Basis Points Fee
$0 $ 500,000 $1,500 20.0 bps.
500,001 1,000,000 1,500 15.0 bps.
1,000,001 3,000,000 1,500 10.0 bps.
3,000,001 5,000,000 1,500 8.0 bps.
5,000,001 10,000,000 1,500 6.0 bps.
10,000,001 15,000,000 0 5.5 bps.
15,000,001 25,000,000 0 5.0 bps.
25,000,001 0 4.5 bps.
SECTION 2: There being a need to properly maintain the financial continuity and affairs of the City, an emergency is hereby declared to exist.
PASSED AND ADOPTED this 5th day of July, 2005.