Title
Resolution Approving the Memorial Health System/Colorado Springs Health Foundation Funds Management Agreement
Body
From:
Kara Skinner, Chief Financial Officer
Cari Davis, Executive Director, Colorado Springs Health Foundation
Britt Haley, Corporate Division Chief
Summary:
City Finance, the City Attorney's Office and the Colorado Springs Health Foundation (CSHF) worked together to develop the attached Funds Management Agreement (Agreement). The Agreement provides greater clarity to how lease proceeds will be transferred to the CSHF and how the CSHF will invest funds.
In summary, the basic terms of the agreement are as follows:
-The City will maintain a balance of $5M in the MHS Enterprise Fund.
-The City will transfer MHS Enterprise Fund balances in excess of $5M to the CSHF.
-If the MHS Enterprise Fund balance falls below the $5M target, the CSHF will remit funds to the City to address the deficiency and return the fund balance to $5M.
-The City will transfer lease payment proceeds to the CSHF after ensuring the MHS Enterprise Fund balance is $5M.
-Beginning 10/1/15 and until the current litigation has reached a final disposition on appeal, the CSHF will invest $25M in currently restricted funds in instruments as allowed by the City's Investment Policy, however the CSHF will have discretion over asset allocation and term. Once the current litigation is resolved, the CSHF may invest the funds in accordance with the CSHF's investment policy.
-The remaining $25M in restricted funds will continue to be invested in short-term US Treasuries or Instrumentalities until 10/1/2017.
-The Agreement provides a process for reconsideration of the $5M fund balance target.
-The Agreement reaffirms the CSHF's commitments under the Lease and the Financial Guaranty.
Previous Council Action:
On September 23, 2014, the City and the Public Employees' Retirement Association executed a settlement agreement resolving pend...
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