City of Madison - File #: 30180

• File #: 30180
• Version: 1
• Name: Divestment of Fossil Fuels by City of Madison
• Type: Resolution
• Status: Passed
• File created: 5/15/2013
• In control: COMMITTEE ON THE ENVIRONMENT (ended 6/2020)
• On agenda: 7/2/2013
• Final action: 7/2/2013
• Enactment date: 7/3/2013
• Enactment #: RES-13-00531
• Title: Divestment of Fossil Fuels by the City of Madison
• Sponsors: Paul R. Soglin, Shiva Bidar, Joseph R. Clausius, Sue Ellingson, Matthew J. Phair, Scott J. Resnick, Marsha A. Rummel, Larry Palm, Chris Schmidt, John Strasser, Michael E. Verveer, Anita Weier, Steve King, Maurice S. Cheeks, Lisa Subeck

Date	Ver.	Action By	Action	Result
7/2/2013	1	COMMON COUNCIL	Adopt	Pass
6/17/2013	1	COMMITTEE ON THE ENVIRONMENT (ended 6/2020)	RECOMMEND TO COUNCIL TO ADOPT - REPORT OF OFFICER	Pass
6/10/2013	1	BOARD OF ESTIMATES (ended 4/2017)	Return to Lead with the Recommendation for Approval	Pass
5/21/2013	1	COMMITTEE ON THE ENVIRONMENT (ended 6/2020)	Refer
5/21/2013	1	COMMON COUNCIL	Referred
5/15/2013	1	Mayor's Office	Referred for Introduction

Fiscal Note
This resolution would establish a policy that the city would not invest its cash balances in fossil fuel companies. Under current state law, the city can only own common stock as part of investing cash balances within the Cemetery Perpetual Care Fund. Avoiding investments in fossil fuel companies as part of the portfolio for this fund is not expected to be detrimental to the overall investment peformance of the fund.

For other funds, the city can invest in certain corporate bonds (those with a rating of AA or better). Avoiding the purchase of bonds issued by fossil fuel companies is not expected to have any impact on the potential return of the city's investment portfolio.

The city invests the cash balances of the Madison Metropolitan School District. It is assumed that this resolution does not apply to the investments of those cash balances. The city is also part owner of two municipal mutual insurance corporations (Wisconsin Municipal Mutual Insurance Corporation and Transit Mutual Insurance Corporation of Wisconsin) which have investment portfolios. It is assumed that this resolution does not apply to those entities given that the city does not have a controlling vote on their respective governing boards.


Title
Divestment of Fossil Fuels by the City of Madison
Body
WHEREAS the climate crisis is a serious threat to current and future generations here in Madison and around the world; and

WHEREAS, The Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report found that global warming is already causing costly disruption of human and natural systems throughout the world including the melting of Arctic ice, the ocean's rise in acidity, flooding and drought; and

WHEREAS, Almost every government in the world has agreed through the 2009 Copenhagen Accord that any warming above a 2°C (3.6°F) rise would be unsafe, and that humans can only pour about 565 more gigatons of carbon dioxide into the atmosphere to maintain this limi...