Commissioner Duncan-Walker Moves For Divestment From Corporate Notes After Mayor Ward Debates Constituents on Florida Investment Law

The Motion Did Not Receive A Second

[Updated Aug 21 with photo captions.]

At the August 15 Gainesville City Commission meeting, members of Alachua County Healthcare Workers for Gaza, Jewish Voices for Peace, the Party for Socialism and Liberation, the Repurpose Project, the Civic Media Center, the University of Florida (UF) Faculty for Justice in Palestine, and UF Graduate Students United urged Mayor Harvey Ward and City Commissioners to divest from all corporations.  

Florida Statute 112.621 (2) states, “When deciding whether to invest and when investing the assets of any retirement system or plan, only pecuniary factors may be considered, and the interests of the participants and beneficiaries of the system or plan may not be subordinated to other objectives, including sacrificing investment return or undertaking additional investment risk to promote any nonpecuniary factor. The weight given to any pecuniary factor must appropriately reflect a prudent assessment of its impact on risk or returns.” 

Ward and the majority of commissioners held that this law prevents them from divesting. 

Palestine advocates held that divesting from all corporations unanimously for fiscal benefit would be a way to divest from Israeli associated corporations while still being in compliance with Florida law. 

Casey Willitis said, “It may not seem like it's related, but with the GRU Authority, with the way [Florida] state law changed our charter, it has the same idea of pecuniary [factors]. You can’t make a decision unless it is absolute bottom-line dollars and cents. That's what the state legislature forced into the city charter with our utility. [Florida Statute 112.621 (2)] is the same idea. With the way our charter is written by the state legislature, if it was cheaper to produce electricity by burning kittens and puppies, then that’s what they have to do….”

Willits continued, “If we have a decision that is 100% backed by dollars and cents, we need more stable investments, like Treasury notes. Just to be clear, outside of pensions, it's not really our money. It has already been paid to our employees, and our employees hold it in a pension. The city holds very little in corporate bonds because it has been noted by some people that Treasury bonds are less [risky]. It is far less risky and has a lower return, as we know…. The way it's been explained to me by our staff and experts is that we are truly tied by the state legislature, and we can’t…. Even just getting out of all corporate bonds were gonna have to say there is a clear pecuniary reason for it, and I don’t know that we can support that…. That’s a deeper question for our finance staff to tell us that in the future we don’t need those because they’re not the safest thing for us…. Pension is slightly different because it is no longer our money; it is our employees' money that is sitting in a pension, but I understand the same idea of convincing that the whole pension fund shouldn’t be invested in certain ways.”  

Member of UF Faculty for Justice in Palestine, Marilyn Wende, said, “Our public funds are being invested in risky areas that support genocide, war, and the military industrial complex…. Public employees in Gainesville are disgusted and outraged. We are united here with over 60 local organizations and businesses to demand you divest from all corporations and stop ignoring the cries for justice. There’s no debate to be had that there’s a genocide in Palestine being carried out by Isarel. The Lancet reported there are over 186,000 deaths in Gaza attributed to Israeli action since October 7, 2023. Half of those people are children. There is no debate that the Gainesville City Commission is complicit, and shame on you for not being aware of how you invest our public funds…. You’ve taken no action for almost a year as babies, fathers, and mothers are burned alive and shot at with weapons produced by companies that you invest our public funds in.”

Emily Robins of Gainesville Jewish Voice for Peace talked about her family member who was killed by Israeli forces using Caterpillar construction equipment while protesting for Palestine. 

“My cousin was Rachel Corrie, and she was a peace activist who was killed by the IDF in Gaza 21 years ago. She left her home in the Pacific Northwest and traveled to Gaza. She lived with Palestinian families and tried to use her international privilege to protect wells, houses, and people from being destroyed by the Israeli army…. She was the one who comforted me at night when I missed my mom. She was always daring us to do things…. but she always did it with you…. I want to read what she had to say from Gaza….

‘No amount of reading could’ve prepared me for the reality of the situation here. You can’t imagine it unless you’ve seen it, and even then, you’re well aware your experience is not reality at all. I have money to buy water when the army destroys wells, and I have the option of leaving. Nobody in my family has been shot by a rocket launcher from a tower while driving in their car…. I have a home. I’m allowed to see the ocean. This has to stop…. This is not the world I asked to come into…. Not a world of genocide.’

On March 16, 2003, she was killed by the IDF while standing in front of a Palestinian home. The bulldozer that crushed her was a Caterpillar bulldozer made in the U.S. and sent to Israel to be used as a weapon, and the City of Gainesville has stock in Caterpillar.”

According to Gainesville General Pension Plan State Street Custody Holdings Data, the City of Gainesville holds Caterpillar assets in their general pension plan. 

During an interview after commission comments Ward responded to a photo he took with former members of the Israeli military.

Last February former Israeli soldier and October 7 Nova Festival Massacre survivor Rom El-Hai spoke at UF on his experience escaping from Hamas soldiers. El-Hai's speaking was protested by around 200 people due to his affiliation with the Israeli military and the Israeli military's war crimes. 

Sometime before the protest El-Hai, and a fellow former Israeli soldier Shlomi Kahana who works at UF Hillel took a picture with Ward in his office. Ward told Gnvinfo El-Hai "represented himself as speaking about the massacre." 

Ward said "I'm pretty sure I have" when he was asked if he'd shake hands with Pro- Palestine protesters in the same way he shook hands with Israeli soldiers. 

Ward also acknowledged a New York Times article which said he is "one of three mayors being consulted by the White House on the war in Gaza." He said he wasn't in consultation with President Joe Biden directly and clarified that the photo he posted of himself with Biden was taken before October 7. 

Ward said he didn't get the chance to "speak at length" with Vice-President Kamala Harris when he met with her. 

Ward told the New York Times that White House staff contacted him a "handful of times" to ask him how Gainesville residents are "processing all this in our city." 

Ward told Gnvinfo there are "probably more than three" in reference to the number of mayors in consultation with the White House about Gaza. 

Ward said, "I assume it probably was," when asked if the letter he sent to Biden last November calling for an end to hostilities between Israel and Hamas was the reason he was consulting with the White House. The letter called for "the safe return of all hostages and a ceasefire." 

During commissioner comments, Bryan Eastman referenced the letter as their "official stance in favor of a ceasefire" and asked Gainesville City Attorney Daniel Nee what could be done in terms of divestment. 

Nee responded that there are "two different types of funds being invested by the City of Gainesville. There's the various pension funds, and there are general funds.... As for the pension funds, there's a restriction relating to the fiduciary duty that the commission and trustees of the funds have in restricting investment decisions to be based only on pecuniary interests of the participants of the beneficiaries. To a large extent, that's not truly the city's money. That's not truly the public's money. In a sense, that is dedicated money for the participants of the beneficiaries.... As to the operating funds that the city holds, there is a balance that is maintained to prepare for extraordinary cataclysm type of events. Now, since 2023, the [Florida] legislature has enacted a law to restrict the investment decisions that local governments at all levels can take to invest those [funds]."

Ward proceeded to tell public commenters they should make their case to the Florida legislature and read Florida Statute 112.621 (2). He said, "I hate that, but that is the law that exists. We are in Florida.... We're in a state that has passed a very specific law. That's all I have to say about it.”

Commissioner Desmond Duncan-Walker responded, "Thank you for reading that [law] Mr. Mayor, but I'm curious as to how what was read relates to investing in corporate bonds vs. Treasury notes?" 

Ward responded, "It just says straight up we cannot make investment decisions based on non-pecuniary factors.... We can't make those decisions on the factors we've been asked to make them on. Since we've already had the discussion about it they’re not gonna say, 'Oh, well, maybe you didn't make it on those factors' because we're clearly discussing those factors. I don't know how the county [commission] did it. I really don't know."

Duncan-Walker answered "I think they're only investing in the Treasury notes because the whole thing was about preserving capital. That was where a lot of my concern was. They're clearly in a very different place than we are, and I'm sure they want to make sure they're within the realm of the law. I'm just curious as to how it's all unfolding in that way.... I don't want to be dismissive of the expertise that exists in this room from our financial advisors and legal minds.... Attorney Nee, do you know? I hate to put you on the spot like this, but I'm sure you followed a little of what the county did. Do you know what the county attorneys' thought process was?"

Nee responded, "I have not spoken with them. All I've seen is what I've read in the media."

Duncan-Walker made a motion to "ask staff to come back with a recommendation to eliminate corporate stocks and bonds as an investment option as part of our investment policy."  

The motion did not receive a second. 

Duncan Walker said, "I'm saddened by where we are in terms of what's happening in the world and in terms of how we're forced to make decisions. But I'm gonna be watching very closely how things unfold with the decision that has been made across the street, and perhaps we will have the opportunity to come back."

As the Palsestine advocates left, they chanted, "Disclose, divest, we will not stop; we will not rest." One man said, "You're all fucking cowards." Ward responded, "Thank you, have a good day." 

Together, the following 64 activist organizations and businesses have signed an endorsement calling for the City of Gainesville to unanimously divest from corporations:

Alachua County Health Care Workers for Gaza
Jewish Voice for Peace Gainesville
University of Florida Divest Coalition
University of Florida SJP
National Women’s Liberation, Gainesville Chapter
Liberation Collective
How Bazar
Dion Dia Records
Gainesville Radical Reproductive Rights Network
Party for Socialism and Liberation - Gainesville, FL
Rave 4 Palestine
Cultural Arts Coalition
Young Democratic Socialists of America chapter at the University of Florida
Goldenrod Parlor
Toast in Style
Arab Students’ Association
Islam On Campus
A Thousand Leaves
Bangladeshi Students' Association
Florida Youth Action Fund
Shameless Heart Therapy
Gainesville Nonviolent Communication
Lucent Springs Counseling LLC.
Tiny House Labs LLC.
North Central Florida Indivisble
Leif Stringer Relationship Counseling, LCSW
Bread and Roses Health Center
Vine Bakery
Jorelle Degen Counseling Services, LLC
Eze Sanchez Coaching
Humble Wood Fire
Soma art media Hub LLC
UCW UF
Veterans For Peace
Faculty for Justice in Palestine
Central Florida Queers for Palestine
Good Neighbor GNV
Nicoya Farm
Mexican-American Student Association
Jewish Voice for Peace (UF chapter)
Justice Advocacy Network
Florida Creamery High Springs
Grove Galleria
Serpentine Plants + Provisions
Florida Prisoner Solidarity
Interfaith Alliance for Immigrant Justice
Gainesville Free Grocery Store
Emmanuel Mennonite Church

Pakistani Students Association
UF Graduate Assistants United
Civic Media Center
Apoio Counseling and Consulting
Thirdspace Somatics
Queer Liberation Front UF 
Rising Tide
House of Yin
Nightjar
Rewild Nursery
ICCG- Islamic Community Center of Gainesville 
New Fair Deal
Coultas Massage
The Repurpose Project
Dominican Student Association