(a) Investment Objectives. The primary objectives, of the City of Bryan’s investment activities shall be:
(1) Safety: Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. At no time will the safety of the portfolio’s principal investment be impaired or jeopardized. Safety is herein defined as the certainty of receiving full par value plus accrued interest, at the securities legal final maturity. To attain this objective, diversification is required.
(2) Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements. Portfolio liquidity is defined as the ability to sell a security on a short notice near the par value of the security. To help retain the desired liquidity, no issue shall be purchased that is likely to have few market makers or poor market bids. Additionally, liquidity shall be assured by keeping an adequate amount of short term (thirty day or less) investments in the portfolio to accommodate the cash needs of the City.
(3) Return on investments: The City’s investment portfolio shall be structured with other objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and the cash flow characteristics of the portfolio.
(b) Delegation of Authority. Management responsibility for the investment program is hereby delegated to the Clerk-Treasurer, who shall be responsible to the implementation of the investment program and the establishment of the investment procedures consistent with this policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Clerk-Treasurer. The Clerk-Treasurer shall be responsible for all transactions undertaken and shall establish a system of control to regulate the activities of subordinate officials.
(c) Authorized Financial Institutions and Brokers/Dealers. The Clerk-Treasurer shall maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved brokers/dealers who are authorized to provide investment services to the City. These may include primary dealers or regional dealers that qualify under the Securities & Exchange Commission Rule 15C3-1 and that are registered with the Ohio Department of Commerce to do business in the State of Ohio. No public deposits shall be made except in qualified depositories as established in Ohio R.C. Chapter 135. An annual review of these lists shall be conducted by the City. Additionally, all financial institutions and broker/dealers must provide the following information:
(1) Annual financial statement, as well as most recent/quarterly statement if available.
(2) Verification of regulatory history, through either the Office of the Currency for dealer banks, or the NASD for securities firms.
(3) Statement of any pending lawsuits materially affecting the firm’s business must be disclosed.
(4) Resume/Biography of the individual broker assigned to the account and if the individual broker has any pending lawsuits/claims against him.
(d) Authorized Investments. The City is authorized to invest interim funds of the City as described in Ohio R.C. Chapter 135.
(e) Diversification. The City shall diversify its investment by security type and institution. With the exception of U.S. Treasury securities and authorized pools, no more than fifty percent (50%) of the entity’s total investment portfolio will be invested in a single security type or with a single financial institution.
(f) Maximum Maturities. To the extent possible, the City will attempt to match it’s investments with anticipated cash flow requirements. The City will not directly invest in securities maturing more than two years from the date of purchase.
(g) Internal Controls. The City shall establish an annual review process of investment policies and procedures. This review will include the annual audit conducted by the Auditor of State and/or his/her designee, as well as an internal review for compliance with all investment policies and procedures. This annual review process will be established by the Clerk-Treasurer.
(h) Review. The Clerk-Treasurer shall provide to the Mayor and/or Council all investment activity records upon their request. The Clerk-Treasurer shall provide to the Mayor and Council an annual review of all investments of the City.
(Ord. 42-1997. Passed 6-16-97.)