(a) All public moneys of the City not deposited in active deposits or kept by the Director of Finance as a cash reserve as may be prescribed by the Mayor, shall be invested by the Director pursuant to this section, and investments shall not be limited to such moneys which will not be needed for a period of six (6) months.
(b) The Director may invest in any of the following classifications of obligations, which are hereby determined to be eligible for investment:
(1) Bonds, notes or other obligations of or guaranteed by the United States, or those for which the faith of the United States is pledged for the payment of principal and interest thereon;
(2) Bonds, notes, debentures or other obligations or securities issued by any federal government agency or the export-import bank of Washington;
(3) Discount notes of the federal national mortgage association and bonds issued by the homeowners' loan corporation, as defined in Ohio R.C. 731.56;
(4) Bonds and notes of the State of Ohio;
(5) Bonds and notes of any municipal corporation, including the City, county, township or other political subdivisions of Ohio as to which there is no default of principal, interest or coupons;
(Ord. 95-1981. Passed 10-5-81; Ord. 153-2021. Passed 12-6-21.)
(6) The Director may enter into a repurchase agreement with any eligible institution mentioned in Ohio R.C. 135.03, or with any qualified securities' dealer provided that in the latter case such securities subject to repurchase shall be safekept with a qualified trustee as provided in Ohio R.C. 135.18. Under the terms of such agreement, the Director of Finance purchases for the City, and such institution agrees unconditionally to repurchase any of the securities listed in subsections (b)(1) or (2) hereof that will mature or are redeemable within five (5) years from the date of purchase; and
(Ord. 128-1983. Passed 10-3-83.)
(7) Certificates of deposit of eligible depositories, which may provide (and if so, shall be shown on its face) that the amount of such deposit is payable upon written notice a specified period before the date of the repayment maturity.
(8) Insured deposit accounts in eligible depositories paying interest at a rate greater than the interest rate paid on the City's active deposits, provided that such investments shall be approved in writing by the Mayor and Director of Law and that such approval by the Mayor and Director of Law shall also include approval of the insurance provided to secure and protect the City's ability to recover the principal deposited in such deposit account.
(9) Shares of the State Treasury Asset Reserve of Ohio, commonly known as STAR Ohio.
(c) The Mayor may order the Director of Finance to sell any of the securities, obligations or certificates of deposit or to close any accounts held as investments. Such order shall be in writing and shall specifically describe the securities, obligations, certificates of deposit or accounts and fix the date on which they are to be sold or closed. Securities, obligations, certificates of deposit or accounts ordered to be sold or closed by the Mayor shall be sold or closed for cash by the Director on the date fixed in the Mayor’s order at the then current market price.
(d) The Director may sell any securities, obligations or certificates of deposit or close any accounts held as investments without the written order of the Mayor mentioned in subsection (c) hereof for cash and for a sum not less than their current market price.
(e) The Director of Finance, Mayor, Director of Law and members of Council shall not be held accountable or personally liable for any loss occasioned by the sale of securities, obligations or certificates of deposit or by the closing of insured deposit accounts authorized pursuant to subsections (c) or (d) hereof at prices lower than their cost or balance. Any loss or expense in making such sales or closings shall be payable as other expenses of the City.
(f) Investments authorized by subsection (b) hereof shall not be made at a price in excess of the current market price. The members of Council, Mayor, Director of Law and Director of Finance shall not be personally liable for or with respect to the purchase of securities, obligations or certificates of deposit or the deposit of public moneys in insured deposit accounts authorized as investments pursuant to subsection (b) hereof; and the members of Council, Mayor and Director of Law shall not be personally liable for any unauthorized investment by the Director of Finance.
(g) If any securities, obligations or certificates of deposit purchased under the authority of this section are issuable to a designated payee or to the order of a designated payee, the name of the Director of Finance and the title of his office shall be so designated. If any such securities, obligations or certificates of deposit are registrable either as to principal or interest, or both, then such securities shall be registered in the name of the Director as such.
(h) The Director is responsible for the safekeeping of all securities, obligations or certificates of deposit acquired by him under this section. Any of such securities, obligations or certificates of deposit may be deposited for safekeeping with a qualified trustee as provided in Ohio R.C. 135.18, except the delivery of securities acquired under a repurchase agreement shall be made to a qualified trustee. If securities, obligations or certificates of deposit are not deposited with a qualified trustee, they shall be in the custody of the Director and shall be kept by him in a safe deposit box or vault belonging to an eligible depository, and such safe deposit box or vault shall be opened only upon a warrant or order of the Director or a person duly authorized as the Acting Director of Finance in the presence of one (1) or more of the Director of Finance, Director of Law or Mayor or persons duly authorized as Acting Directors of Finance or Law or Acting Mayor. The warrant or order to open such safety deposit box or vault shall direct the deposit or removal of such securities, obligations or certificates of deposit, clipping of coupons or other official business reason for opening the box or vault. A report of what is placed in, removed from or other official business conducted shall, on the same day of the opening of the box or vault, be signed by the officer witnessing such opening and the Director of Finance, and such report shall be retained by the Director.
Interest earned on any investments, including certificates of deposit, authorized by this section shall be collected by the Director and credited by him to the proper fund of the City as required by law.
(i) Upon the expiration of the term of office of the Director or in the event of a vacancy in the office of the Director by reason of death, resignation, removal from office or otherwise, the Director or his legal representative shall transfer and deliver to his successor all securities, obligations and certificates of deposit held by him. For the securities, obligations and certificates of deposit so transferred and delivered, such Director shall be credited with and his successor shall be charged with the amount of money invested in such securities, obligations and certificates of deposit.
(j) Whenever securities, obligations or certificates of deposit acquired under this section mature and become due and payable, the Director shall present them for payment according to their tenor, and shall collect the moneys payable thereon. The moneys so collected shall be treated as public moneys subject to the provisions of this chapter.
(k) The Director shall maintain accounts in which he shall make appropriate entries of all transactions relating to the investment of treasury funds. The Director shall keep a record of the number and maturity of interest coupons on instruments in which the City has invested.
(l) On and after January 1, 1982, the Director shall provide to the Mayor and each member of Council monthly statements showing the deposits, withdrawals and balances in the various depositories of the City; and, upon request of the Mayor or Council, shall provide periodic reports, in such detail as required by Council or the Mayor, of all investments purchased, sold and held.
(Ord. 95-1981. Passed 10-5-81; Ord. 153-2021. Passed 12-6-21.)