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(a) Investment Objectives. The following investment objectives will be applied in the management of public funds of the City:
(1) The primary objective shall be the preservation of capital and the protection of principal while earning income interest.
(2) In investing public funds, the objective will be to achieve a fair and safe average rate of return over the course of budgetary and economic cycles, taking into account State law, safety considerations and cash flow requirements.
(3) The investment portfolio shall remain sufficiently liquid to enable the City to meet reasonable anticipated operating requirements.
(4) The investment portfolio should be diversified in order to avoid incurring potential losses on individual securities which may not be held to maturity whether by erosion of market value or change in market conditions.
(5) Investments shall be made with the exercise of that degree of judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, the probable safety of their capital and the probable income to be derived.
(6) Bank account relationships will be managed in order to secure adequate services while minimizing costs.
(b) Authorized Institutions and Dealers. A list of authorized institutions and dealers shall be maintained with the investing authority. Additions and deletions to this list shall be made when deemed in the best interest of the investing authority. Only those institutions eligible under the laws of the State shall be used as public depositories. The City may engage the services of an investment advisor to assist in the management of the investment portfolio in a manner consistent with this investment policy. Such investment advisor may be granted discretion to purchase and sell investment securities in accordance with this investment policy. The investment advisor must be licensed by the division of securities under R.C. § 1707.141 or registered with the Securities and Exchange Commission, and possess experience in public funds investment management specifically in the area of state and local government investment portfolios, or the investment advisor is an eligible institution as mentioned in R.C. Chapter 135. The investment advisor must enter into a written investment advisory agreement with the City. In addition, the investment advisor must supply a copy of their Form ADV Part 2, or make a copy available, on an annual basis.
(c) Term of Investments. To the extent possible, the City will match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow requirement, the City will not directly invest in securities maturing more than five years from the date of purchase.
(d) Authorized Investments. The City may invest in any instrument or security authorized under the laws of the State.
(e) Collateral Required. All deposits shall be collateralized pursuant to the Ohio Revised Code.
(f) Inventory of Obligations and Securities. The investing authority shall establish and maintain an inventory of all obligations and securities acquired by the investing authority. The inventory shall include a description of the security, type, cost, par value, maturity date, settlement date and coupon rate.
(g) Agreement of Institutions and Dealers to Abide by Policy. Pursuant to the Ohio Revised Code, all brokers, dealers and financial institutions initiating transactions with the City by giving advice or making investment policy, or executing transactions initiated by the City, must acknowledge their agreement to abide by the investment policy's content.
(Ord. 96-138. Passed 9-17-96; Ord. 19-137. Passed 11-19-19.)