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(a) Definitions. For the purposes of this policy, the following terms shall have the following meanings:
(1) "Treasurer" means the Treasurer of the City of Hudson.
(2) "Public moneys" means all moneys in the Treasury of the City or moneys coming lawfully into the possession of the City Treasurer.
(b) Scope. All public moneys of the City shall be invested under the direction of the Director of Finance by the Treasurer in the eligible investments described herein. The Treasurer is authorized to pool cash balances of the several funds of the City for investment hereunder.
(c) Objectives. The achievement of sound, prudent fiscal management for the City requires effective investment of the public moneys of the City. To that effect, the following investment objectives shall be applied in the investment of public moneys:
(1) The primary objective of the City's investment policy is the preservation of capital and the protection of investment principal. Each investment transaction shall seek to first ensure that capital losses are avoided, from any cause, such as erosion of market value.
(2) In the investment of the public moneys of the City, the Treasurer, the Director of Finance and the City Manager, as permitted hereunder, shall avoid assuming unreasonable investment risks.
(3) Investment of the public moneys of the City shall be made with the exercise of that degree of judgment and care, under circumstances then prevailing, that persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
(4) The City's investments shall remain sufficiently liquid to enable the City to meet its operating requirements that might reasonably be anticipated.
(d) Eligible Investments. Public moneys of the City shall be invested only in eligible investments as follows:
(1) STAR Ohio investments as permitted by Ohio R.C. 135.14. Effective July 1, 1997, the City of Hudson may not invest in STAR Ohio if the fund does not maintain the highest letter rating provided by at least one nationally recognized rating service.
(2) Certificates of deposit in terms not to exceed five years for fixed rates and not to exceed two years on variable rates of return with a bank or savings and loan association eligible to be a depository for public funds of Ohio subdivisions or a member of the National Association of Securities Dealers, provided these deposits are properly insured or collateralized as required by law.
(3) Repurchase agreements in accordance with Ohio R.C. 135.14(E). Such agreements will be overnight or within a time not to exceed five days and be restricted to United States government securities or direct issuances of an agency of the United States government.
(4) United States Treasury bills, notes, bonds or any other obligation or security issued by the United States Treasury or any other obligation guaranteed as to principal and interest by the United States. All such instruments purchased after the adoption of this policy shall be limited to no more than five years, unless specifically authorized by City Council's Finance Committee.
(5) Direct issues of a Federal agency, including bonds, notes, debentures or other obligations or securities issued by any Federal government agency or instrumentality.
(6) Interim deposits in duly authorized depositories of the City, provided these deposits are properly insured or collateralized as required by law.
(7) State of Ohio bonds and other obligations.
The City Treasurer, the Director of Finance and the City Manager have the authority to invest the public moneys of the City.
(e) Minimizing Investment Risk. The City acknowledges that investment risk can result from a default by the issuer of the investment, changes in the market price of the investment, or technical complications leading to temporary illiquidity of an investment. Public moneys invested only in eligible investments are directed at minimizing the effect of such investment risk.
(f) Periodic Reports. With respect to eligible investments, the City Treasurer shall periodically prepare a quarterly investment report for submittal to the Director of Finance, which shall be a public record available for public inspection under Ohio R.C. 149.43.
(g) Internal Controls With Respect to Eligible Investments. Annually, in connection with the audit of the City's financial statements, the Treasurer shall cause the auditor performing such audit to audit the investments of the City made during the fiscal year of such audit and shall cause such auditor to include with such auditor's report on the City's financial statements a separate report with respect to such investments' compliance with the provisions contained herein.
(h) Disclaimer of Liability. The Treasurer, the Mayor, City Councilmembers, the City Manager, the Director of Finance and the Solicitor shall not be held accountable or personally liable for any loss occasioned by the sale of any eligible investment authorized pursuant to this section at prices lower than its cost or balance. Any loss or expense in making such sales or closings shall be payable as other expenses of the City.
The members of Council, the Mayor, the City Manager, the Director of Finance, the Solicitor and the Treasurer shall not be personally liable for or with respect to the purchase of any eligible investment authorized as investments pursuant to this section, and the members of Council, the Mayor, the City Manager, the Director of Finance and the Solicitor shall not be personally liable for any unauthorized deposit or investment by the Treasurer.
(i) Allocation of Interest. Interest generated from pooled investment balances shall be appropriated and allocated by the Finance Director to the General Fund, with the exception of interest generated from the following funds:
203 Cemetery Fund balance
205 Park Fund balance
221 Fire Fund balance
224 Ambulance Fund balance
735 Playground Trust balance
736 Bandstand Trust balance
737 Clock Tower Trust balance
738 Poor Endowment Trust balance
Additionally, interest generated on debt proceeds held in a capital projects fund shall be allocated to that fund.
(Res. 96-203. Passed 12-18-96; Ord. 01-25. Passed 2-7-01.)