(a) It is the policy of the City to invest public funds in a manner which will provide the highest return with the maximum security, while meeting the daily cash flow demands of the City, and conforming to (1) the Ohio Revised Code governing such investments, except that investments will mature within five (5) years from the date of purchase, and (2) the guidelines listed below as identified by the Government Finance Officers Association and the Municipal Treasurers Association, to wit:
(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 preservation of capital in the overall portfolio.
(2) Liquidity. The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
(3) Return on investment. The investment portfolio shall be designed with the objective of attaining market rate of return throughout budgetary and economic cycles, taking into account the City's risk constraints and cash flow characteristics.
(b) The City Manager, the Finance Director and Chairman of the Finance Committee constitute a Treasury Investment Board of the City, with full power to determine monies available for investment, and to select and manage such investments. The Finance Director is authorized to administer day-to-day operations, maintain required documentation and provide annual Treasury report.
(c) The authorized investment options include:
(1) Depository accounts payable or withdrawable on demand, including negotiable order of withdrawal accounts and sweep type account structures at designated depositories.
(2) The "State Treasury Assets Reserve of Ohio" (S.T.A.R. Ohio), an investment pool managed by the Treasurer of the State of Ohio.
(Ord. 1999-23. Passed 5-25-99.)
(3) Certificates of deposit with any national savings and loan or national bank located in the State of Ohio with FDIC or FSLIC coverage and which qualify as eligible financial institutions under Ohio R.C. Chapter 135.
(Ord. 2008-44. Passed 6-10-08.)
(4) U.S. Treasury Bills, Notes, and Bonds.
(5) Various federal agency securities, including issues of Federal National Mortgage Assn. (FNMA), Federal Home Loan Mortgage Corp. (FHLMC), Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Student Loan Marketing Assn. (SLMA), Government National Mortgage Assn. (GNMA), and other agencies or instrumentalities of the United States. Eligible investments also include any securities that may be "called" [by the issuer] prior to the final maturity date. Any eligible investment may be purchased at a premium or a discount. All federal agency securities shall be direct issuances of federal government agencies or instrumentalities.
(Ord. 1999-23. Passed 5-25-99.)
(6) Investment advisory services. The Treasury Investment Board of the City is hereby authorized to obtain investment advisory services to enhance the yield on investments provided all investments be consistent with the investment policies of the City of Loveland and the laws governing municipal investment in the State of Ohio. City Council shall have the sole right to approve a contract with an investment advisory firm.
(Ord. 2009-21. Passed 3-10-09.)
(d) A special projects capital improvement fund is established for the receipt of all interest earned on all "funds" maintained by the City. Other sources of revenue may also be receipted to this fund at the direction of City Council, provided that such receipting does not violate any provision of law.
(Ord. 1999-23. Passed 5-25-99.)