(A) Pursuant to the authority of R.C. §§ 731.56 and 731.57, there is created an Investment Committee empowered and directed to invest municipal funds in accordance with the procedures and requirements set forth in such sections.
(B) The Investment Committee shall be comprised of the City Manager, the Director of Finance, the Director of Law, and two Council members who shall be designated by motion of Council effective January 1st of each calendar year, such appointments to run for that entire year.
(C) When, in the opinion of the Investment Committee, there are moneys in the treasury of the municipal corporation which will not be required to be used for a period of six months or more, the Committee may invest such funds in those interest-bearing bonds and obligations set forth in R.C. § 731.56.
(D) In all matters pertaining to the investment of public funds, the accounting therefor and the custody thereof, the Investment Committee and the Department of Finance shall be governed by the provisions of R.C. §§ 731.55 to 731.59, inclusive.
(E) Linked deposit program.
(1) The city hereby establishes a linked deposit program wherein the city, when possible and according to the conditions and requirements listed below, shall place reduced-rate investments with eligible lenders to be linked to lower interest loans for eligible small business owners.
(2) In order to participate in the program, a lending institution must have at least one branch office located within the city, must have a Memorandum of Agreement for Deposit of Public Funds on file with the city, must sign the Lender Application for the city's linked deposit program, and must agree that as the principal is paid down by the business, that portion of the funds shall be available for withdrawal by the city, quarterly or semi-annually.
(3) In order for a small business to be eligible for consideration for the city's linked deposit program, it must, as a prerequisite, meet the following:
(a) Complete the city's application for participation in the program;
(b) Forward a completed business plan to the city;
(c) The business plan must meet the strategic economic development goals of the city;
(d) The small business must be retaining or creating jobs within the city;
(e) The small business shall be organized for profit.
(4) Once the business applicant has fulfilled the above requirements, and the eligible lender has forwarded a completed application to the city, the City Manager and Finance Director shall evaluate the application to determine if the business is eligible for the program, whether the city is financially capable of linking deposits to assist the business, and whether it is in the city's best interest to accept the particular applicant. The City Manager shall then make a recommendation to the City Council. City Council shall authorize each linked deposit application through approval of a resolution. Upon approval, the Finance Director shall communicate with the lender to make the necessary deposit. The city shall have the discretion to deny an application if it determines that the applicant is not eligible or if the city is not financially able to assist the business.
(5) The city shall place no more than $400,000 into reduced-rate investments which are linked to lower interest loans.
(6) Each approved linked deposit is valid for two years with two renewal periods. The initial renewal may be for a two year period. The final renewal may be for a one year period. No linked deposit shall extend for more than five years. Any request for renewal shall be made in writing to the City Manager at least 90 days before the expiration period. Renewal shall be based on the prerequisites in subdivision (B)(3), and if all conditions have been met, the City Manager shall renew the linked deposit. All recipients of a linked deposit shall comply with all Montgomery Building and Zoning Codes and the requirements of the specific lender's loan. Failure to do so may result in the withdrawal of city funds from the linked deposit.
(Ord. 26-1995, passed 12-6-95)
(Ord. 3-1974, passed 5-1-74; Am. Ord. 27-1981, passed 10-7-81; Am. Ord. 8-1992, passed 5-6-92)
Statutory reference:
Linked deposit program authorized, see R.C. § 135.80