(a) The primary objective of the Village’s deposit and investment activities shall be the preservation of capital and the protection of investment principal.
(b) The Clerk-Treasurer shall strive to maximize the return on the Village’s portfolio, but shall avoid assuming unreasonable investment risks.
(c) The Village’s investment portfolio shall remain sufficiently liquid to enable the Village to meet operative requirements which might reasonably be anticipated.
(d) The Village’s investments shall be diversified to avoid the assumption of unreasonable and avoidable risks associated with specific types of securities or individual financial institutions.
(e) 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, considering the probable safety of their capital as well as the probable income to be derived.
(f) A factor in determining which depository should hold the Village’s public funds shall be the Village’s desire to obtain the best possible banking services at the least possible cost.
(g) To the extent possible, the Village’s investments, shall be made so as to complement its anticipated cash flow requirements. Unless matched to a specified cash flow requirement, investments in securities maturing more than two years from the date of purchase shall not be made.
(h) The Clerk-Treasurer is hereby authorized and directed to prepare and distribute a request for proposals for banking services in such form as may be approved by the Solicitor. Such a request shall be made as often as deemed appropriate by the Clerk-Treasurer. Each request for proposals shall contain the following:
(1) A statement which provides that to ensure the Village will receive the best service possible, no financial institution shall receive deposits of Village funds without an open and fair competitive process, and that all financial institutions have an equal opportunity to competitively bid in future years.
(2) A list of requirements which the depository must meet in order to maintain the depository agreement in good standing.
(3) A description of the accounts required to be maintained under the depository agreement and of the specifics of operation related thereto.
(4) A statement of guidelines for the investment of the Village’s funds.
(5) A list of services required by the Village under the depository agreement together with guidelines for the calculation of service charges and for the subsequent provision of additional services.
(6) A list of the criteria upon which the financial strength of each institution submitting a proposal will be evaluated.
(7) A statement of the instructions for submitting a proposal.
(8) A description of the selection process and of the procedure for submitting questions relating to the request for proposals.
(i) “Depository” means:
(1) Any national bank located in Ohio and any bank as defined by Ohio R.C. 1101.01 which is subject to inspections by the Ohio Superintendent of Banks; and
(2) Any domestic savings and loan association as defined in Ohio R.C. 1151.01 authorized to accept deposits.
(j) The Clerk-Treasurer is authorized and directed to seek competition in the investment of all Village funds and may invest all or part of such funds outside the designated central depository bank, provided the central depository bank may bid for such investments as any other financial institution.
(k) Upon request of the Mayor and Council, the Clerk-Treasurer shall provide reports of the Village’s investments to the Mayor and Council.
(l) The Clerk-Treasurer is authorized to pool cash balances from the several funds of the Village for investment purposes.
(m) All provisions herein are applicable and in force to the extent that they comply, and are not in contradiction with Chapter 135 of the Ohio Revised Code (“Uniform Depository Act”) and any amendment or supplement thereto. (Ord. 1996-24. Passed 9-17-96.)