(a) All public moneys of the City not deposited in active deposits or kept by the Finance Director as a cash reserve as may be prescribed by the Finance Director, shall be invested by the City Treasurer pursuant to this section.
(b) This document, in conjunction with the Ohio Revised Code, as amended, will govern the investments and the investment activities of the City of Oregon. It will be reviewed annually for compliance and to assure the flexibility necessary to effectively manage the investment portfolio.
(c) The purpose of the investment policy, in order of priority, is to provide for the complete safety of the portfolio's principal value, assure adequate liquidity, and earn a market rate of return. Investments will be made with 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.
(d) The Treasurer, Finance Director, Mayor, the Director of Law, and the members of Council, acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes provided that deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.
(e) Responsibility and authority for investment transactions resides with the Treasurer. The Treasurer is hereby designated as the City's Investment Manager. The Treasurer or a designated agent is fully authorized to buy, sell and trade investments in accordance with the goals and objectives of this policy. Upon the Mayor’s written approval the Treasurer may delegate investment responsibilities in writing to other City personnel.
(f) The Treasurer will be permitted to invest in any security specifically authorized by the Ohio Revised Code 135.14 or other relevant sections as amended. Investments will be made so as to avoid concentrations in any one type of security or securities issued by any single issuer with the exception of U.S. Treasury securities. Eligible obligations include but
are not limited to:
(1) Obligations of the United States government:
U.S. Treasury Bills
US. Treasury Notes
U.S. Treasury Bonds
U.S. Treasury Strips
(2) Direct issuances of instrumentalities of the Federal Government such as:
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
(3) Commercial Paper* issued by any corporation incorporated under the laws of the United States or any state if the following condition applies:
- Two nationally recognized rating agencies rank the commercial paper in the highest category.
(4) Banker's Acceptances* under the following conditions:
- The BA's mature in 270 days or less;
- The BA's are eligible for purchase by the Federal Reserve System.
*NOTE: The total par amount invested in a combination of commercial paper and BA's may not exceed 25% of the total invested funds at the time of purchase.
(5) The Ohio State Treasurer's Asset Reserve Fund (Star Ohio)
(6) Repurchase Agreements as prescribed by Ohio R.C. 135.14 (e)
(7) Bank certificates of deposit as prescribed by Ohio R.C. 135.14 (3)
(8) Bonds and other obligations of the State of Ohio
(9) Bonds and notes of any municipal corporation including the City, County, Township or other political subdivisions of Ohio as to which there is no default of principal, interest or coupons.
(g) The Treasurer is responsible for the safekeeping of all documents evidencing a deposit or investment acquired by the Treasurer under this section. Any securities may be deposited for safekeeping with a qualified trustee as provided in Ohio R.C. 135.18, except the delivery of securities acquired under any repurchase agreement under this section shall be made to a qualified trustee, provided, however that the qualified trustee shall be required to report to the Treasurer governing board, Auditor of State or an authorized outside auditor at any time upon request as to the identity, market value, and location of the document evidencing such security and that if the participating institution is a designated depositor of the subdivision for the current period of designation, the securities that are the subject of the repurchase agreement may be delivered to the Treasurer or held in trust by the participating institution on behalf of the subdivision. Interest earned on any investments or deposits authorized by this section shall be collected by the Treasurer and credited by the Treasurer to the proper fund of the subdivision.
(h) Upon the expiration of the term of office of a Treasurer or in the event of a vacancy in the office of Treasurer by reason of death, resignation, removal from office, or otherwise, the Treasurer or the Treasurer’s legal representative shall transfer and deliver to the Treasurer’s successor all documents evidencing a deposit or investment held by the Treasurer. For the investments and deposits so transferred and delivered, such Treasurer shall be credited with and the Treasurer’s successor shall be charged with the amount of money held in such investments and deposits.
(i) The maximum maturity of any investment will be five years from the date of purchase with an average weighted maturity not to exceed one year. No derivative securities as defined in the Ohio Revised Code or investment “pools” will be permitted, with the exception of “Star Ohio”.
(j) To maintain the portfolio’s current characteristics and/or to enhance its yield, swapping (i.e. the simultaneous sale of one security and the purchase of another) will be permitted provided that the loss, if any, on the sale is recovered in one-half the time remaining to maturity of the security being sold.
(k) All transactions will be done on a competitive basis. Whenever possible, attempts will be made to solicit competitive bids from local institutions. For this purpose local institutions are defined as any bank having the ability to accept public funds as defined in Ohio R.C. 135.03, and possessing a branch or office within corporation limits of the City of Oregon. Bids and offerings solicited from dealers shall be recorded. In the event that two or more dealers are tied with the lowest price, consideration shall be given to a local institution.
(l) A current portfolio report providing details of each investment will be maintained by the Treasurer. Interest earned and investment activity will be reported monthly. Quarterly reviews will be provided to City Council as requested.
(m) A list of approved securities dealers will be maintained by the Treasurer. Investment may be safekept at any of the approved dealers or banks as established by the Treasurer.
(n) This chapter constitutes the City's investment policy. A copy of this policy must be forwarded to each broker or dealer doing business with the City. Their signature will be required indicating they have received, read, understood and will abide by its contents when recommending and selling investments to the City.
(Ord. 173-1996. Passed 9-23-96.)