(a) The Council shall, by ordinance, provide for the custody of all funds of the City and for designation of a bank or banks as depositories. The depositories designated shall furnish such proper security as the Council may determine.
(b) All funds received on behalf of the City by any officer, employee or agent thereof, shall be promptly paid over to the officer charged by the Council with the custody of the same, and by such officer promptly placed in a depository bank, but the Council may authorize such sums as it deems proper to be kept in cash for the daily operation of any department or office.
(c) The Director of Finance may invest moneys of the City in the following securities:
(1) Bonds or notes which are issued by and are the obligations of the City of Shaker Heights, Ohio.
(2) Bonds, notes, certificates of indebtedness, treasury bills or other securities issued by and constituting direct obligations of, or guaranteed by, the United States, or those for which the faith of the United States is pledged for the payment of principal and interest thereon.
(3) Bonds or notes which are issued by and are the obligations of the State of Ohio, provided that such bonds or notes have a rating assigned to them by Standard and Poors Corporation or Moody's Investor Service, Inc. which rating:
A. As to bonds, is one of the two highest rating categories that may be assigned; and
B. As to notes, is the highest rating category that may be assigned.
In order to be eligible investments under divisions (c)(2) and (c)(3) of this section, there must be no outstanding default in the payment of the principal of or interest on such securities; and the securities must mature or be subject to redemption at the option of the City within two (2) years from the date the City purchased such securities, unless the Council shall authorize a longer period of maturity or redemption by ordinance or resolution.
In the event that Standard and Poors Corporation or Moody's Investor Services, Inc. shall cease to exist or shall terminate the practice of assigning ratings to bonds or notes of Ohio political subdivisions the Council shall, by ordinance or resolution, substitute any other nationally recognized firm or organization which assigns ratings to bonds or notes of Ohio political subdivisions for those firms listed in this section of the Charter; and the Council may, by ordinance or resolution, substitute any criteria which is equivalent, in the sole opinion of Council, to the ratings described in this section of the Charter.
(Approved by voters 11-2-99.)