135.03 INVESTMENT AND DEPOSITORY SCHEDULE.
The revised investment and depository schedule, included herein prepared by the City Treasurer, is hereby declared to be the investment and depository schedule of the City.
INVESTMENT AND DEPOSITORY POLICY
FOR THE CITY OF SHARONVILLE, OHIO
SCOPE The Investment Advisory Committee hereby directs that the investing Authority of this public entity shall reside with the Treasurer in accordance with this Investment Policy. This Policy is designed to cover all monies under the control of the City of Sharonville Treasurer and those that comprise the core investment portfolio. Notwithstanding the policies detailed below, Chapter 135 of the Ohio Revised Code will he adhered to at all times.
I. Objective and Guidelines. The following investment objectives will be applied in the management of this public entity's funds:
a. The primary objective shall be the preservation of capital and protection of principal while earning investment interest.
b. In investing public funds, the Treasurer will strive to exceed or at least equal the market average rate of return on the investment portfolio over the course of budgetary and economic cycles taking into account State law, safety considerations and cash flow requirements.
c. The investment portfolio shall remain sufficiently liquid to enable the Treasurer to meet reasonable anticipated operating requirements.
d. The investments portfolio shall be diversified in order to avoid incurring potential losses regarding individual securities which may not be held to maturity, whether by erosion of market value or change in market conditions that will not exceed the income generated by the portfolio.
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. Bank account relationships will be managed in order to secure adequate services while minimizing costs. Deposits would be concentrated in single accounts except where audit control considerations dictate otherwise.
II. Maturity. At the time of making an investment the Treasurer should reasonably expect that the investment can be held until maturity. To the extent possible, the Treasurer will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow requirement, the Treasurer will not directly invest in securities maturing more than five years from the settlement date of purchase.
III. Authorized Financial Institutions and Dealers. U.S. Treasury and Agency securities purchased outright shall be purchased only through financial institutions located within the State of Ohio or through "primary securities dealers" as designated by the Federal Reserve Board.
Repurchase Agreements shall be transacted only through banks located within the State of Ohio with which the Treasurer has signed a Master Repurchase Agreement as required in Ohio R.C. Chapter 135.
Certificates of Deposit shall be transacted through commercial banks or savings and loans with FDIC of FSLIC coverage which are located within the State of Ohio and qualify as eligible financial institutions under Ohio R.C. Chapter 135.
A list of authorized institutions and dealers shall be maintained with the investing authority. Additions and deletions to this list shall be made when deemed in the best interest of the investing authority.
IV. Derivatives. Investments in derivatives and in stripped principal or interest obligations of eligible obligations are strictly prohibited. A derivative means a financial instrument or contract or obligation whose value or return is based upon or linked to another asset or index. or both separate from the financial instrument, contract, or obligation itself. Additionally, any security, obligation, trust account or instrument that is created from an obligation of a federal agency or instrumentality or is created from both is considered a derivative instrument.
V. Allowable Investments. The Treasurer may invest in any instrument or security authorized in Ohio R.C. Chapter 135 as amended. A copy of the appropriate Ohio R.C. section will be kept with this policy.
VI. Collateral. All investments and deposits shall be collateralized pursuant to Ohio R.C. Chapter 135.
VII. Reporting. The investing authority shall establish and maintain an inventory of all obligations and securities acquired by the investing authority. The inventory shall include the description of the security, type, cost, par value, maturity date, settlement date and coupon rate. The investing authority shall produce a monthly portfolio report detailing the current inventory of all obligations and securities, and all transactions during the month, income received and investment expenses paid, and the names of any persons effecting transactions on behalf of the investment authority.
VIII. Committee Meetings. The Investment Advisory Committee will meet at least once every quarter to review the portfolio in terms of security, type, risk and investment return. The Treasurer shall be responsible for maintaining records of all investments and deposits and preparing reports that summarize recent market conditions, economic conditions, economic developments and anticipated investments for the investment advisory committee meeting.
Pursuant to Ohio R.C. Chapter 135, all brokers, dealers, and financial institutions initiating transactions with the investment by giving advice or making investment policy, or executing transactions initiated by the investment authority, must acknowledge their agreement to abide by the investment policy's content.
The Institution below by signing submits that it has read and acknowledges the investment policy, and agrees to abide by its content.
Name of Institution
Authorized Officer
Date
(Ord. 96-64E. Passed 9-24-96.)