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The city is authorized by statute to invest in the following types of securities and investments.
(a) United States Treasury bills, notes, bonds, or any other obligation or security issued by the United States Treasury or any other obligation guaranteed as to principal and interest by the United States (not including “stripped” principal or interest obligations).
(b) Bonds, notes, debentures, or other obligations or securities issued by any federal government agency or instrumentality, including but not limited to the Federal National Mortgage Association, Federal Home Loan Bank, Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation, Government National Mortgage Association and Student Loan Marketing Association. All such securities must be direct issuances of federal government agencies or instrumentalities and may not be stripped principal or interest obligations.
(c) Interim deposits in duly authorized depositories of the city, provided those deposits are properly insured or collateralized as required by law.
(d) Bonds and other obligations of the State of Ohio.
(e) No-load money market mutual funds consisting exclusively of securities described in divisions (a) and (b) of this section and repurchased agreements secured by such obligations, provided all such investments under this division (e) shall be made with a bank, domestic association or savings bank eligible to be a depository for public funds of Ohio subdivisions and provided further that any such funds meets the requirements of R.C. Chapter 135 (including that such fund not include any investment in a “derivative”).
(f) Ohio Subdivision’s Fund (STAROhio).
(g) Overnight or term (not exceeding 30 days) repurchase agreements meeting the requirements of R.C. § 135.14(E) with:
(1) A bank, domestic association, or savings bank eligible to be a depository of public funds of Ohio subdivisions or
(2) A member of the Financial Industry Regulatory Authority.
(Ord. 16-2016, passed 7-18-2016)
To the extent possible, the city shall attempt to match its investments with anticipated cash flow requirements. No investment shall be made unless the Director of Finance and Public Record, at the time of making the investment, reasonably expects it can be held to its maturity. Unless matched to a specific obligation or debt of the city, the city will not directly invest in securities listed in divisions (a) through (e) above under § 224.06 maturing more than five years from the date of settlement if such securities bear interest at a fixed rate, and it will not directly invest in such securities maturing more than two years from the date of settlement if they bear interest at a variable rate.
(Ord. 16-2016, passed 7-18-2016)
All securities transactions, including securities acquired subject to repurchase agreements, entered into by the city will be conducted on a delivery-versus-payment basis. Purchased securities shall be held on behalf of the city by a custodian, designated by the Director of Finance and Public Record, that is a Federal Reserve Bank or other “qualified trustee” within the meaning of R.C. § 135.18(I), and the safekeeping of those securities for the benefit of the city shall be evidenced by safekeeping receipts. Purchased securities may be released by the city only upon verification that their principal and interest, or proceeds of their sale, have been credited to the city’s account.
(Ord. 16-2016, passed 7-18-2016)
In addition to any other prohibitions in the Revised Code, the city will not take any of the following actions.
(a) Contract to sell securities that have not yet been acquired on the speculation that prices will decline.
(b) Make any investment in “derivatives” as defined in R.C. § 135.14(C).
(c) Invest in a fund established by another public body for the purpose of investing public money of other subdivisions except either:
(1) STAROhio; or
(2) A fund created solely from the purpose of acquiring, constructing, owning, leasing, or operating municipal utilities as authorized under R.C. § 715.02 or Section 4 of Article XVIII of the Ohio Constitution.
(d) Enter into reverse repurchase agreements.
(e) Leverage current investments as collateral to purchase other assets.
(f) Invest in stripped principal or interest obligations of otherwise eligible obligations.
(Ord. 16-2016, passed 7-18-2016)
The Director of Finance and Public Record shall develop and maintain procedures for the operation of the city’s investment program in accordance with this investment policy. These procedures shall be designed to prevent loss of the city’s funds due to fraud, error, misrepresentation, unanticipated market changes, or imprudent actions.
(Ord. 16-2016, passed 7-18-2016)
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