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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)
(a) The Director of Finance and Public Record shall maintain a current inventory of all investments including:
(1) Description of each security;
(2) Cost;
(3) Par value;
(4) Dates (beginning, settlement and maturity);
(5) Rates; and
(6) Seller.
(b) The Director of Finance and Public Record shall also prepare and distribute to Council on or about June 15 and December 15 of each year (or more frequently if requested by the Council) a list of all investments and a report on investment activity and returns.
(Ord. 16-2016, passed 7-18-2016)
The Director of Finance and Public Record shall, and is authorized to, participate in any beginning and/or continuing education training programs sponsored by the State Treasurer or the State Auditor in which the Director of Finance and Public Record is required to participate pursuant to R.C. §§ 117.44 and 135.22. Through participation in those programs, the Director of Finance and Public Record will develop and maintain an enhanced background and working knowledge in investment, cash management, and ethics.
(Ord. 16-2016, passed 7-18-2016)
Persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or that could impair their ability to make impartial investment decisions. Employees and investment consultants shall disclose to the city any material financial interests in financial institutions that conduct business within the city and any large personal financial or investment positions that could be related to or affected by the performance of the city's portfolio. All employees, officers, and investment consultants to the city shall subordinate their personal investment transactions to those of the city, particularly with regard to the timing of purchases and sales. The above supplements the applicable provisions of the Ohio ethics law.
(Ord. 16-2016, passed 7-18-2016)
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