The Village hereby directs that the investing authority of the Village shall reside with the Fiscal Officer in accordance with this Investment Policy. This Policy is designed to cover all monies under the control of the Fiscal Officer and those that comprise the core investment portfolio. Notwithstanding the policies detailed below, Ohio R.C. Chapter 135 will be adhered to at all times.
Management responsibility for the investment program is with the Fiscal Officer and the Fiscal Officer shall be responsible for the implementation of the investment program and the establishment of investment procedures consistent with this policy.
(a) Objective and Guidelines.
(1) The primary objective shall be the preservation of capital and protection of principal while earning investment interest. Safety of principal is the foremost objective of the investment program. Investment of the Village of Sunbury shall be undertaken in a manner to ensure the preservation of capital in the overall portfolio.
(2) The investment portfolio shall remain sufficiently liquid to enable the Fiscal Officer to meet reasonable anticipated operating requirements.
(3) In investing public funds, the Fiscal Officer will strive to achieve a fair and safe 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. Bids will be taken to achieve a competitive basis as needed.
(4) 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.
(5) Bank account relationships will be managed in order to secure adequate services while minimizing costs. The Village enters into contracts with various financial institutions to serve as public depositories for the Village’s active and interim deposits. The most current legislation designating a public depository for active funds is Resolution 2002-31 for a period of five years, commencing February 21, 2002.
(b) Eligible Investments.
(1) 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.
(2) Repurchase agreements shall be transacted only through banks located within the State of Ohio with which the Fiscal Officer has signed a Master Repurchase Agreement as required in Ohio R.C. Chapter 135.
(3) Certificates of Deposit shall be transacted through commercial banks or savings and loans with FDIC or FSLIC coverage, which are located within the State of Ohio and qualify as eligible financial institutions under Ohio R.C. Chapter 135.
(4) A list of authorized institutions and dealers shall be maintained with the Fiscal Officer. Additions and deletions to this list shall be made when deemed in the best interest of the Fiscal Officer and the Village.
(5) No public deposit shall be made except in qualified public depositories as established in Ohio R.C. Chapter 135. The State Treasurer’s investment pool (commonly referred to as STAROhio) is considered a qualified depository for public monies by Ohio R.C. 135.45 and 135.14(G)(1).
(6) Investment of interim monies in certificates of deposit pursuant to Ohio R.C. 135.144 provided interim monies are initially deposited with an eligible public depository described in Ohio R.C. 135.03 and selected pursuant to Ohio R.C. 135.12.
The full amount of principal and any accrued interest in each certificate of deposit invested pursuant to this section shall be insured by Federal Deposit Insurance and the eligible public depository selected shall comply with all requirements of Ohio R.C. 135.144.
(c) Authorized Financial Institutions and Dealers.
(1) 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.
(2) Repurchase agreements shall be transacted only through banks located within the State of Ohio with which the Fiscal Officer has signed a Master Repurchase Agreement.
(3) Certificates of Deposit shall be transacted through commercial banks or savings and loans with FDIC or FSLIC coverage, which are located within the State of Ohio. Certificates of Deposit purchased pursuant to Ohio R.C. 135.144 shall originally be deposited only with an eligible public depository described in Ohio R.C. 135.03 and selected pursuant to Ohio R.C. 135.12.
(4) A list of authorized institutions and dealers shall be maintained with the Fiscal Officer. Additions and deletions to this list shall be made when deemed in the best interest of the Village.
(d) Collateral. Before making initial deposits, financial institutions shall pledge to and deposit with the Fiscal Officer, security for repayment of all monies. Eligible securities for pledging include U.S. bonds, notes, etc., federal government agencies and instrumentalities, bonds of this state, bonds of subdivisions of this state, certain bonds of other states, shares of certain no-load money market mutual funds. Pursuant to Ohio R.C. 135.144(B), interim monies deposited or invested in accordance with Ohio R.C. 135.44 are not subject to any pledging requirements as described in Ohio R.C. 135.18 or 135.181.
(e) Continuing Education. The Fiscal Officer and those staff delegated authority by the Fiscal Officer to buy and sell securities shall complete continuing education course work including, but not limited to, that required by Ohio R.C. 135.22.
(f) Reporting. The Fiscal Officer shall establish and maintain an inventory of all obligations and securities acquired. The inventory shall include the description of the security, type, cost, par value, maturity date and settlement date and coupon rate. The Fiscal Officer 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.
(g) Committee Meetings. The Finance Committee will meet at least once every quarter to review the portfolio in detail, including the term of security, type, risk and investment return. The Fiscal Officer shall be responsible for maintaining records of all investments and deposits and preparing reports for the Finance Committee meeting.
(h) Acknowledgment by Financial Institution. All brokers, dealers and financial institutions initiating transactions with the Investment Authority 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. (Res. 2006-06. Passed 7-12-06.)