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The following investment objectives regarding the deposit, investment and management of City funds are to be interpreted prospectively only so that any determination of compliance with the provisions of Chapter 192 of the Toledo Municipal Code shall be made as of the date on which the action being reviewed was taken.
(a) Recognizing that the primary cash management objective of the City is the preservation and protection of City funds, through its investment activities, the City will strive to achieve a reasonable financial return on its investment portfolio while at the same time assuming only a low level of risk.
(b) The City will strive to invest daily all of its available cash.
(c) The City, under the terms of Chapter 192 of the Toledo Municipal Code, establishes quality standards for its investment portfolio and noninterest bearing demand deposits and for the depositories, custodians, and securities dealers with which it will do business.
(d) The City will maintain a diversified investment portfolio.
(e) The City's investment portfolio will remain sufficiently liquid to enable the City to meet anticipated operating requirements.
(f) The City will seek to secure a full range of banking services while minimizing the cost of such banking services to the City.
(Ord. 366-86. Passed 5-20-86.)
An Investment Advisory Committee is hereby established. The purpose of this Committee is to review and make recommendations regarding the investment activities of the City, as well as to respond to requests for investment counsel from the Department of Finance.
(a) The members of this Committee shall consist of the following principal City officials or their designated alternates, who shall serve in the absence of the City official, and members of the community. The Mayor or another person of his designation shall serve as the Chairman.
(1) Mayor
(2) City Director of Law
(3) City Director of Finance
(4) Commissioner of Taxation and Treasury
(5) Chairman of the Finance Committee of City Council
(6) Four executives appointed by the Mayor who have financial experience in businesses or financial institutions which are located in the City. They shall be appointed for terms of three years each. In their initial term of office under this chapter, one member shall serve until and through December 31, 1987, one member until and through December 31, 1988 and two members until and through December 31, 1989. The designation of members for the initial terms shall be by lot. Thereafter, the term for each member shall be three years so that no more than two members' terms shall expire at any one time. Except for the initial term, which shall commence on appointment, the term of each member appointed pursuant to this paragraph shall commence on the first of January. Vacancies created by death, resignation or nonattendance at four consecutive meetings shall be filled for the unexpired term in the same manner as for original appointments.
(b) Quorum
In order to constitute a quorum, there must be six members of the Committee present, at least three of whom must be City officials. A majority of the quorum is required in order to act.
(c) The Committee will meet at least once in each calendar quarter at the call of the chairman.
(d) The Committee will adopt at its first meeting in each year, rules and procedures which it intends to follow.
(e) The purposes of this Committee shall be to:
(1) Review and recommend investment policies and procedures to City Council.
(2) Review the lists of City officers and employees who are authorized to make and approve deposits and investments for the City, and to wire transfer funds of the City.
(3) Review the list of Depositories, Custodians and Securities Dealers.
(4) Review investment reports generated by the Commissioner of Taxation and Treasury.
(5) Review audits performed by the City, State and independent auditors pertaining to City investments.
(6) Recommend remedial action to the Mayor if such reports and/or audits are inaccurate, incomplete or are not timely filed.
(f) The Committee shall review compliance with the investment policies established herein on a quarterly basis and shall report to City Council in each calendar quarter as to the performance of the City's Investment Portfolio during the immediately preceding calendar quarter.
(g) The Committee is not a board or commission of the City and its members, by reason of membership on the Committee, shall not hold any of the sovereign powers of the City nor shall they be considered officers of the City.
(Ord. 403-92. Passed 5-19-92; Ord. 178-94. Passed 4-18-94.)
(a) The Director of Finance will be responsible for carrying out the banking and investment policies of the City. The Director of Finance will prepare a list of officers and employees of the City who are authorized to make and approve deposits and investments of City funds, which list shall be filed with the Mayor and the Investment Advisory Committee. The Director of Finance may from time to time specify the maximum amount and types of deposits and investments which specified officers or employees are authorized to make and the period of time during which such authority to make and approve deposits and investments of City funds may be exercised.
(b) At the conclusion of each business day, the Director of Finance or his/her designated substitute shall review the authorized investments which have been made or purchased that day and, if dissatisfied with any authorized investment made or purchased, may order the Commissioner of Taxation and Treasury to withdraw or liquidate such authorized investment as promptly as possible and under the conditions specified by the Director of Finance. In accordance with the order of the Director of Finance, the Commissioner of Taxation and Treasury shall then withdraw or liquidate such an authorized investment.
(c) The Commissioner of Taxation and Treasury shall prepare and file with the Mayor, the Director of Finance and the Investment Advisory Committee a list of officers and employees of the City authorized to wire transfer funds of the City and may specify the maximum amount which a specified officer or employee may wire in one day or in a single transaction and the period of time during which such authority to wire transfer funds may be exercised.
(d) The lists provided in this section may be revised from time to time by the City official preparing such list.
(Ord. 366-86. Passed 5-20-86; Ord. 178-94. Passed 4-18-94.)
Prior to each calendar quarterly meeting of the Investment Advisory Committee, the Administrative Services Officer shall review the financial market, forecasts on interest rates, financial statements of the Depositories and Custodians and the market price of available Authorized Investments. The Administrative Services Officer shall propose an investment strategy for the City pursuant to the objectives of this chapter. The investment strategy thereby selected shall be reported to the Investment Advisory Committee, which includes the Mayor or the Mayor's designee, at its next quarterly meeting for review and recommendation.
(Ord. 334-00. Passed 6-6-00.)
(a) As funds become available from time to time for deposit or investment, the Commissioner of Taxation and Treasury shall determine, consistent with the objectives set forth in Section 192.07, and the then current strategy established pursuant to Section 192.10, whether such funds shall be deposited in demand deposits or deposited or invested in authorized investments and the type or types of authorized investments to be made or acquired.
(b) The Commissioner of Taxation and Treasury shall seek to obtain three or more quotations for the purpose of selecting each authorized investment and shall maintain records of all quotations sought and received. In the event that he is unable to obtain three quotations, the Commissioner of Taxation and Treasury shall obtain the consent of the Director of Finance before accepting a quotation and making or acquiring an authorized investment.
The Commissioner of Taxation and Treasury shall, whenever possible, accept the quotation providing the City with the largest return on its investment. However, the Commissioner's foremost responsibility is to comply with Chapter 192, particularly its objectives (Section 192.07) and diversification requirements (Section 192.13).
(Ord. 164-89. Passed 2-28-89; Ord. 178-94. Passed 4-18-94.)
Authorized Investments and non-interest-bearing Demand deposits shall be made with or acquired from only the type of entity which is listed below opposite the appropriate category of Authorized Investment or non-interest-bearing Demand deposit.
INVESTMENT OR DEPOSIT | TYPE OF ENTITY |
Certificates of Deposit
| |
If uncollateralized but federally insured: | Any bank or savings and loan association, wherever located, that is a member of the Federal Deposit Insurance Corporation. |
If collateralized: | Any institution having all of the qualifications of a Depository except that it may have an office in the State rather than in the City. |
City's Securities
| The City or a Securities Dealer.
|
Demand Deposits
| |
If uncollateralized but federally insured: | Any bank or savings and loan association, wherever located, that is a member of the Federal Deposit Insurance Corporation. |
If collateralized: | Any institution having all of the qualifications of a Depository except that it may have an office in the State rather than in the City. |
Government Agencies and Instrumentalities
| Securities Dealer.
|
Government Securities
| Securities Dealer.
|
Repurchase Securities
| Securities Dealer.
|
Municipal Securities
| Securities Dealer.
|
Non-demand savings accounts
| Any institution having all of the qualifications of a Depository except that it may have an office in the State rather than in the City.
|
(Ord. 182-13. Passed 4-30-13.)
(a) City funds either invested in uninsured collateralized Certificates of Deposit or deposited in Non-demand savings accounts with any one Depository shall not exceed ten percent (10%) of the aggregate principal amount of the City's Investment Portfolio. City funds invested in insured Certificates of Deposit through a network of Federal Deposit Insurance Corporation member banks or savings and loan associations shall not exceed ten percent (10%) of the aggregate principal amount of the City's Investment Portfolio. Compliance with these limitations shall be determined only as of the date a new Certificate of Deposit is purchased or a deposit made in a Non-demand Savings Account.
(b) City funds invested in Certificates of Deposit in a Depository may not exceed ten percent (10%) of the Equity Capital of the Depository at any one time unless such Certificates of Deposit are entirely insured by the Federal Deposit Insurance Corporation.
(Ord. 69-12. Passed 2-28-12.)
(c) No more than ten million dollars may be invested at any one time through Repurchase Agreements with any one institution.
(d) No more than forty percent of the aggregate principal amount of the City's Investment Portfolio shall be invested at any one time in the State Treasurer's Investment Pool created pursuant to section 135.45 of the Ohio Revised Code. Within this forty percent limit, up to $15,000,000 may be further invested through a STAR Plus Federally Insured Cash Account.
(Ord. 182-13. Passed 4-30-13.)
(e) No obligation of any of the Government Agencies or Instrumentalities as set forth in Section 192.04(d) shall be purchased if such purchase would cause more than twenty-five percent (25%) of the aggregate principal amount of the City's Investment Portfolio as of the settlement date to be invested in the obligations of that individual Government Agency or Instrumentality.
(f) The maximum aggregate amount that may be invested for a period longer than three years for any one Fund shall be twenty-five percent (25%) of the lowest total of all outstanding investments for that Fund which occurred during the twelve months immediately prior to the purchase of any security with a maturity longer than three years. Compliance with this limitation shall be determined as of the settlement date only.
(g) City's Securities shall not exceed ten percent (10%) of the aggregate principal amount of the City's investment portfolio, calculated only as of the date of purchase of such City's Securities. Unless otherwise specified in the ordinance authorizing their issuance and sale and purchase by the City, City's Securities shall only be purchased to provide interim financing in anticipation of the sale of City debt in the outside market.
City of Toledo pension bonds outstanding as of the date of adoption of this section shall be excluded under this section and shall not be considered when calculating compliance with the permissible percentage limit for subsequent purchases of additional City's Securities.
(Ord. 815-04. Passed 12-21-04; Ord. 361-07. Passed 6-26-07.)
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