The deposit and investment policy of the City is hereby established as follows:
(a) The Auditor and/or Treasurer are responsible for selecting depositories and investing funds. The City, by State statute, shall limit deposits and investments of City funds to insured demand deposit accounts, certificates of deposit, United States Treasury bills or obligations of other United States governmental agencies for which the principal and interest are guaranteed by the United States Government and repurchase agreements. Repurchase agreements shall not exceed a period of thirty days and must be purchased from eligible financial institutions in the State. Certificates of deposit shall be held in the name of the City by the issuing bank's trust department.
(b) Active deposits are public deposits necessary to meet current demands on the Treasury. Such moneys must be maintained either as cash in the City Treasury, in commercial accounts payable or withdrawable on demand, including negotiable order of withdrawal (NOW) accounts, or in money market deposit accounts.
(c) Inactive deposits are public deposits that Council has identified as not required for use within the current two-year period of designation of depositories. Inactive deposits must be evidenced either by certificates of deposit maturing not later than the end of the current period of designation of depositories or by savings or deposit accounts, including, but not limited to, passbook accounts.
(d) Interim deposits are deposits of interim moneys. Interim moneys are those which are not needed for immediate use, but which will be needed before the end of the current period of designation of depositories. Interim deposits must be evidenced by time certificates of deposit maturing not more than one year from the date of deposit, or by savings or deposit accounts, including pass book accounts. Interim moneys may be invested in the following obligations, provided that they mature or are redeemable within two years from the date of purchase:
(1) Bonds, notes or other obligations of or guaranteed by the United States pledged for the repayment of principal and interest;
(2) Bonds, notes, debentures or other obligations or securities issued by a Federal government agency or instrumentality;
(3) Written repurchase agreements, for a period not to exceed thirty days, in securities listed above that mature within five years from the date of purchase;
(4) Bonds and other obligations of the State;
(5) No-load money market mutual funds consisting exclusively of obligations described in paragraphs (d)(1) and (2) hereof and repurchase agreements secured by such obligations, provided that investments in securities described in this subsection are made only through eligible institutions; and
(6) The State Treasurer's investment pool (STAR Ohio).
(e) The City may also invest any moneys not required to be used for a period of six months or more in the following:
(1) Bonds of the State;
(2) Bonds of any municipal corporation, village, county, township or other political subdivision of the State, as to which there is no default of principal, interest or coupons; and
(3) Obligations of the City.
(f) Protection for the City's deposits shall be provided by the Federal Deposit Insurance Corporation (FDIC), by eligible securities pledged by the financial institution as security for repayment, by surety bonds deposited with the Treasurer by the financial institution or by a single collateral pool established by the financial institution to secure the repayment of all public monies deposited with the institution. Investments may only be made through specified dealers and institutions. Payments for investments may be made only upon the delivery of the securities representing the investments to the Treasurer or, if the securities are not represented by certificate, upon receipt of confirmation of transfer from the custodian.
(Res. 96-67. Passed 9-18-96.)