(A) The following investment objectives will be applied in the management of city funds.
(1) The primary objective of the city's investment activities is the preservation of capital and the protection of investment principal.
(2) In investing public funds, the city will strive to maximize the return on the portfolio but will avoid assuming unreasonable investment risks as are defined within R.C. § 135.14 and further by this city's investment and deposit policy.
(3) The city's investment portfolio will remain sufficiently liquid to enable the city to meet operating requirements which might be reasonable anticipated.
(4) The city will diversify its investments to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions.
(5) 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.
(6) Banks vary in the services they provide, their service fees, interest rates on interim investments and the minimum compensating balances required for demand-deposit accounts. The city's objective is to obtain good banking services while minimizing the cost of banking services to the city.
(B) To insure that the city will continue to receive the best service and rates available and that other financial institutions will have an equal opportunity to competitively bid in future years, the city will seek competitive proposals for depositories of active funds at least every five years.
(Ord. 2973, passed 4-11-95)