96-176 Ordinance - Laserfiche WebLink

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. ,..__..?....+..r_._._. _ _ _ ._ ._. ._ . ,. EXHIBIT A CITY OF NORTH OLMSTED, OHIO INVESTMENT POLICY It is the policy of the City of North Olmsted, Ohio, to invest public funds in a manner that will provide the highest investment return with maximum security, safety and preservation of principal while meeting the daily cash flow needs of the City and conforming to applicable laws governing the investment of public funds by an Ohio municipality. The Director of Finance is the investment officer for the City, charged with the responsibility for the purchase and sale of investments and the implementation of and compliance with this Investment Policy. Scope This Investment Policy applies to all financial assets of the City, including State and Federal funds held by it, other than funds held and invested pursuant to the express terms of a trust agreement. The Director of Finance is to routinely monitor the contents of the City's investment portfolio, the available markets and the relative value of competing investments and to adjust the portfolio accordingly. Objectives The primary objectives, in priority order, of the City's investment activities shall be: Safety: Safety of principal is the foremost objective of the investment program. City investments should be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. Liquidity: The City's investment portfolio should remain sufficiently liquid to enable it to meet all operating requirements which might be reasonably anticipated. Return on Investment: The City's investment portfolio should be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account this Investment Policy and the cash flow characteristics of the portfolio. Prudence Investments shall be made with 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. The standard of prudence to be used by the Director of Finance shall be the "prudent person" standard and shall be applied in the context of managing the overall portfolio. Acting in accordance with this Investment Policy and exercising due diligence shall relieve the Director of Finance of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported to the Council in a timely fashion and appropriate action is taken to control adverse developments.