2016-070 Ordinance - Laserfiche WebLink

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CITY OF NORTH OLMSTED 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. Except for cash in certain restricted and special funds, the City consolidates cash balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping, and administration. With the exception of investment earnings of the Bond Retirement Fund, investment income will be allocated to the General Fund and other special funds in which interest is required to follow the principal. 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. The objective will be to mitigate interest rate risk and credit risk. Interest Rate Risk As a means of limiting exposure to fair value losses caused by rising interest rates, operating funds will be invested according to Ohio law in that investments will not exceed five years in duration. The City's investment portfolio will be structured so that securities mature to meet cash requirements for ongoing operations and/or long-term debt payments, and will avoid the need to sell securities or terminate investments such as certificates of deposit prior to maturity.