2016-070 Ordinance - Laserfiche WebLink

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-2 - Credit Risk The City will minimize credit risk, which is the risk of loss due to the failure of the security, issuer, or backer, by: • Limiting investments to the types of securities as permitted by Ohio law. • Prequalifying the financial institutions and broker/dealers with which the City will do business. • Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. 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 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. 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. Authorized Dealers and Financial Institutions The Director of Finance will maintain a list of financial institutions and approved securities broker/dealers, selected on the basis of creditworthiness, who are authorized to provide investment services and who qualify under Section 135. 14(M)(1) of the Revised Code. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission Rule 150-1 and are registered with the Ohio Department of Commerce to do business in the State. All financial institutions and broker/dealers who desire to become qualified suppliers of investment transactions to the City must provide to the Director of Finance audited annual financial statements, proof of good standing with the Comptroller of Currency or with State banking regulators or Na4ienal Asseeiatienof co,.urit.. Dealers eei4if;^ , proof of Ohio registration, evidence of adequate insurance coverage, and biographical and regulatory information on the persons who are the primary contact with the City. All financial institutions, broker/dealers and other entities who desire to conduct investment business (advice, recommendations or transactions) with the City must sign this Investment Policy, acknowledging they have read it, understand it and, in the case of those initiating transactions, agree to abide by its contents.