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06-89 Resolution RECORD OF RESOLUTIONS National Graphics Corp,. Cols,. 0, ~'" n~ri~~ Form No. 6233-A Resolution No. 06-89 Passed 19_ A RESOLUTION DESIGNATING FINANCIAL INSTITUTION(S) AS PUBLIC DEPOSITORY(S) WHEREAS, applications for active deposits have been received from AmeriTrust Company, BancOhio National Bank, Bank One, Fifth/Third Bank, Huntington National Bank, and Society Bank, each of which has agreed to accept all or any part of the active deposits; and, WHEREAS, applications for interim deposits of the City of Dublin, Ohio have been received from the following financial institutions, each of which has agreed to accept interim deposits at current market rates when said money becomes available up to the following amount as indicated in their application: Ameritrust, up to $15,000,000.00 BancOhio National Bank, up to $20,000,000.00 Bank One, up to $25,000,000.00 Fifth/Third Bank, up to $5,000,000.00 Huntington National Bank, up to $20,000,000.00 Mid-America Federal, up to $15,000,000.00 Society Bank, up to $178,289,100.00 State Savings Bank, up to $10,000,000.00 WHEREAS, Section 135.01(L) of the Ohio Revised Code provides that any municipal corporation which has adopted a charter may by ordinance set forth special provisions with respect to the deposit or investment of its public monies; and WHEREAS, the electors of the City of Dublin have adopted a charter, 'j and said charter provides that the Treasury Investment Board shall - establish directions for the investment of interim and inactive monies ; ..c of the Municipality; ;0:: +J 0 ...0 :c ~ 0 .- 0' ('~ NOW, THEREFORE, BE IT RESOLVED by the City of Dublin, State of Ohio, 1ii 00 I O{.l .5 .... I :0 7 of the elected members concurring: >-...0 r-: .c 0 0 ::> Q) , , c c; I.~ .;:; Section 1. That the active funds of the City of Dublin be awarded for .r.: ",; 0 c -...:;.;.--: r;; ::> the two-year period commencing March 1, 1989, as follows: .~ c;::, . 0 c '-' ~ .~ :~ - o 't: :'') Cl ....... ..:.: Cl Bank One General Checking, Payroll and - ~'"Io-. ~ 0 ~, 00' CD Income Tax Accounts ~1 :~ 0 Q) .-, ) 'i:i '-',.-.I ('.) Section 2. That an investment policy prepared by the Treasury Investment ...t: = ~.:: ~ Board to be kept on file in the Office of the Director of Finance is ~ ~ .~ hereby approved which may be amended or modified as set forth in said ,., 0 ~ :;:J >- g policy. . g- '-' ..c :E .... ~ CJ Section 3. That the Director of Finance is authorized and directed to Q)":.:.:~ tIl 2 >- ctl enter into the necessary agreements to implement this policy and to Q) <-..c:E (,) 0 ""C':> invest public monies pursuant to and in compliance with the terms of = V> OJ co .-. n. such policy; and ,., "? 0 c:: -.J .... '0 0 ~ Section 4. That the Director of Finance shall be relieved from any go ..?: >. ..:-.E-5-8 liability for the loss of any public monies deposited or invested pursuant to and in compliance with such policy. Section 5. That this Resolution shall take effect and be in force immediately upon its passage. h b . " Passed this 6th day of I e~e y ce~!~ that co~;9~1(j .this Orfnlnr.e/Re~o!ufion were ,posted in Jf!e Mat; Jt Dllblin In n~t6rd(Jnce w:rh Sect:on 731.25 of the Bnio Re~sed Code: ~~U<:7 J0, ~~<.-t-rJ lerk of Council, Dublin, Ohio Attest: /? t{~ ,--i/ta~ ~, Clerk of Council Sponsor: Finance Director CITY OF DUBLIN Investment and Depository Policy March, 1989 1. Objectives and Guidelines The following investment and deposit objectives will be applied in the management of City funds. A. The primary objective of the City's investment activities is the preservation of capital and the protection of investment principal. B. In investing public funds, the City will strive to maximize the return on the portfolio but will avoid assuming unreasonable investment risks. C. The City's investment portfolio will remain sufficiently liquid to enable the City to meet operating requirements which might be reasonably anticipated. D. The City will diversify its investments to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions. E. Banks vary in the services they provide, their service fees, interests 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. 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 desired. II _ Active Depository In order to minimize the service charges maintaining check accounts the City shall maintain the general checking, payroll services and income tax deposits in one depository located within the City of Dublin. The award will be based on the proposals submitted which itemize costs to be charged. III. Maturity To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Funds determined to be available which are not anticipated to be utilized for current fiscal year cash flow requirements may be invested in securities maturing more than two (2) years from the date of purchase provided said securities can be converted to cash through trade in a secondary market prior to maturity. Investment and Depository Policy City of Dublin, Ohio March, 1989 Page Two IV. Diversity A. No more than 20% of the City's investment portfolio will be placed with any particular issuer of commercial paper; and B. The City's investment with any individual financial institution shall not constitute more than 30% of said institution's public funds. v. Authorized Financial Institutions and Dealers Securities shall be purchased only through financial institutions located within the United States or through "primary securities dealers" as designated by the Federal Reserve Bank. A list of these authorized institutions and dealers will be maintained by the Director of Finance. The Director of Finance: A. May make additions to the authorized list when the investment and deposit policy requirements are met; B. Shall make deletions from the list (1) if and as directed by ordinance of City Council, (ii) upon failure of the financial institution to meet the foregoing investment and deposit policy requirements or (iii) upon request of the financial institution or dealer; and C. May make deletions from the list based on the following criteria or circumstances: 1. Perceived financial difficulties of the financial institution or dealer; 2. Consistent lack of competitiveness by the financial institution or dealer; 3. Lack of experience or familiarity of the account representative in providing service to large institutional accounts; or 4. When deemed in the best interest of the City. VI. Instruments Authorized The Director of Finance may invest on behalf of and in the name of the City in the following instruments at a price not exceeding their fair market value: A. Government Securities 1. Negotiable direct obligations of the U.S. or obligations issued by Federal agencies the principal and interest of which are unconditionally guaranteed by the United States, Investment and Depository Policy City of Dublin, Ohio March, 1989 Page Three and bonds, notes, debentures, or other obligations or securities issued by any Federal government agency, whether or not they are guaranteed by the United States, including but not be limited to, the following: Direct Obligations: Treasury bills Treasury notes Obligations of Federal Agencies: Government National Mortgage Association (GNMA) Small Business Association (SBA) Federal Housing Administration (FHA) Federal Home Administration (FMHA) General Services Administration ( GSA) B. Non-Negotiable Interest Bearing Time Certificates of Deposit and Savings Accounts Non-negotiable Interest Bearing Time Certificates of Deposits and savings accounts in banks organized under the laws of this State, national banks organized under the laws of the United States, doing business and situated in this State, savings and loan associations located in this State and organized under Federal law and under Federal supervision, provided that any such deposits and savings accounts are secured by collateral as prescribed herein. C. Negotiable Interest Bearing Time Certificates of Deposit Negotiable Interest Bearing Time Certificates of Deposit issued by institutions which are ranked nationally as being in the top fifty (50) in asset and deposit size within their industry, as disclosed annually by Business Week Magazine, provided that any such deposits are secured by collateral as prescribed herein. D. Bankers Acceptance Bankers Acceptance which are eligible for purchase by the Federal Reserve System and which are issued by institutions which are ranked nationally as being in the top fifty (50) in asset and deposit size, as disclosed annually by Business Week Magazine, within their industry. Investment and Depository Policy City of Dublin, Ohio March, 1989 Page Four E. Repurchase Agreements and Reverse Purchase Agreements Repurchase Agreements of a bank or savings and loan association organized under the laws of the united States or any State thereof and Reverse Repurchase Agreements for negotiable direct obligations of the United States, Federal agencies, and Federal instrumentalities of the following types: 1. United States Treasury bills and notes. 2. Government National Mortgage Association (GNMA) . 3. Federal Farm Credit Bank obligations. 4. Federal Home Loan Bank obligations. F. Commercial Paper/Corporate Bonds Commercial notes of any united States company provided that such notes are rated "prime" (P-l) by Moody's Investors Service and (A-I) by Standard Poor's. Collateralized commercial paper. Medium term corporate notes rated "prime" (P-l) by Moody's Investors Service and (A-I) by Standard Poor's. G. Money Market Funds Money market funds whose portfolios consist of the foregoing (A-F) . H. Now Accounts Now Accounts, Super Now Accounts or any other similar account authorized by the Federal Reserve's Depository Institution's Deregulation Committee. VII. Collatera1ization of Non-Negotiable Interest Bearing Time Certificates of Deposit and Savings Accounts A. All deposits of City funds in non-negotiable interest bearing time certificates of deposit made by the City and all savings accounts or NOW Accounts of the City shall be secured by pledged collateral in an amount equal to at least 100% of the deposit less an amount insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation. All securities shall be pledged at market value. The following securities shall be eligible to be pledged as collateral for purposes of this section: Investment and Depository Policy City of Dublin, Ohio March, 1989 Page Five L Bonds, notes or other obligations of the United States; or bonds, notes or other obligations guaranteed as to principal and interest by the United States or those for which the faith of the United States is pledged for the payment of principal and interest thereon, by language appearing in the instruments specifically providing such guarantee or pledge and not merely by interpretation or otherwise; 2. Bonds, notes, debentures or other obligations or securities issued by any Federal Government agency, or the Export-Import bank of Washington, bonds, notes, or other obligations guaranteed as to principal and interest by the United States or those for which the faith of the United States is pledged for the payment of principal and interest thereon, by interpretation or otherwise and not by language appearing in the instruments specifically providing such guarantee or pledge; 3. Bonds and other obligations of this State; 4. Bonds and other obligations of any county, township, school district, municipal corporation, or other legally constituted taxing subdivision of this State, which is not at the time of such deposit, in default in the payment of principal or interest or on any of its bonds or other obligations, for which the full faith and credit of the issuing subdivision is pledged; 5. Bonds of other states of the United States which have not during the ten years immediately preceding the time of such deposit defaulted in payments of either interest or principal on any of their bonds; Any and all securities pledged as collateral by any institution where City investments have been made shall be delivered either to the Director of Finance as security for the repayment of public monies or to an independent third party financial institution approved by the Director of Finance serving as trustee (the trustee) under a trust agreement. Fees and expenses of the trustee shall be paid by the depository. If the depository fails to pay over any part of a deposit due the City, the Director of Finance shall have the option to see in the manner determined by the Director of Finance any of the bonds or other securities deposited with him pursuant to the provisions of this policy. If the bonds or other securities are on deposit with a trustee, the Director of Finance may request the trustee to deliver to the Investment and Depository Policy City of Dublin, Ohio March, 1989 Page Six Director of Finance any of the bonds or other securities on deposit with the trustee and the Director of Finance shall have the option to sell such bonds or other securities in the manner determined by the Director of Finance. ',when a sale of bonds or other securities has been made and upon payment to the Director of Finance of the purchase money, the Director of Finance shall transfer such bonds of securities whereupon the absolute ownership of such bonds or securities shall pass to the purchase~, and any surplus remaining after deducting the amount due the City and expenses of the sale shall be paid to the depository. B. When the depository has deposited eligible securities as described in this policy with a trustee for safekeeping, the depository may at any time substitute or exchange eligible securities having a current market value equal to or greater than the current market value of the securities then on deposit and for which they are to be substituted or exchanged only: 1. If the Director of Finance has authorized the depository to make such substitution or exchange on a continuing basis during a specified period without prior approval of each substitution or exchange. Such authorization may be affected by the Director of Finance by sending to the trustee a written notice stating that substitution may be affected on a continuing basis during a specified period which shall not extend beyond the end of the period of designation during which the notice is given. The trustee may rely upon such notice, and upon the period of authorization stated therein; 2. If no continuing authorization for substitution or exchange has been given by the Director of Finance, the depository notifies the Director of Finance and the trustee of an intended substitution or exchange, and the Director of Finance fails to object to the trustee within ten business days after the date appearing on the notice of proposed substitution. The notice to the Director of Finance and to the trustee shall be given in writing and delivered personally or by certified or registered mail with a return receipt requested. The trustee may assume in such case that the notice has been delivered to the Director or Finance. 3. If the Director of Finance gives written authorization for a substitution or exchange of specific securities. The depository shall notify the Director of Finance of any substitution or exchange of securities authorized by this policy. Upon request from the Director of Investment and Depository Policy City of Dublin, Ohio March, 1989 Page Seven Finance, the depository and/or the trustee shall furnish a detailed statement of the securities pledged to the funds of the City. The detailed statement will provide the value of all securities pledged at face value and the then current market value. C. With the approval of the Director of Finance, a depository may provide collateral for deposits of City funds in non-negotiable interest bearing time certificates of deposit and for savings accounts or now accounts of the City through a single pool of securities pledged toward all deposits of public funds held by the depository. The "pooled collateral" option is subject to the following conditions: l. Securities committed to the pool must have a market value at least equal to 110% of all public monies on deposit with the depository including the amount covered by Federal deposit insurance. 2. The securities eligible for deposit in the pool shall be those described in paragraph A of this section. 3. The securities constituting the pool shall be delivered to a trustee as described in paragraph A of this section. Fees and expenses of the trustee shall be paid by the depository. 4. If the depository fails to pay over any part of the deposits due the City, the Director of Finance may request the trustee to deliver to the Director of Finance any of the securities on deposit with the trustee, not to exceed the amount necessary to produce an amount equal to the deposits made by the Director of Finance and not paid over to the City, less the portions of the deposits covered by federal deposit insurance, plus any accrued interest due on the deposits; and in any event, not to exceed the City's proportional security interest in the market value of the pool as of the date of the depository's failure to pay over the deposits as such interest and value are determined by the trustee. The Director of Finance shall have the option to sell such securities in the manner determined by the Director of Finance. Any surplus remaining after deducting the amount due the City and expenses of the sale shall be paid to the depository. 5. The institution will provide a detailed quarterly statement of the face and market value of all securities pledged to the pool within 30 days of the Investment and Depository Policy City of Dublin, Ohio March, 1989 Page Eight end of each quarter. 6. If at any time the market value of the pool is less than 110% of all public deposits held by the trustee, it is the responsibility of the depository to immediately add sufficient securities to the pool in an amount that will bring the market value of the pool to at least 110% of all public funds on deposit with the trustee. 7. Failure of the institution to abide by any of the provisions of this section is cause for immediate suspension of the institution as a qualified depository for any City funds. VIII. Competitive Bidding The purpose of competitive bidding is to strengthen the investment program in terms of level and consistency of performance. All sales of securities will be bid competitively and to the extent practical all investments will be placed with vendors yielding the highest returns to the City. The right is reserved to reject the bid yielding the highest return of interest on any investments if inconsistent with the City investment strategy, i.e., maturity, risk, liquidity, etc. Price and rate quotations on all trades may be obtained from sources within and outside the City. In the case of the sale of securities or the purchase of securities where all other factors are considered by the Director of Finance to be equal, placement will be made in favor of the banking institution situated within the City if two bids or more are the same. As stated in this policy, the City will competitively bid and invest part or all of its surplus or excess funds outside the designated central depository bank. However, this practice will not limit the central depository bank from competitively bidding on the City's investment business as would any other financial institution. IX. Reporting The Director of Finance will be responsible for providing regular reports (at least quarterly) to City Council about the City's investment activities. The report should include at least the details of the City's portfolio by institution and instruments. x. Pooling of Funds The Director of Finance is authorized to pool cash balances from the Investment and Depository Policy City of Dublin, Ohio March, 1989 Page Nine several different funds of the City for investment purposes. Interest on these investments will be credited to the fund proportionate to the amount invested. XI. Policy Change The policies as stated herein may be changed only with the approval of City Council.