As used in this chapter, unless another definition is provided or the content otherwise requires, the following definitions shall apply:
(a) "Active deposit" means a public deposit necessary to meet current demands on the City Treasury, and that is deposited in any of the following:
(1) A commercial account that is payable or withdrawable in whole or part on demand;
(2) A negotiable order of withdrawal account as authorized in the "Consumer Checking Account Equity Act of 1980," 94 Stat. 146, 12 U.S.C. 1832(a);
(3) A money market deposit account as authorized in the "Garn-St. Germain Depository Institutions Act of 1982," 96 Stat. 1501, 12 U.S.C. 3503.
(b) "Business day" means any day other than Saturday, Sunday, or any day on which Cleveland City Hall is closed.
(c) "City Treasurer" means the custodian of all public money of the City appointed pursuant to Section 99 of the Charter.
(d) "Depository" or "depositories" means any national bank, subject to inspection by either the U.S. Comptroller of the Currency or the Superintendent of Banks for the State of Ohio, any bank as defined by RC 1101.01, subject to inspection by the Superintendent of Banks for the State of Ohio, any federal savings and loan association, and any savings bank chartered pursuant to RC Chapter 1161.
(e) "Eligible depository" or "eligible depositories" means any depository designated by the Director of Finance pursuant to this chapter to receive or hold the active deposits of the City.
(f) "Public deposit" means public monies deposited in a depository.
(g) "Public monies" means all monies in the treasury of the City or monies coming lawfully into the possession or custody of the City Treasurer.
(h) "Trustee" means any national bank, subject to inspection by either the U.S. Comptroller of the Currency or the Superintendent of Banks for the State of Ohio, and any bank as defined by RC 1101.01, subject to inspection by the Superintendent of Banks for the State of Ohio, which is designated as a trustee for purposes of this chapter.
(i) "Uniform Depository Act" means RC Chapter 135 and any amendment or supplement thereto. Wherever any provision of the Uniform Depository Act is made applicable under this chapter, such provision is applicable only to the extent that it is not in conflict with or inconsistent with the Charter, any other provision in this chapter or any other ordinance or resolution passed by the City Council.
(Ord. No. 919-01. Passed 6-11-01, eff. 6-20-01)
(a) All public monies coming under the custody and control of the City Treasurer shall be deposited or invested by the City Treasurer as provided in this chapter. The City Treasurer may retain, however, in the Treasury or in such other offices of the City as may be necessary, such amounts of public money as may be needed in the opinion of the Director of Finance to transact the daily business of the Treasury or such offices.
(b) The City Treasurer shall deposit in active deposits such amounts of public monies as are needed in the opinion of the Director of Finance to provide the needed cash flow to pay City warrants and checks issued and outstanding, and a reasonable surplus in addition to the amount needed to pay such warrants and checks. All public monies of the City not deposited in active deposits or retained pursuant to division (a) of this section shall be invested in accordance with Section 178.12 of this chapter.
(c) Each division of the City receiving public monies shall deposit all public monies coming into its custody or control with an eligible depository on the business day next following the day of receipt if the total amount of such monies received exceeds one thousand dollars. If the total amount of the monies received does not exceed one thousand dollars, the monies shall be deposited on or before the third business day following the day of receipt. Any division of the City depositing public monies shall report such deposit in writing to the City Treasurer within twenty-four (24) hours of making the deposit.
(d) Before noon of each business day, the City Treasurer shall prepare a sworn statement delineating the total amount deposited in each eligible depository of the City during the preceding day, the number and amount of payment instruments issued on each eligible depository during the preceding business day and such other information as required by the Director of Finance. Copies of the statement shall be furnished to the Commissioner of Accounts and the City Controller. All money paid to the Treasurer shall be paid upon the order or draft of the Commissioner of Accounts and receipts therefor shall be given in duplicate, one of which shall have printed on its face the word “original” and the other, the word “duplicate.” The duplicates of receipts for money shall be filed with the Commissioner of Accounts and each receipt shall state the amount received, from whom received and to what fund the same is to be applied.
(e) The City Controller shall maintain the records of the amount of deposits made by the City Treasurer with each eligible depository and instruments issued by the City Treasurer on each eligible depository. The City Controller shall duly certify to the correctness of the City Treasurer's daily sworn statements, prepared in accordance with division (c) of this section, if they are found to be correct upon comparison with their respective books. Such sworn statements shall be kept on file in the office of the City Controller. If any such sworn statement is found to be incorrect, the City Controller shall forthwith give notice of such fact to the City Treasurer and the Director of Finance. After the end of each month, the City Controller shall reconcile the statements of the respective eligible depositories to the City Treasurer's daily statements and the City's accounting records. If the accounting records are found to be incorrect, the City Controller shall forthwith give notice of such fact to the Commissioner of Accounts and the City Treasurer.
(f) The Commissioner of Accounts shall maintain books which will show the cash balance of each fund, and shall issue no warrant payable from any such fund unless there is money belonging thereto for the payment of the warrant in full.
(Ord. No. 1660-04. Passed 10-11-04, eff. 10-13-04)
(a) The City Treasurer shall provide written notification by first class mail to all depositories having an office which receives deposits within the City, and such other depositories as determined by the Director of Finance, at least sixty (60) days prior to the date of designation of eligible depositories by the Director of Finance pursuant to division (b) of this section. Such notice shall:
(1) request the depository to apply in writing for all or a portion of the City's public deposits on or before a date specified in the notice;
(2) identify the term of the proposed agreement with the depository, which period shall not exceed two (2) years;
(3) require each depository to submit in its application for designation as an eligible depository the following:
a. the amount of the City's active deposits that the depository will accept for deposit;
b. the rate or rates of interest, if any, that will be paid on the City's active deposits;
c. the location of the depository's offices in the City or, if no offices are located in the City, the location of its nearest offices;
d. a complete listing of all services provided by the depository and the amount of any service charges to be paid by the City for such services;
e. audited financial statements of the depository;
f. the information, statement and affidavit required by Sections 178.04 to 178.07; and
g. such other data or information deemed relevant by the Director of Finance.
The application submitted by the depository shall be used by the Director of Finance to designate the City's eligible depositories in accordance with division (b) of this section and shall be made available to the Council for review.
(b) The Director of Finance shall designate one or more depositories as the eligible depository or eligible depositories of the City's active deposits. The designation of such eligible depository or eligible depositories shall be for a period of not to exceed two (2) years, provided that, if more than one depository is designated an eligible depository, the period of such designations shall be the same for all of the eligible depositories. The Director of Finance shall consider the following in making such designation:
(1) the rate or rates of interest paid on active deposits;
(2) the convenience of the location of the depository's offices;
(3) the service charges, if any, that will have to be paid for the services of the depository;
(4) the financial stability of the depository;
(5) compliance with the requirements of Sections 178.04 through 178.07;
(6) such additional information as may be required by the cash management and investment policy promulgated pursuant to Section 178.14; and
(7) any terms or conditions of the depository before accepting the City's active deposits.
(c) The Director of Finance shall submit the names of all eligible depositories to the City Council at the time of their designation by the Director. The City Council shall have thirty (30) days from the date of submission of the names by the Director of Finance to disapprove the designation of any depository as an eligible depository. Upon expiration of the thirty (30) day period, the Director of Finance may enter into a contract pursuant to Section 178.08 with any eligible depository not disapproved by the City Council within the thirty (30) day period.
(d) As an exception to the process set forth in divisions (a), (b) and (c) of this section, the Director of Finance is authorized to designate as an eligible depository any depository which did not receive the written notification required by division (a) of this section and which has opened an office which receives deposits in the City during the term of a contract entered into pursuant to Section 178.08 with the City's other eligible depositories. Any depository seeking such designation shall submit an application in writing to the Director of Finance containing the information specified in division (a)(3) of this section and the Director of Finance shall consider the factors delineated in division (b) of this section in making such designation. The period of such designation and the term of the contract entered into with the eligible depository pursuant to Section 178.08 shall expire on the same date that the contracts with the City's other eligible depositories expire. The Director of Finance shall notify the Council of the name of any eligible depository designated pursuant to this division but the provisions of division (c) of this section shall not apply and the Director of Finance is authorized to enter into a contract with the eligible depository pursuant to Section 178.08 upon designation.
(e) The limitations on the aggregate amount of public monies (as defined in the Uniform Depository Act) which may be deposited with eligible depositories as set forth in the Uniform Depository Act shall be applicable to deposits made by the City in eligible depositories pursuant to this chapter.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
For purposes of Sections 178.04 to 178.07, inclusive, certain terms are defined as follows:
(a) "Female Business Enterprise" means a company certified by the City as a Female Business Enterprise in accordance with Chapter 187 of the Codified Ordinances or some other standard authorized by the Council.
(b) "Full Service Banking" means banking services which include, but are not limited to, use of on-site loan officers, automatic teller machines, and Saturday hours.
(c) "Low to Moderate Income" means eighty percent (80%) of the median income for the Cleveland Standard Metropolitan Statistical Area as defined in the most recent report issued by the United States Bureau of the Census.
(d) "Minority Business Enterprise" means a company certified by the City as a Minority Business Enterprise in accordance with Chapter 187 of the Codified Ordinances or some other standard authorized by the Council.
(e) "Minority Neighborhoods" means Statistical Planning Areas (SPAs) in the City with more than fifty percent (50%) non-white population.
(f) "Neighborhood development" means an organized, community-based effort involving government, non-profit neighborhood groups, financial institutions, private individuals and resident leadership with the purpose of revitalizing residential, commercial and industrial areas in urban neighborhoods.
(g) "Small Business" means a company with 150 or fewer employees or sales under five million dollars ($5,000,000) per year.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
(a) Any depository desiring designation as an eligible depository shall submit to the Director of Finance, the following information needed for evaluation of policies and practices regarding housing and economic development of such depository:
(1) Residential Lending Information. The total number and the total dollar value of residential loans for one to four family dwellings applied for and originated during the previous calendar year in each of the following categories:
A. Home purchase loans, both federally subsidized and conventional;
B. Refinancings of home purchase loans;
C. Home improvement loans;
D. Home equity loans;
E. Multi-family loans; and
F. Non-occupant loans.
These totals shall be provided for the entire City, for each Statistical Planning Area within the City and for all of Cuyahoga County.
(2) Commercial Lending Information. The total number and the total dollar value of commercial loans applied for and originated during the previous calendar year (a) for the entire City, (b) for each Statistical Planning Area within the City, (c) for all of Cuyahoga County, (d) for minority business enterprises in each Statistical Planning Area within the City and for the entire City, and (e) for female business enterprises in each Statistical Planning Area within the City and for the entire City.
(3) The most recent annual report or SEC 10-K report with quarterly financial updates.
(4) A statement with timetable(s) describing current and proposed initiatives to address the credit needs of the City, its residents and businesses, including low and moderate income and minority residents, in the following categories:
A. Home purchase mortgage loans.
B. Mortgage loans to non-occupant borrowers for small rental properties.
C. Home improvement loans.
D. Small personal loans.
E. Consumer product(s) and service(s).
F. Commercial loan product(s) for small businesses, minority business enterprises and female business enterprises.
G. Participation in City-sponsored neighborhood development programs and consortiums.
H. Equitable contributions to community based non-profit organizations in the City.
I. Provision of full service banking in City neighborhoods.
K. Program to market loan products and services throughout the City to include (1) low and moderate income neighborhoods, (2) minority neighborhoods, (3) small businesses, (4) minority business enterprises and (5) female business enterprises.
L. Goals established for service and production levels for target groups identified in K. above.
(5) The affidavit set forth in section 178.08, executed by a duly authorized officer of such financial institution.
(6) The most recent "Community Reinvestment Act Statement" issued by the depository.
(7) The most recent "Community Reinvestment Act Evaluation" issued by the federal regulatory agency authorized to conduct such evaluations.
(8) A copy of the depository's branch closing policy.
(9) A written initiative (a "Community Reinvestment Initiative") regarding community reinvestment within the City containing provisions acceptable to the Director of Community Development.
(10) Information regarding the number of minorities, females and City residents employed by the depository as lending officers and as members of its board of directors and senior management staff.
(11) Any additional information requested by the Director of Finance.
Except where otherwise specified, the information shall be made on forms provided by or prescribed by the Director of Finance.
(b) No depository shall be eligible to be designated as an eligible depository under this Chapter unless it has executed a Community Reinvestment Initiative.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
(a) On an annual basis, each eligible depository shall submit to the Director of Finance the information set forth in Section 178.05, as well as a statement describing its new level of participation in residential and commercial development as required in the sworn affidavit set forth in Section 178.07.
This information and this statement shall be used to determine whether the eligible depository has acted in compliance with its sworn affidavit and whether it will be considered for designation as an eligible depository in the future and as well as to inform policy decisions by the City regarding investment of City funds and purchase of services.
All such information required in this section will be available for public inspection.
(b) The annual review process will be administered by the Reinvestment Review Committee, composed of eight (8) members, including:
(1) The Director of Finance, who shall serve as Chairman;
(2) One (1) member of the administration chosen from the Department of Economic Development;
(3) One (1) member of the administration chosen from the Department of Community Development;
(4) One (1) representative from the citywide bank clearinghouse;
(5) Two (2) members of City Council; and
(6) Two (2) members of community organizations whose principal purpose is neighborhood development.
The Committee shall coordinate the implementation of Sections 178.05 to 178.07, inclusive. The Committee shall issue a report analyzing and evaluating the information contained in the depository applications submitted pursuant to division (a) of Section 178.03 prior to submission of the names of the eligible depositories by the Director of Finance to the Council pursuant to division (c) of Section 178.03. In the report, the Committee shall make a recommendation to City Council as to which institutions have acted in compliance with their sworn affidavit and any applicable federal law requirements.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
The affidavit required by division (a) of Section 178.05 shall be in the following form and shall contain the information herein required:
STATE OF OHIO
COUNTY OF CUYAHOGA
SS: AFFIDAVIT OF INTENT
I, ——————————, a duly-authorized representative of ——————————, being first sworn, depose and say as follows:
1. That for the purpose of becoming an eligible depository for active deposits of the City of Cleveland, the undersigned affiant states that it will develop lending and financing opportunities and make "best efforts" to undertake a defined lending program of committed action in support of residential and commercial development in Cleveland's neighborhoods.
Affiant states that such best efforts shall include, but are not limited to:
A. The presence of identifiable trained personnel in real estate with sole responsibility and lending authority and a clearly defined focus on "neighborhood development" finance as defined in Section 178.04 of the Codified Ordinances of Cleveland, Ohio, 1976.
B. Cooperation with and support of non-profit neighborhood development organizations in the successful implementation of "neighborhood development" finance, through vehicles such as grants, below-market financing and equity investments.
C. A willingness to participate in the financing of publicly-subsidized neighborhood development projects.
D. A commitment to affirmatively market and make available banking services throughout Cleveland's neighborhoods.
E. The cooperative establishment of investment services through incentive programs such as linked deposits and compensating balance transactions.
2. Further, the affiant certifies that neither [insert institution desiring to become City depository], nor any of its affiliates, (i) will make predatory loans as defined in Chapter 659 of the Codified Ordinances of the City of Cleveland, Ohio, 1976; (ii) will violate Section 1349.27 of the Revised Code.
3. Further, the affiant agrees to submit the information required in Section 178.05 of the Codified Ordinances of Cleveland, Ohio, 1976, to the Director of Finance on an annual basis.
4. Further, the affiant agrees to submit statements and information of such affirmative participation as required in this affidavit which has occurred within the annual review period.
(Ord. No. 45-03. Passed 1-13-03, eff. 1-15-03)
(a) The Director of Finance is hereby authorized to enter into contract with the eligible depositories designated pursuant to Section 178.03 for the provision of the City's requirements for various banking services, including, but not limited to, check clearing and collection, account maintenance, bank statement preparation, lockbox services, wire transfers, investment support facilities, safekeeping and custody services, ACH services and other professional services deemed necessary to support the ongoing banking requirements of the City. The contracts authorized herein shall be prepared by the Director of Law and shall contain such terms and conditions as are deemed necessary by the Directors of Finance and Law to protect the City's interest, including provision for the payment of fees for the banking services, whether through the maintenance of compensating balances or by monthly billing for services rendered and provision for the loss of the designation as an eligible depository, the withdrawal of the City's deposits and the termination of the contract with the eligible depository because of the failure of the eligible depository to comply with the terms of the contract.
(b) The Director of Finance is hereby authorized to enter into contract with financial institutions and various financial and information service organizations to obtain data and services which will facilitate the processing of City deposits and investments.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
Each contract with an eligible depository authorized by Section 178.08 shall contain a requirement that the eligible depository provide written notice to the Mayor and the Director of Finance one hundred and twenty (120) days prior to the closing of any branch of such eligible depository located within the City. The notice shall identify the location of the branch, the date on which it is anticipated that the branch will close and the reason for closing the branch.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
(a) The City Treasurer, before making the initial deposit in an eligible depository designated pursuant to Section 178.03 or before making an investment in a certificate of deposit pursuant to division (b)(8) of Section 178.12, shall require the eligible depository to pledge to and deposit with the City Treasurer, as security for the repayment of all public monies to be deposited in the eligible depository, eligible securities in the aggregate market value equal to one hundred and ten percent (110%) of the amount of public monies to be at the time so deposited. In the case of any deposit other than the initial deposit made during the period of designation, the amount of the aggregate market value of securities required to be pledged and deposited, shall be equal to one hundred and ten percent (110%) of the amount of public monies on deposit in such public depository plus one hundred and ten percent (110%) of the amount to be so deposited. The City Treasurer may require additional eligible securities to be deposited to provide for any depreciation which may occur in the market value of any of the securities so deposited.
(b) The following securities shall be eligible securities for the purposes of this section:
(1) Bonds, notes or other obligations of or 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 specifically appearing therein and not merely by interpretation or otherwise;
(2) Bonds, notes, debentures, or other obligations or securities issued by any U.S. government agency, or the export-import bank of Washington;
(3) Bonds and other obligations of the State of Ohio guaranteed as to principal and interest by the State of Ohio or those for which the full faith and credit of the State of Ohio is pledged for the payment of principal and interest thereon by language specifically appearing therein and not merely by interpretation or otherwise;
(4) Bonds and other obligations of any county, township, school district, municipal corporation, including the City, or other legally constituted taxing subdivision of the State of Ohio, which is not, at the time of such deposit, in default in the payment of principal or interest on any of its bonds or other obligations, for which the full faith and credit of the issuing subdivision is pledged;
(5) Obligations guaranteed as to principal and interest by the Ohio student loan commission.
(6) A no-load money market mutual fund that is registered as an investment company under the "Investment Company Act of 1940," 54 Stat. 789, 15 U.S.C.A., 80a-1 to 80a-64, and that has the highest letter or numerical rating provided by at least one nationally recognized standard rating service, consisting exclusively of obligations described in division (b)(1) or (2) of this section and repurchase agreements secured by such obligations.
(c) The City shall not accept as eligible securities for purposes of this section any securities which are part of a pool of securities authorized in RC 135.181.
(d) If the eligible depository fails to pay over any part of the deposit made therein as provided by law, the City Treasurer shall sell at public sale any of the eligible securities deposited with the City Treasurer pursuant to this section. Thirty (30) days notice of such sale shall be given in a newspaper of general circulation within the City of Cleveland. Pursuant to division (C) of RC 135.18, when a sale of eligible securities has been so made and upon payment to the City Treasurer of the purchase money, the City Treasurer shall transfer such eligible securities, whereupon the absolute ownership of such eligible securities shall pass to the purchasers, and any surplus remaining after deducting the amount due the City of Cleveland and the expenses of sale shall be paid to the eligible depository.
(e) An eligible depository may, by written notice to the City Treasurer, designate a qualified trustee and deposit the eligible securities required by this section with the trustee for safekeeping for the account of the City Treasurer and the eligible depository, as their respective rights to and interest in such securities under this section may appear and be asserted by written notice to or demand upon the trustee pursuant to division (D) of RC 135.18. In such case, the City Treasurer shall accept the written receipt of the trustee describing the securities which have been deposited with the trustee by the eligible depository, a copy of which shall also be delivered to the eligible depository. Thereupon all such securities so deposited with the trustee are, pursuant to division (D) of RC 135.18 deemed to be pledged with the City Treasurer and to be deposited with him, for all the purposes of this section. The qualified trustee designated to perform the duties pursuant to this division (e) must be approved by the Director of Finance prior to designation by the eligible depository.
(f) The City Treasurer may make provisions for the exchange and release of securities and the substitution of other eligible securities therefor.
(g) Pursuant to division (I) of RC 135.18, any federal reserve bank or branch thereof located in the State of Ohio, without compliance with RC sections 1109.03, 1109.04, 1109.17 and 1109.18 or any provision of this chapter and without becoming subject to RC 1109.15 or any other law of Ohio relative to the exercise by corporations of trust powers generally, is qualified to act as trustee for the safekeeping of securities under this section.
(h) Notwithstanding the fact that an eligible depository is required to pledge eligible securities in certain amounts to secure deposits of public monies, a trustee shall have no duty or obligation to determine the eligibility, market value, or face value of any securities deposited with the trustee by an eligible depository. This applies in all situations including, without limitation, a substitution or exchange of securities.
(i) Any charges or compensation of a designated trustee for acting as such under this section shall be paid by the eligible depository and in no event shall be chargeable to the City or to the City Treasurer or to any officer of the City. Pursuant to RC 135.18, such charges or compensation shall not be a lien or charge upon the securities deposited for safekeeping prior or superior to the rights to and interests in such securities of the City or of the City Treasurer. Pursuant to RC 135.18, the City Treasurer and the City Treasurer's bondsmen or surety shall be relieved from any liability to the City or to the eligible depository for the loss or destruction of any securities deposited with a qualified trustee pursuant to this section.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
The Director of Finance is authorized to designate securities dealers and brokers for the purpose of purchasing and selling, but not holding or safekeeping, securities on behalf of the City. Only those securities dealers and brokers so designated by the Director of Finance shall be eligible to purchase and sell securities on behalf of the City. Any dealer or broker designated pursuant to this section shall be licensed by the State of Ohio and shall submit the following information to the Director of Finance prior to annual designation by the City:
(1) a sworn statement by an authorized representative of the dealer or broker pledging to adhere to "Capital Adequacy Standards" established by the Federal Reserve Bank and acknowledging that the dealer or broker understands that the City has relied upon this pledge in employing the dealer or broker;
(2) audited financial statements for the most recent audit year showing the amount of liquid capital of the dealer or broker and, if applicable, of the parent company of such dealer or broker, and compliance with "Capital Adequacy Standards" established by the Federal Reserve Bank;
(3) a written statement from a certified public accountant certifying that it found no material weaknesses in the internal systems controls of the dealer or broker and, if applicable, of the parent company of such dealer or broker, incident to "Capital Adequacy Standards" established by the Federal Reserve Bank; and
(4) such additional information as may be required by the Cash Management and Investment Policy promulgated pursuant to Section 178.14.
The Director of Finance shall not employ any dealer or broker and shall terminate any contract with a dealer or broker which fails to provide the statements and information required by this section; lacks experience or familiarity in providing service to large institutional accounts; is perceived by the Director of Finance to be in financial difficulty or when the Director of Finance deems the employment of the dealer or broker not to be in the best interest of the City.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
(a) All public monies of the City not deposited in active deposits, or kept by the City Treasurer as a cash reserve as may be prescribed by the Director of Finance, shall be invested by the City Treasurer pursuant to this section and the Cash Management and Investment Policy promulgated pursuant to Section 178.14. All securities shall be purchased through eligible depositories or securities dealers or brokers designated pursuant to Section 178.11. All security transactions shall occur on a delivery versus payment basis.
(b) The City Treasurer may invest in any of the following classifications of obligations, which are hereby determined to be eligible investments:
(1) bonds, notes or other obligations of the United States, or those for which the full faith and credit of the United States is pledged for the payment of principal and interest thereon, including without limitation Treasury Bills, Treasury Notes, Treasury Bonds, Farmers Home Administration Insured Notes (FHAs) and securities issued by the Government National Mortgage Association (GNMAs);
(2) bonds, notes, debentures or other obligations or securities issued by any U.S. government agency fully guaranteed as to principal and interest by the full faith and credit of the United States;
(3) bonds, notes, debentures or other obligations or securities, issued by any U.S. government agency, which are not fully guaranteed as to principal and interest by the full faith and credit of the United States but which have a sufficiently broad and orderly marketplace to ensure easy and cost-effective liquidation, such as the debt of the Federal Home Loan Bank (FHLBs) and the Federal National Mortgage Association (FNMAs);
(4) bonds and notes of the State of Ohio;
(5) the State of Ohio Treasurer's Investment Pool established pursuant to RC 135.45;
(6) bonds and notes of any municipal corporation, village, county, township or other political subdivision of Ohio (including the City of Cleveland to the extent permitted by law), for which the full faith and credit of the subdivision is pledged, so long as such subdivision has not defaulted in the payment of principal or interest on its bonds or notes within the last ten (10) years;
(7) a specific repurchase agreement with a term of not to exceed one (1) year with any eligible depository or securities dealer or broker designated pursuant to Section 178.11 which has entered into a master repurchase agreement pursuant to division (c) of this section, under the terms of which agreement the City Treasurer purchases for the City, and such eligible depository or securities dealer or broker agrees to unconditionally repurchase, any of the securities listed in divisions (b)(1), (b)(2) or (b)(3) of this section;
(8) fully insured and/or fully collateralized certificates of deposit of eligible depositories; and
(9) U.S. government money market mutual funds, as defined in the Cash Management and Investment Policy promulgated pursuant to Section 178.14, issued by open ended investment companies registered with the U.S. Securities and Exchange Commission which have the objective of maintaining a constant net asset value per share, and which have portfolios limited to fully delivered repurchase agreements or securities described in division (b)(1) and (b)(8) of this section with an average maturity of one hundred twenty (120) days or less.
(c) Specific repurchase agreements authorized by division (b)(7) of this section shall be governed by the requirements of the Master Repurchase Agreement entered into between the City and all eligible depositories or securities dealers or brokers designated pursuant to Section 178.11. The City Treasurer may enter into a specific repurchase agreement only if:
(1) The Director of Finance and the eligible depository or securities dealer or broker designated pursuant to Section 178.11 has entered into a Master Repurchase Agreement on a continuing basis during a specified period which shall not extend beyond the end of the period of designation of the eligible depository pursuant to Section 178.03 or of the securities dealer or broker pursuant to Section 178.11;
(2) The market value of purchased securities on the purchase date shall be at least as follows:
A. One hundred and one percent (101%) of the purchase price if the purchased securities are U.S. Treasury Bills, Notes, or Bonds which mature in one (1) year or less from the purchase date;
B. One hundred and two percent (102%) of the purchase price if the purchased securities are U.S. Treasury Bills, Notes, or Bonds which mature in more than one (1) year but not more than ten (10) years from the purchase date; and
C. One hundred and two percent (102%) of the purchase price if the purchased securities are U.S. government agency securities which mature not more than ten (10) years from the purchase date.
(3) There shall be a simultaneous delivery of purchased securities and payment of the purchase price through a custodial bank pursuant to a separate agreement by and between the City and the custodial bank;
(4) In the event the eligible depository or securities dealer or broker fails to perform any of its obligations under the specific repurchase agreement, the eligible depository or securities dealer or broker shall be liable for the repurchase price and interest thereon at the same rate as the specific repurchase agreement plus reasonable counsel's fees and other costs and expenses incurred by the City as a result of the default and, further, the custodial bank shall remit to the City all purchased securities, margin securities and cash delivered to satisfy the margin requirement, and the City may sell any or all purchased securities and/or margin securities to any purchaser at private or public sale and apply the proceeds thereof to the eligible depository's or securities dealer or broker's liability;
(5) In the event the City fails to perform any of its obligations under the specific repurchase agreement, the City's interest in purchased securities and any margin securities and/or cash delivered to satisfy the margin requirement shall be deemed released, and the eligible depository or securities dealer or broker is irrevocably authorized to instruct the custodial bank to deliver all such securities and cash to the eligible depository against simultaneous credit to the City's account of the purchase price;
(6) The master repurchase agreement may be terminated by either party on ten (10) business days written notice to the other party and the custodial bank, provided, however, that such termination shall not affect any specific repurchase agreement outstanding.
(d) The City Treasurer may sell any eligible investments or close any accounts held as investments for cash for a sum not less than their current market price.
(e) The Director of Finance and his designees, the City Treasurer, the Mayor, the Director of Law and the members of City Council shall not be held accountable or personally liable for any loss occasioned by the sale of eligible investments or by the closing of insured deposit accounts authorized pursuant to division (d) of this section at a price lower than their cost or balance. Any loss or expense in making such sales or closings shall be payable as other expenses of the City.
(f) Except as provided in this division (f), investments authorized by division (b) of this section shall not be made at a price in excess of the current market price or at a yield below the current market yield. In furtherance of the public purposes of (i) creating or preserving jobs and employment opportunities in the City, and to improve the economic welfare of the people of the City, through the acquisition, construction, improvement or equipping of facilities for industry, commerce, distribution and research, and (ii) to enhance the availability of adequate housing, and to improve the economic and general well-being of the people of the City, by providing, or assisting in providing, housing, including shelters to provide temporary housing for individuals and families, the Director of Finance may invest public monies at a price in excess of the current market price or at a yield below the current market yield, subject, in the case of providing housing, to RC 176.04; provided, that at no time shall public monies invested pursuant to this division (f) exceed five percent (5%) of all of the public monies of the City.
(g) If any eligible investments purchased under the authority of this section are issuable to a designated payee or to the order of a designated payee, the name of the City Treasurer and the title of the City Treasurer's office shall be so designated. If any such eligible investments are registrable either as to principal or interest or both, then such securities shall be registered in the name of the Director of Finance as such.
(h) Interest earned on any eligible investments authorized by this section shall be collected by the City Treasurer and credited by the Director of Finance or the Director's designee to the proper fund of the City as required by law.
(i) Whenever eligible investments acquired pursuant to this section mature and become due and payable, the City Treasurer shall present them for payment according to their tenor, and shall collect the monies payable thereon. The monies so collected shall be treated as public monies subject to the provisions of this chapter.
(j) The Director of Finance or the Director's designee shall maintain accounts on which shall be made appropriate entries of all transactions relating to the investment of public monies. The City Treasurer shall keep a record of the number and maturity of interest coupons on instruments in which the City has invested.
(k) The Director of Finance shall, upon request of the Mayor or the City Council, provide periodic reports in such detail as required by the Mayor or the City Council of all investments purchased, sold and held by the City.
(l) The members of City Council, the Director of Finance, the Director of Law and the City Treasurer shall not be personally liable for or with respect to investments pursuant to this section and the members of City Council, the Director of Finance and the Director of Law shall not be personally liable for any unauthorized investment by the City Treasurer.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
(a) All eligible investments in certificated form acquired by the City Treasurer pursuant to Section 178.12 of this chapter shall be kept in a safe deposit box or vault belonging to an eligible depository, and such safe deposit box or vault shall be opened only upon a warrant or order of the Commissioner of Accounts or a person duly authorized as the Acting Commissioner of Accounts in the presence of the Director of Finance, or the Director of Law, or both of them, or persons duly authorized as Acting Director of Finance or Law. The warrant or order to open such safety deposit box or vault shall direct the deposit or removal of such certificates, clipping of coupons or other official business reason for opening the box or vault. A report of stating the items placed in or removed from the box or vault or other official business conducted with respect to the contents of the box or vault shall, on the same day of the opening of the box or vault, be signed by the officer witnessing such opening and the City Treasurer, and such report shall be retained by the Commissioner of Accounts.
(b) In lieu of the custody authorized by division (a) of this section, the City Treasurer may deposit such certificates with a qualified trustee as set forth in division (I) of RC 135.18 or division (F) of RC 135.181.
(c) Upon the expiration of the term of office of the City Treasurer or in the event of vacancy in the office of the City Treasurer by reason of death, resignation, removal from office or otherwise, the City Treasurer or the City Treasurer's legal representative shall transfer and deliver to the successor all such certificates held by the City Treasurer. For the certificates so transferred and delivered, such City Treasurer shall be credited with and the City Treasurer's successor shall be charged with the amount of money invested in such certificates.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
In order to ensure the safety of public monies and the legality of City investments, the Director of Finance shall promulgate a cash management and investment policy for the City consistent with the provisions of this chapter, which shall include, but not be limited to, the following:
1. The goals and objectives of the policy;
2. Identification of the funds to be managed and invested in accordance with the policy, including identification of different investment strategies for different funds and the term of different types of investments;
3. A list of authorized investments, including the extent to which the City may invest in specific eligible investment instruments;
4. The policies and procedures for daily investments and the documentation of transactions, including the safekeeping of securities;
5. Reporting requirements to be prepared by the Director of Finance or the Director's designee;
6. Procedures for evaluation of eligible depositories and securities dealers; and
7. A system of internal controls governing the deposit and investment of public monies and a procedure for reviewing and monitoring these controls.
On an annual basis, the Cash Management and Investment Policy shall be reviewed by the Director of Finance and, if the Director deems necessary, be revised and updated. A copy of the Cash Management and Investment Policy promulgated or revised and updated pursuant to this section shall be delivered to the Clerk of City Council by April 1st of each year and published in the City Record.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
Notwithstanding the provisions of this chapter to the contrary, moneys received for or on account of the operations of the Division of Water and the Division of Cleveland Public Power, Department of Public Utilities, shall not be invested in general obligations of the City. Further, no moneys received from airport operations and deposited in segregated bank accounts established for the following airport funds shall be invested in general obligations of the City:
(a) The Operating and Maintenance Fund;
(b) The Renewal and Replacement Fund;
(c) The Improvement Fund; and
(d) The Surplus Fund.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
(a) The City Treasurer shall separately deposit monies received for the construction and acquisition of permanent improvements from each sale of general obligation bonds of the City, or notes issued in anticipation of the issuance of such bonds, in one or more segregated bank accounts in one or more eligible depositories.
(b) The Director of Finance may designate any one or more of the eligible depositories as a fiscal agent with respect to such segregated bank accounts, and shall enter into a written fiscal agent agreement with such designee. Such fiscal agent agreements shall provide that, before making any disbursement from such segregated bank accounts, the Treasurer, in addition to complying with all other requirements of law, shall obtain the approval of the fiscal agent. The fiscal agent shall approve disbursements from such a segregated bank account only for the purposes for which the bonds or notes, the proceeds of which have been deposited in such account, have been issued, as set forth in the ordinance or resolution authorizing the issuance of such bonds or notes, and for such other purposes properly chargeable as expenses from bond funds under the laws of the State.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
(a) An officer, director, stockholder, employee, or owner of any interest in a depository receiving active deposits pursuant to RC sections 135.01 to 135.21, inclusive, and Chapter 178 of the Codified Ordinances shall not be deemed to be interested, either directly or indirectly, as a result of such active deposits of public monies for the purpose of any law of the State of Ohio prohibiting an officer of the state or of any subdivision, including the City, from being interested in any contract of the state or of the subdivision as provided in RC 135.11.
(b) The provisions of RC sections 135.51 through 135.54 relating to defaulting depositories are hereby incorporated by reference into this chapter and the City, its Council, officers and employees may act in accordance with those provisions in the event of any default on the part of any eligible depository.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
(a) The provisions of the Uniform Depository Act shall not be applicable to the City except to the extent such provisions are expressly incorporated into this chapter.
(b) Any ordinance authorizing the issuance of general obligations bonds, special obligation bonds, including revenue bonds and mortgage revenue bonds, or notes in anticipation of such bonds which are issued by the City, which specifically provides for the deposit and investment of the proceeds thereof or monies derived from or securing such bonds or notes, shall preempt the provisions of this Chapter except to the extent specifically provided to the contrary in such ordinance; provided, however, that any trustee or depository selected from and after the effective date of this ordinance to hold such proceeds or monies must be an eligible depository.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)
(a)(1) Neither the Director of Finance nor the City Treasurer shall keep any City funds on deposit in any bank or other financial institution that makes predatory loans, or that has an affiliate that, or is an affiliate of a bank or other financial institution that makes predatory loans.
(2) Neither the Director of Finance nor the City Treasurer shall keep any City funds on deposit in any bank or other financial institution that violates Section 1349.27 of the Revised Code, or that has an affiliate that, or is an affiliate of a bank or other financial institution that violates Section 1349.27 of the Revised Code.
(b)(1) Neither the Director of Finance nor the City Treasurer shall allow City monies to remain invested, or hereafter make investments in, stocks, securities, or other obligations of any business entity that makes predatory loans, or has an affiliate that, or is an affiliate of a bank or other financial institution that makes predatory loans.
(2) Neither the Director of Finance nor the City Treasurer shall allow City monies to remain invested, or hereafter make investments in, stocks, securities, or other obligations of any business entity that violates Section 1349.27 of the Revised Code, or has an affiliate that, or is an affiliate of a bank or other financial institution that violates Section 1349.27 of the Revised Code.
(c)(1) Neither the Director of Finance nor the City Treasurer shall allow City monies to remain invested, or hereafter make investments in, securities collateralized by any interest in loans originating or purchased by any business entity that makes predatory loans, or has an affiliate that, or is an affiliate of a bank or other financial institution that makes predatory loans.
(2) Neither the Director of Finance nor the City Treasurer shall allow City monies to remain invested, or hereafter make investments in, securities collateralized by any interest in loans originating or purchased by any business entity that violates Section 1349.27 of the Revised Code, or has an affiliate that, or is an affiliate of a bank or other financial institution that violates Section 1349.27 of the Revised Code.
(d) The divestiture required by divisions (b) and (c) shall be completed within six (6) months of receipt by the City Treasurer of notice from the Director of Finance or the Director of Consumer Affairs that a business entity makes predatory loans, or has an affiliate that, or is an affiliate of a bank or other financial institution that makes predatory loans. During the six (6) month period, the City Treasurer shall make regular reports to the City Council concerning the progress of divestiture. If, prior to expiration of the six (6) month time limit for divestiture, the Finance Director or City Treasurer determines that completion of divestiture within the six (6) month time limit will necessitate substantial losses to the City then the City Treasurer shall request from City Council an extension of time within which to complete divestiture.
(e) As used in this section, the terms "predatory loan" and "affiliate" shall have the same meanings as set forth in Section 659.01 of the Codified Ordinances of the City of Cleveland, 1976.
(Ord. No. 737-02. Passed 4-22-02, eff. 4-25-02)
(a) The Director of Finance, the City Treasurer, the Director of Law, the Mayor and members of City Council and their bondsmen or sureties shall be relieved from any liability for the loss of any public monies deposited or invested pursuant to and in compliance with this chapter, including but not limited to losses occasioned by the failure of any eligible depository.
(b) The provisions of RC 731.55 shall be applicable to the City and the insurance authorized by such section may be procured by the Mayor and the costs of such insurance shall be paid by the City.
(Ord. No. 2353-93. Passed 2-14-94, eff. 2-23-94)