Investment earnings / losses are distributed to the funds according to charter and statutory requirements. Investment gains reported in the statement of activities for the year ended December 31, 2024 was $921,662.
The provisions of the Charter and Codified Ordinances of the City and the Ohio Revised Code govern the investment and deposit of City monies. In accordance with these provisions, only financial institutions located in Ohio and primary securities dealers are eligible to hold public deposits. The provisions also permit the City to invest its monies in certificates of deposit, savings accounts, money market accounts, the State Treasurer’s investment pool (STAR Ohio) and obligations of the United States government or certain agencies thereof. The City may also enter into repurchase agreements with any eligible depository for a period not exceeding five years.
Deposits: At year end, the City’s bank balance was $9,765,032. Of the bank balance, $287,081 was insured by federal deposit insurance; the remaining $9,477,951 was collateralized through participation in the Ohio Pooled Collateral System (OPCS). Custodial credit risk is the risk that, in the event of bank failure, the City will not be able to recover deposits or collateral securities that are in the possession of an outside party. Ohio law requires that deposits either be insured or protected by (1) eligible securities pledged to the City and deposited with a qualified trustee by the financial institution as security for repayment whose market value at all times shall be at least 105 percent of the deposits being secured, or (2) participation in the Ohio Pooled Collateral System, a collateral pool of eligible securities deposited with a qualified trustee and pledged to the Treasurer of State to secure the repayment of all public monies deposited in the financial institution. OPCS requires the total market value of the securities pledged to be 102 percent of the deposits being secured. The City has no deposit policy for custodial credit risk beyond the requirements of State statute.
Investments: At year‐end, the City had the following investments:
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| Investment Maturities (in Years) | |||
|---|---|---|---|
| Less than | One to Five | ||
| Investment Type | Fair Value |
One Year | Years |
| Negotiable Certificates of Deposit |
$4,391,435
|
$729,153
|
$3,662,282
|
| Federal Home loan Bank | 2,181,703 | 0 | 2,181,703 |
| Federal Home Loan Mortgage Corporation | 746,693 | 746,693 | 0 |
| US Treasury Note | 6,453,281 | 1,491,668 | 4,961,613 |
| Money Market Funds | 2,505,752 | 2,505,752 | 0 |
| Total Fair Value |
$16,278,864
|
$5,473,266
|
$10,805,598
|
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. All of the City’s investments are Level 2 inputs except for money market funds which are not applicable.
Interest Rate Risk – The City’s investment policy states that the maximum maturity for any investment is limited to a final stated maturity of seven years, an expected call of seven years, or an expected average life of seven years, where the average life is estimated by nationally recognized firms independent of the dealer selling the security to the City.