Chapter 125: Department of Finance

Sections

Cross references

  • Director’s appointment and term - see CHTR. Art. V, Sec. 1
  • Director’s qualifications - see CHTR. Art. V, Sec. 2
  • Director’s duties - see CHTR. Art. V, Sec. 3
  • Department establishment - see CHTR. Art. VII, Sec. 1
  • State law application on financial matters - see CHTR. Art. VIII, Sec.1
  • Uniform depository act - see Ohio R.C. Chapter 135

125.01   Definitions

As used in this chapter:

  1. (a) “Public moneys” means all moneys in the Treasury of the Municipality or moneys coming lawfully into the possession of the Municipality’s Director of Finance.

  2. (b) “Eligible depository” or “eligible depositories” means any institution mentioned in Ohio R.C. 135.03, that has an office situated within Cuyahoga County, Ohio, whose accounts are insured by the Federal Government or agency thereof.

  3. (c) “Active deposit” means a deposit of the Municipality’s public moneys payable or withdrawable, in whole or in part, on demand, or a deposit in a negotiable order of withdrawal account as authorized in the Consumer Checking Account Equity Act of 1980, 94 Stat, 146, 12 U. S. C.A. 1832(a).

  4. (d) “Federal Deposit Insurance” means insurance on deposits provided by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation or other similar Federal Deposit Insurance.

  5. (e) “Trustee” means an independent financial institution approved by the Director of Finance to serve as trustee under a trust agreement therefor entered into between the Municipality and such institution in a form approved by the Director of Law in connection with holding collateral securities or other securities for the Municipality.

  6. (f) “Uniform Depository Act” means Ohio R.C. Chapter 135 and any amendment or supplement thereto. Wherever any provisions of the Uniform Depository Act are made applicable under this chapter, such provisions are applicable only to the extent that they are not in conflict with or inconsistent with the Municipal Charter and ordinances or resolutions.
    (Ord. 1986-46. Passed 10-28-86.)

125.02   Depositories

  1. (a) The Director of Finance shall determine the amount of public moneys which shall be available in active deposits to:

    1. (1) Provide the needed cash flow to pay warrants and checks issued and outstanding and to provide for a reasonable surplus in addition to the amount needed to pay such warrants and checks, and

    2. (2) Maximize the interest received on public moneys of the Municipality. Interest on active deposits shall be paid or credited by the Municipality’s designated eligible depositories at least quarterly and when funds are withdrawn, computing the time of payment from the date of deposit. No service charge shall be made by a designated eligible depository against an active deposit or collected from or paid by the Director of Finance unless such service charge is the same as is customarily imposed by institutions receiving money on deposit subject to check, in which event the Director of Finance may pay such charge. All public moneys of the Municipality not deposited in active deposits shall be invested pursuant to Section 125.08.

  2. (b) The Director of Finance shall recommend, and Council, by ordinance, shall designate one or more eligible depositories as the depository or depositories of the Municipality’s active deposits and as the institution or institutions through or from which the Municipality may purchase investments in accordance with Section 125.08. When more than one eligible depository is designated, the active deposits shall be allocated among the eligible depositories from time to time at the sole discretion of the Director of Finance.

    The Director of Finance shall consider the following in making the designation:

    1. (1) The rate or rates of interest paid on active deposit;

    2. (2) The convenience of the location of the depository’s offices;

    3. (3) The service charges, if any, that will be made for the services of the depository; and

    4. (4) Any other terms or conditions with respect to the depository’s acceptance of the Municipality’s active deposits.

  3. (c) The initial designation of depositories for the Municipality’s active deposits shall be for a period not to exceed two years and shall be made without giving the notice hereinafter provided for. Subsequent designations of depositories for the Municipality’s active deposits shall be:

    1. (1) For a period specified in the Director of Finance’s written designation of depositories pursuant to subsection (b) hereof, which period shall not be less than six months nor longer than two years, and

    2. (2) Shall be made after the Director of Finance has provided written notice by first-class mail to the eligible depositories having an office in the Municipality and such other eligible depositories as determined by the Director of Finance, at least sixty days prior to the date of the action of the Director of Finance designating depositories for the Municipality’s active deposits.

  4. (d) Such notice shall:

    1. (1) Provide an estimate of the maximum amount of such active deposits at any time during the period of designation and the proposed period of designation or alternative proposed periods of designation;

    2. (2) Request such depositories to apply in writing for all or part of the Municipality’s active deposits on or before a date and time specified in the notice;

    3. (3) Request such depositories to state in their application the amount of such active deposits that will be accepted by it, the rate or rates of interest, if any, that will be paid on such active deposits, the service charges, if any, that will be made for its services, other terms or conditions with respect to the depository’s acceptance of all or part of the Municipality’s active deposits and the location of its offices in the Municipality or, if none are located in the Municipality, the location of its nearest offices; and

    4. (4) Include or request any other information to or from such depositories which the Director of Finance deems relevant.

  5. (e) The Director of Finance shall enter into a contract approved as to form and content by the Director of Law, with such depositories for the appropriate period determined pursuant to subsection (c) hereof. Such contract shall establish the rate or rates of interest, if any, to be paid by the depository on the Municipality’s active deposits, the service charges if any, the depository may make for its services and other terms or conditions of the depository’s acceptance of the Municipality’s active deposits.

  6. (f) The limitations on the aggregate amounts of public moneys that may be on deposit with eligible depositories as set forth in the Uniform Depository Act shall apply under this Chapter 125.
    (Ord. 1986-46. Passed 10-28-86.)

125.03   Collateral securities

As used in this chapter, “collateral securities” means securities maturing within five years from the date of their pledge and includes the following:

  1. (a) Bonds, notes or other direct obligations of the United States of America, or bonds, notes or other obligations guaranteed as to principal and interest by the United States of America or those for which the faith of the United States of America is pledged for the payment of principal and interest thereon, by language appearing in the instruments specifically providing such guarantee of pledge and not merely by interpretation or otherwise.

  2. (b) 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 of America or those for which the faith of the United States of America is pledged for the payment of principal and interest therein, by interpretation or otherwise and not by language appearing in the instruments specifically providing such guarantee or pledge,

  3. (c) Bonds and other obligations of this State and 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 on any of its bonds or other obligations and for which the full faith and credit of the issuing subdivision is pledged;

  4. (d) Bonds of other states of the United States of America for which the full faith and credit of the state is pledged, which states 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.
    (Ord. 1986-46. Passed 10-28-86.)

125.04   Pledged collateral securities

All public moneys deposited in eligible depositories shall be secured by collateral securities pledged at market value in an amount equal to at least one hundred percent (100%) of the amount of the public moneys deposited less any amount covered by Federal Deposit Insurance.

Any collateral securities pledged pursuant hereto shall, at the option of the Director of Finance, be either delivered to the Director of Finance or deposited in an escrow or a trust account with a trustee for safekeeping for the account of the Municipality. Any fees and expenses of the trustee shall be paid by the eligible depository.

When collateral securities have been deposited in such an escrow or trust account, the eligible depository may substitute or exchange other collateral securities having a current market value equal to or greater than the current market value of the collateral securities then on deposit and for which they are to be substituted for or exchanged if the Director of Finance gives a written authorization either for that substitution or for the exchange or substitution on a continuing basis during a specified period without prior approval of each substitution or exchange. The Director of Finance shall send written authorization to the eligible depository stating that substitution may be made on a continuing basis during the specified period and under the conditions specified therein. The eligible depository shall notify the Director of Finance of any substitution or exchange of collateral securities. Upon request of the Director of Finance, the eligible depository shall furnish a detailed statement setting forth the face and market values of all collateral securities pledged.

The Director of Finance may require additional collateral securities to be delivered or deposited to provide for any depreciation that may occur in the market value of any of the collateral securities so delivered or deposited.
(Ord. 1986-46. Passed 10-28-86.)

125.05   Failure to pay deposit

If the depository bank fails to pay over any part of a deposit due the Municipality, the Director of Finance shall have the option of selling in the manner determined by the Director of Finance any of the collateral securities deposited or segregated pursuant to the provision of this chapter. If the collateral securities are in an escrow or a trust account with a trustee, the Director of Finance may request the trustee to deliver to the Director of Finance any of the collateral securities so deposited and the Director of Finance shall have the option to sell such collateral securities in the manner determined by the Director of Finance. When a sale of collateral securities has been made, upon payment to the Director of Finance of the purchase money, the Director of Finance shall transfer such collateral securities to the purchaser whereupon the absolute ownership of such collateral securities shall pass to the purchaser. Any surplus remaining after deducting the amount due the Municipality and any expenses of the sale shall be paid to the depository bank. This provision is in addition to any rights of the Municipality to recover under Ohio R.C. Chapter 135.
(Ord. 1986-46. Passed 10-28-86.)

125.06   Pooled collateral security

With the written approval of the Director of Finance, an eligible depository in lieu of pledging collateral securities may provide collateral for public moneys deposited pursuant to this chapter through a single pool of collateral securities pledged for deposits of all public moneys held by the eligible depository, subject to the following conditions:

  1. (a) Collateral securities committed to the pool shall have a face value at least equal to one hundred ten percent (110%) of all public moneys on deposit with the depository bank including the amount covered by Federal Deposit Insurance.

  2. (b) The collateral securities constituting the pool shall be segregated in a separate escrow account as described in Section 125.04.

  3. (c) If the eligible depository fails to pay over any part of the deposits due the Municipality the Director of Finance may request the trustee to deliver to the Director of Finance any of the collateral securities on deposit provided the value of the collateral securities delivered shall not exceed the amount necessary to produce an amount equal to Municipal deposits made and not paid over, less the portions of such deposits covered by Federal Deposit Insurance, plus any accrued interest due on the deposits; in any event, the value of such collateral securities shall not exceed the Municipality’s proportional interest in the face value of the pool as of the date of the eligible depository’s failure to pay over the deposits. The Director of Finance shall have the option to sell the collateral securities in such manner as determined by the Director of Finance. Any surplus remaining after deducting the amount due the Municipality and expenses of the sale shall be paid to the trustee.

  4. (d) Within thirty days of the end of each calendar quarter, the Trustee shall provide a detailed statement setting forth the face value of all collateral securities pledged to the pool and the total of all public moneys on deposit with the eligible depository.

  5. (e) If at any time the face value of the pool is less than one hundred ten percent (110%) of all deposits of public moneys held by the eligible depository, the eligible depository shall immediately add collateral securities to the pool sufficient to bring the face value of the pool to at least one hundred ten percent (110%) of all public moneys on deposit with the eligible depository.

  6. (f) Failure of the eligible depository to abide by any of the provisions of this section shall be cause for its immediate suspension as an eligible depository for any public moneys.

    Collateral securities held in a pooled escrow account may be substituted and exchanged in the same manner as described in Section 125.04.
    (Ord. 1986-46. Passed 10-28-86.)

125.07   Investment objectives

The achievement of good fiscal management for the Municipality requires effective cash management of public moneys, and in turn, effective bank management practices with respect to the investment and deposit of these public moneys. The following investment and deposit objectives shall be applied in the management of public moneys:

  1. (a) The primary objective of the Municipality’s investment activities is the preservation of capital and the protection of investment principal.

  2. (b) Those responsible for investing public moneys shall strive to maximize the return on the investments but shall avoid assuming unreasonable investment risks.

  3. (c) The Municipality’s investments shall remain sufficiently liquid to enable the Municipality to meet operating requirements that might reasonably be anticipated.

  4. (d) The Municipality’s investments shall be diversified to avoid the assumption of unreasonable and avoidable risks associated with specific types of securities or individual financial institutions. To the extent practicable, of the public moneys, no more than fifty percent (50%) shall be invested in repurchase agreements, nor more than fifty percent (50%) with any one eligible depository.

  5. (e) 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 derived.

  6. (f) Price and rate quotations for all investments may be obtained from eligible depositories designated pursuant to Section 125.02 within the Municipality or the County; provided, however, in the case of the sale or purchase of investments where all other factors considered by the Director of Finance are equal, placement shall be made with the designated eligible depository situated within the Municipality. The right is reserved to reject all bids or proposals or any bid if such is inconsistent with the Municipality’s investment objectives.
    (Ord. 1986-46. Passed 10-28-86.)

125.08   Investments

  1. (a) All public moneys of the Municipality not deposited in active deposits or kept as a cash reserve as may be prescribed by the Director of Finance shall be invested by the Director of Finance or his designee in the investments described in subsection (b) hereof purchased only through or from eligible depositories designated pursuant to Section 125.02. To the extent possible, the Municipality’s investments shall be made so as to complement its anticipated cash flow requirements. Unless matched to a specific cash flow requirement, the Director of Finance shall not make investments maturing more than one year from the date of purchase. The Director of Finance is authorized to pool cash balances from the several funds of the Municipality for investment purposes.

  2. (b) The Director of Finance or his designee may invest in any of the following classifications of obligations which are hereby determined to be eligible for investment:

    1. (1) Bonds, notes of other obligations of or guaranteed by the United States or those for which the faith of the United States, is pledged for the payment of principal and interest thereon.

    2. (2) Bonds, notes, debentures or other obligations or securities issued by any Federal Government agency or the Export-Import Bank of Washington;

    3. (3) Discount notes of the Federal National Mortgage Association and bonds issued by the Homeowners’ Loan Corporation as defined in Ohio R.C. 731.56;

    4. (4) Bonds and notes of the State;

    5. (5) Bonds and notes of any Municipal corporation, including the Municipal, County, Township or other political subdivisions of this State as to which there is no default of principal, interest or coupons;

    6. (6) The Director of Finance or his designee may enter into a repurchase agreement with any designated eligible depository mentioned in Ohio R.C. 135.03, if, and only if, under the terms of which agreement the Director of Finance or his designee purchases for the Municipality and such institution agrees unconditionally to repurchase within a period of thirty days securities that are direct obligations of, or are fully guaranteed as to principal and interest by, the United States government or agencies thereof that will mature or are redeemable within five years from the date of purchase;

    7. (7) A certificate of deposit of eligible depositories which may provide, and if so, shall be shown on its face, that the amount of such deposit is payable upon written notice a specified period before the date of the repayment maturity;

    8. (8) Insured deposit accounts in eligible depositories paying interest at a rate greater than the interest rate paid on the Municipality’s active deposits, provided that such investments shall be approved in writing by the Director of Finance and Director of Law and that such approval by the Director of Finance and Director of Law shall also include approval of the insurance provided to secure and protect the Municipality’s ability to recover the principal deposited in such deposit account.

  3. (c) The Director of Finance or his designee may sell any securities, obligations or certificates of deposit or close any accounts held as investments for cash and for a sum not less than their current market price.

  4. (d) The Director of Finance and his designees, the Mayor, the Director of Law and the members of Council shall not be held accountable or personally liable for any loss occasioned by the sale of securities, obligations or certificates of deposit or by the closing of insured deposit accounts authorized pursuant to subsection (c) hereof at prices lower than their cost or balance. Any loss or expense in making such sales or closings shall be payable as other expenses of the Municipality.

  5. (e) Investments authorized by subsection (b) hereof shall not be made at a price in excess of the current market price. The members of Council, the Mayor, the Director of Law and the Director of Finance and his designees, shall not be personally liable for or with respect to the purchase of securities, obligations or certificates of deposit or the deposit of public moneys in insured deposit accounts authorized as investments pursuant to subsection (b) hereof and the members of Council, the Mayor and the Director of Law shall not be personally liable for any unauthorized deposit or investment by the Director of Finance or his designee.

  6. (f) If any securities, obligations or certificates of deposit 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 Director of Finance and the title of his office shall be so designated. If any such securities, obligations or certificates of deposit 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.

  7. (g) All securities, obligations or certificates of deposit acquired by the Director of Finance under this section shall be kept by him 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 Director of Finance or a person duly authorized as the Acting Director of Finance in the presence of one or more of the Director of Finance, Director of Law or Mayor or persons duly authorized as Acting Directors of Finance or Law or Acting Mayor. The warrant or order to open such safety deposit box or vault shall direct the deposit or removal of such securities, obligations or certificates of deposit, clipping of coupons or other official business reasons for opening the box or vault. A report of what is placed in, removed from or other official business conducted, shall on the same day of the opening of the box or vault, be signed by the officer witnessing such opening and the Director of Finance, and such report shall be retained by the Director of Finance.

    In lieu of such custody, the Director of Finance may deposit such securities, obligations or certificates of deposit with a qualified trustee as set forth in Ohio R.C. 135.18(I) or 135.181(F).

    Notwithstanding the two preceding paragraphs, the Director of Finance is not required to take custody or provide for the deposit of securities acquired under a repurchase agreement.

  8. (h) Upon the expiration of the term of office of the Director of Finance or in the event of a vacancy in the office of the Director of Finance by reason of death, resignation, removal from office or otherwise, the Director of Finance or his legal representative shall transfer and deliver to his successor all securities, obligations and certificates of deposit held by him. For the securities, obligations and certificates of deposit so transferred and delivered, such Director of Finance shall be credited with and his successor shall be charged with the amount of money invested in such securities, obligations and certificates of deposit.

  9. (i) Whenever securities, obligations or certificates of deposit acquired under this section mature and become due and payable, the Director of Finance shall present them for payment according to their tenor, and shall collect the moneys payable thereon. The moneys so collected shall be treated as public moneys subject to the provisions of this chapter.

  10. (j) The Director of Finance or his designee shall maintain accounts in which he shall make appropriate entries of all transactions relating to the investment of Treasury funds. The Director of Finance or his designee shall keep a record of the number and maturity of interest coupons on instruments in which the Municipality has invested.

  11. (k) The Director of Finance shall, upon request of the Mayor or Council, provide periodic reports in such detail as required by Council or the Mayor of all investments purchased, sold and held.

  12. (l) Interest earned on any investments, authorized by this section, shall be collected by the Director of Finance and credited by him to the proper fund of the Municipality as required by law.

  13. (m) In addition to investments as provided in this chapter, the Director of Finance may invest in bonds, notes or other obligations of the Municipality, including those issued pursuant to Ohio R.C. 725.01 to 725.11, at a price, rate, maturity or other terms as determined by the Director of Finance.
    (Ord. 1986-46. Passed 10-28-86.)

125.09   Miscellaneous provisions

  1. (a) The Director of Finance and his designees, the Mayor, the Director of Law and members of Council and their bondsmen or sureties shall be relieved from any liability for the loss of any public moneys deposited or invested pursuant to and in compliance with this Chapter 125, including but not limited to, losses occasioned by the failure of any depository.

  2. (b) Ohio R.C. 731.55 shall be applicable to the Municipality and the insurance authorized by such section may be procured by the Director of Finance and the costs of such insurance shall be paid by the Municipality.
    (Ord. 1986-46. Passed 10-28-86.)

125.10   Bonds

(Editor’s note: Former Section 125.10 was repealed by Ordinance 1989-59, passed September 11, 1989.)

125.11   Sale of ordinances, codes, reports, etc

The following charges shall be made by the Director of Finance for the items herein listed:

   
Complete Codified Ordinances $150.00
Annual replacement pages for Codified Ordinances 25.00 per year
Zoning Code 75.00
Annual replacement pages for Zoning Code 15.00 per year
Zoning Map 2.00
Copies of Police or Fire Reports (per page) .05
Photographs (each print - sold in complete sets only) 5.00
Enlarged photographs (each print - sold in complete sets only) 15.00
Miscellaneous copies (per page) .05

(Ord. 1997-6. Passed 1-13-97; Ord. 2005-28. Passed 6-13-05.)

125.12   Fee for appeal, rezoning and/or variance requests

Upon the filing of an application for appeal, rezoning and/or variance, the applicant shall pay a minimum fee of one hundred dollars ($100.00) to the Director of Finance. In addition to the above fee, every applicant for rezoning shall deposit a minimum additional sum of seven hundred fifty dollars ($750.00) with the Director of Finance to cover the estimated administrative and election costs.

The minimum fees established herein are in addition to any other deposits on fees required under Section 1109.08 of the Planning and Zoning Code for professional services.

Upon final disposition of the application, the balance remaining shall be returned to the applicant. Any additional amounts due to the Municipality beyond the amount of the deposit shall be immediately paid by the applicant upon receiving an invoice from the Municipality.
(Ord. 1983-41. Passed 11-28-83; Ord. 1990-79. Passed 10-8-90; Ord. 2005-35. Passed 6-13- 05.)

125.13   Ambulance fees

  1. (a) The Director of Finance is hereby authorized and directed to cause the billing of recipients of ambulance service commencing June 13, 2005, within the Village upon the following basis:

       
    Basic life support $350.00 base rate
    plus $6.00 per mile

    (Basic life support is a unit in compliance with state emergency medical standards)

       
    Advance life support $500.00 flat fee

    (Advance life support to mean cardiac monitoring, anti-shock trousers, cardiac defibrillation, establishing an airway, relieving pneumothorax, and administering drugs.)

  2. (b) The Village reserves the right to change these charges at any time in the future. Such charges shall cover transportation, unless otherwise stated, from the emergency site to the nearest appropriate hospital and/or emergency facility.
    (Ord. 1993-25. Passed 3-8-93; Ord. 2005-43. Passed 7-11-05.)

125.14   Fire/burglar alarm monitoring fees

The Mayor and the Director of Finance are hereby authorized to enter into agreements with all persons outside the corporate limits of the Village who desire to have monitoring of police or fire alarm warning systems who shall be charged a service fee of thirty dollars ($30.00) per month. All persons who fail to enter into an agreement with the Village for the increased service charge, and who are already under agreement with the Village, or, who are delinquent in payment thereof for more than thirty days, shall be terminated from the service. The Village reserves the right to change these charges at anytime in the future.
(Ord. 1990-83. Passed 10-8-90; Ord. 2005-28. Passed 6-13-05.)

125.15   Funds to be retained by village

Upon entry into a contract for any municipal improvement, all funds retained by the Village for the faithful performance of work shall be held along with all interest earned thereon, by the Village in any account or investment as determined by the Director of Finance pursuant to the powers vested in him by this chapter. Any interest or dividends earned shall become the sole and exclusive property of the Village.
(Ord. 1991-6. Passed 2-11-91.)

125.16   Petty cash and change drawer funds

There is hereby created a petty cash fund and change drawer fund in the Finance Department and Police Department. The Finance Director is hereby authorized and directed to issue rules and regulations regarding the use of such funds, including disbursement from such funds, and shall provide for proper record keeping and auditing of such funds.
(Ord. 2009-07. Passed 1-26-09.)

125.17   Unclaimed monies agency fund and transfer of unclaimed monies to the general fund

  1. (a) The Director of Finance is authorized and directed to create and establish a restricted fund for unclaimed money, the Unclaimed Monies Agency Fund. The Unclaimed Monies Agency Fund shall be for the purpose of receiving, accounting, and disbursing unclaimed money.

  2. (b) Unclaimed money includes checks which are issued by the Village and are not negotiated for a period of at least ninety (90) days after issuance. Unclaimed money does not include deposits and cash bonds that are deposited with the Village and maintained in a separate restricted account.

  3. (c) The Unclaimed Monies Agency Fund shall retain unclaimed money for a period of five years from the date the unclaimed money is placed in the Unclaimed Monies Agency Fund. The Director of Finance, provided that the unclaimed money is not claimed by the lawful owner within five years from the date of deposit in the Unclaimed Monies Agency Fund, is authorized and directed to transfer such funds to the General Fund.
    (Ord. 2011-04. Passed 1-10-11.)

125.18   Transfer of unclaimed deposits to the general fund

The Director of Finance is authorized and directed to transfer to the General Fund any funds, including cash bonds, deposited with the Village in accordance with the ordinances, rules and regulations, or requirements of the Village for administrative costs, building permits costs, construction deposits, inspection deposits, deposits to cover repairs to municipal property and any other un-refunded deposits or funds that are not claimed by a lawful owner within five years from the date of deposit, and provided that the funds are no longer subject to being used by the Village for the purpose for which they were deposited.
(Ord. 2011-04. Passed 1-10-11.)