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Finance staff transfers $4 million from Star Ohio to Fifth Third securities to lock gains
Summary
Sunbury finance staff told the finance committee on March 18 that declining overnight Star Ohio rates prompted a $4 million transfer into laddered Fifth Third securities to secure earlier gains and pursue longer‑term returns; no council action was required.
Miss Stefan, who presented the investment update to the finance committee on March 18, said staff transferred $4 million from Star Ohio into Fifth Third securities earlier in March to ‘capture the gains that we've earned and secure those’ as overnight yields fell.
Stefan told the committee that Star Ohio had outperformed other City investments during 2024–25 while Federal Reserve‑linked overnight rates were high, but that Star Ohio yields have recently declined. “Earlier this month what I've done is I've transferred $4 million from Star Ohio and put it into the Fifth Third securities investment account,” she said, explaining laddered securities typically have three‑month to five‑year maturities and can include treasury bills, money markets and commercial paper.
Stefan said the city’s investment activity is governed by the Ohio Revised Code and that staff designed the shift to reinvest realized interest and pursue higher returns if longer‑term yields are favorable. She emphasized this was an administrative portfolio move and that no council action was required.
The committee asked for clarification about laddered securities and liquidity; Stefan reiterated that some funds remain in the operating account at First Commonwealth Bank for payroll and immediate obligations while the investment accounts are intended to grow the City’s reserves.
The committee took no formal action on the transfer; the minutes approving the Feb. 18 meeting were adopted earlier in the session.
