Investment FAQ
The Lucas County Treasurer's Office has received public questions about the county's investment in foreign sovereign bonds, including an Israel bond that matures in December 2026. This FAQ explains the Treasurer's legal responsibilities, the role of the Investment Advisory Committee (visit the IAC page here), and guidance provided by Ohio Attorney General Opinion No. 2026-004.
Community members may call or text:
419-574-5822
All calls and text messages to this line will be received by staff, and IAC Chair Lindsay Webb will be personally notified of each communication. While we cannot guarantee a response to every inquiry, all messages will be reviewed. We appreciate your engagement and interest in the work of the Investment Advisory Committee.
What is the Treasurer's Office's current guidance on bond maturities from October 1 through year-end?
Due to the County's broader cash-flow and liquidity needs, beginning October 1, 2026, the Lucas County Treasurer's Office will not reinvest proceeds from bonds as they mature.
This applies to all bonds in the County's investment portfolio, including Israel Bonds. Put plainly, when the County's current Israel bond matures in December 2026, the proceeds will not be reinvested in another Israel bond.
What does "proceeds from bonds" mean?
As a point of clarification, proceeds from bonds means the bond's face, or par, value plus any final interest earned.
Both the par value and the interest earned from any bond maturities during the period from October 1, 2026 through year-end will not be reinvested.
Why is the Treasurer's Office receiving questions about Israel bonds?
Lucas County currently holds an Israel bond that matures in December 2026. Some residents have asked the Treasurer's Office to state whether those funds will be reinvested when the bond matures.
The Treasurer's Office understands that residents have strong views on this issue. County investment decisions, however, must be made under Ohio law and based on the County's fiduciary responsibility to safeguard public funds.
Has a decision been made about reinvesting when the Israel bond matures?
Yes. Because of the County's broader cash-flow and liquidity needs, proceeds from bonds maturing from October 1, 2026 through year-end will not be reinvested. This includes the County's current Israel bond that matures in December 2026.
The decision applies to all bonds maturing during that period. It is based on liquidity needs and the Treasurer's responsibility to ensure sufficient public funds are available to meet the County's financial obligations.
Why is the Treasurer's Office not reinvesting these bond proceeds?
The decision is based on the County's broader cash-flow and liquidity needs. When bonds mature between October 1, 2026 and year-end, both the bond's par value and any final interest earned will be available for County liquidity needs rather than being reinvested.
The Treasurer's Office will continue to manage public funds in accordance with Ohio law and its fiduciary responsibilities, with appropriate consideration given to safety, liquidity, yield, credit quality, diversification, and the County's cash-flow requirements.
Is this decision limited to Israel Bonds?
No. The October 1, 2026 guidance applies to all bonds in the County's investment portfolio that mature from October 1 through year-end. It is not limited to Israel Bonds.
When the County's current Israel bond matures in December 2026, its par value and any final interest earned will not be reinvested in another Israel bond.
What does Ohio law require when county funds are invested?
Ohio law requires county investment decisions to prioritize the protection of public funds and the best and safest return available to the county. The Attorney General's 2026 opinion explains that county investment policies must be designed to ensure the best and safest return and that investment decisions must not be made with the primary purpose of influencing environmental, social, personal, or ideological policy.
In practical terms, that means the Treasurer's Office must evaluate investments based on financial and legal criteria, including safety, liquidity, yield, maturity, diversification, marketability, credit quality, and compliance with Ohio Revised Code Chapter 135.
Can public concern or community opinion determine the investment decision?
Public input matters and is welcome. However, Ohio law requires county investment decisions to be made based on lawful financial and fiduciary considerations.
The Treasurer's Office cannot make investment decisions primarily to advance or oppose a political, ideological, personal, social, or foreign-policy position. Public comments will be reviewed, but the final investment decision must be based on the County's legal and fiduciary responsibilities.
Are Ohio counties allowed to invest in foreign sovereign bonds?
Yes. The Ohio Attorney General concluded that R.C. 135.35(A)(10) permits counties to invest in the sovereign debt of any foreign nation that satisfies the statutory criteria; the statute is not limited to Israel bonds.
To qualify, foreign sovereign debt must meet statutory requirements, including rating requirements, U.S. dollar payment, diplomatic recognition by the United States, full faith and credit backing of the foreign nation, no prior history of default, and a maturity of not more than five years after purchase. Foreign sovereign debt investments are also capped at two percent of the county's average portfolio.
Does Ohio law require Lucas County to invest in foreign sovereign bonds?
No. Ohio law permits certain foreign sovereign bonds if they meet statutory criteria, but it does not require the County to purchase or reinvest in them.
The Treasurer's Office evaluates eligible investments based on safety, liquidity, yield, diversification, and compliance with Ohio law.
Does Lucas County invest only in Israel bonds when it invests in foreign sovereign debt?
No. In March 2026, Lucas County invested $1 million in Canada bonds. Canada has a higher sovereign credit rating than the United States, and the investment demonstrates that foreign sovereign bond eligibility under Ohio law is not limited to Israel.
The Treasurer's Office evaluates eligible investments based on Ohio law, market conditions, credit quality, yield, liquidity, diversification, and the County's portfolio needs.
How does the Treasurer's Office consider credit rating changes or downgrades?
Credit ratings are an important factor in evaluating any investment. Ohio law requires certain foreign sovereign debt to meet specific rating requirements at the time of purchase.
For bond maturities from October 1, 2026 through year-end, the Treasurer's Office has determined that the proceeds will not be reinvested because of broader County cash-flow and liquidity needs. More generally, when the Treasurer's Office evaluates investments, it reviews then-current credit ratings, market conditions, yield, liquidity needs, and available alternatives.
Did the Attorney General say counties must reinvest in Israel bonds?
No. The Attorney General did not say that a county must reinvest in Israel bonds. The opinion says that a decision not to reinvest must be based on a bona fide economic rationale, not ideology or a desire to influence foreign policy.
The Treasurer's Office's current guidance is based on broader County cash-flow and liquidity needs and applies to all bonds in the County's investment portfolio that mature from October 1, 2026 through year-end.
Can the Investment Advisory Committee recommend against foreign sovereign bonds?
The Investment Advisory Committee may review, advise, and adopt investment policies, but those policies must comply with Ohio law. The Attorney General concluded that an investment advisory committee may limit investments otherwise authorized by R.C. 135.35 only if the policy is designed to ensure the best and safest return of county funds.
A policy or recommendation cannot be primarily designed to influence political, ideological, personal, social, environmental, or foreign-policy outcomes. The Attorney General specifically stated that a policy principally designed to influence foreign affairs, including conflicts in the Middle East, would violate Ohio law.
Is the Treasurer bound by the Investment Advisory Committee's recommendation?
Ordinarily, a county treasurer follows investment policies adopted by the Investment Advisory Committee. However, the Attorney General concluded that a treasurer is not bound to follow a policy that has the primary purpose of influencing environmental, social, personal, or ideological policy.
The Treasurer's Office must comply with state law and fiduciary duties to the public. If a policy or recommendation is unlawful or outside the committee's authority, the Treasurer may not be required to follow it.
Could the Treasurer's investment authority be removed for not following an unlawful policy?
The Attorney General concluded that county commissioners lack authority to remove a county treasurer's investment authority when the treasurer refuses to follow an Investment Advisory Committee policy that is unlawful or beyond the committee's legal authority.
Does Ohio's anti-boycott law apply directly to the county's investment decision?
The Attorney General concluded that R.C. 9.76, Ohio's anti-boycott statute, does not directly apply to a county's non-reinvestment decision because that statute concerns state agencies and procurement contracts.
However, the opinion also explains that actions constituting a boycott under R.C. 9.76 would also violate R.C. 135.35(O) if the investment decision were based primarily on ideological reasons.
In other words, the key legal issue is not whether the County must hold a particular bond. The key issue is whether the County's investment decision is based on lawful financial and fiduciary considerations rather than a political or ideological purpose.
What factors are considered when bond proceeds are not reinvested?
When bond proceeds are not reinvested, the Treasurer's Office considers lawful financial and fiduciary factors including:
- Cash-flow and liquidity needs of the County
- Safety of principal
- Yield and available market alternatives
- Credit ratings at the time of purchase
- Maturity limits under Ohio law
- Diversification of the county portfolio
- Marketability of the investment
- Compliance with Ohio Revised Code Chapter 135
- The County's investment policy and fiduciary duties
The Attorney General's opinion emphasizes that county investment decisions must be supported by bona fide economic reasons and must not use economic justifications as a pretext for ideological decision-making.
How can residents share their views?
Residents may contact the Treasurer's Office at 419-574-5822. Public input is welcome. At the same time, we hope everyone understands the final investment decision must be made under Ohio law and the Treasurer's fiduciary obligation to protect public funds.
Where can I read the Attorney General opinion?
The Attorney General issued Opinion No. 2026-004 on May 8, 2026, in response to questions submitted by the Lucas County Prosecuting Attorney. The questions addressed foreign sovereign debt, the authority of the Investment Advisory Committee, the Treasurer's responsibilities, and the relationship between county investment decisions and Ohio's anti-boycott law.