The objectives of the investment policy of the Town of Chatham are to
minimize risk, to ensure that investments mature when the cash is required
to finance operations and to ensure a competitive rate of return.
In accordance with this policy, the Supervisor is hereby authorized
to invest all funds, including proceeds of obligations and reserve funds,
in:
A. Certificates of deposit issued by a bank or trust company
authorized to do business in New York State.
B. Time deposit accounts in a bank or trust company authorized
to do business in New York State.
All other town officials receiving money in their official capacity
must deposit such funds in interest-bearing checking accounts.
All investments made pursuant to this investment policy shall comply
with the following conditions for collateral: all funds shall be fully secured
by insurance of the Federal Deposit Insurance Corporation, or by obligations
of New York State, or obligations of the United States, or obligations of
federal agencies, the principal and interest of which are guaranteed by the
United States, or obligations of New York State local governments. Collateral
shall be delivered to the town or a custodial bank with which the town has
entered into a custodial agreement. The market value of collateral shall at
all times equal or exceed the total amount of town funds on deposit. Collateral
shall be monitored quarterly to ensure its sufficiency.
The Supervisor shall maintain a cash flow statement to help in determining
amounts that may be put in certificates of deposit and for what periods of
time.
The Supervisor shall strive to obtain the best rate of return for the
town by investigating current interest rates at banks within reasonable distance
of the Town of Chatham.
Within 30 days of the end of each of the first three quarters of the
fiscal year, the Supervisor shall prepare and submit to the Town Board a quarterly
investment report which indicates new investments, the inventory of existing
investments and such other matters as the Supervisor deems appropriate.
Within 60 days of the end of the fiscal year, the Supervisor shall prepare
and submit to the Town Board an annual investment report, recommendations
for change in these investment guidelines, the investment income record and
any other matters that the Supervisor deems appropriate.
The Town Board shall review and approve the annual investment report
after receiving it from the Supervisor. At this time they shall also review
and amend, if necessary, these investment guidelines.