This investment policy applies to all moneys and other financial
resources available for investment on the Village's own behalf
or on behalf of any other entity or individual.
The primary objectives of the Village's investment activities
are, in priority order:
A. To conform to all applicable federal, state and other legal requirements
(legal);
B. To adequately safeguard principal (safety);
C. To provide sufficient liquidity to meet all operating requirements
(liquidity); and
D. To obtain a reasonable rate of return (yield).
[Amended 10-21-2019 by L.L. No. 3-2019]
The Village Board's responsibility for administration of
the investment program is delegated to the Treasurer, who shall establish
written procedures for the operation of the investment program consistent
with these investment guidelines, which procedures shall be approved
by the Board of Trustees. Such procedures shall include an adequate
internal control structure to provide a satisfactory level of accountability,
based on a database of records incorporating the description and amounts
of investments, transaction dates and other relevant information,
and to regulate the activities of subordinate employees.
[Amended 10-21-2019 by L.L. No. 3-2019]
It is the policy of the Village to diversify its deposits and
investments as directed by the Board of Trustees among financial institutions,
investment instruments and maturity scheduling.
The Board of Trustees, by resolution, may from time to time
designate banks and trust companies that are authorized to accept
deposit of moneys from the Treasurer up to a designated maximum amount
established by the Board of Trustees.
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Village, including certificates of deposit and
special time deposits, in excess of the amount insured under the provisions
of the Federal Deposit Insurance Act shall be secured:
A. By a pledge of eligible securities with an aggregate market value,
as provided by General Municipal Law § 10, equal to the
aggregate amount of deposits from the categories designated in Appendix
A to this policy.
B. By an eligible, irrevocable letter of credit issued by a qualified
bank, other than the bank with the deposits, in favor of the Village
for a term to be deemed by the Board of Trustees with an aggregate
value equal to 100% of the aggregate amount of deposits. A qualified
bank, designated by the Board of Trustees, is one whose commercial
paper and other unsecured short-term debt obligations are rated in
the highest rating category by at least one nationally recognized
statistical rating organization, accept such letter of credit payable
to such local government for the payment of 105% of the aggregate
amount of public deposits from the Treasury and the agreed upon interest.
[Amended 10-21-2019 by L.L. No. 3-2019]
C. By an eligible surety bond payable to the Village for an amount at
least equal to 100% of the aggregate amount of deposits and the agreed-upon
interest, if any, executed by an insurance company authorized to do
business in New York State whose claims-paying ability is rated in
the highest rating category by at least two nationally recognized
statistical rating organizations.
The Village shall maintain a list of financial institutions
and dealers approved for investment purposes and establish appropriate
limits to the amount of investments which can be made with each financial
institution or dealer. All financial institutions with which the Village
conducts business must be creditworthy. Banks shall provide their
most recent consolidated report of condition (call report) at the
request of the Village. Security dealers not affiliated with a bank
shall be required to be classified as reporting dealers affiliated
with the New York Federal Reserve Bank as primary dealers. The Treasurer
is responsible for evaluating the financial position and maintaining
a listing of proposed depositories, trading partners and custodians.
Such listing shall be evaluated at least annually.
Repurchase agreements are authorized subject to the following
restrictions:
A. All repurchase agreements must be entered into subject to a master
repurchase agreement.
B. Trading partners are limited to banks or trust companies authorized
to do business in New York State and primary reporting dealers.
C. Obligations shall be limited to obligations of the United States
of America and obligations guaranteed by agencies of the United States
of America.
D. No substitution of securities will be allowed.
E. The custodian shall be a party other than the trading partner.
[Added 10-21-2019 by L.L.
No. 3-2019]
From time to time, the Board of Trustees on resolution may amend requirements, investments, procedures and other administrative matters as permitted by law as it sets forth in Chapter
25, which it deems in the best interest of the Village and in furtherance of the objectives of Chapter
25.