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 11-19-2019 by L.L. No. 4-2019]
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 11-19-2019 by L.L. No. 4-2019]
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.
[Amended 11-19-2019 by L.L. No. 4-2019]
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 is a Federal Home Loan Bank, 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 11-19-2019 by L.L. No. 4-2019]
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 credit worthy. 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 Unites States of America.
D. No substitution of securities will be allowed.
E. The custodian shall be a party other than the trading
partner.
[Added 11-19-2019 by L.L.
No. 4-2019]
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
83, which it deems in the best interest of the Village and in furtherance of the objectives of Chapter
83.