The provisions of this policy shall apply to all moneys of the
Town of Lowville raised or received from any source and in the custody
of Town officials.
The principal objectives of the Town in its management of Town
funds are to:
A. Comply with legal requirements relating to the manner of retention,
segregation, investment and use of those funds;
C. Ensure the accessibility of Town funds necessary to meet its financial
obligations as they arise;
D. Realize a reasonable return from the investment of funds not immediately
required to satisfy those obligations.
The permissible types of investment of Town funds shall be restricted
to savings accounts, money market accounts, special time deposit accounts
and certificates of deposit in or with banks or trust companies designated
by the Town Board.
The following banks or trust companies shall be the exclusive
depositories of Town funds, in invested or uninvested form, and the
aggregate of Town deposits in each is not subject to any maximum limit:
To the extent that Town deposits with any bank or trust company
exceed insured limits under the Federal Deposit Insurance Act, those
deposits shall be secured by the depository's pledge to the Town
of eligible securities having a value at least equivalent to that
excess, to be held on the Town's behalf by a custodial bank other
than the depository. The securities themselves, and the related security
and custodial agreements, shall conform in all respects with the requirements
of § 10 of New York's General Municipal Law.
The Town Tax Collector shall have the authority to establish
and maintain, on the Town's behalf, a checking account with a
designated depository bank for the timely, temporary deposit of Town
real estate tax revenues. The Tax Collector shall transfer those revenues
from that account into the control of the Town Supervisor no less
frequently than at two-week intervals.
The Town Supervisor shall have the authority and responsibility
to:
A. Deposit, and where appropriate invest and transfer, Town funds in
a manner consistent with the aforestated policies and objectives;
B. Periodically monitor the status of Town bank deposits and the collateral,
if any, acting as security for those deposits, in order to ensure
compliance with the aforestated policies and objectives and to safeguard
against unauthorized access or use of Town funds;
C. Maintain complete and current records of all transactions involving
Town funds coming into his control;
D. Review, approve, and execute on the Town's behalf agreements
relating to the creation and terms of the Town's individual accounts
with banks and trust companies, including security and custodial agreements
where applicable;
E. Furnish the Town Board with investment and bank account activity
reports on request, provide the Board with an annual investment report,
and advise the Board promptly of any suspected abuse or violation
of this policy.
[Added 12-29-2011 by Res. No. 36-2011]
It is the policy of the Town of Lowville to diversify its deposits
and investments by financial institution, by investment instrument,
and by maturity schedule.