[HISTORY: Adopted by the Town Board of the Town of Milan 5-11-1987.
Amendments noted where applicable.]
This chapter shall be known as the "Investment Policy of the Town of
Milan" and shall be amended from time to time by the Town Board.
The purpose of this chapter is to provide for the sound investment of
Town funds to include safety, liquidity and yield. With regard to safety and
liquidity, the laws governing the investment of public funds are in place
to assure these objectives. Statutes are explicit as to the kind and security
of investments. The yield will be influenced by the length of time cash is
available for investment and the type(s) of investment selected.
The official(s) authorized to make investment transactions shall be
the Town Supervisor or, in his/her absence as provided by law, the Deputy
Town Supervisor.
The initial step in the investment program shall be the forecasting
and projection of the cash that will be available for investment. To make
a comprehensive determination, projections will be made as to the flow of
cash in and out of the various Town funds, and to analyze bank statements
periodically to measure the normal high/low trends in cash balances. The pattern
of receipts and payments will be studied from past accounting records, and
cash balances at the end of each month will be considered.
Permissible types of investments shall be those recommended and approved
by the New York State Comptroller and/or law.
The official bank(s) of the Town shall be required to transfer securities
to be held as collateral to secure Town funds on deposit that are in excess
of Federal Insurance Corporation coverage to a third party custodial bank.[1]
The Town Supervisor shall maintain a record of all investments. Such
record shall identify the security, the fund(s) for which held, the place
where held and pertinent data relative to the acquisition and redemption of
same. An accounting shall be made to the Town Board periodically or whenever
requested by the Town Board.
A committee of Town Board members shall be appointed, to include the
Town Supervisor, to be designated the "Investment Committee" and to review
investment decisions.
The following practices or policies shall not be authorized or permitted:
