The investment policy applies to all moneys
and other financial resources available for investment on behalf of
Putnam County or entrusted to Putnam County in a fiduciary capacity.
The primary objectives of the Putnam County's
investment activities are, in priority order:
A. To conform with 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).
D. To obtain a reasonable rate of return (yield).
The administration of the investment program is delegated to the Commissioner of Finance, pursuant to §
4.02(a) of the Putnam County Charter. The Commissioner of Finance shall establish written procedures for the operation of the investment program consistent with these investment guidelines. Such procedures shall include an adequate internal control structure to provide a satisfactory level of accountability based on a data base or records incorporating description and amounts of investments, transaction dates and other relevant information and regulate the activities of subordinate employees.
It is the policy of Putnam County for all moneys
collected by any officer or employee of Putnam County government to
transfer those funds to the Commissioner of Finance on his/her demand.
The Commissioner of Finance is responsible for establishing and maintaining
an internal control structure to provide reasonable, but not absolute,
assurance that deposits and investments are safeguarded against loss
from unauthorized use or disposition, that transactions are executed
in accordance with management's authorization and recorded properly
and are managed in compliance with applicable laws and regulations.
[Amended 7-5-2000 by L.L. No. 8-2000; 8-1-2000 by L.L. No. 12-2000; 8-7-2001 by L.L. No. 14-2001; 2-4-2003 by L.L. No. 11-2003; 2-3-2009 by L.L. No.
5-2009; 10-6-2009 by L.L. No. 17-2009; 12-28-2009 by L.L. No.
23-2009; 4-8-2015 by L.L. No. 5-2015; 2-3-2016 by L.L. No. 4-2016; 7-5-2017 by L.L. No. 7-2017; 4-2-2019 by L.L. No. 7-2019; 10-6-2020 by L.L. No. 4-2020; 8-3-2021 by L.L. No. 6-2021; 4-4-2023 by L.L. No. 5-2023]
The banks and trust companies authorized for
the deposit of monies up to the maximum amounts are:
Depository Name
|
Maximum Amount
|
---|
JP Morgan Chase Bank NA
|
$40,000,000
|
Key Bank
|
$40,000,000
|
M&T Bank
|
$40,000,000
|
Putnam County National Bank
|
$20,000,000
|
PCSB Commercial Bank subsidiary of PCSB
|
$40,000,000
|
TD Bank
|
$50,000,000
|
Tompkins Mahopac National Bank
|
$30,000,000
|
Webster
|
$40,000,000
|
In accordance with the provisions of General
Municipal Law § 10, all deposits of Putnam County, 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 the policy;
B. By an eligible irrevocable letter of credit issued
by a qualified bank other than the bank with the deposits in favor
of Putnam County for a term not to exceed 90 days with an aggregate
value equal to 140% of the aggregate amount of deposits and the agreed
upon interest, if any. A qualified bank is one whose commercial paper
and other unsecured short-term debt obligations are rated in one of
the three highest rating categories by at least one nationally recognized
statistical rating organization or by a bank that is in compliance
with applicable federal minimum risk-based capital requirements; or
C. By an eligible surety bond payable to the government
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 County of Putnam 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 that conduct business with Putnam County must be creditworthy.
Banks shall provide their most recent consolidated report of condition
(call report) and/or their most recent consolidated financial statements
at the request of the Commissioner of Finance. 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 Commissioner of Finance is responsible for evaluating
the financial position and maintaining a listing of proposed depositories,
trading partners and custodians. such listing shall be evaluated on
an annual basis or as warranted by changing economic conditions.
The Commissioner of Finance, within 30 days
of the end of each quarter in the County fiscal year, shall submit
to the Audit and Administration Committee of the Putnam County Legislature,
a quarterly report on the County's investments and deposits. This
report shall contain information to the amounts and terms of each
investment and deposit, total interest revenue earned to date and
a comparison to the prior year.
The Investment and Deposit Committee shall consist
of the County Executive, Chairman of the Legislature, Chairman of
the Audit and Administration Committee, County Auditor, Commissioner
of Finance and County Attorney. The Commissioner of Finance shall
serve as Chairman of this Committee, and is authorized to convene
meetings of this Committee in order to examine changes in this policy.