This investment policy applies to all moneys and other financial resources
available for investment on its own behalf or on behalf of any other entity
or individual.
The primary objectives of the local government'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.
The governing board's responsibility for administration of the
investment program is delegated to the Chief Fiscal Officer who 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 the village to diversify its deposits and investments
by financial institution, by investment instrument and by maturity scheduling.
The bank authorized for the deposit of moneys up to the following maximum
amounts is:
Depository Name
|
Maximum Amount
|
Officer
|
Fleet Bank
|
$4,000,000
|
Vice President, Municipal Finance
|
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, or 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 the government
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.
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 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 local government 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 Chief Fiscal Officer 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.