Village of Cobleskill, NY
Schoharie County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Board of Trustees of the Village of Cobleskill 3-20-1995. Amendments noted where applicable.]
GENERAL REFERENCES
Code of Ethics — See Ch. 15.
This investment policy applies to all moneys and other financial resources available for investment by the Village of Cobleskill (hereinafter referred to as the "village") on behalf of the village or on behalf of any other entity or individual.
The primary objectives of the village's investment activities are, in priority order, to:
A. 
Conform to all applicable federal, state and other legal requirements (legal).
B. 
Adequately safeguard principal (safety).
C. 
Provide sufficient liquidity to meet all operating requirements (liquidity).
D. 
Obtain a reasonable rate of return (yield).
The responsibility of the Board of Trustees of the village (hereinafter referred to as the "Village Board," the "Board of Trustees" or "Board") for administration of the village's investment program is delegated to the Village Treasurer of the village (hereinafter referred to as the "Village Treasurer" or "Treasurer"), 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 to regulate the activities of subordinate employees.
A. 
All participants in the investment process shall seek to act responsibly as custodians of the public trust and shall avoid any transaction that might impair public confidence in the village to govern effectively.
B. 
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for investment, considering the safety of the principal as well as the probable income to be derived.
C. 
All participants involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions.
It is the policy of the village to diversify its deposits and investments by financial institution, investment instrument and maturity scheduling.
A. 
It is the policy of the village that no officer or employee of the village, other than those within the Village Court system and the Village Treasurer and designated staff of the Village Treasurer, shall collect any funds of the village.
B. 
The Village Treasurer 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.
The Board of Trustees shall designate annually at its organizational meeting of the Board, and at such other times as it may deem appropriate, the banks and trust companies authorized for the deposit of village moneys.
In accordance with § 10 of the State General Municipal Law, all deposits of the village, including certificates of deposit and special time deposits in excess of all amounts insured under provisions of the Federal Deposit Insurance Act, shall be secured by:
A. 
A pledge of eligible securities with an aggregate market value as provided pursuant to § 10, equal to the aggregate amount of deposits from the categories set forth in Appendix A[1] of this policy.
[1]
Editor's Note: Appendix A is on file in the village offices
B. 
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 not to exceed ninety (90) days with an aggregate value equal to one hundred forty percent (140%) of the aggregate amount of deposits and the agreed upon interest, if any. A qualified bank is one in which the bank's commercial paper and other unsecured short-term debt obligations are rated in one (1) of the three (3) highest rating categories by at least one (1) nationally recognized statistical rating organization or by a bank that is in compliance with applicable federal minimum risk-based capital requirements.
C. 
An eligible surety bond payable to the government for an amount equal to at least one hundred percent (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, such company to have claims-paying ability rated in the highest rating category by at least two (2) nationally recognized statistical rating organizations.
A. 
Eligible securities used for collateralizing deposits shall be held by the depository and/or a third-party bank or trust company subject to security and custodial agreements.
B. 
The security agreement shall provide that eligible securities are being pledged to secure local government deposits, together with agreed upon interest, if any, and any costs or expenses arising out of the collection of such deposits upon default. It also shall provide the conditions under which the securities may be sold, presented for payment, substituted or released and the events which will enable the village to exercise its rights against the pledged securities. In event that the securities are not registered or inscribed in the name of the village, such securities shall be delivered in a form suitable for transfer or with an assignment in blank to the village or its custodial bank.
C. 
The custodial agreement shall provide that securities held by the bank or trust company or agent of and custodian for the village will be kept separate and apart from the general assets of the custodial bank or trust company and will not, in any circumstances, be commingled with or becomes part of the backing for any other deposit or other liabilities. The agreement also should describe that the custodian shall confirm the receipt, substitution or release of the securities. The agreement shall provide for the frequency of revaluation of eligible securities and for the substitution of securities when a change in the rating of a security may cause ineligibility. Such agreement shall include all provisions necessary to provide the village a perfected interest in the securities.
A. 
The Village Board, pursuant to § 11 of the State General Municipal Law, authorizes the Village Treasurer to invest moneys not required for immediate expenditure for terms not to exceed the village's projected cash flow needs in the following investments:
(1) 
Special time deposit accounts.
(2) 
Certificates of deposit.
(3) 
Obligations of the United States of America.
(4) 
Obligations guaranteed by agencies of the United States of America where the payment of principal and interest are guaranteed by the United States of America.
(5) 
Obligations of the State of New York.
(6) 
Obligations issued, with approval of the State Comptroller, pursuant to §§ 24 and 25 of the State Local Finance Law, by any municipality, school district or district corporation other than the village.
(7) 
Obligations of public authorities, public housing authorities, urban renewal agencies and industrial development agencies where the general state statutes governing such entities or whose specific enabling legislation authorizes such investments.
(8) 
Certificates of participation (COP's) issued pursuant to § 109-b of the State General Municipal Law.
(9) 
Obligations of the village, but only with moneys in a reserve fund established pursuant to §§ 6-c, 6-d, 6-e, 6-g, 6-h, 6-j, 6-k, 6-m or 6-n of the State General Municipal Law.
B. 
All investment obligations shall be payable or redeemable at the option of the village within such times as the proceeds will be needed to meet expenditures for purposes for which the moneys were provided and, in the case of obligations purchased with the proceeds of bonds or notes, shall be payable or redeemable at the option of the village within two (2) years of the date of purchase.
A. 
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.
B. 
All financial institutions with which the village conducts business must be credit worthy.
(1) 
Banks shall provide their most recent consolidated report of condition (call report) at the request of the village.
(2) 
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.
C. 
The Village 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.
A. 
The Village Treasurer is authorized to contract for the purchase of investments:
(1) 
Directly, including through a repurchase agreement, from an authorized trading partner.
(2) 
By participation in a cooperative investment program with another authorized governmental entity pursuant to Article 5G of the General Municipal Law, when such program meets all the requirements set forth in Opinion No. 88-46 of the Office of the State Comptroller and the specific program has been authorized by the Board of Trustees of the village.
(3) 
By using an ongoing investment program with an authorized trading partner pursuant to a contract authorized by the Board of Trustees.
B. 
All purchased obligations unless registered or inscribed in the name of the village shall be purchased through, delivered to and held in the custody of a bank or trust company.
(1) 
Such obligations shall be purchased, sold or presented for redemption or payment by such bank or trust company only in accordance with prior written authorization from the Village Treasurer.
(2) 
All such transactions shall be confirmed, in writing, to the village by the bank or trust company.
(3) 
Any obligation held in the custody of the bank or trust company shall be held pursuant to a written custodial agreement as described in § 10 of the State General Municipal Law.
C. 
The custodial agreement shall provide that securities held by the bank or trust company, as agent of and custodian for the village, will be kept separate and apart from the general assets of the custodial bank or trust company and will not, in any circumstances, be commingled with or become part of the backing for any other deposit or other liabilities.
(1) 
Such agreement shall describe how the custodian shall confirm the receipt and release of the securities.
(2) 
Such agreement shall include all provisions necessary to provide the local government with a perfected interest in the securities.
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 and 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 United States of America.
D. 
No substitution of securities will be allowed.
E. 
The custodian shall be a party other than the trading partner.