[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:
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:
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.
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.
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.
