[HISTORY: Adopted by the Town Board of the Town of Massena 3-12-1997.
Amendments noted where applicable.]
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 objective of the Town of Massena's investment activities
are to, in priority order:
The governing board's responsibility for administration of the
investment program is delegated to the Town Supervisor, 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.
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 Town of Massena to govern effectively.
B.
Investments shall be made with judgement 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 Town of Massena to avoid concentration of investments
in financial institutions whenever possible.
A.
It is the policy of the Town of Massena for all moneys
collected by any officer or employee of the government to transfer those funds
to the Town Supervisor within five days of deposit, or within the time period
specified in law, whichever is shorter.
B.
The Town Supervisor 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.
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Town of Massena, 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 by:
A.
Eligible securities used for collateralizing deposits
shall be held by the Town of Massena or by a custodial bank with which the
Town of Massena has entered into security and custodial agreements.
B.
The security agreement(s) shall provide that eligible
securities are being pledged to secure the Town of Massena deposits together
with agreed upon interest, if any, and any costs or expenses arising out of
the collection of such deposits upon default. It shall also provide the conditions
under which the securities may be sold, presented for payment, substituted
or released and the events which will enable the Town of Massena to exercise
its rights against the pledged securities. In the event that the securities
are not registered or inscribed in the name of the Town of Massena, such securities
shall be delivered in a form suitable for transfer or with an assignment in
blank to the Town of Massena or its custodial bank.
C.
The custodial agreement(s) shall provide that securities
held by the bank or trust company or agent of and custodian for the Town of
Massena will be kept separate and apart from the general assets of the custodial
bank or trust company and will not, in any circumstances, be comingled with
or become part of the backing for any other deposit or other liabilities.
The agreement should also 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(s) shall include all provisions necessary to provide the Town
of Massena a perfected interest in the securities.
A.
As authorized by General Municipal Law, § 11
the Town of Massena authorizes the Town Supervisor to invest moneys not required
for immediate expenditure for terms not to exceed its projected cash flow
needs in the following types of investments:
(1)
Special time deposit accounts.
(2)
Certificates of deposits.
(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 pursuant to Local Finance Law §§ 24.00
or 25.00 (with approval of the State Comptroller) by any municipality, school
district or district corporation other than the Town of Massena.
(7)
Obligations of public authorities, public housing authorities,
urban renewal agencies and industrial development agencies where the general
state statutes govern such entities or whose specific enabling legislation
authorizes such investments.
(8)
Certificates of participation (COP's) issued pursuant
to General Municipal Law § 109-b.
(9)
Obligations of this local government, but only with any
moneys in a reserve fund established pursuant to General Municipal Law §§ 6-c,
6-d, 6-e, 6-g, 6-h, 6-j, 6-k, 6-l, 6-m or 6-n.
B.
All investment obligations shall be payable or redeemable
at the option of the Town of Massena 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 Town of Massena within
two years of the date of purchase.
The Town of Massena 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 Town of Massena. 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 Town Supervisor 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 Town Supervisor is authorized to contract for the
purchase of investments through the following means:
(1)
Directly from an authorized trading partner.
(2)
By participation in a cooperative investment program
with another authorized governmental entity pursuant to Article 5-G of the
General Municipal Law where such program meets all the requirements set forth
in the Office of the State Comptroller Opinion No. 88-46, and the specific
program has been authorized by the governing board.
(3)
By utilizing an ongoing investment program with an authorized
tracking partner pursuant to a contract authorized by the governing board.
B.
All purchased obligations, unless registered or inscribed
in the name of the Town of Massena, shall be purchased through, delivered
to and held in the custody of a bank or trust company. 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
officer authorized to make the investment. All such transactions shall be
confirmed, in writing, to the Town of Massena by the bank or trust company.
Any obligation held in the custody of a bank or trust company shall be held
pursuant to a written custodial agreement as described in General Municipal
Law § 10.
C.
The custodial agreement shall provide that securities
held by the bank or trust company, as agent of an custodian for the Town of
Massena, will be kept separate and apart from the general assets of the custodial
bank or trust company and will not, in any circumstances, be comingled with
or become part of the backing for any other deposit or other liabilities.
The agreement shall describe how the custodian shall confirm the receipt and
release of securities. Such agreement shall include all provisions necessary
to provide the Town of Massena a perfected interest in the securities.
Repurchase agreements are authorized only through the Town of Massena's participation in a cooperative investment program as described in § 47-11A(2) of this Investment Policy.
