In the following text, "Town" will be used for
the phrase, the " Town of Clinton"; "Board" will be used for the "Clinton
Town Board."
This investment policy applies to all moneys
and other financial resources available for investment on the Town's
own behalf or on behalf of any other entity or individual.
The primary objectives of these investment activities
are, in priority order:
A. To conform to all applicable federal, state and other
requirements;
B. To adequately safeguard principal;
C. To provide sufficient liquidity to meet all operating
requirements; and
D. To obtain a reasonable rate of return.
The Board's responsibility for administration
of the investment program is delegated to the Chief Financial 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 database or records
incorporating descriptions and amounts of investments, transaction
dates, and other relevant information and to regulate the activities
of subordinate employees.
It is the policy of the Board to diversify its
deposits and investments by financial institution, by investment instrument,
and by maturity scheduling.
Annually, the financial officer shall prepare
a list of the banks and trust companies that are authorized for the
deposit of moneys and the maximum amounts that may be deposited therein.
This list shall be approved by the Board.
In accordance with the provisions of General
Municipal Law § 10, all deposits of the Town, 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. 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. An eligible irrevocable letter of credit issued by
a qualified bank other than the bank with the deposits in favor of
the Town 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. An eligible surety bond payable to the Town 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 Town 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 Town conducts business must be creditworthy. Banks
shall provide their most recent Consolidated Report of Condition at
the request of the Town. 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 financial
officer is responsible for evaluating the financial position and maintaining
a listing of proposed depositories, trading partners and custodians.
Such a list shall be evaluated at least annually.