[HISTORY: Adopted by the Town Board of the Town of Wales 2-4-1991. Amendments noted where applicable.]
The objectives of the investment policies of the Town of Wales are the following:
In accordance with this policy, the Chief Fiscal Officer of the Town of Wales is hereby authorized to invest all funds, including proceeds of obligations and reserve funds, in:
Only reserve funds may be invested in obligations of the Town of Wales.
Funds may be commingled to invest for maximum income, but records must be kept separate for each fund and/or reserve fund.
All other Town of Wales officials receiving money in their official capacities must deposit such funds in negotiable order of withdrawal accounts.
All investments made pursuant to this investment policy shall comply with the following conditions:
Certificates of deposit shall be fully secured by insurance of the Federal Deposit Insurance Corporation or by obligation of New York State or obligation of the United States or obligations of the federal agencies, the principal and interest of which are guaranteed by the United States, or obligations of New York State local governments. Collateral shall be provided to the Town of Wales or a custodial bank in accordance with the accepted and recognized practice of custodial banks within the State of New York regarding such custodial agreement. The market value shall at all times equal or exceed the principal amount of the certificate of deposit. Collateral shall be monitored no less frequently than weekly, and market value shall mean the bid or closing price as quoted in the Wall Street Journal or as quoted by another recognized pricing service.
Collateral shall not be required with respect to the direct purchase of obligations of New York State, obligations of the United States and obligations of federal agencies, the principal and interest of which are guaranteed by the United States government.
Delivery of securities.
Payment shall be made by or on behalf of the Town of Wales for obligations of New York State, obligations, the principal and interest of which are guaranteed by the United States, United States obligations, certificates of deposit and other purchase securities, upon the delivery thereof to the custodial bank or, in the case of a book-entry transaction, when the purchased securities are credited to the custodial bank's Federal Reserve System account.
All transactions shall be confirmed in writing.
Written contracts are required for Certificates of Deposit and custodial undertakings. With respect to the purchase of obligations of the United States, New York State or other governmental entities, etc., in which moneys may be invested, the interests of the Town of Wales will be adequately protected by conditioning payment on the physical delivery of purchased securities to the Town of Wales or custodian or, in the case of book-entry transactions, on the crediting of purchased securities to the custodian's Federal Reserve System account.
Designation of custodial bank. M&T Bank, chartered by the State of New York, is designated to act as custodial bank of the Town of Wales investments. However, securities may not be purchased through a repurchase agreement with the custodial bank.
Financial strength of institutions.
All trading partners must be creditworthy. Their financial statements must be reviewed at least annually by the Chief Fiscal Officer to determine satisfactory financial agencies, or the Chief Fiscal Officer may use credit rating agencies to determine the creditworthiness of trading partners. Concentration of investments in financial institutions should be avoided.
Investments in time deposits and certificates of deposit are to be made with banks or trust companies. Their annual reports must be reviewed by the Chief Fiscal Officer to determine satisfactory financial strength.
When purchasing eligible securities, the seller shall be required to deliver the securities to the custodial bank.
Operations, audit and reporting.
The Chief Fiscal Officer or the Deputy Chief Fiscal Officer shall authorize the purchase and sale of all securities and execute contracts for certificates of deposit on behalf of the Town of Wales. Oral directions concerning the purchase or sale of securities shall be confirmed in writing. The Town of Wales shall pay for purchased securities upon the delivery or book-entry thereof.
The Town of Wales will encourage the purchase and sale of securities and certificates of deposit through a competitive or negotiated process involving telephone solicitation of at least three bids for each transaction.
The Wales Town Board reviews financial affairs and investments on a monthly basis, which are included in the Supervisor's monthly statement.