[HISTORY: Adopted by the Board of Trustees of the Village of Honeoye
Falls 12-20-1993. Amendments noted where applicable.]
GENERAL REFERENCES
Procurement policy — See Ch. 42.
Pursuant to General Municipal Law and Local Finance Law and regulations
contained in the Village Law, the Village of Honeoye Falls hereby adopts the
following policy and procedures as it pertains to the Village's investments.
The Village Board of Trustees would like to maximize interest income
on all funds not immediately needed for payment obligations. This investment
policy applies to all Village moneys and other financial resources available
for investment on its own behalf or on behalf of any other entity when acting
as agent for the other entity.
The primary objectives of the Village's investment activities are,
in priority order:
A.
The Village Board of Trustees delegates the authority
to make the day-to-day investment decisions, within the guidelines and limitations
of this policy, to the Village Treasurer, as Chief Fiscal Officer.
B.
The Treasurer shall establish written procedures which
shall provide adequate internal controls to ensure a satisfactory level of
accountability regarding the management of Village funds.
C.
The Treasurer is also authorized to utilize the advisory
services of municipal consulting firms in planning the timing, amount, maturity,
bidding, placement and reporting on any investments made. Investment decisions
should be made in consultation with the Village's financial consultant.
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 of Honeoye Falls Board
of Trustees 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 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 of Honeoye Falls to diversify its deposits
and investments among financial institutions by investment instrument and
by maturity scheduling.
A.
The 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 and that transactions are executed with management's
authorizations and recorded properly and are managed in compliance with applicable
laws and regulations.
B.
The Village Board of Trustees authorizes the Treasurer
to use electronic transfer of funds among the approved banking institutions
to assist in the movement of moneys. Each such transfer shall be specifically
identified in the original journal entry as a "wire transfer" and subsequently
supported by the bank confirmation notice to provide an audit trail.
C.
All investments shall be documented in written reports
to the Village Board of Trustees outlining the details of each investment
and the bids received thereon. Monthly reporting of investments should be
made to the Village Board of Trustees.
D.
All Village employees who are involved with the transaction
of Village funds are bonded through the Village's insurance program.
E.
This policy will automatically be updated by any new
investment legislation that pertains to Village investments passed by the
State of New York. This policy will be reviewed annually by the Village Board
of Trustees.
The Village Board of Trustees authorizes the use of commercial banks
or trust companies (not savings banks or associations) located and licensed
to do business in New York State. The use of private brokerage or investment
firms is not authorized by this policy (see General Municipal Law § 11,
Local Finance Law § 165.00, Subdivision b). The following banks
and trust companies are authorized for deposit and the investment of Village
funds:
In accordance with the provisions of General Municipal Law, § 10,
all deposits of the Village, 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:
B.
By 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 90 days with an aggregate value equal to 140% of
the aggregate amount of deposits and the agreed upon interest, if any.
C.
By an eligible surety bond payable to the Village for
an amount equal at least 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 category by at least two nationally recognized statistical rating
organizations.
A.
Eligible securities used for collateralizing deposits
shall be held by the depositary and/or a third party bank or trust company
subject to security and collateral agreements at the discretion of the Village.
B.
The security agreement shall provide that eligible securities
are being pledged to secure Village deposits, together with agreed upon interest,
if any, and any costs or expenses arising out of the collection of such deposits
upon default.
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.
A.
As authorized by § 11 of the General Municipal
Law, the Village Board of Trustees authorized the Treasurer 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 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 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 Village of Honeoye Falls.
(7)
Obligations of public authorities, public housing authorities,
urban renewal agencies and industrial development agencies whose enabling
legislation authorizes such investments.
B.
All investment obligations shall be payable or redeemable
at the option of the Village of Honeoye Falls 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 of Honeoye
Falls within two years of the date of purchase.
The Village shall maintain a list of financial institutions and dealers
for investment purposes. The Treasurer, by authority of the Board of Trustees,
in consultation with the Village's financial consultant, is responsible
for evaluating the financial position and maintaining a list of proposed depositories,
trading partners and custodians.
A.
The Treasurer is authorized to contract for the purchase
of investments:
(1)
Directly, or through a repurchase agreement, from an
authorized trading partner.
(2)
By participation in a cooperative investment program
with another authorized government entity or entities where such program meets
all the requirements established by the Office of the State Comptroller and
the specific program has been authorized by the Village Board.
(3)
By utilizing an ongoing investment program with an authorized
trading partner pursuant to a contract authorized by the Village Board.
B.
In order to facilitate the acquisition of repurchase
agreements, a master repurchase agreement shall be executed with any authorized
repo dealer, and shall comply with all rules and regulations as described
in § 10 of the General Municipal Law.
Securities purchased under repurchase agreements (repos) shall be limited
to obligations of the United States of America or obligations whose principal
and interest are guaranteed or insured by the United States of America. The
term of repos shall be mutually agreed upon by both parties. Each repo shall
be confirmed, in writing, by the seller, and each security purchased under
a repo shall be specifically identified, segregated from the assets of the
seller and delivered for safekeeping into an account designated and controlled
by the Village. Each seller shall enter into a master repurchase agreement
with the Village which shall specify the rights and obligations of the Village
and the seller in all repo transactions.
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APPENDIX A
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Schedule of Eligible Securities
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1.
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Obligations issued or fully insured or guaranteed as to the payment
of principal and interest by the United States of America, an agency thereof
or a United States government sponsored corporation.
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2.
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Obligations partially insured or guaranteed by any agency of the United
States of America at a proportion of the market value of the obligation that
represents the amount of the insurance or guaranty.
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3.
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Obligations issued or fully insured or guaranteed by the State of New
York, obligations issued by a municipal corporation, school district or district
corporation of such State or obligations of any public benefit corporation
which under a specific state statute may be accepted as security for deposit
of public moneys.
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4.
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Obligations of counties, cities and other governmental entities of a
state, other than the State of New York, having the power to levy taxes that
are backed by the full faith and credit of such governmental entity and rated
in one of the three highest rating categories by at least one nationally recognized
statistical rating organization.
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5.
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Obligations of domestic corporations rated in one of the two highest
rating categories by at least one nationally recognized statistical rating
organization.
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6.
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Any mortgage related securities, as defined in the Securities Exchange
Act of 1934, as amended, which may be purchased by banks under the limitations
established by bank regulatory agencies.
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7.
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Commercial paper and bankers' acceptances issued by a bank, other than
the bank, rated in the highest short term category by at least one nationally
recognized statistical rating organization and having maturities of not longer
than 60 days from the date they are pledged.
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8.
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Zero coupon obligations of the United States Government marketed as
treasury strips.
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