[HISTORY: Adopted by the Town Board of the
Town of Athens 4-10-1995. Amendments noted where applicable.]
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 the Town of Athens
investment activities are, in priority order:
A.
To conform to all applicable federal, state and other
legal requirements.
B.
To adequately safeguard the principal investment.
C.
To provide sufficient liquidity to meet all operating
requirements and ensure that investments mature when the cash is required
to finance operations.
D.
To obtain a competitive and reasonable rate of return
on investments.
The Town Board's responsibility for the administration
of the investment program is delegated to the Supervisor of the Town
of Athens, who shall establish written procedures for the operation
of the investment program consistent with these investment guidelines.
Such procedure shall include an adequate internal control structure
to provide a satisfactory level of accountability based on records
incorporating descriptions 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 or conflict of interest that might impair public confidence
in the ability of the Town of Athens to govern effectively.[1]
B.
Investments shall be made with judgment and care,
under circumstances then prevailing, which persons of prudent 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 Athens to diversify
its deposits and investments, where possible, by financial institution,
by investment instrument and by maturity scheduling where necessary
in order to properly secure or collateralize the same.
A.
It is the policy of the Town of Athens for all funds
collected by any officer or employee of the town, and which are required
to be transferred to the custody of the chief fiscal officer, to be
transferred to the custody of the Town Supervisor within 10 business
days of receipt or within the time period specified by law.
B.
The Town Supervisor is responsible for establishing
and maintaining an internal control structure to provide reasonable,
but not absolute, insurance that deposits and investments are safeguarded
against loss from unauthorized use or disposition and that transactions
are executed in accordance with management's authorization and recorded
properly and are managed in compliance with applicable laws and regulations.
The banks and trust companies authorized for
the deposit of funds are those designated at the annual organizational
meeting of the Town of Athens. The resolution must specify the maximum
amount which may be kept on deposit at any time in each bank or trust
company.
In accordance with the provisions of the General
Municipal Law, 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 pledge of eligible securities (see Appendix A[1]) equal to or in excess of the aggregate amount of deposits.
Collateral will not be required with respect to the direct purchase
of obligations of the State of New York or the United States of America
and its federal agencies, the principal and interest of which are
guaranteed by the State of New York or the United States government.
[1]
Editor's Note: Appendix A is included at the end of this chapter.
A.
Eligible securities used for collateralizing deposits
shall be held by the designated 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 deposits of the Town of Athens,
together with the 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 in the events which
will enable the Town of Athens 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 Athens, such securities shall
be delivered in a form suitable for transfer or with an assignment
in blank to the Town of Athens or its custodial bank.
C.
The custodial agreement shall provide that securities
held by the bank or trust company as agent of and custodian for the
Town of Athens 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. The agreement shall also describe that the custodian
shall confirm the receipt, substitute or release of the securities.
D.
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 Town
of Athens a perfected interest in the securities.
A.
As authorized by the General Municipal Law, the Town
of Athens authorizes the 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 issued by a bank or
trust company authorized to do business in the State of New York.
(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 is guaranteed
by the United States of America.
(5)
Obligations of the State of New York, subject to provisions
of the General Municipal Law.
(6)
Obligations of this local government, but only with
any money in a reserve fund established pursuant to General Municipal
Law § 6-c, 6-d, 6-e, 6-g, 6-h, 6-j, 6-k, 6-1, 6-m or 6-n.
B.
All investment obligations shall be payable or redeemable
at the option of the town 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 Athens within two years of the date of purchase.
The Town of Athens 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 credit
worthy. The Town Supervisor is responsible for evaluating the financial
position and maintaining a listing of proposed depositories, trading
partners and custodians. Such listings shall be evaluated at least
annually.
A.
The Town Supervisor shall be authorized to contract
for the purchase of investments. All purchased obligations, unless
registered or inscribed in the name of the Town of Athens, 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 Athens 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 the General Municipal
Law.
B.
The custodial agreement shall provide that securities
held by the bank or trust company as agent of and custodian for the
local government 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. The agreement shall describe
how the custodian shall confirm the receipt and release of the securities.
Such agreement shall include all provisions necessary to provide the
Town of Athens a perfected interest in the securities.
