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.
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.
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) 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.
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.