This investment policy applies to all moneys
and other financial resources available for investment on its own
behalf or any other entity or individual.
The primary objectives of the local government's
investment activities are, in priority order:
A. To conform with all applicable federal, state and
other legal requirements (legal);
B. To adequately safeguard principal (safety);
C. To provide sufficient liquidity to meet all operating
requirements (liquidity); and
D. To obtain a reasonable rate of return (yield).
The governing board's responsibility for administration
of the investment program is delegated to the Chief Fiscal Officer
and other officers having custody of money 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 data base or records incorporation description
and amounts of investments, transaction dates, and other relevant
information, and regulate the activities of subordinate employees.
It is the policy of the town to diversify its
deposits and investments by financial institution, by investment instrument,
and by maturity scheduling.
The banks and trust companies authorized for
the deposit of moneys up to the following maximum amounts are:
Depository Name
|
Maximum Amount
|
Officer
|
---|
Fleet Bank
|
$900,000
|
Supervisor
|
Fleet Bank
|
$50,000
|
Town Clerk
|
Fleet Bank
|
$1,400,000
|
Tax Collector
|
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:
A. By 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. By an eligible irrevocable letter of credit issued
by a qualified bank other than the bank with the deposits in favor
of the government 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. By an eligible surety bond payable to the government
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 local government conducts business must be credit worthy.
Banks shall provide their most recent Consolidated Report of Condition
(Call Report) 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 Chief Fiscal Officer and other officers having custody of money
are responsible for evaluating the financial position and maintaining
a listing of proposed depositaries, trading partners and custodians.
Such listing shall be evaluated at least annually.
Repurchase agreements are authorized subject
to the following restrictions:
A. All repurchase agreements must be entered into subject
to a master repurchase agreement.
B. Trading partners are limited to banks or trust companies
authorized to do business in New York State and primary reporting
dealers.
C. Obligations shall be limited to obligations of the
United States of America and obligations of agencies of the United
States of America where principal and interest are guaranteed by the
Unites States of America.
D. No substitution of securities will be allowed.
E. The custodian shall be a party other than the trading
partner.