This investment policy applies to all moneys and other financial resources
available for investment on the village's own behalf or on behalf of any other
entity or individual.
The primary objectives of village's investment activities are, in priority
order:
A. To conform to 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).
D. To obtain a reasonable rate of return (yield).
The Board's responsibility for administration of the investment program
is delegated to the Chief Fiscal Officer, Treasurer or other officer 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 database or records incorporating
a description and amounts of investments, transaction dates and other relevant
information, and regulate the activities of subordinate employees.
It is the policy of the Village of Williston Park to diversify its deposits
and investments by financial institution, by investment instrument and by
maturity scheduling.
The Chief Fiscal Officer, Treasurer or other officer having custody
of money 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 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 moneys are:
Fleet Bank, N.A. Williston Park Branch, and Swiss Bank Corporation, Repurchase
Agreement.
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Village of Williston Park, 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, as 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.
Eligible securities used for collateralizing deposits shall be held
by the depository and/or a third party bank or trust company subject to security
and custodial agreements.
A. 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. It shall also provide the conditions under which the securities
may be sold, presented for payment, substituted or released and the events
which will enable the village to exercise its rights against the pledged securities.
In the event that the securities are not registered or inscribed in the name
of the village, such securities shall be delivered in a form suitable for
transfer or with an assignment in blank to the Village of Williston Park or
its custodial bank.
B. The custodial agreement shall provide that securities
held by the bank or trust company as agent of and custodian for the village
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 should also describe that the custodian shall confirm the receipt,
substitution or release of the securities. 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 village
a perfected interest in the securities.
The Village of Williston Park 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 village conducts business
must be creditworthy. Banks shall provide their most recent Consolidated Report
of Condition (Call Report) at the request of the Village of Williston Park.
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, Treasurer or other officer having
custody of money is responsible for evaluating the financial position and
maintaining a listing of proposed depositories, trading partners and custodians.
Such listing shall be evaluated at least annually.