[HISTORY: Adopted by the Town Board of the Town of Kingston 5-21-2009 by Res. No.
12. Amendments noted where applicable.]
GENERAL REFERENCES
Procurement policy — See Ch. 77.
This investment policy applies to all moneys and other financial
resources available for investment on its own behalf or on behalf
of any other entity or individual.
The primary objectives of the Town of Kingston's investment
activities are, in priority order:
The Town of Kingston's Town Board's responsibility
for administration of the investment program is delegated to the Supervisor,
Deputy Supervisor, or Chief Fiscal Officer, 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 description
and amounts of investments, transaction dates, and other relevant
information and 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
that might impair public confidence in the Town Board of the Town
of Kingston 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 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 Kingston to diversify its deposits
and investments by financial institution, by investment instrument,
and by maturity scheduling.
A.
It is the policy of the Town of Kingston for all moneys collected
by any officer or employee of the government to transfer those funds
to the Supervisor within 30 days of deposit, or within the time period
specified in law, whichever is shorter.
B.
The Supervisor 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, 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
monies up to the following maximum amounts are:
|
Depository Name
|
Maximum Amount
|
|---|---|
|
Citizens Bank
|
$250,000
|
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Town of Kingston, 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.
A.
Eligible securities used for collateralizing deposits shall be held
by the Bank of New York 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 Town of Kingston 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 Town of Kingston
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 Kingston, such securities shall be delivered in a form
suitable for transfer or with an assignment to the Town of Kingston
or its custodial bank.
C.
The custodial agreement shall provide that securities held by the
bank or trust company, or 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 co-mingled
with or become part of the backing for any other deposit or other
liabilities. 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 Kingston a perfected interest in the securities.
A.
As authorized by General Municipal Law § 11, the Town Board
of the Town of Kingston 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;
(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 LFL § 24 or 25 (with approval
of the State Comptroller) by any municipality, school district, or
district corporation other than the Town of Kingston;
(7)
Obligations of public authorities, public housing authorities, urban
renewal agencies and industrial development agencies where the general
state statutes governing such entities or whose specific enabling
legislation authorizes such investments;
(8)
Certificates of participation (COPs) issued pursuant to GML § 109-b;
(9)
Obligations of the Town of Kingston, but only with any moneys in
a reserve fund established pursuit to GML § 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 of Kingston 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 Kingston within two years of the date of purchase.
The Town of Kingston 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 and dealer. All financial institutions with which the
Town of Kingston conducts business must be creditworthy. Banks shall
provide their most recent Consolidated Report of Condition (Call Report)
at the request of the Town of Kingston. 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 Supervisor 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.
A.
The Supervisor is authorized to contract for the purchase of investments:
(1)
Directly, including through a repurchase agreement, from an authorized
trading partner.
(2)
By participation in a cooperative investment program with another
authorized governmental entity pursuant to Article 5-G of the General
Municipal Law where such program meets all the requirements set forth
in the Office of the State Comptroller Opinion No. 88-46, and the
specific program has been authorized by the governing board.
(3)
By utilizing an ongoing investment program with an authorized tracking
partner pursuant to a contract authorized by the Town of Kingston.
B.
All purchased obligations, unless registered or inscribed in the
name of the Town of Kingston, 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 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 Kingston 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 General Municipal Law § 10.
C.
The custodial agreement shall provide that securities held by the
bank or trust company, as agent of and custodian for, the Town of
Kingston, will be kept separate and apart from the general assets
of the custodial bank or trust company and will not, in any circumstances,
be co-mingled 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 Kingston
a perfected interest in the securities.
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 United States of
America.
D.
No substitution of securities will be allowed.
E.
The custodian shall be a party other than the trading partner.
