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:
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 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.
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.
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.
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.
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.