[HISTORY: Adopted by the Board of Trustees of the Village of Boonville at time of adoption of Code (see Ch. 1, General Provisions, Art. I). Amendments noted where applicable.]
GENERAL REFERENCES
Procurement policy — See Ch. 74.
ATTACHMENTS
Attachment 1 - Schedule A
This investment policy applies to all moneys and other financial resources available for deposit and investment by the Village of Boonville (Village) on its own behalf or on behalf of any other entity or individual.
The primary objectives of the Village's investment activities are, in priority order:
A. 
To conform with all applicable federal, state and other legal requirements.
B. 
To adequately safeguard principal.
C. 
To provide sufficient liquidity to meet all operating requirements.
D. 
To obtain a reasonable rate of return.
The Village Board's responsibility for administration of the investment program is delegated to the Mayor who shall establish written procedures for the operation of the investment program consistent with these investment policies. Such procedures shall include internal controls to provide a satisfactory level of accountability based upon records incorporating the description and amounts of investments, the fund(s) for which they are held, the place(s) where kept, and other relevant information, including dates of sale or other dispositions and amounts realized. In addition, the internal control procedures shall describe the responsibilities and levels of authority for key individuals involved in the investment program.
All participants in the investment process shall seek to act responsibly as custodians of the public trust. Investments shall be made with due diligence and consider the safety of the principal as well as the probable income to be derived. All participants shall refrain from personal business activity that could conflict with the proper and impartial execution of the investment program and avoid any transaction that might impair public confidence in the Village to function effectively.
A. 
It is the policy of the Village to diversify its deposits and investments by financial institution, by investment instrument, and by maturity scheduling.
B. 
The Village Board shall establish appropriate limits for investments which can be made with each financial institution or dealer, and shall evaluate this listing at least annually.
A. 
It is the policy of the Village that all moneys received by its employees be transferred to the Village Treasurer for deposit within three days of collection or within the time-period specified in law, whichever is shorter.
B. 
The Mayor is responsible for establishing and maintaining internal control procedures to provide reasonable, but not absolute, assurance that deposits and investments are safeguarded against loss and that transactions are executed in accordance with management's authorization, properly recorded, and managed in compliance with applicable laws and regulations.
The banks and trust companies that are authorized for the deposit of moneys, and the maximum amount which may be kept on deposit at any time, are:
Depositary Name
Maximum Amount
Officer
Community Bank, NA
$1,000,000
Municipal Account
Adirondack Bank
$1,000,000
Municipal Account
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All deposits and investments at a bank or trust company, including all demand deposits, certificates of deposit and special time deposits (hereinafter, collectively, "deposits") made by officers of the Village that are in excess of the amount insured under the provisions of the Federal Deposit Insurance Act[1] shall be secured by:
A. 
A pledge of eligible securities with an aggregate market value (as provided by the General Municipal Law § 10) that is at least equal to the aggregate amount of deposits by the officers. See Schedule A of this policy for a listing of "eligible securities."[2]
[2]
Editor's Note: Schedule A is included as an attachment to this chapter.
[1]
Editor's Note: See 12 U.S.C. § 1811 et seq.
Eligible securities used for collateralizing deposits made by the Village shall be held by the depositary or a third-party bank or trust company subject to a specific security and custodial agreement.
A. 
As provided by General Municipal Law § 11, the Village of Boonville Board of Trustees authorizes the Village Treasurer 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 in, or certificates of deposit issued by, a bank or trust company located and authorized to do business in the State of New York.
(2) 
Obligations of the United States of America.
(3) 
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.
(4) 
Obligations of the State of New York.
B. 
All investment obligations shall be payable or redeemable at the option of the Village 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 in any event at the option of the Village within two years of the date of purchase. Time deposit accounts and certificates of deposit shall be payable within such times as the proceeds will be needed to meet expenditures for which the moneys were obtained, and shall be secured as provided in §§ 42-8 and 42-9 herein.
C. 
Except as may otherwise be provided in a contract with bondholders or noteholders, any moneys of the Village authorized to be invested may be commingled for investment purposes, provided that any investment of commingled moneys shall be payable or redeemable at the option of the Village within such time as the proceeds shall be needed to meet expenditures for which such moneys were obtained, or as otherwise specifically provided in General Municipal Law § 11. The separate identity of the sources of these funds shall be maintained at all times and income received shall be credited on a pro rata basis to the fund or account from which the moneys were invested.
D. 
Any obligation that provides for the adjustment of its interest rate on set dates is deemed payable or redeemable on the date on which the principal amount can be recovered through demand by the holder.
A. 
All financial institutions and dealers with which the Village transacts business shall be creditworthy, and have an appropriate level of experience, capitalization, size, and other factors that make the financial institution or the dealer capable and qualified to transact business with the Village. The Mayor or Village Treasurer shall evaluate the financial position of potential depositaries, trading partners, and custodians.
B. 
The Village shall maintain a list of financial institutions and dealers approved for investment purposes, and establish appropriate limits to the amounts of investments that can be made with each financial institution or dealer.
A. 
The Mayor is authorized to contract for the purchase of investments:
(1) 
Directly, from an authorized trading partner.
(2) 
By participation in a cooperative investment agreement with other authorized municipal corporations pursuant to Article 5-G of the General Municipal Law and in accordance with Article 3-A of the General Municipal Law.
B. 
All purchased obligations, unless registered or inscribed in the name of the local government, 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 company 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 Village by the bank or trust company.
C. 
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, Subdivision 3a. The 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 be commingled with or become part of the backing of any other deposit or other bank liability. The agreement shall also describe how the custodian shall confirm the receipt and release of the securities. Such agreement shall include all provisions necessary to secure the local government's perfected interest in the securities, and the agreement may also contain other provisions that the governing board deems necessary. The security and custodial agreements shall also include all other provisions necessary to provide the Village with a perfected interest in the securities.
D. 
The Mayor or Village Treasurer can direct the bank or trust company to register and hold the evidences of investments in the name of its nominee, or may deposit or authorize the bank or trust company to deposit, or arrange for their deposit with a federal reserve bank or other book-entry transfer system operated by a federally regulated entity.
E. 
The records of the bank or trust company shall show, at all times, the ownership of such evidences of investments, and they shall be, when held in the possession of the bank or trust company, at all times, kept separate from the assets of the bank or trust company. All evidences of investments delivered to a bank or trust company shall be held by the bank or trust company pursuant to a written custodial agreement as set forth in General Municipal Law § 10, Subdivision 3a, and as described earlier in this section. When any such evidences of investments are so registered in the name of a nominee, the bank or trust company shall be liable for any loss occasioned by the acts of such nominee with respect to such evidences of investments.
The Village of Boonville Board of Trustees shall review this investment policy annually, and it shall have the power to amend this policy at any time.
The terms "public funds," "public deposits," "bank," "trust company," "eligible securities," "eligible surety bond," and "eligible letter of credit" shall have the same meanings as set forth in General Municipal Law § 10.