[HISTORY: Adopted by the Town Board of the Town of Milo 7-18-1988 (Ch. 19 of the 1997 Code).
Amendments noted where applicable.]
The objectives of the investment policy of the local government
are to minimize risk; to ensure that investments mature when the cash
is required to finance operations; and to ensure a competitive rate
of return.
A.
In accordance with this policy, the Town Board shall, at its annual organizational meeting, designate those banks, trust companies or qualified financial institutions as official depositories in which the Town of Milo Town Supervisor is authorized to invest all funds, including proceeds of obligations and reserve funds, in those vehicles and instruments listed in Subsection A(1) through (5) below. Additionally, if the Town Supervisor determines it to be in the best interests of the Town, the official depositories may be changed at times after the organizational meeting by resolution of the Town Board by a majority vote of its full voting strength.
[Amended 10-27-1997 by L.L. No. 2-1997; 8-15-2022 by Res. No. 38-2022]
(1)
Certificates of deposit issued by a commercial bank or trust company
authorized to do business in New York State.
(2)
Time deposit accounts in a commercial bank or trust company authorized
to do business in New York State.
(3)
Obligations of the United States Government.
(4)
Obligations of New York State.
(5)
A cooperative investment program with another authorized governmental
entity pursuant to Article 5G, § 119-o, of the General Municipal
Law, as may be amended from time to time, 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.
C.
Only reserve funds may be invested in obligations of the local government.
D.
All other local government officials receiving money in their official
capacity must deposit such funds in negotiable order of withdrawal
accounts if such accounts can maintain minimum balances to avoid unnecessary
service charges and thus operate efficiently, otherwise to be deposited
in least costly checking account.
All investments made pursuant to this investment policy shall
comply with the following conditions:
A.
Collateral.
(1)
Certificates of deposit shall be fully secured by insurance of the
Federal Deposit Insurance Corporation or by obligations of New York
State or obligations of the United States or obligations of federal
agencies, the principal and interest of which are guaranteed by the
United States, or obligations of New York State local governments.
Collateral shall be delivered to the local government of a custodial
bank with which the local government has entered into a custodial
agreement. The market value of collateral shall at all times equal
or exceed the principal amount of the certificate of deposit. Collateral
that is subject to change shall be monitored no less frequently than
weekly and market value shall mean the bid or closing price as quoted
in the Wall Street Journal or as quoted by another recognized pricing
service.
(2)
Collateral shall not be required with respect to the direct purchase
of obligations of New York State, obligations of the United States
and obligations of federal agencies, the principal and interest of
which are guaranteed by the United States Government.
B.
Delivery of securities. Payment shall be made by or on behalf of
the local government for obligations of New York State, obligations
the principal and interest of which are guaranteed by the United States,
United States obligations, certificates of deposit and other purchased
securities upon the delivery thereof to the custodial bank, or in
the case of a book-entry transaction, when the purchased securities
are credited to the custodial bank's federal reserve system account.
All transactions shall be confirmed in writing.
C.
Written contracts. Written contracts are required for certificates
of deposit and custodial undertakings. With respect to the purchase
of obligations of United States, New York State, or other governmental
entities, etc., in which moneys may be invested, the interests of
the local government will be adequately protected by conditioning
payment on the physical delivery of purchased securities to the local
government or custodian, or in the case of book-entry transactions,
on the crediting of purchased securities to the custodian's federal
reserve system account. All purchases will be confirmed in writing
to the local government. It is therefore, the policy of the local
government, to require written contracts as follows:
D.
Designation of custodial bank. Custodial bank. A commercial bank
or trust company as specified in a resolution upon the minutes of
the Town Board of Milo and chartered by the State of New York shall
be designated to act as custodial bank of the local government's investments.
However, securities may not be purchased through a repurchase agreement
with the custodial bank.
E.
Financial strength of institutions.
(1)
All trading partners must be creditworthy. Their financial statements
must be reviewed at least annually by the Chief Fiscal Officer to
determine satisfactory financial strength or the Chief Fiscal Officer
may use credit rating agencies to determine credit worthiness of trading
partners. Concentration of investments in financial institutions should
be avoided. The general rule is not to place more than a definite
maximum amount as specified by the Town Board of Milo in overnight
investments with any one institution. If none is specified then no
more than covered by collateral or FDIC insurance.
(2)
Investments in time deposits and certificates of deposit are to be
made with banks or trust companies. Their annual reports must be reviewed
by the Chief Fiscal Officer to determine satisfactory financial strength.
(3)
When purchasing eligible securities the seller shall be required
to deliver the securities to our custodial bank.
F.
Operations, audit and reporting.
(1)
The Chief Fiscal Officer or the Deputy Fiscal Officer shall authorize
the purchase and sale of all securities and execute contracts for
certificates of deposit on behalf of the local government. Oral directions
concerning the purchase or sale of securities shall be confirmed in
writing. The local government shall pay for purchased securities upon
the delivery or book-entry thereof.
(2)
The Chief Fiscal Officer or the Deputy Fiscal Officer shall contact
at least two commercial banks or trust companies, authorized to do
business in New York State, within the immediate area of the local
government, for the purpose of obtaining the best possible rate of
return (interest) prior to making any investment.
(3)
At any time independent auditors conduct an annual audit of the accounts
and financial affairs of the local government, the independent auditors
shall audit the investments of the local government for compliance
with the provisions of these investment guidelines.
(4)
The Governing Board of the local government shall review and approve
the annual investment report, if practicable, at its January meeting.
G.
The provisions of these investment guidelines and any amendments
hereto shall take effect prospectively and shall not invalidate the
prior selection of any custodial bank or prior investment.
