[HISTORY: Adopted by the Town Board of the
Town of Sand Lake 9-14-2016.[1] Amendments noted where applicable.]
[1]
Editor's Note: This resolution also repealed former Ch. 28,
Investment Policy, adopted 2-8-1995, as amended.
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 local government's investment
activities are, in priority order:
The governing board's responsibility for administration
of the investment program is delegated to the Town Supervisor who
shall establish 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 of Sand Lake 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 Sand Lake to diversify its deposits
and investments by financial institution by investment instrument
and by maturing scheduling.
It is the policy of the Town of Sand Lake for all moneys collected
by any officer or employee of the government to transfer those funds
to the Town Supervisor (chief fiscal officer) within five working
days of deposit or within the time period specified in law, whichever
is shorter.
A.
The Town 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 following institutions be and they hereby are designated
depositories of all monies received:
Key Bank, M & T Bank, Trustco Bank, MBIA, HSBC and Pioneer
Commercial Bank.
In accordance with the provisions of General Municipal Law,
§ 10, all deposits of the Town of Sand Lake, 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.[1]
[1]
Editor's Note: Appendix A is included as an attachment to this chapter.
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. An irrevocable letter of credit issued in favor of the local
government by a federal home loan bank, whose commercial paper and
other unsecured short-term debt obligations are rated in the highest
rating categories by at least one nationally recognized statistical
rating organization for the payment of 100% of the aggregate amount
of public deposits and investments from the local government and agreed-upon
interest, if any.
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 depository 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 local government 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 local government
to exercise its rights against the pledged securities. In the event
that the securities are not registered or inscribed in the name of
the local government, such securities shall be delivered in a form
suitable for transfer or with an assignment in blank to the Town of
Sand Lake 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 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 local government a
perfected interest in the securities.
A.
As authorized by General Municipal Law. § 11, the Town
of Sand Lake authorizes the Town 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)
Money market accounts
(3)
Certificates of deposit.
(4)
Letters of credit.
(5)
Obligations of the United States of America.
(6)
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.
(7)
Obligations of the State of New York.
(8)
Obligations issued pursuant to Local Finance Law § 24.00
or 25.00 (with approval of the State Comptroller) by any municipality,
school district or district corporation other than the Town of Sand
Lake.
(9)
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.
(10)
Certificates of participation (COPs) assured pursuant to General
Municipal Law, § 109-b.
(11)
Obligations of the local government, but only with any moneys
in a reserve fund established pursuant to General Municipal Law, § 6-c,
6-d, 6-e, 6-g, 6-h, 6-j, 6-k, 6-I, 6-m or 6-n.
B.
All investment obligations shall be payable or redeemable at the
option of the Town of Sand Lake 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 Sand Lake within two years of the date of purchase.
The Town of Sand Lake 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 local
government conducts business must be creditworthy. Banks shall provide
their most recent consolidated report of condition (call report) at
the request of the Town of Sand Lake. 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 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 Town Supervisor is authorized to contract for the purchase of
investments:
(1)
Directly 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 trading
partner pursuant to a contract authorized by the governing board.
B.
All purchased obligations, unless registered 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 Town of Sand Lake 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 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 commingled
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 local government
a perfected interest in the securities.
