This investment policy applies to all moneys and other financial resources
available for investment on its own behalf or any other entity or individual.
The primary objectives of the local government'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).
D. To obtain a reasonable rate of return (yield).
The governing board's responsibility for administration of the investment
program is delegated to the Town Comptroller, 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 data base 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 New Hartford 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 moneys up
to the maximum amounts are:
Depository Name
|
Maximum Amount
|
Officer
|
|
---|
Fleet Bank of NY
|
$15,000,000
|
To be determined at time of initial deposit |
|
First American Bank of NY
|
$15,000,000
|
|
Marine Midland Bank NA
|
$15,000,000
|
|
Citibank New York State NA
|
$15,000,000
|
|
Chase Manhattan First Bank NA
|
$15,000,000
|
|
Chemical Bank
|
$15,000,000
|
|
|
Key Bank of Central NY, NA
|
$15,000,000
|
|
|
The National Bank & Trust Company of Norwich, NY
|
$15,000,000
|
|
|
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Town of New Hartford, 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
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 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 New Hartford 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 credit worthy. Banks shall provide their most recent Consolidated
Report of Condition (Call Report) at the request of the Town of New Hartford.
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 Town Comptroller 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 repurchased 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 guaranteed by agencies of 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.