[HISTORY: Adopted by the Town Board of the Town of Irondequoit 9-1-1995; amended in its entirety 1-1-1996. Subsequent amendments noted where applicable.]
Procurement policy — See Ch. 51.
This investment policy applies to all financial resources available to the Town of Irondequoit for investment on its own behalf or on behalf of any other entity or individual.
The primary objectives of the town's investment activities are, in priority order:
The governing board's responsibility for administration of the investment program is delegated to the Comptroller, who shall establish written procedures for the operation of the investment program consistent with these investment guidelines. All powers assigned to the Comptroller shall be assumed to extend to the Supervisor as chief fiscal officer of the town. Such procedures shall include an adequate internal control structure to provide a satisfactory level of accountability based on a database of records incorporating description and amounts of investments, transaction dates and other relevant information and regulate the activities of subordinate employees.
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 Irondequoit to govern effectively.
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 the speculation, but for investments, considering the safety of the principal as well as the probable income to be derived.
It is the policy of the Town of Irondequoit to diversify its deposits and investments by financial institution, by investment instrument and by maturity date.
The Comptroller shall be 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 and that transactions are executed in accordance with management's authorization and recorded properly and are managed in compliance with applicable laws and regulations.
[Amended 11-30-1999 by L.L. No. 10-1999]
As detailed in General Municipal Law § 10, as amended or changed, and this policy, the Comptroller may deposit funds in accordance with the statute and this policy. The Comptroller is authorized to deposit funds of the town or under the town's control in commercial banks and/or trust companies which are federally insured and which can provide unencumbered collateral in excess of the amount of the deposit.
In accordance with the provisions of General Municipal Law § 10, as amended or changed, all deposits of the Town of Irondequoit, including certificates of deposit, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act, shall be secured (collateralized) by either or both of:
A pledge of eligible securities with an aggregate market value as provided by General Municipal Law § 10, as amended or changed, equal to or greater than the aggregate amount of deposits, together with agreed-upon interest, from the categories designated in Appendix A to the policy. Specific types of eligible securities are further identified in the State Comptroller's Financial Management Guide for Local Governments, in the Cash Management and Investments Policies and Procedures section, Subsection 2.1130. The Comptroller shall have discretionary authority to reject the pledge of specific eligible securities if it is believed the securities are inappropriate for use as collateral.
Editor's Note: Said Appendix A is on file in the office of the Town Clerk.
An eligible surety bond payable to the Town of Irondequoit for an amount equal to or greater than the aggregate amount of deposits, together with agreed-upon interest, to be secured in this manner. Such surety bond must be issued by an insurance company authorized to do business in New York State and whose claims ability is rated in the highest rating category by at least two nationally recognized statistical rating organizations.
Eligible securities used for collateralizing deposits shall be held by the depository bank and/or a third-party bank or trust company, at the discretion of the Town of Irondequoit, subject to security and custodial agreements.
The security agreement shall provide that eligible securities are being pledged to secure deposits of the town, together with all 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 town to exercise its rights against the pledged securities. In the event that the securities are not registered or inscribed in the name of the town, such securities shall be delivered in a form suitable for transfer or with an assignment in blank to the Town of Irondequoit or its custodial bank.
The custodial agreement shall provide that securities held by the bank or trust company or agent of and custodian for the town 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 town a perfected interest in the securities.
As authorized by General Municipal Law § 11, as amended or changed, the Town of Irondequoit authorizes the Comptroller to invest moneys not required for immediate expenditure for terms not to exceed its projected cash flow needs in the following types of investments:
Interest-bearing savings/checking accounts.
Certificates of deposit.
Obligations of the United States of America.
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.
Obligations of the State of New York.
Obligations issued pursuant to Local Finance Law § 24.00 or 25.00, as amended or changed, (with approval of the State Comptroller) by any municipality, school district or district corporation other than the Town of Irondequoit.
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.
All investment obligations shall be payable or redeemable at the option of the Town of Irondequoit 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 Irondequoit within two years of the date of purchase. For repurchase agreements, the repurchase date and not the maturity date of the underlying security shall govern.
[Amended 11-30-1999 by L.L. No. 10-1999]
The Town of Irondequoit authorizes the Comptroller to deposit funds with financial institutions and dealers approved for investment purposes. All financial institutions with which the town conducts business must be creditworthy. Security dealers not affiliated with an authorized bank shall be required to be classified as reporting dealers affiliated with the New York Federal Reserve Bank as primary dealer.
The Comptroller, with the assistance of higher levels of government (principally the state), is responsible for evaluating the financial condition of authorized financial institutions and security dealers.
The Comptroller is authorized to contract for the purchase of investments:
Directly, including through a repurchase agreement, from an authorized trading partner.
By participation in a cooperative investment program with another authorized governmental entity pursuant to Article 5-G of General Municipal Law, as amended or changed, 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 Town Board.
Through a repurchase agreement (REPO), subject to terms of a required master repurchase agreement. For REPO's, trading partners are limited to those authorized banks and security dealers as identified above. Obligations purchased shall be limited to obligations of the United States of America and/or by obligations guaranteed by agencies of the United States.
All purchased obligations, unless registered or inscribed in the name of the Town of Irondequoit, 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 Irondequoit 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, as amended or changed.
All purchased obligations, unless registered in the name of the Town of Irondequoit, shall be purchased through, delivered to and held in the custody of a custodial bank. All purchased obligations shall be held separately from the general assets of the custodial bank or securities dealer. Such obligations shall be purchased, sold or redeemed in accordance with prior authorization of the Comptroller. All transactions shall be confirmed, in writing, by the custodial agreement as described in General Municipal Law § 10, as amended or changed. Such agreement shall include all provisions necessary to provide the town a perfected interest in the obligation(s) purchased.
This policy shall be reviewed on no less than an annual basis and modified by formal action of the Town Board as necessary.