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:
A. To conform with all applicable federal, state and other
legal requirements.
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), subject
to market conditions.
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.
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. 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.
B. 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.
[Amended 11-30-1999 by L.L.
No. 10-1999]
A. 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.
B. 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.
This policy shall be reviewed on no less than an annual basis and modified
by formal action of the Town Board as necessary.