[HISTORY: Adopted by the Town Board of the Town of Pound Ridge 4-8-1993.[1] Amendments noted where applicable.]
[1]
Editor's Note: This chapter superseded former Ch. 18, Investment
Policy, adopted 10-3-1991. This chapter was readopted 1-6-1994 and 1-4-1996.
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 Town Board's responsibility for administration of the investment
program is delegated to the Supervisor as Chief Fiscal Officer, 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.
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 Pound Ridge 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 Pound Ridge to diversify its deposits
and investments by financial institution, by investment instrument and by
maturity scheduling.
A.
It is the policy of the Town of Pound Ridge for all moneys
collected by any officer or employee of the government to transfer those funds
to the Supervisor within five days of deposit or within the time period specified
in law, whichever is shorter.
B.
The 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 and that transactions are executed in accordance with management's
authorization, are recorded properly and are managed in compliance with applicable
laws and regulations.
The banks and trust companies authorized for the deposit of moneys are:
A.
In accordance with the provisions of General Municipal
Law § 10, all deposits of the Town of Pound Ridge, 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 as provided
in written agreements with the depositary institution, a third party custodian
and the Town of Pound Ridge.
B.
Eligible securities to be pledged for collateralizing
shall be at a minimum a market value of 105% of the aggregate amount of deposits
at the close of each business day.
C.
The Town of Pound Ridge will accept as collateral:
(1)
Obligations issued or fully insured or guaranteed as
to the payment of principal and interest by the United States of America,
an agency thereof or a United States government sponsored corporation.
(2)
Obligations issued or fully insured or guaranteed by
the State of New York, obligations issued by a municipal corporation, school
district or district corporation of such state or obligations of any public
benefit corporation which under a specific state statute may be accepted as
security for deposit of public moneys.
A.
Eligible securities used for collateralizing deposits
shall be held by 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 Pound Ridge 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.
D.
Occasionally, as requested by the Town, a listing of
deposits being secured shall be provided by the depositary.
A.
As authorized by General Municipal Law § 11,
the Town of Pound Ridge authorizes the 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)
Certificates of deposit.
(3)
Obligations of the United States of America.
(4)
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.
(5)
Obligations of the State of New York.
B.
All investments shall be payable or redeemable at the
option of the Town of Pound Ridge 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 redeemable at the option of the Town of Pound Ridge within two years
of the date of purchase.
C.
Investing in repurchase agreements is specifically against
the policy of the Town of Pound Ridge.
A.
The Supervisor of the Town of Pound Ridge is authorized
to invest with and conduct business with any state or federally chartered
commercial bank licensed to do business in the State of New York.
B.
All financial institutions with which the Town conducts
business must be credit worthy. Banks shall provide their most recent Consolidated
Report of Condition (Call Report) at the request of the Town. The Supervisor
is responsible for evaluating the financial position and maintaining a listing
of all depositaries and custodians, to be reviewed annually.
