[HISTORY: Adopted by the Town Board of the
Town of Victor 1-3-2001 by Res. No. 39-2001.[1] Amendments noted where applicable.]
[1]
Editor's Note: This resolution also superseded
former Ch. 32, Investment Policy, adopted 1-5-1998.
This investment policy applies to all moneys
and other financial resources available for investment on the Town's
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.
The Town Board's responsibility for administration
of the investment program is delegated to the Town 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.
B.
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
Victor to govern effectively.
C.
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.
D.
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.
The policy of the Town of Victor is to diversify
its deposits and investments by financial institution, by investment
instrument, and by maturity scheduling.
A.
The policy of the Town of Victor is that all moneys
collected by any officer or employee of the Town transfer those funds
to the Supervisor within one business day of receipt, or within the
time period specified in law, whichever is shorter.
[Amended 1-14-2008 by Res. No. 48-2008]
B.
The Supervisor is responsible for establishing and
maintaining an internal control structure to provide reasonable, but
no 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 are recorded properly and are managed in compliance with applicable
laws and regulations.
[Amended 2-13-2006 by Res. No. 98-2006; 11-24-2014 by L.L. No. 7-2014]
Trading partners shall be banks or trust companies
licensed to do business in the State of New York, with a trading limit
of $40 million per trading partner. If authorized by the Town Board
in advance, such trading partners shall be permitted to redeposit
the Town's deposits in one or more banking institutions (as defined
in § 9-r of the New York Banking Law) through a deposit
placement program, all pursuant to and as set forth in New York General
Municipal Law at § 10, Subdivision 2a.
In accordance with the provisions of the General
Municipal Law (GML), all deposits of the Town of Victor, 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 GML § 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. A qualified bank is one whose commercial paper and
other unsecured short-term debt obligations are rated in one of the
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.
A.
Eligible securities used for collateralizing deposits
shall be held by the depositary and/or 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. The security
agreement 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 of Victor, such securities shall
be delivered in a form suitable for transfer or with an assignment
in blank to the Town of Victor 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
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 depositor
other liabilities. The agreement should also require 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 Victor authorizes the Supervisor, Chief Accountant or
Town Manager to invest monies 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.
(6)
Obligations issued pursuant to Local Finance Law (LFL)
§ 24.00 or 25.00 (with approval of the State Comptroller)
by any municipality, school district or district operation other than
the Town of Victor;
(7)
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.
(8)
Certificates of Participation (COP's) issued pursuant
to GML § 109-b;
(9)
Obligations of the Town of Victor, but only with any
moneys in a reserve fund established pursuant to GML § 6-c,
6-d, 6-e, 6-g, 6-h, 6-j, 6-k, 6-l, 6-m, or 6-n.
B.
All investment obligations shall be payable or redeemable
at the option of the Town of Victor 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 Victor as dictated by the cash flow requirements but not
more than two years of the date of purchase.
A.
The Town of Victor shall maintain a list of financial
institutions approved for investment purposes and establish appropriate
limits to the amount of investments which can be made with each financial
institution. All financial institutions with which the Town conducts
business must be creditworthy. Banks shall provide their most recent
Consolidated Report of Condition (Call Report) at the request of the
Town of Victor. The Supervisor is authorized to utilize private financial
consulting firms for soliciting competitive bids among the authorized
commercial banks or trust companies, planning the size and maturity
and reporting the results thereof to the Town Board at least monthly.
B.
The Supervisor 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 Supervisor is authorized to contract for the purchase
of investments:
(1)
Directly, including through a repurchase agreement,
from an authorized commercial bank of trust company.
(2)
By participation in a cooperative investment program
with another authorized governmental entity pursuant to Article 5G
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 commercial bank or trust company pursuant to a contract
authorized by the governing board.
B.
All purchased obligations, unless registered or inscribed
in the name of the Town of Victor, 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 authorization
from the Supervisor or other officer authorized to make the investment.
All such transactions shall be confirmed in writing to the Town of
Victor 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
Town of Victor, 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.
D.
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 Town of Victor
a perfected interest in the securities.
Repurchase agreements are authorized subject
to the following restrictions:
A.
All repurchase 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.
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.
