[HISTORY: Adopted by the Town Board of the
Town of Cazenovia 8-9-1993. Amendments noted where applicable.]
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 of Cazenovia's
investment activities are, in priority order:
The governing board's responsibility for administration
of the investment program is delegated to the 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 database or records
incorporating description and amounts of investments, transaction
dates, and other relevant information and to 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 ability
of the Town of Cazenovia 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 Cazenovia 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 Cazenovia for all
moneys collected by any officer or employee of the government to be
transfered to the Chief Fiscal Officer within the time period specified
in law.
B.
The Chief Fiscal Officer 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 and recorded
properly and are managed in compliance with applicable laws and regulations.
The banks and trust companies authorized for
the deposit of moneys up to the maximum amounts are:
|
Depository Name
|
Maximum Amount
|
|---|---|
|
Community Bank, N.A.
|
$12,000,000
|
[1]
Editor's Note: Resolution No. 3-2022, adopted 1-10-2022, designated
Community Bank, N.A. as the Town's official bank. The maximum amount
indicated below was amended pursuant to the direction of the Town.
In accordance with the provisions of General
Municipal Law § 10, all deposits of the Town of Cazenovia,
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 General Municipal Law § 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 at the end of 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 Town of Cazenovia 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 depository and/or 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 Town of Cazenovia 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 Town of Cazenovia 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 Cazenovia, such securities
shall be delivered in a form suitable for transfer or with an assignment
in blank to the Town of Cazenovia 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 of Cazenovia, 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 of Cazenovia perfected interest in the securities.
A.
As authorized by General Municipal Law § 11,
the Town of Cazenovia authorizes the Chief Fiscal Officer 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 is guaranteed
by the United States of America.
(5)
Obligations of the State of New York.
(6)
Obligations issued pursuant to Local Finance Law § 24.00
or 25.00 (with approval of the State Comptroller) by any municipality,
school district or district corporation other than the Town of Cazenovia.
(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.
B.
All investment obligations shall be payable or redeemable
at the option of the Town of Cazenovia 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 Cazenovia within two years of the date of purchase.
The Town of Cazenovia 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 Town of Cazenovia conducts business must
be creditworthy. Banks shall provide their most recent consolidated
report of condition (call report) at the request of the Town of Cazenovia.
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 Chief Fiscal Officer 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 Chief Fiscal Officer is authorized to contract
for the purchase of investments:
(1)
Directly, including through a repurchase agreement,
from an authorized trading partner.
(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 Board of Supervisors.
(3)
By utilizing an ongoing investment program with an
authorized trading partner pursuant to a contract authorized by the
governing board.
B.
All purchased obligations, unless registered or inscribed
in the name of the Town of Cazenovia, 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
Cazenovia 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 Cazenovia, 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 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 Cazenovia 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 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.
