[HISTORY: Adopted by the Board of Trustees of the Village of Elmira
Heights 9-17-1992. Amendments noted where applicable.]
GENERAL REFERENCES
Procurement policy — See Ch. 75.
A.
The Village Board desires to provide the finest public
services possible to its residents compatible with the least cost to its taxpayers.
To achieve this goal, all other sources of revenue must be enhanced.
B.
The Board desires that excess village moneys not needed
for immediate payment of bills be invested to earn a safe return as provided
in the Village Law, General Municipal Law and Local Finance Law. The priorities
for so investing village moneys shall be (in order of priority):
The Board authorizes the use of commercial banks or trust companies
(not savings banks or associations) located and authorized to do business
in New York State for placing investments, and the Village Board specifically
prohibits using private brokerage or investment firms.
The Board authorizes the following types of investment instruments for
investing village moneys with commercial banks or trust companies located
and authorized to do business with Chemung County.
A.
Savings accounts.
B.
NOW accounts.
C.
Money market deposit accounts.
D.
Super NOW accounts.
E.
7- to 31-Day accounts.
F.
Certificates of deposit.
G.
Repurchase agreements.
H.
United States Treasury bonds, bills and notes.
I.
Other investment instruments as may be approved by the
office of the State Comptroller from time to time.
The village hereby delegates the authority to make day-to-day investment
decisions within the guidelines and limitations of this policy/resolution
to the:
The primary objective of this policy is to enhance the safety and availability
of any village moneys invested. This objective is particularly met by FDIC
insurance for the first $100,000 of village checking account deposits and
an additional $100,000 for time or savings account deposits with any one specific
commercial bank or trust company (12 CFR 330.8). Any amounts exceeding the
FDIC insurance limit as presently set or subsequently revised are to be insured
to the village by requiring a pledge of appropriate collateral by the bank
or trust company winning the bid for the investment. Where appropriate, all
investments must be bid specifying "with third party collateral" (or "with
collateral" if the third-party arrangement is not available from the designated
bank).
A.
Collateral.
(1)
Collateral shall be delivered to the trust department
of the issuing bank, the village or a custodian bank with which, where practical,
the village has entered into a written custodial agreement. The market value
of collateral shall at all times equal or exceed the principal amount of the
certificate of deposit. Collateral shall be monitored no less frequently than
monthly, and "market value" shall mean the bid or closing price as quoted
in the Wall Street Journal or in another recognized pricing service.
(2)
Securities purchased through a repurchase agreement shall
be valued to market at least monthly.
(3)
Collateral shall not be required with respect to the
direct purchase of obligations of New York State, obligations of the United
States and obligations of federal agencies, the principle and interest of
which are guaranteed by the United States government.
B.
Delivery of securities.
(1)
Repurchase agreements. Every repurchase agreement shall
provide for deposit of the investment proceeds with the issuing bank or trust
company only upon its delivery of collateral obligations of the United States
to the trust department of the custodial bank designated by the village or,
in the case of a book-entry transaction, when the obligations of the United
States are credited to the custodian's federal reserve bank account.
The issuing bank shall not be entitled to substitute securities without prior
approval of the village. Repurchase agreements shall be for periods of 30
days or less. The trust department of the custodian bank shall confirm all
transactions, in writing, to ensure that the village's ownership of the
securities is properly reflected on the records of the trust department or
the custodian bank.
(2)
Deposit of the investment proceeds shall be made by or
on behalf of the village for obligation of New York State, obligations the
principle and interest of which are guaranteed by the United States, United
States obligations, certificates of deposit and other purchased securities
upon the delivery thereof to the trust department or the custodial bank or,
in the case of a book-entry transaction, when the purchased securities are
credited to the custodial bank's federal reserve bank account. All transactions
shall be confirmed in writing.
C.
Written contracts. Where practical, written contracts
are to be completed for repurchase agreements, certificates of deposit and
custodial undertakings. With respect to the purchase of obligations of United
States, New York State or other governmental entities, etc., in which moneys
may be invested, the interests of the village will be adequately protected
by conditioning payment on the physical delivery of purchased securities to
the trust department, the village or custodian or, in the case of book-entry
transactions, on the crediting of purchased securities to the custodian's
federal reserve bank account. All purchases will be confirmed, in writing,
to the village.
The Board specifically authorizes the designated officials to use electronic
transfer of funds among the approved banking institutions to assist in obtaining
federal funds enhanced interest rates. Each such transfer shall be specifically
identified in the original journal entry as a wire transfer and subsequently
supported by the bank confirmation notice to provide an audit trail.
The Board specifically authorizes the designated officials to turn over
the physical custody of certificates of deposit and other evidences of investments
for safekeeping possession to the winning bank as provided in § 11,
Subdivision 3, of the General Municipal Law to facilitate access to funds
at maturity and to eliminate having live certificates in the village offices.
All investments shall be documented in written reports to the Director
of Finance for subsequent presentation to the Board outlining the details
of each investment and the bids received thereon. When investments are placed,
these reports should be presented no less frequently than monthly.
