[Added 9-13-1993 by resolution]
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 governing board's responsibility for administration of the
investment program is delegated to the City Comptroller, 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 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 City of Ogdensburg 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 City of Ogdensburg to diversify its
deposits and investments by financial institution, by investment instrument
and by maturity scheduling.
A.
It is the policy of the City of Ogdensburg for all moneys collected
by any officer or employee of the government to transfer those funds
to the City Comptroller within 30 days of deposit, or within the time
period specified in law, whichever is shorter.
B.
The City Comptroller 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, that transactions are executed
in accordance with management's authorization and recorded properly,
and are managed in compliance with applicable laws and regulations.
[Amended 1-11-2010 by Ord. No. 1-2010]
The banks and trust companies authorized for the deposit of
moneys are:
Depository Name
Community Bank, N.A.
Key Bank of N.Y.
1st National Bank of Lisbon
NBT Bank
NYCLASS
In accordance with the provisions of General Municipal Law,
§ 10, all deposits of the City of Ogdensburg, 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 by:
A.
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: Said appendix is included as an attachment to this chapter.
B.
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 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 City of Ogdensburg 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.
[Amended 1-11-2010 by Ord. No. 1-2010]
A.
As authorized by General Municipal Law, § 11, the City
of Ogdensburg authorizes the City Comptroller to invest moneys not
required for immediate expenditure for terms not to exceed its projected
cash flow needs in those investments allowed by NYS Law.
B.
All investment obligations shall be payable or redeemable at the
option of the City of Ogdensburg 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 City of Ogdensburg within two years of the date of purchase.
The City of Ogdensburg 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 local
government conducts business must be creditworthy. Banks shall provide
their most recent Consolidated Report of Condition (Call Report) at
the request of the City of Ogdensburg. Security dealers not affiliated
with a bank shall be required to be classified as reporting dealers
affiliated with the New York State Federal Reserve Bank, as primary
dealers. The City Comptroller is responsible for evaluating the financial
position and maintaining a listing of proposed depositaries, trading
partners and custodians. Such listing shall be evaluated at least
annually.
A.
The City Comptroller is authorized to contract for the purpose 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 governing board.
(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 local government, 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 City of Ogdensburg 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 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 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 shall describe how the custodian shall
confirm the receipt and release of the securities. Such agreement
shall include all provisions necessary to provide the local government
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.
