[HISTORY: Adopted by the Town Board of the Town of Barton 9-11-1995.
Amendments noted where applicable.]
GENERAL REFERENCES
Procurement policy — See Ch. 45.
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 Treasurer, 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 Barton 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 Barton 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 Barton for all moneys
collected by any officer or employee of the government to transfer those funds
to the Treasurer within three days of deposit or within the time period specified
in law, whichever is shorter.
B.
The Treasurer 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 Chemung Canal Trust Company, Marine Midland Bank,
N.A., and Tioga State Banks.
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Town of Barton, 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:
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 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 Barton or its custodial bank.
C.
The custodial agreement shall provide that securities
held by the bank or trust company or agent of a 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.
A.
As authorized by General Municipal Law § 11,
the Town of Barton authorizes the Treasurer to invest moneys not required
for immediate expenditure for terms not to exceed its projected cash flow
needs in the following types of investments:
B.
All investment obligations shall be payable or redeemable
at the option of the Town of Barton within such times as the proceeds will
be needed to meet expenditures for purposes for which the money was 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 Barton within
two years of the date of purchase.
The Town of Barton 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 credit worthy. Banks shall provide their most recent consolidated
report of condition (call report) at the request of the Town of Barton. 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 Treasurer is responsible for evaluating the financial position and maintaining
a listing of proposed depositaries, trading partners and custodians. Such
listing shall be valuated at least annually.
A.
The Treasurer 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 5-G 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 Town of Barton 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 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.
