[HISTORY: Adopted by the Board of Trustees of the Village of Ballston
Spa 11-22-1988. Amendments noted where applicable.]
The objectives of the investment policy of the local government are
to:
A.
In accordance with this policy, the chief fiscal officer
is hereby authorized to invest all funds, including proceeds of obligations
and reserve funds in:
B.
All funds except reserve funds may be invested in obligations
of agencies of the federal government if principal and interest is guaranteed
by the United States.
C.
Only reserve funds may be invested in obligations of
the local government.
D.
All other local government officials receiving money
in their official capacity must deposit such funds in negotiable order of
withdrawal accounts.
All investments made pursuant to this investment policy shall comply
with the following conditions:
A.
Collateral.
(1)
Certificates of deposit shall be fully secured by insurance
of the Federal Deposit Insurance Corporation or by obligations of New York
State or obligations of the United States or obligations of federal agencies,
the principal and interest of which are guaranteed by the United States, or
obligations of New York State local governments. Collateral shall be delivered
to the local government or a custodial bank with which the local government
has entered into a 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 weekly, and "market
value" shall mean the bid or closing price as quoted in the Wall Street Journal
or as quoted by another recognized pricing service.
(2)
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 principal and interest of
which are guaranteed by the United States Government.
B.
Delivery of securities. Payment shall be made by or on
behalf of the local government for obligations of New York State, obligations
the principal 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 custodial bank or, in the case of a book-entry
transaction, when the purchased securities are credited to the custodial bank's
federal reserve system account. All transactions shall be confirmed in writing.
C.
Financial strength of institutions.
(1)
All trading partners must be creditworthy. Their financial
statements must be reviewed at least annually by the chief fiscal officer
to determine satisfactory financial strength, or the chief fiscal officer
may use credit rating agencies to determine creditworthiness of trading partners.
Concentration of investments in financial institutions should be avoided.
The general rule is not to place more than $500,000 in overnight investments
with any one institution.
(2)
Investments in time deposits and certificates of deposit
are to be made with banks or trust companies. Their annual reports must be
reviewed by the chief fiscal officer to determine satisfactory financial strength.
(3)
When purchasing eligible securities, the seller shall
be required to deliver the securities to our custodial bank.
D.
Operations, audit and reporting.
(1)
The chief fiscal officer or the deputy chief fiscal officer
shall authorize the purchase and sale of all securities and certificates of
deposit on behalf of the local government. Oral directions concerning the
purchase or sale of securities shall be confirmed in writing. The local government
shall pay for purchased securities upon the delivery or book-entry thereof.
(2)
The local government will encourage the purchase and
sale of securities and certificates of deposit through a competitive or negotiated
process involving telephone solicitation.
(3)
At the time independent auditors conduct the annual audit
of the accounts and financial affairs of the local government, the independent
auditors shall audit the investments of the local government for compliance
with the provisions of these investment guidelines.
(4)
At least annually and, if practicable, at the organization
meeting of the governing board, the members shall review and amend, if necessary,
these investment guidelines.
E.
The provisions of these investment guidelines and any
amendments hereto shall take effect prospectively and shall not invalidate
the prior selection of any custodial bank or prior investment.
