[HISTORY: Adopted by the Town Board of the Town of Milton 11-17-1993.
Amendments noted where applicable.]
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 Town's investment activities are, in priority
order:
The Town Board's responsibility for administration of the investment
program is delegated to the Town Supervisor, who shall provide the Town Board
with periodic reports on the status of all investments undertaken in accordance
with this policy. Proper accounting and other records required by statute
and/or the Office of the State Comptroller shall be maintained and be available
for examination.
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 Milton to govern effectively.
B.
Investments shall be made with judgment and care, under
circumstances then prevailing, which persons of prudent discretion and intelligence
exercise in the management of their own affairs, considering the safety of
the principal as well as probable income to be derived.
C.
All persons involved in the investment process shall
refrain from personal business activity that could conflict with and/or impair
their ability to make impartial investment decisions.
It is the policy of the Town of Milton to diversify its deposits and
investments by financial institution, by investment instrument and by maturity
scheduling, as it is deemed appropriate by the Town Supervisor.
A.
It is the policy of the Town that all moneys collected
by any officer or employee of the Town be transferred to the Town Supervisor
within the time period specified by law.
B.
The Town Supervisor 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 the Town Board's authorization, are properly recorded and comply with
applicable laws and regulations.
Ballston Spa National Bank is designated as the official bank for deposit
of all moneys received by all Town officers and employees and for the investment
of Town funds by the Town Supervisor.
In accordance with the provisions of § 10 of the General Municipal
Law, all deposits of the Town, 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 pledge of eligible securities
with an aggregate market value or, as provided by General Municipal Law § 10,
an amount equal to the aggregate amount of deposits from the categories designated
in Appendix A of this policy.[1]
[1]
Editor's Note: Appendix A is on file in the office of the Town Clerk.
A.
Eligible securities used for collateralizing deposits
shall be held by Manufacturers and Traders Trust subject to security and custodial
agreements.
B.
The security agreement shall provide that such securities
are being pledged to secure the Town's deposits together with agreed-upon
interest, if any, and 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 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, such securities shall be delivered in a form suitable
for transfer or with an assignment in blank to the Town of Milton 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 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
a part of the backing for any other deposits 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 with a perfected
interest in the securities.
A.
As authorized by § 11 of the General Municipal
Law, the Town Board authorizes the Town Supervisor 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)
Interest bearing checking accounts.
(4)
Obligations of the United States of America.
(5)
Obligations of the State of New York.
(6)
Obligations of this local government, but only with any
moneys in a reserve fund established pursuant to General Municipal Law provisions
governing a legally established reserve fund.
B.
All investment obligations shall be payable or redeemable
at the option of the Town within such times as either the proceeds will be
needed to meet expenditures for the purposes for which the moneys were provided
or, if purchased with the proceeds of bonds or notes, within two years of
the date of such purchase.
The Town Board shall stipulate, by Board resolution, the banks that
the Town Supervisor is authorized to deposit and invest Town funds within.
Banks shall provide their most recent consolidated report of condition (call
report) at the request of the Town. The Town Supervisor is responsible for
evaluating the financial position and maintaining a list of proposed depositories
and custodians. Such listing shall be evaluated at least annually.
A.
The Town Supervisor is authorized to contract directly
for the purchase of investments and/or the deposit of Town moneys in interest
bearing checking or saving accounts.
B.
All passbooks shall be retained in the custody of the
Town Supervisor. All other investment obligations, unless registered or inscribed
in the name of the Town, 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 individual authorized
to make such deposit or investment. All such transactions shall be confirmed
in writing to the Town by the bank or trust company.
C.
Any obligation held in the custody of a bank or trust
company shall be held pursuant to a written custodial agreement as described
in § 10 of the General Municipal Law. The agreement shall provide
that securities held by the bank or trust company, as agent of and custodian
for the Town, will be kept separate and apart from the general assets of the
custodial bank or trust company and will not under any circumstances be commingled
with or become part of the backing for any other deposits or other liabilities.
The agreement shall describe how the custodian shall confirm the receipt and
release of the securities and include all provisions necessary to provide
the Town with a perfected interest in all securities.
Under no circumstances is the Town Supervisor authorized to enter an
investment in repurchase agreements or the issuance of certificates of purchase
without prior approval of the Town Board.
