[HISTORY: Adopted by the Town Board of the Town of Southport 1-2-2001
by Res. No. 35-2001. Amendments noted where applicable.]
GENERAL REFERENCES
Procurement policy — See Ch. 130.
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 Supervisor.
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 Southport 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 Southport to diversify its deposits
and investments by financial institution, by investment instrument, and by
maturity scheduling.
The Chief Financial Officer 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.
Any bank, trust and investment companies that meet New York State laws
governing investments by towns are authorized for the deposit of monies up
to the maximum amounts allowed by law. Specific bank, trust and investment
companies shall be designated each year by the Town Board at the January Organization
Meeting.
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Town of Southport, 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:
A.
By a pledge of "eligible securities" with an aggregate
"market value" as provided by General Municipal Law § 10.
B.
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 bank, trust or investment 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.
C.
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 Southport or its custodial bank.
D.
The custodial agreement shall provide the securities
held by the bank, trust or investment company, or agent of and custodian for,
the local government will be kept separate and apart from the general assets
of the custodial bank, trust or investment 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 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 Southport authorizes the Chief Financial Officer to invest monies
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)
Obligations of the United States of America;
(4)
Obligations guaranteed by agencies of the United States
of America where the payment of principal and interest are guaranteed by the
United States of America;
(5)
Obligations of the State of New York;
(6)
Obligations issued pursuant to Local Finance Law § 24.00
or 25.00 (with approval of the State Comptroller) by any municipality, school
district or district corporation other than the Town of Southport;
(7)
Obligations of public authorities, public housing authorities,
urban renewal agencies and industrial development agencies where the general
State statutes governing such entities or whose specific enabling legislation
authorized such investments;
(8)
Certificates of participation (COPs) issued pursuant
to General Municipal Law § 109-b;
(9)
Obligations of this local government, but only with any
monies in a reserve fund established pursuant to General Municipal Law § 6-c,
6-d, 6-e, 6-g, 6-h, 6-j, 6-k, 6-l, 6-m or 6-n.
B.
All investment obligations shall be payable or redeemable
at the option of the Town of Southport within such times as the proceeds will
be needed to meet expenditures for purposes for which the monies where 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 Southport within
two years of the date of purchase.
The Chief Financial Officer is authorized to contract for the purchase
of investments.