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:
A. To confirm with all applicable federal, state and other
legal requirements (legal);
B. To adequately safeguard principal (safety);
C. To provide sufficient liquidity to meet all operating
requirements (liability);
D. To obtain a reasonable rate of return (yield).
The governing board's responsibility for administration of the investment
program is delegated to the Supervisor.
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.
The Chief Financial Officer is authorized to contract for the purchase
of investments.