[HISTORY: Last adopted by the Rockland County Legislature 4-16-2024 by Res. No. 231-2024. Amendments noted where applicable.]
This Investment Policy for the County of Rockland ("Investment Policy") applies to all moneys and other financial resources available to the County of Rockland for investment on its own behalf or on behalf of any other entity or individual.
The primary objectives of the County of Rockland's investment activities are, in priority order:
A. 
To conform 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 (liquidity); and
D. 
To obtain a reasonable rate of return (yield).
The governing board's responsibility for administration of the investment program is delegated to the Commissioner of Finance, who shall establish written procedures for the operation of the investment program consistent with these investment guidelines and which shall be approved annually by the Rockland County Legislature. Such procedures shall include an adequate control structure to provide a satisfactory level of accountability based on a database 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 County of Rockland 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. 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 County of Rockland to diversify its deposits and investments by financial institutions, by investment instruments, and by maturity scheduling.
It is the policy of the County of Rockland for all money collected by any officer or employee of the government to transfer those funds to the Commissioner of Finance immediately, or within the time period specified by law. The Commissioner of Finance shall advise the Legislature if funds are not timely transferred. The Commissioner of Finance 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.
A. 
The banks, dealers and trust companies authorized for the deposit of monies, or purchase of permitted investments, up to the maximum amount of $350,000,000 are:
(1) 
Citibank, N.A.
(2) 
Wells Fargo Bank, N.A.
(3) 
JP Morgan Chase Bank, N.A.
(4) 
New York Cooperative Liquid Asset Securities System ("NYCLASS").
(5) 
New York Cooperative Liquid Asset Securities System ("NYCLASS - PRIME").
(6) 
Orange Bank & Trust Company.
(7) 
Capital One Bank.
(8) 
TD Bank.
(9) 
Citizens Bank, N.A.
(10) 
M & T Bank.
(11) 
Key Bank.
(12) 
Webster Bank, N.A.
B. 
The above-mentioned depositories shall provide to the Commissioner of Finance, not later than November 30 of each year, a letter describing their level of compliance with the United States Community Reinvestment Act,[1] stating how they plan to meet the neighborhood banking needs of Rockland's economically underprivileged communities. Within 30 days of receipt, the Commissioner of Finance shall provide copies of these responses to the County Executive and the Chairman of the Legislature. The Commissioner of Finance shall be responsible for communicating these reporting requirements of the County Policy to the depository banks.
[1]
Editor's Note: See 12 U.S.C. § 2901 et seq.
In accordance with the provisions of General Municipal Law § 10, all deposits of the County of Rockland, including certificates of deposit and special time deposits, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act[1] shall be secured:
A. 
By a pledge of "eligible securities" with an aggregate "market value" as provided by General Municipal Law § 10, equal to the aggregate amount of deposits from the categories designated in Appendix A to this policy.[2]
[2]
Editor's Note: Appendix A is included as an attachment to this chapter.
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 100% 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 "irrevocable letter of credit" issued in favor of the local government by a federal home loan bank (FHLB) whose commercial paper and other unsecured, short-term debt obligations are rated in the highest rating category by at least one nationally recognized statistical rating organization, accept such letter of credit (LOC) payable to the such local government as security for payment of 100% of the aggregate amount of public deposits from such officers and the agreed-upon interest, if any.
D. 
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.
[1]
Editor's Note: See 12 U.S.C. § 1811 et seq.
A. 
Eligible securities used for collateralizing deposits shall be held by the depositary and/or a third-party bank or trust company subject to security and custodial agreements. The security agreement shall provide that eligible securities are being pledged to secure local 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 County of Rockland or its custodial bank.
B. 
The custodial agreement shall provide that securities held by the bank or trust company, or 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, under 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 County of Rockland authorizes the Commissioner of Finance 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 deposits;
(3) 
Obligations of the United States of America;
(4) 
Obligations guaranteed by agencies of the United States of America where 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 County of Rockland;
(7) 
Certificates of participation issued pursuant to General Municipal Law § 109-b;
(8) 
Obligations of this local government, but only with any moneys in a reserve fund established pursuant to General Municipal Law § 6-c, 6-e, 6-g, 6-h, 6-j, 6-k, 6-m or 6-n.
B. 
All investment obligations shall be payable or redeemable at the option of the County of Rockland within such times as the proceeds will be needed to meet expenditures for purposes for which the moneys were 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 County of Rockland within two years of the date of purchase.
The County of Rockland shall maintain a list of financial institutions approved for investment purposes and establish appropriate limits to the amount of investments which can be made with each financial institution. All financial institutions with which the local government conducts business must be credit-worthy. Security dealers not affiliated with a bank shall be required to be classified as reporting dealers affiliated with the Federal Reserve Bank, as primary dealers. The Commissioner of Finance is responsible for evaluating the financial position and maintaining a listing of proposed depositories, trading partners and custodians. Such listing shall be evaluated at least annually.
A. 
The Commissioner of Finance is authorized to contract for the purchase of investments:
(1) 
Directly, including through a repurchase agreement, with an authorized trading partner.
(2) 
By participation in a cooperative program with another authorized governmental entity pursuant to Article 5G of 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 tracking partner pursuant to a contract authorized by the governing board. 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.
B. 
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 County of Rockland 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. 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.
Repurchase agreements are authorized, subject to the following restrictions:
A. 
All repurchase agreements must be entered into subject to a master repurchase agreement.
B. 
Trading partners are limited to banks or trust companies authorized to do business in New York and primary reporting dealers.
C. 
Obligations shall be limited to obligations of the United States of America and obligations guaranteed by agencies of the United States of America.
D. 
No substitution of securities will be allowed.
E. 
The custodian shall be a party other than the trading partner.
A. 
The Commissioner of Finance shall submit the suggested Investment Policy to the Legislature of Rockland County.
B. 
The Legislature shall adopt said policy by April 1 of each year.