[HISTORY: Adopted by the Town Board of the Town of Ulysses 4-12-1994. 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 local government's investment
activities are in priority order:
The governing board's responsibility for administration
of the investment program is delegated to the Town Supervisor who
shall establish written procedures for the operation of the investment
program consistent with these investment guidelines. Such procedures
shall include an adequate internal control structure to provide a
satisfactory level of accountability based on a data base or records
incorporating description and amount 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 Town of Ulysses 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,
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 Ulysses to diversify its deposits
and investments by financial institution, by investment instrument,
and by maturity scheduling.
A.
It is the policy of the Town of Ulysses for all moneys collected
by any officer or employee of the government to transfer those funds
to the chief fiscal officer within 15 days of deposit, or within the
time period specified in law, whichever is shorter.
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, that transactions are executed
in accordance with management's authorization and recorded properly,
and are managed in compliance with applicable laws and regulations.
The banks and trust companies authorized for the deposit of
monies up to the maximum amounts are:
Depository Name
|
Maximum Amount
|
Officer
|
---|---|---|
Tompkins Trust Company
|
Variable
|
|
In accordance with the provisions of General Municipal Law § 10,
all deposits of Town of Ulysses, 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 amount of deposits
from the categories designated in Appendix A to the policy.[1]
[1]
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
140% 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 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 a third-party bank or trust 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.
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 Ulysses 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 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 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 Town of
Ulysses 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)
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 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 Ulysses;
(6)
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 authorizes such investments;
(7)
Certificates of participation (COPs) 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-d, 6-e, 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 Ulysses 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 Town of Ulysses within two years of the date of purchase.
The Town of Ulysses shall maintain a list of financial institutions
and dealers approved for investment purposes and establish appropriate
limits to the amount of investments which can be made with each financial
institution or dealer. All financial institutions with which the local
government conducts business must be credit worthy. Banks shall provide
their most recent Consolidated Report of Conditions (Call Report)
at the request of the Town of Ulysses. Security dealers not affiliated
with a bank shall be required to be classified as reporting dealers
affiliated with the New York Federal Reserve Bank, as primary dealers.
The Town Supervisor is responsible for evaluating the financial position
and maintaining a listing of proposed depositaries, trading partners
and custodians. Such listing shall be evaluated at least annually.
A.
The Town Supervisor is authorized to contract for the purchase of
investments:
(1)
Directly, including through a repurchase agreement, from an authorized
trading partner.
(2)
By participation in a cooperative investment program with another
authorized governmental entity pursuant to Article 5G of the General
Municipal Law where such program meets all 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 trading
partner pursuant to a contract authorized by the governing board.
B.
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. 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 Town of Ulysses 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.
C.
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 State 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.