[HISTORY: Adopted by the Town Board of the Town of New Hartford 3-3-1993.
Amendments noted where applicable.]
This investment policy applies to all moneys and other financial resources
available for investment on its own behalf or 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 Comptroller, 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 amounts of investments,
transaction dates and other relevant information and regulate the activities
of subordinate employees.
A.Â
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 New Hartford to govern
effectively.
B.Â
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.Â
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 New Hartford to diversify its deposits
and investments by financial institution, by investment instrument and by
maturity scheduling.
A.Â
It is the policy of the Town of New Hartford for all
moneys collected by any officer or employee of the government to transfer
those funds to the Town Comptroller within 30 days of deposit or within the
time period specified in law, whichever is shorter.
B.Â
The Town Comptroller 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 moneys up
to the maximum amounts are:
Depository Name
|
Maximum Amount
|
Officer
| |
---|---|---|---|
Fleet Bank of NY
|
$15,000,000
|
To be determined at time of initial deposit | |
First American Bank of NY
|
$15,000,000
| ||
Marine Midland Bank NA
|
$15,000,000
| ||
Citibank New York State NA
|
$15,000,000
| ||
Chase Manhattan First Bank NA
|
$15,000,000
| ||
Chemical Bank
|
$15,000,000
| ||
Key Bank of Central NY, NA
|
$15,000,000
| ||
The National Bank & Trust Company of Norwich, NY
|
$15,000,000
|
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Town of New Hartford, 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:
B.Â
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 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.Â
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.Â
Eligible securities used for collateralizing deposits
shall be held by the bank or trust company subject to security and custodial
agreements.
B.Â
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 New Hartford or its custodial bank.
C.Â
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, if any circumstances, be commingled
with or become part of the backing for any other deposit or other liabilities.
The agreement should also described 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.Â
As authorized by General Municipal Law § 11,
the Town  of New Hartford authorizes the Town Comptroller 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)Â
Special time deposit accounts.
(2)Â
Certificates of deposit.
(3)Â
Obligations of the United States of America.
(4)Â
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)Â
Obligations of the State of New York.
(6)Â
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 New Hartford.
(7)Â
Obligation of public authorities, public housing authorities,
urban renewal agencies and industrial development agencies where the general
state statute governing such entities or whose specific enabling legislation
authorizes such investments.
(8)Â
Certificates of participation (COP's) issued pursuant
to General Municipal Law § 109-b.
(9)Â
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-g, 6-h, 6-j, 6-k, 6-l, 6-m or 6-n.
B.Â
All investment obligations shall be payable or redeemable
at the option of the Town of New Hartford within such times as the proceeds
will be needed to meet expenditure 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 New
Hartford within two years of the date of purchase.
The Town of New Hartford 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 Condition (Call Report) at the request of the Town of New Hartford.
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 Comptroller 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.Â
The Town Comptroller is authorized to contract for the
purchase of investments:
(1)Â
Directly, including through a repurchase agreement, from
an authorized trading partner.
(2)Â
By participation in a cooperative investment program
with another authorized governmental entity pursuant to Article 5-G 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)Â
By utilizing an ongoing investment program with an authorized
trading partner pursuant to a contract authorized by the governing board.
B.Â
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 New Hartford by the bank or trust company.
Any obligation held in the custody of a bank or trust company shall be geld
pursuant to a written custodial agreement as described in General Municipal
Law § 10.
C.Â
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.Â
All repurchased agreements must be entered into subject
to a master repurchase agreement.
B.Â
Trading partners are limited to banks or trust companies
authorized to do business in New York State and primary reporting dealers.
C.Â
Obligations shall be limited to obligations of the United
States of America and obligations guaranteed by agencies of the United States
of America.
D.Â
No substitution of securities will be allowed.
E.Â
The custodian shall be a party other than the trading
partner.