[HISTORY: Adopted by the Town Board of the
Town of Concord 1-3-2002. 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 Town of Concord's
investment activities are, in priority order:
The Town Board's responsibility for administration
of the investment program is delegated to the 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 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 Town of
Concord 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 activities 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 Concord 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 Concord for all moneys
collected by any officer or employee of the government to transfer
those funds to the chief fiscal officer within three days of deposit,
or within the time period specified in law, whichever is shorter.
B.
The chief fiscal 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.
The banks and trust companies authorized for
the deposit of monies up to the maximum amounts are:
|
Depository Name
|
Maximum Amount
|
Officer
|
|---|---|---|
|
M&T Bank
|
$3,000,000
|
Supervisor, Tax Receiver, Town Clerk, Judge
|
|
Key Bank
|
$3,000,000
| |
|
Cattaraugus Co. Bank
|
$3,000,000
| |
|
Wyoming Co. Bank
|
$3,000,000
|
In accordance with the provisions of General
Municipal Law § 10, all deposits of the Town of Concord,
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 by a pledge of "eligible securities"
with an aggregate "market value," as provided by General Municipal
Law § 10, at least equal to the aggregate amount of deposits
from the categories designated in Appendix A to the policy.[1]
[1]
Editor's Note: Appendix A is included at the end of this chapter.
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 by the bank or trust company as security
for the public deposits, together with agreed-upon interest, if any,
and any costs or expenses arising out of the collections of such deposits
upon default. It shall also provide for the conditions under which
the securities may be sold, presented for payment, substituted or
released and the events of default 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
Concord or its custodial bank or trust company.
C.
The custodial agreement shall provide that pledged
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 should also
describe that the custodian shall confirm the receipt, substitution
or release of the collateral. The agreement shall provide for the
frequency of revaluation of collateral and for the substitution of
collateral when a change in the rating of a security causes ineligibility
according to General Municipal Law § 10, Subdivision 1f.
Such agreement shall include all provisions deemed necessary and sufficient
to secure in a satisfactory manner the local government's interest
in the collateral.
A.
As authorized by General Municipal Law § 11,
the Town of Concord authorized the chief fiscal officer 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 in a bank or trust company
located and authorized to do business in New York State;
(2)
Certificates of deposit issued by a bank or trust
company located and authorized to do business in New York State;
(3)
Obligations of the United States of America;
(4)
Obligations guaranteed by agencies of the United Sates
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 Concord;
(7)
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.
All investment obligations shall be payable or redeemable
at the option of the Town of Concord 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, in any event, at
the option of the Town of Concord within two years of the date of
purchase.
The Town of Concord 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 creditworthy. Banks shall provide their most recent Consolidated
Report of Condition (Call Report) at the request of the Town of Concord.
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 chief fiscal officer 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.
Such 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 local government by the bank
or trust company. All obligations held in the custody of a bank or
trust company pursuant to this subsection shall be held by such bank
or trust company pursuant to a written custodial agreement pursuant
to General Municipal Law § 10, Subdivision 3a.
B.
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 deemed necessary and sufficient
to secure in a satisfactory manner the local government's interest
in the collateral.
