[HISTORY: Adopted by the Board of Trustees of Cuba Village 11-8-1993. Amendments noted where applicable.]
Procurement policy — See Ch. 40.
The objectives of this investment policy of the Village of Cuba Village are to minimize risks, to ensure that investments mature when the cash is required to finance operations and to ensure a competitive rate of return.
In accordance with this policy, the chief fiscal officer is hereby authorized to invest all funds, including proceeds of obligations and reserve funds, in:
All funds except reserve funds may be invested in obligations of agencies of the federal government if principal and interest is guaranteed by the United States.
Only reserve funds may be invested in obligations of the Village of Cuba Village.
No other Village of Cuba Village officials have the authority to receive money in their official capacity.
All investments made pursuant to this investment policy shall comply with the following conditions:
Certificates of deposit and (or) passbook savings accounts shall be fully secured by insurance of the Federal Deposit Insurance Corporation or by obligations of New York State or obligations of the United States or obligations of federal agencies, the principal and interest of which are guaranteed by the United States, or obligations of New York State local governments, or a combination of the same. Collateral shall be delivered to the Village of Cuba Village or a custodial bank with which the Village of Cuba Village has entered into a custodial agreement. The market value of collateral shall at all times equal or exceed the principal amount of the certificate of deposit and (or) passbook savings account. Collateral shall be monitored no less frequently than monthly, and "market value" shall mean the bid or closing price as quoted in the Wall Street Journal or as quoted by another recognized pricing service.
Collateral shall not be required with respect to the direct purchase of obligations of New York State, the United States and obligations of federal agencies, the principal and interest of which are guaranteed by the United States government.
Delivery of securities. Payment shall be made by or on behalf of the Village of Cuba Village for obligations of New York State, obligations the principal and interest of which are guaranteed by the United States, United States obligations, certificates of deposit and other purchase securities upon the delivery thereof to the custodial bank or, in the case of a book-entry transaction, when the purchased securities are credited to the custodial bank's federal reserve system account. All transactions shall be confirmed, in writing.
Written contracts. Written contracts are required for certificates of deposit and custodial undertakings.
Designation of custodial bank. The Key Bank of Western New York is designated to act as custodial bank of the Village of Cuba Village's investments.
Financial strength of institutions.
All trading partners must be creditworthy. Their financial statements shall be available to the chief fiscal officer annually. Credit ratings may be used to determine creditworthiness of trading partners. The general rule is not to place more than $500,000 in overnight investments with any one institution.
Certificate of deposits and (or) passbook savings accounts are to be made with banks of trust companies. Their annual reports must be available for review by the chief fiscal officer to determine satisfactory financial strength.
Operations, audit and reporting.
The chief fiscal officer or the deputy chief fiscal officer shall authorize the purchase and sale of any securities and certificates of deposit on behalf of the Village of Cuba Village.
The Village of Cuba Village will encourage the purchase of certificates of deposit and (or) passbook savings accounts through a competitive process with at least two bids for each transaction.
At the time of a New York State audit, the investments of Cuba Village shall be audited for compliance with the preceding guidelines.
Within 60 days of the end of the first three quarters of the fiscal year, the chief fiscal officer shall prepare and submit to the Board of Trustees of Cuba Village an investment report listing existing investments and any other such matters as the chief fiscal officer deems appropriate.
Within 120 days of the end of the fiscal year, the chief fiscal officer shall prepare and submit to the Board of Trustees of Cuba Village a report regarding investments, fees or commissions paid, if any.
At least annually and, if practicable, at the annual organizational meeting of the Board of Trustees of the Village of Cuba Village, the Board of Trustees will review the investment policy and, if it deems necessary, make any amendments to the guidelines.
The provisions of these investment guidelines and any changes or amendments hereto shall take effect beginning November 9, 1993.