[HISTORY: Adopted by the Board of Trustees of Cuba Village 11-8-1993. Amendments
noted where applicable.]
GENERAL REFERENCES
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.
A.
In accordance with this policy, the chief fiscal officer is hereby
authorized to invest all funds, including proceeds of obligations
and reserve funds, in:
B.
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.
C.
Only reserve funds may be invested in obligations of the Village
of Cuba Village.
D.
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:
A.
Collateral.
(1)
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.
(2)
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.
B.
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.
C.
Written contracts. Written contracts are required for certificates
of deposit and custodial undertakings.
D.
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.
E.
Financial strength of institutions.
(1)
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.
(2)
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.
F.
Operations, audit and reporting.
(1)
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.
(2)
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.
(3)
At the time of a New York State audit, the investments of Cuba Village
shall be audited for compliance with the preceding guidelines.
(4)
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.
(5)
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.
