[HISTORY: Adopted by the Board of Trustees of the Village of Fort Plain 3-17-1988. Amendments noted where applicable.]
The objectives of the Investment Policy of the Village of Fort Plain are to minimize risk, 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 Village Treasurer is hereby authorized to invest all funds, including proceeds of obligations and reserve funds, in:
All funds except reserve funds may be invested in with the approval of the State Comptroller, revenue anticipation notes or tax anticipation notes of other local governments.
Only reserve funds may be invested in obligations of the Village of Fort Plain.
All other officials of the Village of Fort Plain receiving money in their official capacity must deposit such funds in negotiable order of withdrawal accounts.
All investments made pursuant to this Investment Policy shall comply with the following conditions:
Certificates of deposit 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 New York State local governments. Collateral shall be delivered to the Village of Fort Plain or a custodial bank with which the Village of Fort Plain 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. 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 and obligations of the United States.
Written contracts. Written contracts are required for certificates of deposit and custodial undertakings. With respect to the purchase of obligations of the United States, New York State or other governmental entities, etc., in which moneys may be invested, the interests of the Village of Fort Plain will be adequately protected by conditioning payment on the physical delivery of purchased securities to the Village of Fort Plain or custodian or, in the case of book-entry transactions, on the crediting of purchased securities to the custodian's federal reserve system account. All purchases will be confirmed, in writing, to the Village of Fort Plain. It is therefore the policy of the Village of Fort Plain to require written contracts as follows:
Designation of custodial bank.
Custodial bank. The Fleet Bank and Central National Bank, Canajoharie, chartered by the State of New York, are designated to act as custodial banks of the Village of Fort Plain's investments.
Financial strength of institutions.
All trading partners must be credit worthy. Their financial statements must be reviewed at least annually by the Village Treasurer to determine satisfactory financial strength, or the Village Treasurer may use credit rating agencies to determine credit worthiness of trading partners. Concentration of investments in financial institutions should be avoided. The general rule is not to place more than $100,000 in overnight investments with any one institution.
Investments in time deposits and certificates of deposit are to be made with banks or trust companies. Their annual reports must be reviewed by the Village Treasurer to determine satisfactory financial strength.
When purchasing eligible securities, the seller shall be required to deliver the securities to the custodial bank.
Operations, audit and reporting.
The Village Treasurer or the deputy chief fiscal officer shall authorize the purchase and sale of all securities and execute contracts for certificates of deposit on behalf of the Village of Fort Plain. Oral directions concerning the purchase or sale of securities shall be confirmed, in writing. The Village of Fort Plain shall pay for purchased securities upon the delivery or book-entry thereof.
The Village of Fort Plain will encourage the purchase and sale of securities and certificates of deposit through a competitive or negotiated process involving telephone solicitation of at least three bids for each transaction.
At the time independent auditors conduct the annual audit of the accounts and financial affairs of the Village of Fort Plain, the independent auditors shall audit the investments of the Village of Fort Plain for compliance with the provisions of these investment guidelines.
Within 60 days of the end of each of the first three quarters of the fiscal year, the Village Treasurer shall prepare and submit to the Board of Trustees of the Village of Fort Plain a quarterly investment report which indicates new investments, the inventory of existing investments and such other matters as the Village Treasurer deems appropriate.
Within a reasonable time after the end of the fiscal year, the Village Treasurer shall prepare and submit to the Board of Trustees an annual investment report; recommendations for change in these investment guidelines; the results of the annual independent audit; the investment income record; a list of total fees, commissions or other charges, if any, paid to the custodial bank; and such other matters as the Village Treasurer deems appropriate.
The Village Board of Trustees of the Village of Fort Plain shall review and approve the annual investment report, if practicable, at its October meeting.
At least annually and, if practicable, at the October meeting of the Village Board, the Trustees shall review and amend, if necessary, these investment guidelines.
The provisions of these investment guidelines and any amendments hereto shall take effect prospectively and shall not invalidate the prior selection of any custodial bank or prior investment.