[HISTORY: Adopted by the Town Board of the Town of Webb at
time of adoption of Code (see Ch. 1, General Provisions, Art. I).
Amendments noted where applicable.]
GENERAL REFERENCES
Procurement policy — See Ch. 111.
This chapter shall be known as the "Town of Webb Investment
Policy."
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 local government's investment
activities are, in priority order:
The Town Board's responsibility for administration of the investment
program is delegated to the Supervisor of the Town of Webb, 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 database 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 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 to diversify its deposits and investments
by financial institution, by investment instrument and by maturity
scheduling.
A.
It is the policy of the Town for all moneys collected by any officer
or employee of the government to transfer those funds to the Town
Supervisor within three days of deposit or within the time period
specified in law, whichever is shorter.
B.
The Town Supervisor 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.
A.
The banks and trust companies authorized for the deposit of monies
up to the maximum amounts are Community Bank, N.A. (Old Forge Branch),
and Adirondack Bank (Old Forge Branch), each to the maximum amount
for which Federal Deposit Insurance Act insurance is available or
such other maximum amount as set forth in an approved collateral agreement
between the Town and such institutions.
B.
The Supervisor is authorized to open municipal savings, day of deposit/day of withdrawal, money market and such other permitted investments as set forth in § 60-11 hereof.
C.
The Tax Collector is authorized to open a day-to-day municipal savings
account.
D.
Other official depositories may be designated by the Town Board at
its annual meeting or by resolution of the Town Board at any regular
meeting thereof.
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Town, 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:
A.
By a pledge of eligible securities with an aggregate market value,
as provided by General Municipal Law § 10, 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 as an attachment to this chapter.
B.
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 the 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.
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.
Eligible securities used for collateralizing deposits shall be held
by the depository and/or 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 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 or
its custodial bank.
C.
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, 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 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.
As authorized by General Municipal Law § 11, the Town authorizes
the Town Supervisor to invest moneys not required for immediate expenditure
for terms not to exceed its projected cash flow need in the following
types of investments:
(1)
Special time deposit accounts.
(2)
Certificates of deposit.
(3)
Obligations of the United States of America.
(4)
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)
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.
(7)
Obligations of public authorities, public housing authorities, urban
renewal agencies and industrial development agencies where the general
state statutes governing such entities or whose specific enabling
legislation authorizes such investments.
(8)
Certificates of participation (COPS) issued pursuant to General Municipal
Law § 109-b.
(9)
Obligations of the Town, 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 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 at the option of the Town
within two years of the date of purchase.
The Town shall maintain a list of financial institutions and
dealers approved for investment purposes and establish appropriate
limits to the amounts 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. 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 Supervisor
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.
The Supervisor is authorized to contract for the purchase of investments.
B.
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 investments. All such transactions
shall be confirmed in writing to the Town by the bank or trust company.
Any obligation held in the custody of a bank or trust company shall
be held pursuant to a written custodial agreement as described in
General Municipal Law § 10.
C.
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.
All repurchase agreements must be entered into subject to a master
repurchase agreement.
B.
Trading partners are limited to banks or trust companies authorized
to do business in New York State and primary reporting dealers.
C.
Obligations shall be limited to obligations of the United States
of America and obligations guaranteed by agencies of the United States
of America.
D.
No substitution of securities will be allowed.
E.
The custodian shall be a party other than the trading partner.