[HISTORY: Adopted by the Mayor and Council
of the City of New Rochelle 11-23-1993 by Ord. No. 251-1993.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also provided
for the repeal of former Ch. 42, Investment Policy and Guidelines,
adopted 7-15-1986 by Res. No. 162.
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 governing board's responsibility for administration
of the investment program is delegated to the chief fiscal officer,
who shall establish written procedures for the operation of the investment
program consistent with these investment guidelines. Such procedures
shall include an adequate control structure to provide a satisfactory
level of accountability based on a data base or records incorporating
descriptions 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 City of
New Rochelle to govern effectively.
B.
Investments shall be made with judgment and care,
under circumstances then prevailing, which persons of prudent discretion
and intelligence exercise in 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 activity 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 City of New Rochelle
to diversify its deposits and investments by financial institution,
by investment instrument and by maturity scheduling.
A.
It is the policy of the City of New Rochelle for all
moneys collected by any officer or employee of the government to transfer
those funds to the chief fiscal officer within two days of deposit.
B.
The chief financial 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.
[Amended 9-27-1994 by Ord. No. 209-1994; 1-20-1998 by L.L. No. 14-1998; 1-19-1999 by Ord. No. 17-1999; 6-18-2002 by Ord. No. 120-2002; 1-16-2007 by Ord. No.
9-2007]
The following banks and trust companies are
authorized for the deposit of moneys:
[Amended 1-20-1998 by L.L. No. 14-1998; 1-19-1999 by Ord. No. 17-1999]
In accordance with the provisions of General
Municipal Law § 10, all deposits of the City of New Rochelle,
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 or a pledge of a pro rata portion of a pool 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 (§ 42-14) to the policy.
[Amended 1-16-2007 by Ord. No. 9-2007]
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 separately incorporated banks or trust companies
subject to security and custodial agreements.
B.
The security agreement shall provide that eligible
securities or a pro rata portion of a pool of eligible securities
is 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 City of New Rochelle or its custodial bank.
[Amended 1-16-2007 by Ord. No. 9-2007]
C.
The custodial agreement shall provide that securities
or a pro rata portion of a pool of eligible 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 deposits 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.
[Amended 1-16-2007 by Ord. No. 9-2007]
D.
The City Manager or chief financial officer of the
City of New Rochelle is hereby authorized to enter into such security
and custodial agreements with the designated depositories.
A.
As authorized by General Municipal Law § 11,
the City of New Rochelle authorizes the chief financial 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.
(2)
Certificates of deposit.
(3)
Obligations of the United States of America.
(4)
Obligations guaranteed by agencies of 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
or school district corporation other than the City of New Rochelle.
(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 (COP's) issued pursuant
to General Municipal Law § 109-b.
(9)
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 City of New Rochelle within such times as the
proceeds will be needed to meet expenditures for purposes for which
the moneys shall be payable or redeemable at the option of the City
of New Rochelle within two years of the date of purchase.
The City of New Rochelle 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 City of New
Rochelle. 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 financial officer
is responsible for evaluating the financial position and maintaining
a listing of proposed depositaries, trading partners and custodians.
Such listing shall be evaluated at least annually.
A.
The chief financial officer is authorized to contract
for the purchase of investments:
(1)
Directly, including through a repurchase agreement
from an authorized trading partner.
(2)
By participation in a cooperative investment program
with another authorized governmental entity pursuant to Article 5-G
of the General Municipal Law where such program meets all the requirements
set forth in the Office of the State Comptroller Opinion No. 88-46
and the specific program has been authorized by the governing board.
(3)
By utilizing an ongoing investment program with an
authorized trading partner pursuant to a contract authorized by the
governing board.
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 investment. All such transactions
shall be confirmed in writing to the City of New Rochelle 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
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 agreements 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.
[Amended 1-20-1998 by Ord. No. 14-1998; 1-19-1999 by Ord. No. 17-1999]
The Schedule of Eligible Securities shall be
as follows:
A.
Obligations issued, or fully insured or guaranteed
as to the payment of principal and interest by the United States of
America, an agency thereof or a United States government sponsored
corporation.
B.
Obligations issued or fully guaranteed by the International
Bank for Reconstruction and Development, the Inter-American Development
Bank, the Asian Development Bank and the African Development Bank.
C.
Obligations partially insured or guaranteed by any
agency of the United States of America, at a proportion of the market
value of the obligations that represents the amount of the insurance
or guaranty.
D.
Obligations issued or fully insured or guaranteed
by the State of New York, obligations issued by a municipal corporation,
school district or district corporation of such state or obligations
of any public benefit corporation which under a specific state statute
may be accepted as security for deposit of public moneys.
E.
Obligations issued by states (other than the State
of New York) of the United States rated in one of the three highest
rating categories by at least one nationally recognized statistical
rating organizations.
F.
Obligations of Puerto Rico rated in one of the three
highest rating categories by at least one nationally recognized statistical
rating organization.
G.
Obligations of counties, cities and other governmental
entities of a state other than the State of New York having the power
to levy taxes that are backed by the full faith and credit of such
governmental entity and rated in one of the three highest rating categories
by at least one nationally recognized statistical rating organization.
H.
Obligations of domestic corporations rated in one
of the two highest rating categories by at least one nationally recognized
statistical rating organization.
I.
Any mortgage-related securities, as defined in the
Securities Exchange Act of 1934, as amended, which may be purchased
by banks under the limitations established by bank regulatory agencies.
J.
Commercial paper and bankers' acceptances issued by
a bank, other than the bank, rated in the highest short-term category
by at least one nationally recognized statistical rating organization
and having maturities of not longer than 60 days from the date they
are pledged.
K.
Zero coupon obligations of the United States government
marketed as "treasury strips."
