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HomeMy WebLinkAboutInvestment Policy JUDITH T. TERRY TOWN CL~RK MARRIAGE OFFICER RECORDS MANAGEMENT OFFICER FREEDOM OF INFORMATION OFFICER OFFICE OF THE TOWN CLERK TOWN OF $OUTHOLD Town HalI. 53095 Main Roz. P.O. Box 1 I79 Southold, New York 1197 ! Fax (516) 765-1823 Telephone (516) 765-1801 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION WAS' ADO~ BY THE SOUTHOLD TOWN BOARD AT A REGULAR MEETING HELD ON APRIL 5,. 199,11.: ~ RESOLVED that the Town Board of the Town of Sout~old hereby reaffirms the "Investment Policy of the Town of Southold", which reads as follows: INVESTMENT POLICY FOR THE TOWN OF SOUT~OLD I. SCOPE T!ds investment policy applies to ali moneys and other f~n~nr~! resources available for investments on /ts own behalf or on behstr of azzy oth~r ~n~/ry or individual. II. OBJECTIVES The primary objectives of the local government's /nve.~me~t ac~vflies arm in priority order, * to conform with ali applicable feder~al, state and other leg-al requirements (leg~al); * to adequately safeguard pr~mc/paI (safety) * to provide sufficient Hqu~dity to meet aH requirements (Ho~/dity); ~d * to obtain a reasonable rate~ of return (yield) !II. DELEGATION OF AUTHORITY .The governLuE board's resoonsibilitv for adminLst~atfoa of the in~srment pro,ram is delegated to ~ the c~ef f~ officer, who s~H es~bHsh written procedures for th~ operation of ~ ~vestment pro~ ~Lq~enr ~rt~ these ~nv~stmen~.~,,~, = ~aideHnas. Such procedures shall include ~ adeq~e ~te~a! cont~t s~ .... ur~ to p~de satisfactory [evet of accoun~b~ty b~ed on a ~ta b~e or records inco~o~tin~ description and amounts of ~nveslmenls, .t~nsac~on da~es, and c~ker relevant i~or~tion and re~ia~e the.ac~m~ of su~rd~na~e employees. IV. PRUDENCE Ali participants in the investment process shs11 seek to act respon~ibly as custodians of the public trust and sds1! avoid any ~ansactions that mi~kt impair public confidence in the Town of Southold to ~overn effectively. Investments shsl~ be m~de with judgement and care, under eirc~m.~t~n~ces then prevaiHn~ which persons of prudence discret~l and il/teHigence exer~se in the manaEement of their own sffairs, not for specn~stion, but for investment, considerinE the safety of the princip~/ as wsH as the probable income to be derived. All participants involved in the invesUnent process shs~r refr~'from pez~aon~! b~siuess activity tM~t could conflict with proper execution of the investment program, or which could i~,palr, their ability to n~ke i~part~ investment decisions. V. DIVERSIFICATION tt is the policy of the Town of Southold to diversify its'deposits s/id investments by financial ~nstitudon, by investment instrument, and by mararity scheduling. Vi. INTERNAL CONTROLS It is the policy of the Town of Southold for ail moneys collected by officer or employee of the Eovernment to transfer those funds to the chief ~scaI officer within $0 days of deposit, or within the time period specified in ]aw, wnichever is shorter. The chief fiscal officer is resuonalbte for establish~n~ and m~nta~n~n$ an internal control structure to provide'reasonable, but not absolute, assurance tha~ deposits and investments .are safeguarded ag'ainst loss from unauthorized use or d~position, that tz~ansacdons are executed in accordance with man~ement's auzhorization and recorded properly, and are m~na~ed in complLg/lce with applicable laws and regulations. VII. DESIGNATION OF DEPOSITARIES The banks and trust companies authorized for the denosit of monies up to the foilowin~ ma~mum amounts are: ' Depository Name Fleet Bank Suffolk County National SCNB (Tax Receiver Acct. ) only Brid~ehampton National Bank Shawmut Bank North Fork Bank VIII. COLLATERALiZLNG OF DEPOSITS Maximum Amount Officer 1,000,000 §,000,000 5,000,000 1,000,000 100,000 1,000,000 Mary Ellen Johnson Riehar~ Noncarrow Richard Nonearrow Ann Nestor wAanthonv Serio }ter Krupski In accordance %~ith the provisiorm of Gene?~=t Murdeioat ~w, ~10, ~1~ d~nos~ts of the Town of Southotd, ' ~- '~ ' ~ ~nc.ue~ co,fibres of .deposits and s~;~ ~me deposits, in excess of ~e ~ou. nt i~urmd under Lhe pro~sions el the Federml Deposit Insu~ncs Ac~ s~ be secured: 1. By a pledge of "eHgibte securities" with an a~g-reg-ate "market valuer', or provided by General ~Iunicipal Law, §10, equal to the aggreg~ate amount of deposits from the categories designated in Appendix A to the policy. 2. By an 'eligible "irrevocable letter of credit', issued by a qualified bank other than the bank with the deposits irz favor of the~ government for a [erm not to exceed 90 days w/th an aggreMate value equal to 140% of the aggresate amount of deposits and the agreed upon interest, if any. A qualified bank is one whose commercial paper and other unsecured short-term debt obHg~ations are rated in one of the three b/$hest ratinE categories by at least one nationally recoEnized s~at~stical ratin~ org'an/zation or by a ban~ that is in compliance with applicable federal-rain/mum risk-based capital requirements. S. By an etigible surety bond payable to the g~vernment for a~ amount at least equal to 100% of the aEgreg~ate amount of deposits and the agreed upon-interest, if any, executed by an insurance con~pany authorized to do business in New York State, whose claims - paying ability is rated in the tfEhest ratinE category by at least two na~/onally recogn/zed statistical ratinE organizations. IX. SAFEKEEPING AND COLLATERALIZION Eligible security used for collateralizinE deposits shall be held by the depositary or a third party bank or trust company s'ub~ect to security and custodial agreements. The security agreement shah provide that eligible Decurities are be/n~ pled~ed ~o secure local government deposits together with agreed upon interest, if any, and any costs or expenses arising out of the collection of such deposits upon defaults. tt shall also provide the conditions under which the securities may be sold, presented for payment, substituted or released and the ev~n%~ which will enable the local government to exercise its ri$h~s ag~dnst the pledged securities. In ~he event that the securi~/es are not registered 'or inscribed in the name of ~he local government, such securit/es shah be delivered in a form sui~able for transfer or with an assigunnent in b~snk to the Town or its custodial bank. The custodial agreement shah provide that securities held by the bank or ~rust company, or agent of and custodian for, the local ~overnmen~, will be kept separate and apart from the general assets of the custodial bank or trust company and will not, in any e/rcumszances, be comn~n~ted with or become part of the back~n~ for any other deposit or other HabiHties. The agreement should also describe that the custod~sn shall confirm the receipt, substitution or release of the securit/es. The agreement shah provide for the frequency of revaluation of eligible secur,/t~es and for the subs~/tution 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 ~0vernment a perfected interest in the sec".~ri~ies. X. PER.~ITTED INVEST.%~ENTS As authorized by Gencral Municipal Law, §11, the Town of Southoid autho~zes th~ chief fiscal officsr to invest moneys not required for ~'umediate expenditure_ for ter~.~s not ~o exceed its projected cash ~ow neecls in the followin~ types of investments: _ * Special time depnsit accounts; * Certificates of deposits; * Obligations of the United States of American; * Obligations g'uaranteed by agencies of the United States of America where the payment of prin~pal and interest are guaranteed by the United States of America. Obligations of the State of New York; Obligations issued pursuant to LFL §24.00 or 25.00 (with approval of the State Comptroller) by any municipality, schooi d/strict or district corporation other than the To~wn of Southotd. 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. Certificates of Participation (COPs) issued pursuant to GMI,, §109-b, Obligations of this local government, but only with any moneys in a reserve fund established oursuant to GML, S-g, 6-h, 6-j, 6-t, S-m, or-6-n. All investment obligations shall be payable or redeemable at the o~tion of the Town of Southold within such times as the proceeds will be n~ed to meet expenditures for purposes for which the moneys were provided and, ~ the c~se of obligations purchased with the proceeds of bonds or notes, shall be payable or redeemable at the option of the Town of Southold within two years of the data of purchase. XI. AUTHORIZED FINANCIAL INSTITUTIONS AaND DEALERS The Town of Southold 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 credit worthy. Banks shall provide their most recent Consolidated Report of Condition (Call Report) at the request of the Town of Southold. Security dealers not aff~l~sted with a bank shall be required to be classified as reporting dealer affiliated with the New York Federal Reserve Bank, as primary dealers. The chief fiscal officer is responsible for evaluating the flnsucial position and maintaining a listing of proposed depositaries, trading partners and custodians. Such Hsting shall be evaluated at least annually. XI. PURCHASE OF INVESTMENTS The chief fiscal officer is authorized to contract for the purchasa of investments: !. Directly, including through a repur~_~haae aa'reement, f~cm an authorized trading partner. - By ~articipat/on in a cooperative investment pro,*am with another authorized ~overnmental entity pursuant to Article §G of the General Municipal Law where such program meets a/1 the requirements set forth in the Office of the State Comptroller Opinion ~ No. 88-46, and the specific program ba~ bee~ autb-~rized by the govern;nE board. -- By ut~]~nE an ongoinE investment program with a~ authorized traek-~n~ partner pursuant to a contract authorized by the ~overn~n ~ board. ALl purchased obligations, un~ess re~stered or ~n.~cr~qaed i~ the name of the local Eovernrnent, shad] be purchased throuEh, deEvermd ~o and he/d iu the custody of a bank or trust company. Such obH~ation.~ sha~! be pur~H~ed, sold or presented for redemption~ or payment by such a bank or trust coaz~any only i~ acCOrdance with prior written authorization from the officer authorized ~o ma~e the investment. AH such transactions shah be conf~rmed in writ~n~ to the Town of Scutho~d by ~he bank or trust company. Any obii~ar/on held in the custody of a b~=W or trust company shah be held pursuant to a written custodial a~reement as described in General Municipal Law, §10. The custod~s~ aEreement shah provide that securities held bSr ~e bank or trust company, as a~ent of and custodian for, the local Eover.~ment, ~ be kept separate and apart from the ~enera/ assets of the custodial b2~k or trust company and will not, in any circumstances, be comm~no~led with or become part c~f the backiu~ for any other deposit or o~her HabiHties. The a~'eemen~ shs~ desc~uq3e how the custodian shall confirm the receiot and release of the securit/es. Such a~reement shah include ah provisions necessary to provide the local $over~r~en~ a perfected interest in the securities. XIII. REPURCHASE AGt~EEMENTS Repurchase a~reements are authorized subject to the foHowin$ restrictions: ' AH repurchase a~reements must be entered into subject ~o a 1Waster Repurcbs~e A~eement. TradinE partners are Iknited to bznW~ or trust companies authorized to do business in New York State and primary reportin~ dealers. ObHEations shah be Hmited !o obH~'ations of the United States of America and obli~atdons ~uaranteed by a~encies of the United States of America. ' No substitution of securities will be allowed. The custodian shall be a party other than the trading partner. ~-Judith T. Terry Southold Town C~erk Anr;l ~- lqqa