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