§ 20-1. Objectives and authorized investments.
§ 20-2. Conditions for investments.
[HISTORY: Adopted by the Board of Trustees of the
§ 20-1. Objectives and authorized investments.
The objectives of the Investment Policy
of the
A. In accordance with this policy, the chief fiscal officer is hereby authorized to invest all funds, including proceeds of obligations and reserve funds, in:
(1) Certificates of deposit
issued by a bank or trust company authorized to do business in
(2) Time deposit accounts
in a bank or trust company authorized to do business in
(3) Obligations of
(4) Obligations of the
B. All funds except reserve funds may be invested in:
(1)
Obligations of agencies of the federal government if
principal and interest is guaranteed by the
(2) With the approval of the State Comptroller, revenue anticipation notes or tax anticipation notes of other local governments.
C.
Only reserve
funds may be invested in obligations of the local
government.
D. All other
Village officials, or their delegates, receiving money in their official
capacity must deposit such funds in negotiable order of withdrawal
accounts.
E.
No investments
are to be made in repurchase agreements.
§ 20-2. Conditions for investments.
All investments made pursuant to this
investment policy shall comply with the following
conditions:
A. Collateral.
(1) 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 federal agencies, the principal and interest of which are
guaranteed by the United States, or obligations of New York State local
governments. Collateral shall be delivered to the
(2) Collateral shall not be required with respect to the direct purchase of obligations of New York State, obligations of the United States and obligations of federal agencies the principal and interest of which are guaranteed by the United States Government.
B. Delivery of securities. Payment shall be made by or on behalf of the Village of Lansing for obligations of New York State, obligations the principal and interest of which are guaranteed by the United States, United States obligations, certificates of deposit and other purchased securities upon the delivery thereof to the custodial bank, or in the case of a book-entry transaction, when the purchased securities are credited to the custodial bank's Federal Reserve System account. All transactions shall be confirmed in writing.
C. 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
Lansing will be adequately protected by conditioning payment on the physical
delivery of purchased securities to the Village of Lansing 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
(1) Written contracts shall be required for the purchase of all certificates of deposit.
(2) A written contract shall be required with the custodial bank.
D. Designation of custodial bank. The Tompkins County Trust Company and M&T Bank are designated to act as custodial banks of the local government's investments.[1]
E. Financial strength of
institutions.
(1) All trading partners must be creditworthy. Their financial statements must be reviewed at least annually by the chief fiscal officer to determine satisfactory financial strength, or the chief fiscal officer may use credit rating agencies to determine creditworthiness of trading partners. Concentration of investments in financial institutions should be avoided.
(2) 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 chief fiscal officer to determine satisfactory financial strength.
(3) When purchasing eligible securities, the seller shall be required to deliver the securities to our custodial bank.
F. Operations, audit and reporting.
(1) The chief fiscal
officer shall authorize the purchase and sale of all securities and certificates
of deposit on behalf of the
(2) The
(3) At the time independent
auditors conduct the annual audit of the accounts and financial affairs of the
(4) Within sixty (60) days of the end of each of the first three (3) quarters of the fiscal year, the chief fiscal officer shall prepare and submit to the Village Board a quarterly investment report which indicates new investments, the inventory of existing investments and such other matters as the chief fiscal officer deems appropriate.
(5) Within one hundred twenty (120) days of the end of the fiscal year, the chief fiscal officer shall prepare and submit to the Village Board 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 chief fiscal officer deems appropriate.
(6) The Village Board shall review and approve the annual investment report, if practicable, at its first meeting in May.[2]
(7) At least annually, the Village Board shall review and amend, if necessary, these investment guidelines.
(8) 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.