I. Scope

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.

II. Objectives

The primary objectives of the Saratoga Springs Public Library’s investment activities are, in priority order,

• to conform with all applicable federal, state and other legal requirements (legal);
• to adequately safeguard principal (safety);
• to provide sufficient liquidity to meet all operating requirements (liquidity); and
• to obtain a reasonable rate of return (yield).

III. Delegation of Authority

The Board of Trustee’s responsibility for administration of the investment program is delegated to the library director and treasurer who shall ensure that an adequate internal control structure is established. Records indicating description and amounts of investments, transaction dates and other relevant information shall be distributed to the Board for review.

IV. Prudence

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 Saratoga Springs Public Library to conduct library affairs effectively.

Investments shall be made with judgment and care, not for speculation, but for investment, considering the safety of the principal as well as the probable income to be derived.

All participants involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment.

V. Diversification

It is the policy of the Saratoga Springs Public Library to diversify its deposits and investments by financial institution, and by maturity scheduling.

VI. Internal Controls

The library director and treasurer in consultation with the board 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.

VII. Designation of Depositories

The banks and trust companies authorized for the deposit of moneys up to the following maximum amounts are:

VIII. Collateralizing of Deposits

In accordance with the provisions of General Municipal Law, §10, all deposits of the Saratoga Springs Public Library, 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.

IX. Permitted Investments

As authorized by General Municipal Law, § 11, the Saratoga Springs Public Library authorizes the treasurer, with the express approval of the library director and board president, to invest moneys not required for immediate expenditure for terms not to exceed its projected cash flow needs in the following types of investments:

• Special time deposit accounts;
• Certificates of deposit;
• Obligations of the United States of America;
• 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;
• 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, school district or district corporation other than the library.
• 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 GML, §109-b,
• Obligation of this local government, but only with any moneys in a reserve fund established pursuant to GML, §6-c, 6-d, 6-e, 6-9, 6-h, 6-j, .6-k, 6-1, 6-m, or 6-n.

All investment obligations shall be payable or redeemable at the option of the Board of Trustees of the Saratoga Springs Public Library 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 Saratoga Springs Public Library within two years of date of purchase.

X. Authorized Financial Institutions and Dealers

The Saratoga Springs Public Library 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 Saratoga Springs Public Library.

XI. Purchase of Investments

The library director and treasurer are authorized to contract for the purchase of investments

1. Directly, including through a repurchase agreement, from an authorized tracking 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 board of trustees.
3. By utilizing an investment program with an authorized tracking partner pursuant to a contract authorized by the board of trustees.

All purchased obligations, unless registered or inscribed in the name of the library 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 Saratoga Springs Public Library by the bank or trust company. Any obligation held in the custody of a bank or trust company shall be held pursuant to written custodial agreement as described in General Municipal Law, §10.

The custodial agreement shall provide that securities held by the bank or trust company, as agent of and custodian for the Saratoga Springs Public Library, 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 library a perfected interest in the securities.