City Council:
AN ORDINANCE AUTHORIZING THE CITY OF
MOUNT VERNON TO PARTICIPATE IN THE NEW
YORK COOPERATIVE LIQUID ASSETS SECURITIES
SYSTEM (NYCLASS) AND AUTHORIZING THE
COMPTROLLER TO ESTABLISH AND ADMINISTER
A MUNICIPAL INVESTMENT ACCOUNT
Whereas, in correspondence dated September 8, 2026, the Comptroller formally requested authorization for the City of Mount Vernon to participate in the New York Cooperative Liquid Assets Securities System (NYCLASS) as an eligible governmental participant, pursuant to Article 5-G of the New York General Municipal Law, applicable provisions of New York State law, the City's adopted Investment Policy, and the applicable NYCLASS Municipal Cooperation Agreement and governing documents; and
Whereas, the City of Mount Vernon (the “City”) is responsible for the prudent management, investment, and safeguarding of public funds in accordance with applicable Federal and New York State law and the City's adopted Investment Policy; and
Whereas, the City's Investment Policy establishes a framework for the prudent management and investment of City funds and authorizes the Comptroller to invest monies that are not required for immediate expenditure, subject to applicable law, the City's projected cash-flow requirements, and the priorities established by the Investment Policy; and
Whereas, the City's Investment Policy establishes the following priorities for the investment of public funds: compliance with applicable legal requirements; safeguarding of principal; maintaining sufficient liquidity to meet operating requirements; analyzing and projecting anticipated liabilities; and obtaining the best available rate of return consistent with the City's operating and liability requirements; and
Whereas, the City's Investment Policy further requires that investments be made with prudence and discretion and not for speculation, with consideration given first to safety of principal, second to liquidity, and lastly to yield; and
Whereas, the City's Investment Policy further provides for diversification, to the extent practical, by financial institution, maturity, and type of investment to reduce risks associated with excessive concentration; and
Whereas, the City's Investment Policy specifically authorizes the Comptroller to contract investments through participation in a cooperative investment program with other authorized governmental entities pursuant to Article 5-G of the New York General Municipal Law, provided that such program meets applicable requirements established by the Office of the New York State Comptroller; and
Whereas, the New York Cooperative Liquid Assets Securities System (“NYCLASS”) is a cooperative investment program established to provide eligible governmental entities with a vehicle for the investment and management of public funds; and
Whereas, participation in NYCLASS would provide the City with an additional lawful mechanism for managing funds that are temporarily available for investment while maintaining the City's priorities of legal compliance, safety of principal, liquidity, cash-flow management, and an appropriate rate of return; and
Whereas, the establishment of a NYCLASS account would not require the City to invest any particular amount of money or maintain any particular balance therein, but would provide the Comptroller with an additional investment vehicle that may be utilized when consistent with the City's financial condition, projected cash-flow requirements, anticipated liabilities, Investment Policy, and applicable law; and
Whereas, the City is presently engaged in fiscal management and financial rebuilding efforts, making prudent cash management and the productive use of temporarily available public funds, important components of the City's overall fiscal stewardship; and
Whereas, any investment of City funds through NYCLASS must remain subordinate to the City's immediate and anticipated obligations, including payroll, debt service, contractual obligations, capital requirements, and other legally required expenditures; and
Whereas, the City desires to establish participation in NYCLASS while maintaining appropriate internal controls, accounting procedures, fund segregation, recordkeeping, monitoring, and oversight with respect to all public funds invested through the program; and
Whereas, participation in NYCLASS may also provide an investment platform that eligible governmental entities associated with the City, including the Mount Vernon Industrial Development Agency and the Board of Water, may independently consider utilizing, subject to their respective statutory authority, governing documents, investment policies, internal controls, fiduciary obligations, and approvals; and
Whereas, the City Council finds that establishing participation in NYCLASS will provide the City with an additional cash-management and investment option while preserving the City's existing fiduciary obligations and investment safeguards;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MOUNT VERNON, NEW YORK, AS FOLLOWS:
Section 1. Authorization to Participate in NYCLASS. The City of Mount Vernon is hereby authorized to participate in the New York Cooperative Liquid Assets Securities System (NYCLASS) as an eligible governmental participant, pursuant to Article 5-G of the New York General Municipal Law, applicable provisions of New York State law, the City's adopted Investment Policy, and the applicable NYCLASS Municipal Cooperation Agreement and governing documents.
Section 2. Authorization to Establish Municipal Investment Account. The City Comptroller is hereby authorized to establish one or more municipal investment accounts with NYCLASS in the name of the City of Mount Vernon for the purpose of investing City funds that the Comptroller determines are not required for immediate expenditure.
The establishment of such account or accounts shall not constitute an authorization or requirement that the City invest any particular amount of funds or maintain any minimum balance, except as may otherwise be required by applicable NYCLASS governing documents.
Section 3. Authority of the Comptroller. The City Comptroller, as the City’s chief fiscal officer and the officer responsible for administering the City's investment program, is hereby authorized to execute and deliver all applications, participation agreements, certifications, resolutions, forms, instructions, and other documents necessary or appropriate to establish and maintain the City's participation in NYCLASS, subject to review and approval as to form by the Corporation Counsel where required.
The Comptroller is further authorized to take such administrative actions as are reasonably necessary to implement this Ordinance and administer the City's NYCLASS account in accordance with applicable law and City policy.
Section 4. Limitation to Funds Available for Investment. Only funds determined by the Comptroller, based upon appropriate cash-flow analysis and consideration of anticipated liabilities, to be not required for immediate expenditure may be transferred to or invested through NYCLASS.
No transfer or investment shall be made if the Comptroller determines that such action would impair the City's ability to satisfy current or reasonably anticipated obligations, including, but not limited to:
1. Payroll and employee-related obligations;
2. Debt service;
3. Contractual obligations;
4. Capital expenditures and capital project requirements;
5. Statutory or legally mandated payments; or
6. Other operating or financial obligations of the City.
Section 5. Compliance with Law and Investment Policy. All investments made through NYCLASS shall comply with:
1. Applicable Federal and New York State laws, rules, and regulations;
2. Article 5-G of the New York General Municipal Law, as applicable;
3. The City's adopted Investment Policy;
4. Applicable NYCLASS governing documents and participation requirements;
5. Established City financial procedures and internal controls; and
6. Any applicable requirements of the New York State Office of the State Comptroller.
Nothing in this Ordinance shall be construed to authorize any investment that is otherwise prohibited by law or the City's Investment Policy.
Section 6. Safety of Principal and Liquidity. The safety of principal shall remain a primary consideration in all investment decisions, consistent with the City's Investment Policy.
The Comptroller shall evaluate the liquidity requirements of the City before making any transfer or investment through NYCLASS and shall structure investments in a manner consistent with projected cash-flow needs and anticipated liabilities.
Yield or investment income shall remain subordinate to the City's requirements concerning legal compliance, safety of principal, liquidity, and cash-flow requirements.
Section 7. Diversification. The City shall continue to consider diversification, to the extent practical and appropriate, by financial institution, maturity, and type of investment, consistent with the City's Investment Policy and applicable law.
Participation in NYCLASS shall be considered as one component of the City's overall cash-management and investment strategy and shall not be construed as requiring the City to concentrate its public funds in any single investment vehicle or institution.
Section 8. Fund Segregation and Accounting. All City funds invested through NYCLASS shall continue to be accounted for and maintained in accordance with applicable legal, financial, and accounting requirements.
The Comptroller shall ensure that appropriate records are maintained identifying the applicable City fund, amounts invested, transaction dates, investment activity, balances, earnings, withdrawals, and other information necessary for proper accounting and oversight.
Section 9. Internal Controls and Recordkeeping. The Comptroller shall maintain appropriate written procedures and internal controls governing the City's participation in NYCLASS and shall take reasonable measures to safeguard public funds against unauthorized use, fraud, error, or imprudent investment activity.
All investment transactions shall be properly documented and recorded in accordance with the City's financial procedures and applicable law.
Section 10. Periodic Monitoring. The City’s NYCLASS participation and investment position shall be periodically monitored by the Comptroller to ensure continued consistency with:
1. The City’s current and projected cash-flow requirements;
2. Anticipated City liabilities;
3. The City's Investment Policy;
4. Applicable laws and regulations;
5. NYCLASS governing requirements; and
6. The City’s overall fiscal condition.
The Comptroller shall have authority to withdraw or redirect funds when necessary to satisfy City obligations or when continued investment is determined to be inconsistent with the City's financial requirements or Investment Policy.
Section 11. No Speculative Investment. Nothing contained herein shall authorize or permit the investment of City funds for speculative purposes.
All investment decisions shall be made prudently and with due regard for the City's fiduciary responsibilities and the investment priorities established by the City's Investment Policy.
Section 12. Participation by Other Eligible Governmental Entities. The establishment of the City's participation in NYCLASS may provide an investment platform that other eligible governmental entities associated with the City, including the Mount Vernon Industrial Development Agency, the Board of Water, and other qualifying governmental entities, may independently consider utilizing.
Any such governmental entity shall be solely responsible for determining whether participation is authorized under its own statutory authority, governing documents, investment policies, internal controls, and fiduciary obligations, and shall obtain all approvals required by applicable law.
Nothing in this Ordinance shall be construed as authorizing the investment of funds belonging to any separate governmental entity without the independent authorization of such entity.
Section 13. Fiscal Impact. The establishment of a NYCLASS account does not, in and of itself, require the expenditure of City funds or require the City to invest a specified amount of public funds.
Any investment income generated through the City's participation shall accrue to the benefit of the applicable City fund in accordance with applicable law and accounting requirements.
Section 14. Implementation. The Mayor, Comptroller, Corporation Counsel, and all other appropriate City officers and employees are hereby authorized and directed to take all actions necessary or appropriate to carry out the purposes and intent of this Ordinance, consistent with applicable law and the City's adopted Investment Policy.
Section 15. Annual Investment Policy Review. The City’s participation in NYCLASS shall remain subject to the City's adopted Investment Policy, including any amendments or revisions thereto duly adopted by the City Council.
Nothing herein shall limit the authority of the City Council to amend the City's Investment Policy or modify the City's authorization to participate in NYCLASS in accordance with applicable law.
Section 16. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provision or application of this Ordinance that can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared severable.
Section 17. Effective Date. This Ordinance shall take effect immediately upon its adoption by the City Council.