Board of Estimate & Contract:
City Council:
AN ORDINANCE ADOPTING AN UPDATED
INVESTMENT POLICY FOR THE CITY OF
MOUNT VERNON AND REPEALING ALL
PRIOR INVESTMENT POLICIES
Whereas, by letter dated December 4, 2024, the Comptroller has requested legislation authorizing the City Council of the City of Mount Vernon to adopt the attached Investment Policy for the City of Mount Vernon, which is incorporated herein by reference and made a part of this ordinance as if fully set forth herein; and
Whereas, Sections 90 and 91 of the City Charter of the City of Mount Vernon designate the City’s Comptroller as responsible for administering the City’s cash management and investment functions; and
Whereas, the City’s Investment Policy establishes guidelines and parameters for the prudent investment of public funds to safeguard investments, maintain liquidity, and achieve a reasonable rate of return; and
Whereas, research has revealed that the last formally adopted Investment Policy was before 2024, with updates to the designation of depositories and maximum deposit amounts made in 2015 by Comptroller Walker; however, the City has been unable to locate an official copy of the existing policy; and
Whereas, in compliance with New York State General Municipal Law, the City of Mount Vernon is required to adopt an updated Investment Policy to ensure proper management and security of City funds; and
Whereas, the City’s Comptroller, in collaboration with financial advisors from Capital Markets Advisors, LLC, has developed a comprehensive Investment Policy that establishes written policies and procedures for identifying depositories, ensuring depository diversification, and regulating maximum deposit levels to safeguard City funds; and
Whereas, it is in the best interest of the City to adopt a clear, updated, and comprehensive Investment Policy to provide proper guidance to the Comptroller, protect public funds, and ensure compliance with all applicable laws and regulations; Now, Therefore, Be It Resolved That
The City of Mount Vernon, in City Council convened, does hereby ordain and enact:
Section 1. Adoption of Investment Policy. The City Council of the City of Mount Vernon hereby adopts the attached Investment Policy for the City of Mount Vernon, which is incorporated herein by reference and made a part of this ordinance as if fully set forth herein.
Section 2. Scope and Objectives. The purpose of the Investment Policy is to establish guidelines for the investment of the City’s funds under the authority of the City’s Comptroller. The objectives of the Policy include:
1. Preservation of Principal: Ensuring the safety and security of the principal by mitigating credit risk, concentration risk, and interest rate risk.
2. Liquidity: Maintaining sufficient liquidity to meet the City’s operational and cash flow needs.
3. Return on Investments: Achieving a market rate of return on investments consistent with the primary objectives of safety and liquidity.
Section 3. Authority and Responsibility.
1. The City’s Comptroller shall have the authority to administer all aspects of cash management and investment activities in accordance with Sections 90 and 91 of the City Charter, the guidelines established by this Policy, and all applicable laws and regulations.
2. The Comptroller is authorized to designate approved depositories, ensure diversification, and regulate maximum deposit levels as outlined in the Policy.
Section 4. Repeal of Prior Investment Policies. All prior Investment Policies previously adopted by the City Council, including but not limited to those adopted before 2024 and updates made in 2015, are hereby repealed in their entirety.
Section 5. Effective Date. This ordinance shall take effect immediately upon its adoption and remain in full force and effect until amended, superseded, or repealed by the City Council.