The Ulster County Ways and Means Committee on June 12 debated a resolution to authorize use of an "I Class" investment vehicle and to transfer $40,000,000 from the county's deposits at Bank of Greene County as an initial diversification step.

Committee members said the authorization is intended to reduce concentration risk in a single bank while the county evaluates staged diversification options. The discussion focused on how much to move now, how the plan would be communicated, and whether additional legislative approvals would be required for future transfers.

Comptroller Gallagher told the committee, "So, as of March 31, and I do have current numbers, but I'm gonna use March 31, we had $257,000,000 in Bank of Greene County. That is a huge percentage of their assets. And even once we take this $40,000,000 out, we're still gonna be over 5% of their deposits. So I just wanna say from where we sit in the controller's office, this diversification is good. It's a first step, but it's not as far as we need to go." Gallagher also urged the committee to consider other cooperative investment tools beyond what was highlighted in the audit.

A committee member asked whether the $40 million was the only planned transfer. A staff presenter replied, "At this time, it's the only transfer that's planned, for an I class, but I will kick it to the commissioner Dawe, to kind of explain where we're at now." Commissioner Dawe said the resolution "authorizes us to enter into an I Class" and described the move as a first step to diversify holdings; whether and when to pursue additional transfers would be evaluated based on performance and any required legislative authority.

Several members asked for a clearer, staged diversification plan. One member said they wanted a timeline or proposal for moving significantly more funds out of the county's primary bank while avoiding undue harm to that institution. A staff speaker noted the Investment Advisory Board (IAB) is discussing how to avoid being "too aggressive to hurt the bank, but at the same time, making sure that we're doing what's right by the county and the funds that are here." The committee agreed the IAB's forthcoming report would be shared with Ways and Means, the county executive and the legislature.

Actions: The resolution under discussion would authorize use of an I Class investment vehicle and permit an initial transfer of $40,000,000 from county deposits; the transcript records discussion about the authorization and that the transfer was described as the first step, but does not show a clear, vote-confirmed final outcome for this specific authorization in the provided excerpt.

Why it matters: County officials said Ulster County currently holds an outsized share of deposits at a single institution, and even after a $40 million transfer the county's holdings there would remain above regulatory concentration thresholds noted by staff. Committee members pressed for follow-up reporting and a staged plan to reduce concentration risk.

What's next: The Investment Advisory Board will report back to Ways and Means, the county executive and the legislature with additional detail. Committee members urged prioritizing a diversification plan during the advisory board's next work.