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Red Hook trustees authorize registration in New York Class short-term investment pool
Summary
The Village of Red Hook voted to register with New York Class, a municipal cooperative liquidity pool, and authorized specified village officials as signers; trustees said a policy will be drafted before any funds are placed.
The Village of Red Hook Board of Trustees voted to register the village with New York Class, a public-sector short-term investment cooperative, and authorized village officials to complete the registration.
Treasurer Marybeth De Vilupas, Controller Michelle Zaborski and Mayor Karen Smythe told trustees New York Class offers daily liquidity and collateral for each dollar invested. “It is completely liquid,” De Vilupas said, noting participants can move money into the program and withdraw it the next day.
Trustees said the village typically holds large balances of tax receipts and reserve funds in checking accounts that earn little interest; New York Class was presented as a way to earn more while preserving liquidity. The program’s holdings include U.S. Treasury securities, collateralized bank deposits and repurchase agreements, and New York Class Prime is rated AAAm by S&P Global Ratings, the presenter said.
The board approved a resolution authorizing the mayor, treasurer and controller to register the village in New York Class and to be listed as authorized signers. Trustees directed staff to return with a formal New York Class investment policy prior to any initial investment and to clarify how reserve funds would be handled under existing village code and any public-hearing requirements for transfers.
Trustees discussed operational safeguards: De Vilupas said New York Class allows dual-approval workflows in its platform and the village plans an internal policy requiring one staffer to initiate and another to approve transfers. Trustees also asked that policy include limits to prevent drawing down below a defined number of months of operating expenses.
The board approved the resolution on a voice vote. The motion was moved by Trustee Melissa Brown; the transcript records the vote as in favor with a voice vote of “Aye.” Detailed roll-call tallies were not specified in the meeting record.
Pending tasks and next steps include a legal review of whether moving reserve funds will require additional local resolutions or public hearings, preparing a written New York Class investment policy for board review, and testing the registration process before placing operating or reserve dollars into the pool.
