Committee debates $40 million transfer into iClass as a first step to diversify county deposits

Ulster County Ways and Means members spent extended time on June 12 discussing a proposed $40,000,000 transfer into an iClass investment as an initial step to diversify the county’s cash holdings.

A presenter described the resolution as a first step: “This is the first step necessary to use NIE Class as a diversification option,” and said the move was intended to reduce concentration risk. Committee members pressed officials on concentrations at Bank of Greene County and on whether the county should publish a staged diversification plan.

The county controller provided account-level context: as of March 31 the county had about $257,000,000 in the Bank of Greene County, and even after a $40 million transfer the county would still represent more than 5% of that bank’s deposits. The controller’s office said further staged diversification is an objective in investment policy but that timing and any larger plan would require additional consideration and possibly legislative authority.

A committee member asked whether making a public plan for diversification could harm the referenced bank; another official said bank leadership had been notified of the county’s actions and that the Investment Advisory Board is mindful of avoiding overly aggressive moves that could hurt the institution.

The committee asked the advisory board for reports back to Ways and Means and the legislature as further planning proceeds.

Why it matters: The discussion signals a move away from concentrated deposits and toward diversification tools; questions about public communications, timing, and legislative authority suggest further committee oversight and reporting will follow.