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Trustees increase Webster Bank deposit cap to $15 million; NYCLASS depository decision deferred
Summary
Treasurer asked to update the investment policy to increase Webster Bank’s permitted deposit from $8 million to $15 million to better manage liquidity and yields; trustees approved the change (3 in favor, 1 abstention) and deferred adding NYCLASS as a depository.
Treasurer presented a request to amend the village investment policy to increase the maximum deposit amount for Webster Bank from $8,000,000 to $15,000,000 to allow greater liquidity management and to capture higher interest rates. The initial resolution had proposed adding NYCLASS as a third depository, but trustees agreed to postpone adding NYCLASS pending further research.
Trustees discussed concentration risk versus yield. One trustee said they would abstain and review Webster’s credit metrics before voting; other trustees supported the increase to allow the treasurer flexibility in managing incoming tax receipts and cash flows, noting Webster currently offers higher short-term yields than other institutions used by the village. The board approved the amendment to the investment policy increasing Webster Bank’s maximum deposit to $15,000,000 (motion passed with one abstention). The broader resolution to add NYCLASS will return for further consideration at a future work session.
