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Investments—The Town holds short term investments in New York Cooperative Liquid Assets Securities System (NYCLASS) which is a municipality-based investment pool. The portfolio holdings are collateralized on a pro rata share of the overall collateral. Within the NYCLASS portfolio, U.S. treasuries are backed by the full faith and credit of the United States Government, repurchase agreements are collateralized 102% by either U.S. Treasuries or U.S. Agencies, and bank deposits are collateralized by Federal Home Loan Bank (FHLB) Letters of Credit (LOC). Total investments at December 31, 2025, are shown below: Governmental Funds Investment in Securities $ 2,782,682 Investment in Securities - Special Reserves $ 1,383,264 Total $ 4,165,946 The Town has chosen to invest the funds of all legally created reserve accounts. At December 31, 2025, the Town reported $1,383,264 in Investment in Securities for Special Reserves relating to fund balance constraints across the General, Highway, Water, and Ambulance Funds. Restricted Investments—All investments are reported using a three-level hierarchy that prioritizes the inputs used to measure fair value. This hierarchy, established by GAAP, requires that entities maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs used to measure fair value are presented below: • Level 1. Quoted prices for identical assets or liabilities in active markets to which the Town has access at the measurement date. • Level 2. Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets in markets that are not active; • Observable inputs other than quoted prices for the asset or liability (for example, interest rates and yield curves); and • Inputs derived principally from, or corroborated by, observable market data correlation or by other means • Level 3. Unobservable inputs for the asset or liability. Unobservable inputs should be used to measure fair value to the extent that observable inputs are not available. The Town’s restricted investments consist of annuity contracts related to the Town’s Length of Service Award Programs (“LOSAP”), a defined benefit volunteer firefighter award program (See Note 7) and a defined contribution volunteer ambulance worker program (See Note 8). These annuities are guaranteed fixed annuities. The interest on each annuity varies but they are all fixed rate with a guaranteed minimum rate for a specific period. As of December 31, 2025, the Town has annuity funds that are valued using observable inputs other than quoted prices and inputs derived from observable market data correlation (level 2 input) in the amounts of $2,824,524 recorded within the Fire Protection Fund, and $728,827 recorded within the Ambulance Fund. - 92 -