[HISTORY: Adopted by the Board of Trustees of the Village of Saugerties 10-17-1988. Amendments noted where applicable.]
Procurement Policy — See Ch. 28.
The objectives of this chapter of the Village of Saugerties are to minimize risk; to insure that investments mature when the cash is required to finance operations; and to insure a competitive rate of return.
In accordance with this chapter, the Chief Fiscal Officer is hereby authorized to invest all funds including proceeds of obligations and reserve funds in:
All funds except reserve funds may be invested in:
All other Village of Saugerties officials receiving money in their official capacity must deposit such funds in negotiable order of withdrawals accounts.
All investments made pursuant to this chapter shall comply with the following conditions:
All collateral shall be held in third-party (custodial) banks with which the Village of Saugerties has entered into a custodial agreement. The market value of the collateral shall at all times equal or exceed the principal amount of the certificate of deposit. Collateral shall be monitored no less frequently than semiannually, and "market value" shall mean the bid or closing price as quoted in the Wall Street Journal or as quoted by another recognized pricing service.
Collateral shall not be required with respect to direct purchase of obligations of New York State, obligations of the United States and obligations of federal agencies, the principal and interest of which are guaranteed by the United States Government.
Delivery of securities. Payment shall be made by or on behalf of the Village of Saugerties for obligations of New York State, obligations the principal and interest of which are guaranteed by the Unites States, United States obligations, certificates of deposit, and other purchased securities upon delivery thereof to the custodial bank, or to the Village of Saugerties, or in the case of a book-entry transaction, when the purchased securities are credited to the custodial bank's federal reserve system account. All transactions shall be confirmed in writing.
Written contracts are required for certificates of deposit and custodial undertakings. With respect to the purchase of obligations of the United States, New York State or other governmental entities, etc., in which moneys may be invested, the interest of the Village of Saugerties will be adequately protected by conditioning payment on the physical delivery of purchased securities to the Village of Saugerties or custodian, or in the case of book-entry transactions, on the crediting of purchased securities to the custodian's federal reserve system account. All purchases will be confirmed in writing to the Village of Saugerties.
The Village of Saugerties will encourage the purchase and sale of securities and certificates of deposit through a competitive or negotiated process involving telephone solicitation of at least two bids for each transaction. The Village of Saugerties shall use only those institutions with which they are familiar and can expect good service and creditability.
At the time independent auditors conduct the annual audit of the accounts and financial affairs of the Village of Saugerties, the independent auditors shall audit the investments of the Village of Saugerties for compliance with the provisions of this chapter.
Within 60 days of the end of each of the six months of the fiscal year, the Chief Fiscal Officer shall prepare and submit to the Board of Trustees of the Village of Saugerties a semiannual investment report which indicates new investments, the inventory of existing investments, and such other matters as the Chief Fiscal Officer deems appropriate.
Within 60 days of the end of the fiscal year, the Chief Fiscal Officer shall prepare and submit to the Board of Trustees of the Village of Saugerties an annual investment report, the results of the annual independent audit; the investment income record; and such other matters as the Chief Fiscal Officer deems appropriate.
The Board of Trustees of the Village of Saugerties shall review and approve the annual investment report.
At least annually, the Board of Trustees shall review and amend, if necessary, this chapter.
The provisions of this chapter and any amendments hereto shall take effect prospectively, and shall not invalidate the prior selection of any custodial bank or prior investment.