[HISTORY: Adopted by the Town Board of the
Town of Colonie 11-19-1987 by L.L. No. 17-1987. Amendments noted
where applicable.]
The purposes of this chapter are to set forth
provisions for the imposition of uniform penalties and rates of interest
relative to the fixing, levy, collection and administration of local
government rentals, charges, rates and fees; for the establishment
of petty cash funds; for the establishment of directives relative
to the refund of application fees and waiver thereof; and for the
establishment of a fiscal policy to assure effective management and
control of investments.
A.
All billings and invoices issued by the Town of Colonie
or by special districts therein, in connection with the fixing levy,
collection and administration of local government rentals, charges,
rates and fees shall be payable within 30 days from the date of said
billing or invoice, unless otherwise provided for by law or contract.
B.
From and after the expiration of said 30 days, the
Chief Fiscal Officer or a designee thereof shall and hereby is empowered
to assess penalties and interest upon each of said unpaid rentals,
charges, rates and fees, at rates and upon terms as may be established
by the Town Board from time to time.
C.
All billings and invoices issued by the Town or special
districts therein, upon which penalties or interest may be imposed
for late payment thereof, shall contain notice of payment terms, penalties
and rates of interest on a periodic rate or annual rate basis in connection
therewith. Said notice shall be conspicuous and located in a manner
calculated to apprise the payer of such terms.
A.
The Town Board may, by resolution, establish petty
cash funds for those Town departments and special districts as may
be designated from time to time by the Chief Fiscal Officer, or designee
thereof, for the payment, in advance, of properly itemized and verified
or certified bills for materials, supplies and services furnished
to said Town departments or special districts for the conduct of their
affairs and upon terms calling for payment to the vendor upon the
delivery of any such materials or supplies or the rendering of any
such services.
B.
The amount of such petty cash funds shall not exceed
$100 for special districts and shall not exceed $250 for Town departments.
Disbursements from said funds shall not exceed $25 for any single
transaction.
C.
Petty cash funds may be replenished from time to time
as deemed necessary by authorized departmental and special district
officials by delivering to the Chief Fiscal Officer, or designee thereof,
a duly executed claim form listing all expenditures made from said
funds since the date that said funds were last replenished, together
with receipted bills supporting such expenditures. The Chief Fiscal
Officer, or designee thereof, shall thereafter replenish said petty
cash funds from the appropriate budgetary item or items, in an amount
equal to the total of such receipted bills so audited and allowed.
D.
Any of such receipted bills or portions thereof which
the Chief Fiscal Officer, or designee thereof, shall refuse to audit
and allow shall be the personal liability of the respective department
head or special district official, and said department head or special
district official shall promptly reimburse such petty cash fund in
the amount of such disallowances. If the reimbursement has not been
made by the time of the first payment of salary to such department
head or special district official after the action of the Chief Fiscal
Officer, or designee thereof, in disallowing an amount so expended,
such amount shall be withheld from such salary payment and, if necessary,
subsequent salary payments and paid into such petty cash fund until
an amount equal to the amount so disallowed has been repaid to the
petty cash fund.
A.
Sums paid as and for application fees, including but
not limited to sums paid in connection with applications for review
and approval of proposed developments and projects and issuance of
permits, certificates, variances and interpretations by the various
boards and departments of the Town, or special districts therein,
shall be deposited in the appropriate depository institution account(s)
immediately upon acceptance or as soon thereafter as practicable.
No such application shall be deemed complete and no such application
shall be subject to consideration until said sums are received by
the board, department or special district conducting such review and
approval or issuing such permit, certificate, variance and interpretation.
B.
Application fees shall be nonrefundable once processing
of the subject application has commenced. For purposes of this section,
processing shall be deemed commenced immediately upon submission of
a completed application and payment of fees in connection therewith.
C.
Application fees may be waived at the discretion of
the Town Attorney and Town Comptroller for good cause only.
A.
The objectives of the investment policy of the Town
of Colonie are to minimize risks, to ensure that investments mature
when the cash is required to finance operations, and to ensure a competitive
rate of return.
(1)
In accordance with this policy, the Chief Fiscal Officer,
or designee thereof, is hereby authorized to invest all funds, including
proceeds of obligations, and reserve funds in:
(a)
Certificates of deposit issued by a bank or trust
company authorized to do business in New York State.
(b)
Time deposit accounts in a bank or trust company authorized
to do business in New York State.
(c)
General obligations of New York State.
(d)
Obligations of the United States Government.
(e)
Obligations of agencies of the federal government
if principal and interest are guaranteed by New York State.
(f)
General obligations of agencies of New York State
if principal and interest are guaranteed by New York State.
B.
All other local government officials receiving money
in their official capacity must deposit such funds in negotiable order
of withdrawal accounts.
C.
All investments made pursuant to this investment policy
shall comply with the following conditions.
(1)
Collateral.
(a)
Certificates of deposit shall be fully secured by
insurance of the Federal Deposit Insurance Corporation or by general
obligations of New York State or obligations of the United States
or obligations of federal agencies, the principal and interest of
which are guaranteed by the United States, or general obligations
of New York State local governments. Collateral shall be delivered
to a custodial bank. For purposes of this section, "custodial bank"
shall mean a bank with which the Town of Colonie has entered into
a custodial agreement or a third-party institution of the issuers's
choice with which the Town of Colonie and issuers have entered into
a third-party custodial agreement. The market value of collateral
shall, at all times, equal or exceed the principal amount of the certificate
of deposit. Collateral shall be monitored no less frequently than
weekly, 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.
(b)
Securities purchased through a repurchase agreement
shall be valued to market at least weekly.
(c)
Collateral shall not be required with respect to the
direct purchase of general obligations of New York State, obligations
of the United States, obligations of federal agencies, the principal
and interest of which are guaranteed by the United States Government,
and general obligations of New York State local governments, the principal
and interest of which are guaranteed by New York State.
(2)
Delivery of securities.
(a)
Payment shall be made by or on behalf of the Town
of Colonie for general obligations of New York State, general obligations
of New York State local governments, the principal and interest of
which are guaranteed by New York State, United States obligations,
certificates of deposit and other purchased securities upon the delivery
thereof to the custodial bank or, in the case of a book-entry transaction,
which the purchased securities are credited to the custodial bank's
Federal Reserve System account. All transactions shall be confirmed
in writing.
(b)
Repurchase agreements. Every repurchase agreement
shall provide for payment to the seller only upon the seller's delivery
of obligations of the United States to the custodial bank or, in the
case of a book-entry transaction, when the obligations of the United
States are credited to the custodian's Federal Reserve bank account.
The seller shall not be entitled to substitute securities. Repurchase
agreements shall be for periods of 30 days or less. The custodial
bank shall confirm all transactions in writing to ensure that the
Town of Colonie ownership of the securities is properly reflected
on the records of the custodial bank.
(3)
Written contracts.
(a)
Written contracts are required for certificates of
deposit and custodial undertakings. With respect to the purchase of
obligations of the United States, general obligations of New York
State or other governmental entities, etc., in which moneys may be
invested, the interest of the Town of Colonie will be adequately protected
by conditioning payment on the physical delivery of purchased securities
to the Town of Colonie or custodian or, in the case of the 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 Town of Colonie.
(b)
It is, therefore, the policy of the Town of Colonie
to require written contracts as follows:
[1]
Written contracts shall be required for the
purchase of all certificates of deposit.
[2]
A written contract shall be required with all
custodial banks.
[3]
Written contracts shall be required for all
repurchase agreements. Only credit-worthy banks and primary reporting
dealers shall be qualified to enter into a repurchase agreement with
the Town of Colonie. The written contract shall provide that only
obligations of the United States may be purchased, and the Town of
Colonie shall make payment upon delivery of the securities or appropriate
book entry of the purchased securities. No specific repurchase agreement
shall be entered into unless a master repurchase agreement has been
executed between the Town of Colonie and the trading partners. While
the term of the master repurchase agreement may be for a reasonable
length of time, a specific repurchase agreement shall not exceed 30
days.
(4)
Designation of custodial banks. The Town of Colonie
has the option to designate a custodial bank if it is deemed necessary
in order to be in compliance with this investment policy.
(5)
Financial strength of institutions.
(a)
All trading partners must be credit worthy. Their
financial statements must be reviewed at least annually by the Chief
Fiscal Officer, or designee thereof, to determine satisfactory financial
strength, or the Chief Fiscal Officer, or designee thereof, may use
credit rating agencies to determine credit worthiness of trading partners.
Concentration of investments in financial institutions should be avoided.
The general rule is not to place more than $100,000 in overnight investment
with any one institution. However, if the institution is fully collateralized,
larger amounts can be committed.
(b)
Investments in time deposits and certificates of deposit
are to be made with banks or trust companies. Their annual reports
must be reviewed by the Chief Fiscal Officer, or designee thereof,
to determine satisfactory financial strength.
(c)
When purchasing eligible securities, the seller shall
be required to deliver securities to a designated custodial bank,
if applicable.
(d)
Repurchase agreements shall be entered into only with
banks or trust companies or registered and primary reporting dealers
in government securities. Sound credit judgments must be made with
respect to trading partners in repurchase agreements. It is not assumed
that inclusion on a list of the Federal Reserve is automatically adequate
evidence of credit worthiness.
(e)
Repurchase agreements should not be entered into with
undercapitalized trading firms.
(f)
A margin of 5% of higher or the market value of purchased
securities in repurchase agreements must be maintained.
(6)
Operations audit and reporting.
(a)
The Chief Fiscal Officer, or designee thereof, shall
authorize the purchase and sale of all securities and execute contracts
for certificates of deposit on behalf of the Town of Colonie. Oral
directions concerning the purchase or sale of securities shall be
confirmed in writing. The Town of Colonie shall pay for purchased
securities upon the delivery or book entry thereof.
(b)
The Town of Colonie will encourage the purchase and
sale of securities and certificates of deposit through a competitive
or negotiated process involving telephone solicitation of at least
three bids for each transaction.
(c)
At the time independent auditors conduct the annual
audit of the accounts and financial affairs of the Town of Colonie,
the independent auditors shall audit the investments of the Town of
Colonie for compliance with the provisions of these investment guidelines.
(d)
Within 60 days of the end of each of the first three
quarters of the fiscal year, the Chief Fiscal Officer, or designee
thereof, shall prepare and submit to the Town Board of the Town of
Colonie a quarterly investment report which indicates new investments,
the inventory of existing investments and such other matters as the
Chief Fiscal Officer deems appropriate.
(e)
Within 120 days of the end of the fiscal year, the
Chief Fiscal Officer, or designee thereof, shall prepare and submit
to the Town Board an annual investment report, recommendations for
change in these investment guidelines, the results of the annual independent
audit, the investment income record, a list of total fees, commissions
or other charges, if any, paid to custodial banks and such other matters
as the Chief Fiscal Officer deems appropriate.
(f)
The Town Board of the Town of Colonie shall review
and approve the annual investment report, if practicable, at its first
meeting in April.
(g)
At least annually, and if practicable, at said first
meeting in April, the Town Board shall review and, if necessary, amend
these investment guidelines.
(h)
The provisions of these investment guidelines and
any amendments thereto shall take effect prospectively and shall not
invalidate the prior selection of any custodial bank or prior investment.
The Chief Fiscal Officer, or designee thereof,
may promulgate rules and regulations as deemed necessary for the proper
administration of this chapter.
