[HISTORY: Adopted by the Town Board of the Town of New Berlin: Art. I, 1-7-1988; Art. II, 2-11-1991. Amendments noted where applicable.]
Procurement policy — See Ch. 49.
The objectives of the investment policy of the Town of New Berlin are to minimize risk, to ensure that investments mature when the cash is required to finance operations and to ensure a competitive rate of return.
In accordance with this policy, the Town Supervisor is hereby authorized to invest all funds, including proceeds of obligations and reserve funds, in:
Certificates of deposit issued by a bank or trust company authorized to do business in New York State.
Time deposit accounts in a bank or trust company authorized to do business in New York State.
Obligations in New York State.
Obligations of the United States government.
In repurchase agreements involving the purchase and sale of direct obligations of the United States.
Repurchase agreements will only be used in limited circumstances.
The Town Board shall decide the names of the banks and the amounts that may be deposited in each annually.
The Town Supervisor shall determine the amount and length of the time that funds shall be invested.
Only reserve funds may be invested in obligations of local government.
All other local government officials receiving money in their official capacity must deposit such funds in negotiable order of withdrawal accounts.
All investments made pursuant to this investment policy shall comply with the following conditions:
Certificates of deposit shall be fully secured by insurance of federal deposit insurance corporations or by 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 obligations of New York State local governments. A record of the collateral shall be kept by the Supervisor in the town files and a third-party agreement shall be entered into with a custodial financial institution. The market value of collateral shall at all times exceed the principal amount of the certificate of deposit by 10%.
[Amended 2-20-1990 ]
Securities purchased through a repurchase agreement shall be valued at market at least weekly.
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.
Financial strength of institutions.
All trading partners must be creditworthy. Their financial statements must be reviewed at least annually by the Town Supervisor to determine satisfactory financial strength or the Town Supervisor may use credit ratings agencies to determine creditworthiness of trading partners. Concentration of investments in financial institutions should be avoided. The general rule is not to place more than $3,000,000 in overnight investments with any one institution.
Investments in time deposits and certificates of deposit are to be made with banks or trust companies. Their annual reports should be reviewed by the Town Supervisor to determine satisfactory financial strength.
Operations, audits and reporting.
The Town Supervisor shall authorize the purchase and sale of all securities and execute contracts for repurchase agreements and certificates of deposit on behalf of the Town of New Berlin.
The Town of New Berlin 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 transactions.
The Town Supervisor will report monthly to the Board a resume of investments.
At least annually, and if practicable, at the annual meeting of the Board, the members shall review and amend, if necessary, these investment guidelines.
The provisions of these investment guidelines and any amendments hereto shall take effect prospectively and shall not invalidate prior selection on any custodial bank or prior investment.
The safe shall remain closed and locked during the course of the day.
All cash drawers shall be kept in desks equipped with locked cash drawers, and such drawers shall also be kept locked.
This policy is hereby established to protect the town from future possible cash shortages and will become effective immediately.