All investments made pursuant to this investment
policy shall comply with the following conditions:
A. Collateral.
(1) 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; 8-21-1995 by L.L.
No. 5-1995]
(2) Securities purchased through a repurchase agreement
shall be valued at market at least weekly.
(3) 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.
B. Financial strength of institutions.
(1) 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.
(2) 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.
C. Operations, audits and reporting.
(1) 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.
(2) 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.
(3) The Town Supervisor will report monthly to the Board
a resume of investments.
(4) At least annually, and if practicable, at the annual
meeting of the Board, the members shall review and amend, if necessary,
these investment guidelines.
(5) 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.
[Amended 8-21-1995 by L.L. No. 5-1995]
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.