[HISTORY: Adopted by the Town Board of the Town of Warwick 1-4-1993. Amendments noted where applicable.]
Editor's Note: This resolution also superseded former Ch. 20, Investment Policy, adopted 1-2-1992.
The objectives of the investment policy of the local government 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 Chief Fiscal Officer, being the Supervisor, is hereby authorized to invest all funds, including proceeds of obligations and reserve funds, in:
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:
The Town Supervisor will request current interest rates for investment in certificates of deposit from the four commercial banks located within the Town of Warwick. Upon request for interest rates from the banks, the banks will be notified as to the amount to be invested and whether there is a current certificate of deposit on this money or it is additional excess funds. The banks will be asked for interest rates covering thirty-, sixty- and ninety-day, and occasionally six-month, periods.
Upon receiving the current interest rates from each of the four banks, the highest interest rate for the acceptable designated time period is accepted. All banks will then be notified of the competitive rates and told which of the banks the Town of Warwick will be investing its funds with and for what specific time period.
Certificates of deposit shall be fully secured by insurance of the Federal Deposit Insurance Corporation 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. Collateral shall be delivered to the local government or a custodial bank with which the local government has 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 monthly, 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 the 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.
Payment shall be made by or on behalf of the local government for obligations of New York State, obligations the principal and interest of which are guaranteed by the United States, United States obligations, certificates of deposit, upon the delivery thereof to the custodial bank, 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 interests of the local government will be adequately protected by conditioning payment on the physical delivery of purchased securities to the local government 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 local government.
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 to determine satisfactory financial strength.
The Supervisor or the Deputy Supervisor shall authorize the purchase and sale of all securities and certificates of deposit on behalf of the local government. Oral directions concerning the purchase or sale of securities shall be confirmed in writing. The local government shall pay for purchased securities upon the delivery or book entry thereof.
The local government 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.
At the time independent auditors conduct the annual audit of the accounts and financial affairs of the local government, the independent auditors shall audit the investments of the local government for compliance with the provisions of these investment guidelines.
Within 120 days of the end of the fiscal year, the Supervisor 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 the custodial bank; and such other matters as the Supervisor deems appropriate.
The governing board of the local government shall review and approve the annual investment report, if practicable, at its first April meeting.
At least annually and, if practicable, at the first April meeting of the governing 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 the prior selection of any custodial bank or prior investment.