[HISTORY: Adopted by the Town Board of the
Town of Warwick 1-4-1993.[1] Amendments noted where applicable.]
[1]
Editor's Note: This resolution also superseded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.
[Amended 2-9-2023 by L.L. No. 1-2023]
A.
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:
(1)
Certificates of deposit and time deposit accounts
issued by a bank or trust company authorized to do business in New
York State.
(2)
Obligations of New York State.
(3)
Obligations of the United States government.
(4)
As a
participant in a cooperative investment program with another authorized
governmental entity pursuant to Article 5G of the General Municipal
Law where such program meets all the requirements set forth in the
Office of the State Comptroller Opinion No. 88-46 and the specific
program has been authorized by the Town Board.
B.
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:
A.
Interest rates.
(1)
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.
(2)
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.
B.
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.
C.
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.
A.
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.
B.
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.
A.
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.
B.
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.
