Borough of Rockaway, NJ Article II Cash Management Plan

[Adopted 11-14-1991 by Ord. No. 24-91]

§ 7-3 Deposit, withdrawal and transfer of funds; returned checks.

A. All moneys received by the Borough of Rockaway not otherwise invested shall be placed in interest-bearing accounts, except for:

(1) Minimum amounts necessary for cash disbursement purposes, which would be in checking accounts, authorized petty cash and change funds.

(2) Amounts placed in non-interest-bearing accounts for the purpose of permitting the banking institution to earn an amount sufficient to offset the cost of specified services provided by the bank without other direct charge to the local unit (this practice is often called "compensating balances").

B. All moneys received by the Treasurer of the Borough of Rockaway shall be deposited in a proper account during the business day in which such money is received if before 2:00 p.m. of such business day or if not, then by 2:00 p.m. of the next succeeding business day.

C. No moneys shall be withdrawn or transferred from such accounts except strictly in accordance with the provisions of the Code of the Borough of Rockaway and the laws of the State of New Jersey. No funds shall be transferred to non-interest-bearing accounts unless needed for the immediate payment of bills and claims or pursuant to Subsection A of this section.

D. The payor of checks returned to the Borough of Rockaway for insufficient funds shall be charged a fee as provided in Chapter A263, Fees.

[Added 11-8-2010 by Ord. No. 23-10]

§ 7-4 Selection of depositories; liability.

The Chief Financial Officer shall cause all moneys received by the Borough of Rockaway to be deposited in depositories designated by the Mayor and Council and shall thereafter be relieved of any liability or loss of such moneys due to the insolvency or closing of the depository or depositories. Transfers of funds to comply with the Cash Management Plan may be accomplished by wire transfers, provided that an adequate audit trail is maintained.

§ 7-5 Authorized investment vehicles.

The following investment vehicles are authorized for purposes of complying with this article:

A. Bank certificates of deposit.

B. Savings accounts.

C. United States Treasury obligations.

D. New Jersey Cash Management Fund.

§ 7-6 Authorization of depositories; withdrawals.

Annually, at the reorganization meeting, the Mayor and Council shall designate banks authorized as depositories and shall designate the persons authorized to make withdrawals from such depositories and accounts. The list of depositories may be amended at subsequent meetings of the Mayor and Council pursuant to law.

§ 7-7 Compensating balance arrangements.

Any compensating balance arrangement shall be authorized by the Mayor and Council by appropriate resolution.

§ 7-8 Amendment of plan.

This Cash Management Plan may be amended at any time by ordinance of the Mayor and Council.