[HISTORY: Adopted by the Town Board of the Town of Bethel 9-14-1988. Amendments noted where applicable.]
The objectives of the Investment Policy of the Town of Bethel are to minimize risk, to insure that investments mature when the cash is required to finance operations and to insure a competitive rate of return.
In accordance with this policy, the chief fiscal officer 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 of New York State and the United States government.
Repurchase agreements involving the purchase and sale of direct obligations of the United States.
Only reserve funds may be invested in obligations of the local government.
All other Town of Bethel officials receiving money in their official capacity must deposit such funds in negotiable order of withdrawal accounts.
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 Town of Bethel, or a custodial bank with which the Town of Bethel has entered into a 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 weekly, 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.
Securities purchased through a repurchase agreement shall be valued to market at least weekly.
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.
Delivery of securities.
Repurchase agreements. Every repurchase agreement shall provide for payment to the seller only upon the seller's delivery of obligations of the United States to the custodial bank designated by the Town of Bethel, or, in the case of a book-entry transaction, when the obligations of the United States are credited to the custodian's Federal Reserve Bank account. The seller shall not be entitled to substitute securities. Repurchase agreements shall be for periods of 30 days or less. The custodial bank shall confirm all transactions in writing to insure that the Town of Bethel's ownership for the securities is properly reflected on the records of the custodial bank.
Payment shall be made by or on behalf of the Town of Bethel 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 and other purchased securities 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.
The Town of Bethel 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 Town of Bethel, they shall audit the investments for compliance with these investment guidelines.
The Town of Bethel Town Board shall review and approve the annual investment report, if practical, at its year-end meeting.
At least annually, and if practicable at the organizational meeting of the Town Board of the Town of Bethel, 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.