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Home My Public Portal Aboutr 19-052Ytesolutforn of #4e �oroug4 of C ar t eret, �'_ JC 19-52 No. Date of Adoptio Mm:c1 21, 2019 BOROUGH OF CARTERET ESTABLISHING A FISCAL MANAGEMENT PLAN FOR THE 2019 YEAR WHEREAS, THE BOROUGH OF CARTERET is duly constituted as a Local Government Unit as permitted under the laws promulgated by the State of New Jersey, and WHEREAS, THE BOROUGH is subject to the requirements contained within the Local Fiscal Affairs Law (N.J.S.A. 40A -5, et se q. ; and NOW, THEREFORE BE IT RESOLVED, by the Borough's Governing Body that: I. Resolution #19-4 sets forth financial institution(s) that are declared as the Borough's Official Depositories for 2019 and will be approved by the Governing Body for each subsequent year. II. All disbursements for budgetary expenses, tax levy, capital outlay and miscellaneous expenses, shall be withdrawn from the officially named depository(ies) by check, which shall bear the signatures of three (3) of the following persons, duly authorized pursuant to this Resolution, with the exception of the Payroll Fund which shall bear one (1) signature. In addition, upon approval of such disbursements by the Governing Body, funds may be withdrawn for payment via electronic transfer. Daniel J. Reiman, Mayor Kathleen M. Barney, RMC Patrick J. DeBlasio, CFO III. The Cash and Investment Policy attached herewith shall be adopted. IV. Certifying and Approval Officer for all Borough expenses shall be the Borough's Executive Director. ADOPTED: this days: March 21, 2019 Mayor Date Municipal Clerk March 21, 2019 Date 2019 CASH MANAGEMENT AND INVESTMENT POLICY 1.) Cash Management and Investment Objectives The Borough of Carteret (hereinafter referred to as the BOROUGH) objectives in this area are: a.) Preservation of capital. b.) Adequate safekeeping of assets. c.) Maintenance of liquidity to meet budgetary expenses, tax levy, capital and miscellaneous expenses. No. 19-52 PAGE 2 d.) Diversification of the Borough's portfolio to minimize risks associated with individual investments. e.) Maximization of total return, consistent with risk levels specified herein. f.) Investment of assets in accordance with State and Federal laws and Regulations. g.) Accurate and timely reporting of interest earnings, gains and losses by budgetary line items for each Fund. h.) Stability in the value of the Borough's economic surplus. 2.) Permissible Investments Investments shall be limited to the following: a.) Bonds or other obligations of the United States of America or obligations guaranteed by the United States of America. b.) Any federal agency or instrumentality obligation authorized by Congress that matures within 397 days from the date of purchase and has a fixed rate of interest not dependent on any index or external factors. c.) Bonds or other obligations of the local unit or bonds or other obligations of school districts of which the local unit is a part or within which the school district is located; or d.) Bonds or other obligations, having a maturity date not exceeding 397 days, approved by the Division of Investment of the Department of Treasury for investment by local units. e.) Repurchase agreements of fully collateralized securities, subject to rules and conditions established by the N.J. Department of Community Affairs. f.) Bonds, notes, or other obligations issued by an agency or corporation of the federal government or a governmental agency established under the laws of this State, provided that the (issuer) is not in default as to the payment of principal or interest upon any of its outstanding obligations, and provided further that the bonds, notes or other obligations are purchased at fair market value, guaranteed as to interest and principal, and have a credit rating of A3 or higher by Moody's Investor Services, Inc., A- or higher by Standard and Poor's Corporation and A- or higher by Fitch Ratings, except that two of the three ratings is sufficient. g.) The cash management plan provides for the purchase of certificates of deposits (CDARS) in accordance with the following conditions: (1) The funds are initially invested through a public depository as defined in section 1 of P.L.1940, c.236 (C.17:9 -41) designated by the local unit. (2) The designated public depository arranges for the deposit of the funds in certificates of deposit in one or more federally insured banks or savings and loans association, for the account of the local unit; (3) 100 percent of the principal and accrued interest of each certificate of deposit is insured by the Federal Deposit Insurance Corporation; (4) The designated public depository acts as custodian for the local unit with respect to the certificates of deposit issued for the local unit's account; and NO. 19-52 PAGE 3 (5) At the same time the local unit's funds are deposited and certificates of deposits are issued, the designated public depository receives an amount of deposits from customers or other banks and savings and loan associations, wherever located, equal to the amount of funds initially invested by the local unit through the designated public depository. h.) Debt obligations from the following local government entities are statutorily authorized to be incorporated into the cash management plan without being subject to a 397 day maturity limit: (1) Parking Authorities (N.J.S.A 40:11A -16) (2) Sewage and Utilities Authorities (N.J.S.A. 40:14A -30 and 40:14B -62) (3) County Improvement Authorities (N.J.S.A40:37A -84) (4) Pollution Control Financing Authority (N.J.S.A 40:37C -15) (5) Water Commissions created under N.J.S.A. 40:62 -108 et seq.(N.J.S.A 40:62 - 133.12) (6) Municipal Port Authorities (N.J.S.A. 40:68A -22) (7) Bonds issued pursuant to the Local Redevelopment and Housing Law by housing authorities, redevelopment agencies, municipalities, and counties (N.J.S.A. 40A:12A- 35) (8) Bonds issued by a county or municipality pursuant to the County and Municipal Water Supply Act (N.J.S.A. 40A:31 -22) (9) Municipal Shared Service Energy Authority (N.J.S.A. 40A66 -22) 3.) Authorized Depositories In addition to the above, the Borough is authorized to deposit funds in certificates of deposit and other time deposits in banks covered by the Governmental Unit Depository Protection Act, NJSA 17:9 -14 et sea (GUDPA). Specifically authorized depositories are approved annually by the Governing Body: The Borough is also authorized to invest its assets in the New Jersey Cash Management Fund. 4.) Preservation of Capital Securities shall be purchased with the ability to hold until maturity. 5.) Safekeeping Securities purchased on behalf of the Borough shall be delivered electronically or physically to the Borough's custodial bank, which shall maintain custodial and/or safekeeping accounts for such securities on behalf of the Borough. 6.) Selection ofAsset Managers. Custodial Banks and Operating Banks Asset managers, custodial banks and operating banks shall be retained for contract periods of one (1) year. Additionally, the Borough shall maintain the ability to change asset managers and/or custodial banks more frequently based upon performance appraisals and upon reasonable notice, and based upon changes in policy or procedures. 7.) Reporting The Treasurer or the Chief Finance Officer shall report to the Finance Committee and/or the Governing Body at regular meetings on all investments. This report shall NO. 19-52 PAGE 4 include information on the balances in all bank and investment accounts, and purchases, sales, and redemptions occurring in the prior month. 8.) Audit This plan, and all matters pertaining to the implementation of it, shall be subject to the Borough's annual audit. 9.) Cash Flow Proiections Asset maturity decisions shall be guided by cash flow factors payout factors supplied by the Treasurer and the Borough CFO. 10.) Cash Management All moneys turned over to the Treasurer shall be deposited within forty-eight (48) hours in accordance with NJSA 40A:5 -15. The Treasurer shall minimize the possibility of idle cash accumulating in accounts by assuring that all amounts in excess of negotiated compensating balances are kept in interest bearing accounts or promptly swept into the investment portfolio. The Treasurer shall escheat to the State of New Jersey checks which remain outstanding for twelve or more months after the date of issuance. However, prior to implementing such procedures, the Treasurer, with the assistance of the CFO, as needed, shall confirm that the outstanding check continues to represent a valid claim against the Borough. RECORD OF COUNCIL VOTE COUNCILMAN YES NO NV A.B. COUNCILMAN YES NO NV A.B. BII.Lm x J1CIPL DIAZ KRIM DMSM [QAHES X - Indicate Vote AB - Absent NV - Not Voting XOR - Indicates Vote to Overrule Veto Adopted at a meeting of the Municipal Council Mamh 21, 2019 ^' LERK i MA