§ 2-231. Competitive selection of investment instruments.  


Latest version.
  • (a)

    After the finance director or the investment advisor has determined the approximate maturity date based on cash flow needs and market conditions and has analyzed and selected one or more optimal types of investments, a minimum of three qualified banks and/or approved broker/dealers must be contacted and asked to provide bids/offers on the securities in question. Bids will be held in confidence until the bid deemed to best meet the investment objectives is determined and selected. However, if obtaining bids/offers are not feasible and appropriate, securities may be purchased utilizing the comparison to current market price method on an exception basis. Acceptable current market price providers include, but are not limited to:

    (1)

    Telerate Information Systems.

    (2)

    Bloomberg Information Systems.

    (3)

    Wall Street Journal or a comparable nationally recognized financial publication providing daily market pricing.

    (4)

    Daily market pricing provided by the town's custodian or their correspondent institutions.

    (b)

    The finance director or the investment advisor shall utilize the competitive bid process to select the securities to be purchased or sold. Selection by comparison to a current market price, as indicated above, shall only be utilized when, in the judgement of the finance director or the investment advisor, competitive bidding would inhibit the selection process. Examples of when this method may be used include the following:

    (1)

    When time constraints due to unusual circumstances preclude the use of the competitive bidding process.

    (2)

    When no active market exists for the issue being traded due to the age or depth of the issue.

    (3)

    When a security is unique to a single dealer, for example, a private placement.

    (4)

    When the transaction involves new issues or issues in the "when issued" market.

    (c)

    Overnight sweep repurchase agreements will not be bid, but may be placed with the town's depository bank relating to the demand account for which the repurchase agreement was purchased.

(Code 1999, § 2-230; Ord. No. 2001-02, § 1, 2-27-2001)