The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF NEW YORK Circular No. 9 4 4 0 1 January 14, 1983 J FEDERAL RESERVE CASH SERVICES Revised Fee Schedule for Cash Transportation Services To All Depository Institutions, and Others Concerned, in the Second Federal Reserve District: The Board of Governors of the Federal Reserve System, as required by the M onetary Control Act of 1980, has reviewed, after a one-year period, the 1982 cash transportation fee ceilings, which became effective January 28, 1982. Printed on the following pages is a summary of the Board’s action as it relates to the fee ceilings announced in our Circular No. 9433, dated Decem ber 30,1982. This Bank’s zone fee schedule has also been revised, effective February 1, 1983. A statem ent of the revised schedule is also printed on the following pages. Questions concerning the fee ceilings and revised zone fees may be directed, at the H ead Office, to Anthony N. Sagliano, Manager, Currency Verification D epartm ent (Tel. No. 212-791-5777), or, at the Buffalo Branch, to H arry A. C urth, Operations Officer (Tel. No. 716-849-5018). This circular supersedes our Circular No. 9190, dated November 19, 1981. Additional copies of this circular will be furnished upon request directed to the Circulars Division of this Bank (Tel. No. 212-791-5216). A n th o n y M. S o l o m o n , President. CASH TRANSPORTATION SERVICES Fee Schedule Policy and Ceilings Background In October 1981, the Board of Governors adopted a schedule of fees for cash transportation service to be provided by Federal Reserve Banks, effective January 28, 1982. The fee structure for 1982 contained two components: a volume (per-bag) charge and a per-stop charge. The national $0.50 bag charge was intended to allocate costs more equitably between high volume and low volume end points. The per-stop charges were developed by each Federal Reserve Bank based on zones serviced within its District. To alleviate the impact of pricing the cash transportation service on small, remotely located depository institutions, the Board adopted temporary fee ceilings of $75 on the per-stop charge and $37.50 for one-way registered mail shipments. The Board adopted the fee ceilings for 1982 and 1983 with the option of reviewing the appro priateness of the fee ceilings after 1982. After the two-year period, however, cash transportation fees would be set to recover full costs as required under the Monetary Control Act (MCA). Fees for registered mail shipments would be based on the actual cost of postage and insurance incurred by the Reserve Banks. Experience with priced cash transportation service in 1982 (the first year of pricing this service) has highlighted the need for flexibility in fee setting to be more responsive to prevailing market conditions in each Reserve District. Therefore, the Board has provided that the 1983 cash transporta tion fee schedule may be composed of the same two components, but with specific modifications. Fee Ceilings The Board has permitted the Reserve Banks the option of continuing to use a bag charge in conjunction with a per-stop charge and has set a $2.00 ceiling for the bag charge. The Board has also approved adjusting the 1982 fee ceilings. The per-stop fee ceiling for 1983 may be as low as $100, provided a Reserve Bank’s aggregate subsidy costs do not exceed its projected 1983 subsidy costs. Cash transportation per-stop fees in 1983 reflect the full cost of transportation, administrative costs (including the 16 percent private sector adjustment factor (PSAF)), market conditions, and industry practices. With regard to registered mail, the 1983 fee ceiling of $100 is the same as the per-stop fee ceiling. The Board recognizes that imposing a new registered mail fee ceiling of $100 on each shipment, to and from the depository institution, may discriminate unfavorably against the small, remotely located institutions that use registered mail shipments on a turn-around schedule. Therefore, the registered mail fee ceiling will be applied as follows: If a depository institution both receives and sends cash, during a Monday-to-Friday calendar week, this activity will be treated like an armored carrier round trip for pricing purposes. If an institution receives or sends cash more than once during a calendar week or has more than one round trip, the fee ceiling will apply to the first round trip or to the first trip of multiple one-way trips going in the same direction in that period. You should note that Reserve Banks continue to view registered mail service as a less secure method of shipment and will continue to discourage its use as a method of shipment for cash except to remotely located institutions or where special circumstances exist. Registered mail service will be permitted only with the express approval of a Reserve Bank office. 2 The Board, in adopting the revised fee schedule, realizes that costs to small, remotely located institutions may increase. In this regard, the Boards action has been deemed necessary to provide for a smoother transition to full cost pricing of the cash transportation service in 1984. To aid in this transition, Reserve Banks will, in 1983: — Implement uniform accounting procedures for the crediting and debiting of institutions for cash shipments, regardless of how transportation is provided; — Renegotiate multi-year carrier contracts, where appropriate, to reduce cash transportation costs; and — Continue studies to determine if cash depots and cash terminal arrangements should be utilized to reduce transportation costs. REVISED ZONE FEE SCHEDULE — SECOND DISTRICT This Bank’s rationale for determining the new zone fees conforms to these guidelines. The new per-stop fees were generally calculated on a zone-by-zone basis, taking into account the actual contract cost for each zone, including administrative costs and the 16 percent PSAF. The bag charge has been maintained at $0.50 per bag. The registered mail fee ceiling was increased to $100 in accordance with the Board’s directive. Also, this Bank will continue to negotiate special handling fees for the large money-center banks. Overall price increases for the Head Office and the Buffalo Branch are 16.1 percent and 19.7 percent, respectively. The revised zone fee schedule was developed, as required by the MCA, for full cost recovery by year-end 1983. It is expected that the 1983 per-stop fees will be in effect for one year, after which time they will be recalculated to reflect any operational or market changes. The Bank’s cash transportation service continues to be efficient and secure, with depository institutions guaranteed full insurance coverage on all deposits and shipments meeting this Bank’s terms and conditions. Finally, as part of its efforts to reduce overall cash transportation costs, the Second District has: — reassigned Oneida County and one-half of Herkimer County from Zone 5 to Zone 4 to reflect more accurately actual route costs; and — reviewed and renegotiated specific armored carrier contracts in light of market changes in the respective zones. (We will continue to monitor contract costs.) The zone designations and the municipalities included in each zone appear on the following pages. o o o 3 o o SECOND FEDERAL RESERVE DISTRICT 1983 PER STOP FEES BY ZONE Zone Head Office Fee Buffalo Zone Fee 1 $40 1 $40 2 38 2 42 3 38 3 44 4 — 4 45 5 63 5 48 6 17 6 36 7 32 8 62 9 30 10 41 11 45 12 45 13 33 14 __ 4 MUNICIPALITIES PROVIDED CURRENCY AND COIN SHIPPING SERVICE HEAD OFFICE TERRITORY A. NEW JERSEY Municipalities Included in Zone 1 PER STOP CHARGE $40 Allendale Bergenfield Bogota Carlstadt Closter Cresskill Dumont East Rutherford Edgewater Elmwood Park Emerson Englewood Cliffs Englewood Fairlawn Fort Lee Franklin Lakes Montvale New Milford North Arlington Northvale Oakland Oradell Palisades Park Paramus Park Ridge Ramsey Ridgefield Ridgefield Park Ridgewood River Edge River Vale Rochelle Park Garfield Glen Rock Hackensack Harrington Park Hasbrouck Heights Haworth Hillsdale Ho-Ho-Kus Leonia Little Ferry Lodi Lyndhurst Mahwah Maywood Midland Park Moonachie Rutherford Saddle Brook Saddle River South Hackensack Teaneck Tenafly Waldwick Wallington Washington Township Westwood Woodcliff Lake Wood Ridge Wyckoff Municipalities Included in Zone 2 PER STOP CHARGE $38 Belleville Bloomfield Bloomingdale Boonton Boonton Township Budd Lake Caldwell Cedar Grove Chester Clifton Denville Dover East Hanover East Orange Fairfield Flanders Florham Park Glen Ridge Haledon Haskell Hawthorne Irvington Lake Hopatcong Landing Lincoln Park Little Falls Livingston Madison Maplewood Millburn Midvale Montclair Morris Plains Morristown Mt. Freedom Mt. Olive Mountain View Netcong New Vernon North Haledon Nutley Orange Parsippany Parsippany-Troy Hills Passaic Paterson Pine Brook Pompton Lakes Pompton Plains Prospect Park Randolph Township Dover Riverdale Ringwood Rockaway Rockaway Township Roxbury Short Hills South Orange Stirling Totowa Verona Wayne West Caldwell West Orange West Paterson West Milford Wharton Whippany Municipalities Included in Zone 3 PER STOP CHARGE $38 Avenel Bayonne Carteret Clark Colonia Cranbury Cranford Dayton East Newark Edison Elizabeth Fords Garwood Guttenberg Harrison Highland Park Hillside Iselin Jersey City Kearny Kendall Park Kenilworth Laurence Harbor Linden Metuchen Middlesex Milltown New Brunswick North Bergen North Brunswick Old Bridge Township Perth Amboy Piscataway Plainfield Plainsboro Port Reading Rahway Roselle Sayreville 5 Scotch Plains Secaucus South Amboy Spotswood Springfield Staten Island Summit Union Union City Weehawken West New York Westfield Woodbridge HEAD OFFICE TERRITORY (Continued) ZONE 4 FRBNY ARMORED CARRIER SERVICE DISCONTINUED Municipalities Included in Zone 5 PER STOP CHARGE $63 Alpha Andover Andover Township Augusta Baptistown Belvidere Belle Mead Berkeley Heights Bernardsville Blairstown Bloomsbury Branchville Bridgewater Byram Township Califon Clinton Flemington Franklin Frenchtown Fredon Township Gladestown Glen Gardner Hackettstown Harmony Hamburg High Bridge Hillsborough Hope llopateong Lambcrtville Lebanon Montague Township Milford Newton Oxford Phillipsburg Pittstown Pluckemin Pohatcong Port Jervis Raritan Rocky Hill Somerville Sparta Sparrow Bush Stillwater Sussex Tranquility Vemon Washington Whitehouse Whitehouse Station Municipalities Included in Zone 6 PER STOP CHARGE $17 Newark Orange B. NEW YORK Municipalities Included in Zone 7 PER STOP CHARGE $32 Bardonia Blauvclt Haverstraw Monsey Mount Ivy N’anuet New City N'yack Orangeburg Piermont Pearl River Sloatsburg Sparkill Spring Valley Stony Point Suffern Tallman Tappan Valley Cottage West Haverstraw West N'yack Municipalities Included in Zone 8 PER STOP CHARGE $62 Bloomingburg Callicoon Central Valley Chester Eldred Ellenville Florida Coshen Crahamsville Greenwood Lake Harriman Jeffersonville Liberty Livingston Manor Maybrook Middletown Monroe Montgomery Monticello Narrowsburg Otisville Pine Bush Fine Island Rock Hill Roscoe South Fallsburgh Tuxedo 6 Unionville Walden Wallkill Warwick Washingtonville White Lake Woodbourne Woodridge Wurtsboro HEAD OFFICE TERRITORY (Continued) Municipalities Included in Zone 9 PER STOP CHARGE $30 Ardsley Armonk Baldwin Place Bedford Hills Bedford Village Brewster Briarcliff Briarcliff Manor B'ronxville Caynel Chappaqua Croton on Hudson Cross River Dobbs Ferry Eastchester East White Plains Elmsford Greenville Golden Bridge Harrison Hartsdale Hastings on Hudson Hawthorne Irvington Jefferson Valley Katonah Larchmont Mahopac Mamaroneck Millwood Mohegan Lake Mount Vernon Mt. Kisco New Rochelle North Tarry town Ossining Peekskill Pelham Pelham Manor Pleasantville Port Chester Pound Ridge Putnam Valley Rye Scarsdale Shrub Oak Somers Tarrytown Thornwood Tuckahoe Valhalla White Plains Yonkers Yorktown Heights Municipalities Included in Zone 10 PER STOP CHARGE $41 Albertson Arverne Baldwin Bellerose Carle Place Cedarhurst East Rockaway Elmont Far Rockaway Floral Park Flushing Forest Hills Franklin Square Freeport Carden City Carden City Park Clen Cove Great Neck Hempstead Hewlett Inwood Island Park Lawrence Long Beach Lynbrook Malverne Manhasset Merrick Mineola New Hyde Park North Merrick North Valley Stream Oceanside Ozone Park Port Washington Queens Village Richmond Hill Rockville Rockville Centre Roosevelt Roslyn Roslyn Heights Sea Cliff Seaford South Hempstead Stewart Manor Uniondale Valley Stream Westbury W'est Hempstead Williston Park Woodmere Municipalities Included in Zone 11 PER STOP CHARGE $45 Amityville Babylon Bayport Bayshore Bayville Bellmore Bellport Bethpage Bohemia Brentwood Bridgehampton Centereach Center Moriches Central Islip Cold Spring Harbor Commack Copiague Coram Deer Park Dix Hills East Farmingdale East Hampton East Hills East Islip East Meadow East Northport East Norwich Eastport East Quogue East Setauket Farmingdale Farmingville Fort Salonga Glen Head Greenlawn Greenport Greenvale Halesite Hampton Bays Hauppauge Hicksville Holbrook Holtsville Huntington Huntington Station Islip Islip Terrace Jericho Kings Park Lake Grove Lake Ronkonkoma Levittown Lindenhurst Locust Valley Massapequa Massapequa Park Mastic Mastic Beach Medford Melville Middle Island Miller Place Montauk Nesconset New Cassel North Babylon North Bellmore North Lindenhurst North Massapequa North Patchogue Northport Oakdale Old Bethpage Oyster Bay Patchogue Plainedge Plainview Port Jefferson Port Jefferson Station Riverhead Rocky Point Ronkonkoma Sag Harbor Sayville Selden Setauket Shirley Smithtown Sound Beach Southampton South Farmingdale Southold South Huntington South Setauket Stony Brook Syosset Terryville Upton Wading River Wantagh W ater Mill West Babylon West Bay Shore Westhampton Beach West Islip West Sayville West Smithtown W'oodbury Wyandanch HEAD OFFICE TERRITORY (Continued) NEW YORK Municipalities Included in Zone 12 Albany Altamont Amsterdam Argyle Averill Park Ballston Lake Ballston Spa Bolton Landing Broadalbin Burnt Hills Cambridge Canajoharie Castle-on-Hudson Cherry Valley Chesterton Clifton Park Cobleskill Cohoes Colonie Corinth Delhi Delmar Downsville Duanesburg Elsmere Fonda Fort Ann Fort Edward Fort Plain Fultonville Galway Glens Falls Glenville Gloversville Granville Green Island Greenwich PER STOP CHARGE $45 Guilderland Half Moon Hoosick Falls Hudson Falls Johnstown Lake George Lake Luzerne Latham Malta Mechanicville Menands Middleburg Modena Nassau Queensbury Ravena Rensselaer Rotterdam Salem Saratoga Springs Schaghticoke Schenectady Schoharie Schroon Lake Schuylerville Scotia Sharon Springs Shokan South Glens Falls St. Johnsville Troy Warrensburg Waterford Watervliet Whitehall Wynantskill Municipalities Included in Zone 13 Amenia Arthursburg Athens Beacon Cairo Catskill Chatham Cold Spring Copake Cornwall Coxsackie Dover Plains PER STOP CHARGE $33 Milton Fishkill Newburgh Germantown New Paltz Highland New Windsor Highland Falls Pawling Hopewell Junction Philmont Hudson Pine Plains Hyde Park Pleasant Valley Kinderhook Port Ewen Kingston Poughkeepsie Millbrook Olive Millerton c. Red Hook Rhinebeck Rosendale Saugerties Tannersville Vails Gate Wappingers Falls West Hurley Windham Windale Woodstock CONNECTICUT Zone 14 FRBNY ARMORED CARRIER SERVICE DISCONTINUED s BUFFALO BRANCH TERRITORY Municipalities Included in Zone 1 PER STOP CHARGE $40 Albion Alden Amherst Angola Arcade Attica Barker Batavia Clarence Corfu Depew Derby East Aurora Eden Elba Elma Getzville Grand Island Holland Holley Lancaster Lewiston Lockport Lyndonville Medina Middleport Newfane Niagara Falls North Boston North Collins North Tonawanda Oakfield Orchard Park Perry Ransomville Sanborn/Cambria Silver Springs Springville City of Tonawanda Town of Hamburg Town of Niagara Wanaka Wheatfield Williamsville Wilson Youngstown Municipalities Included in Zone 2 PER STOP CHARGE $42 Avon Brighton Brockport Caledonia Canandaigua Chili Center Churchville Clifton Spgs Clyde Dansville Dundee East Rochester Gates Geneseo Geneva Greece Groveland Henrietta Hilton Holcomb Honeoye Honeoye Falls Irondequoit Lima Livonia Lyons Macedon Marion Mt. Morris Naples Newark North Rose Nunda Ontario Palmyra Penfield Penn Yan Phelps Pittsford Red Creek Rochester Rushville Savannah Scottsville Shortsville Sodus Spence rport Victor Webster Williamson Wolcott Municipalities Included in Zone 3 PER STOP CHARGE $44 Addison Alfred Allegany Andover Arkport Atlanta Avoca Bath Belmont Bolivar Brocton Canesteo Cassadaga Cattaraugus Cherry Creek Clymer Cohocton Corning Cuba Delevan Dunkirk Ellieottville Falconer Forestville Fredonia Gowanda Greenwood Hammondsport Jamestown Lakewood Mayville Olean Painted Post Portville Prattsburg Ripley Rushford Salamanca Sherman Silver Creek South Corning South Dayton Wayland Wellsville West Ellicott Westfield Whitesville Yorkshire BUFFALO BRANCH TERRITORY (Continued) Municipalities Included in Zone 4 PER STOP CHARGE $45 Afton Appalachin Auburn Aurora Bainbridge Barnveld Binghamton Boonville Brewerton Camillus Canastota Candor Cato Cayuga Heights Central Square Cincinnatus Constantia Clay (Cicero) Clinton Cortland DeWitt Dolgeville Dryden Earlville Elmira Endicott pndwell Fair Haven Fayetteville Frankfort Fulton Greene Groton Hamilton Hannibal Herkimer Holland Patent Homer Ilion Interlaken Ithaca Johnson City Lansing Little Falls Liverpool Locke Maine Manlius Marathon Mexico Middleville Minoa Mohawk Montour Falls Moravia Newark Valley New Berlin Newfield Nichols Norwich Odessa Oneida Oriskany Falls Oswego Ovid Owego Oxford Phoenix Poland Port Byron Pulaski Rome Sauquoit Seneca Falls Sherburne Sherrill Solvay South Otselic Southport Spencer Syracuse Tully Union Springs Utica Vernon Vestal Waterloo Waterville Watkins Glen Waverly West Winfield Municipalities Included in Zone 5 PER STOP CHARGE $48 Adams Alexandria Bay Antwerp Black River Camp Drum Canton Carthage Clayton Cooperstown Copenhagen Croghan Dexter Lyons Falls Madrid Malone Massena Morris New Hartford Norfolk Norwood Ogdensburg Oneonta Philadelphia Port Leyden Edmeston Edwards Evans Mills Fort Covington Gouverneur Hammond Hartwick Hermon Heuvelton LaFargeville Lisbon Lowville Potsdam Redwood Richfield Springs Sidney Theresa Unadilla Waddington Watertown Winthrop Municipalities Included in Zone 6 PER STOP CHARGE $36 Blasdell Buffalo Cheektowaga Snyder Town of Tonawanda West Seneca Hamburg Kenmore Lackawanna 10 Woodlawn
@FedFRASER