(A) The Town Council formally adopts a written investment policy as set out below. The policy may be amended from time to time as deemed appropriate and necessary by the Director of Finance and the Town Council.
(B) The Town Council designates the Mayor as the Director of Finance and the Mayor Pro Tem as an Investment Officer. One or more Investment Officers may be appointed as deemed appropriate and necessary by said Director of Finance.
(C) The Town Council wishes to have all available funds invested, to the maximum extent possible, at the highest rates obtainable at the time of investment in conformance with the legal and administrative guidelines outlined in the investment policy. The primary objectives are preservation of capital, safety of principal and security of investments; maintenance of sufficient liquidity to meet operating needs; diversification of investments to avoid unreasonable or avoidable risks; and maximization of return of the portfolio.
(D) State and local public laws govern the investment process for town funds. Laws cannot ensure that public officials manage public funds in a disciplined and prudent manner. The actions of public officials responsible for investing public funds must be guided by knowledge, skills, systems, policies, procedures and confidence that can be described only as professional discipline.
(E) Effective cash management is recognized as essential to good fiscal management. An aggressive cash management and investment policy will be pursued. To that end, investment interest will be used as a viable and material revenue source for all operating and capital funds. Earnings from investments will be used in a manner that will best serve the interest of the town.
(F) The town’s portfolio shall be designed and managed in a manner responsive to the public trust and consistent with state and local law.
(Res. 2009-01, passed 3-7-2009)