(A) The Clerk-Treasurer of the town is authorized and empowered to invest those funds which are paid to the town in the form of water and sewage fees and which are from time to time determined by the Town Council to be “excess funds”, the same being funds which would not be needed to operate and conduct the general business of the town and which would not be necessary to keep at ready hand for any general purpose, in United States Treasury certificates, treasury bills or certificates of deposit, with maturities that will make the monies available when needed in the various funds.
(B) The funds shall be invested for the longest period of time deemed advisable by the Clerk-Treasurer and at the highest rate of interest determined to be possible by the Clerk-Treasurer.
(C) (1) Interest received from the purchase of the investments shall be made payable to the order of the town and shall be deposited upon receipt to the account of the utility fund from which the original funds were withdrawn to purchase the investments.
(2) If the investments are purchased from more than one utility fund, then the Clerk-Treasurer shall make a division of the interest received thereon on a pro-rata basis and deposit to each utility fund its proportionate share of interest received.
(D) The Clerk-Treasurer shall maintain a record of all investments purchased. The investment record shall include the following information:
(1) Source and amount of excess funds;
(2) Date of purchase;
(3) Account number;
(4) Date of maturity;
(5) All interest received; and
(6) Date of renewal and/or redemption.
(E) The investment record shall be reviewed on at least a quarterly basis by the Town Council and determination made at that time as to the termination or renewal of any accounts or deposits and to avoid possible penalties assessed due to the necessity of early withdrawals.
(F) When any investment is redeemed or withdrawn, the funds received shall be returned to and deposited in the utility fund from which it was originally taken.
(1998 Code, § 4-6)