The Crawford Town Council acted upon a recommendation of Blair and Associates in the town's 2010 audit. The town was instructed to have a written investment policy.
Mayor Jim Crook introduced the investment policy prepared by town clerk Jackie Savage. He said of course the town can't invest in the stock market, but does invest in certificate of deposits and money market accounts. The investment policy will make the town in compliance. The town has had a non-written policy of investing in certificates of deposit with local banks.
Savage asked the trustees to review the policy and submit comments. After reading the resolution, none of the trustees voiced opposition to the resolution. Town attorney Jim Brown will be given the policy for his input.
The policy states that "all operating funds, investment funds, savings funds, enterprise funds are managed by the Board of Trustees of the Town of Crawford. . .who will strive to invest with the judgement and care that prudent individuals would exercise in the execution of their own affairs, to maintain the safety of principal, maintain liquidity to meet cash flow needs and to provide competitive investment returns for the Town of Crawford."
The town clerk will manage day to day operation with supervision from the board of trustees.
The investment objectives are first and foremost safety to mitigate and minimize credit, interest rate and currency risks. The trustees will pre-qualify any financial institutions, brokers/dealers, intermediaries and advisors who want to do business with the town.
The policy states the town will minimize the risk of loss resulting from a bank failure by reviewing at least once a year protection from loss of funds without FDIC coverage.
The investment portfolio is to remain "sufficiently liquid" to meet all operating requirements. The portfolio is to be structured so "securities mature concurrent with cash needs to meet anticipated demands." Investments may be sold prior to their maturity to provide liquid funds.
The town will seek a competitive rate of return within the constraints of safety and liquidity objectives.
The policy states there are not to be conflicts of interests by the town council and staff so that decisions can be made impartially.
Investment restrictions and prohibited transactions include borrowing for investment purposes, investment in any derivatives such as options and futures, and contracting to sell securities not yet acquired to purchase other securities for speculative trading.
The town council will review investments at least once annually.
The town clerk will be responsible for the safe record-keeping of all funds for the town.
This investment policy will be on the March 7 Crawford Town Council agenda for a vote.blog comments powered by Disqus