Chapter 3.60 INVESTMENT POLICY

Chapter 3.60
INVESTMENT POLICY

Sections:

3.60.010 Investment of excess cash.

(1) Excess Cash Defined. “Excess cash,” as used in this chapter, means the reserves and operating cash of the town, beyond the immediate anticipated needs for the town’s day to day operation, which are those which town staff anticipates at any given time for the next 60 days of operation, including any upcoming capital payments for projects nearing completion, or anticipated capital purchases, or anticipated due dates for debt obligations of the town.

(2) The town shall maintain a cash balance for operating. The amount of this cash balance shall be as close as possible equal to the anticipated needs for the ensuing 60 days, plus 10 percent, plus any anticipated capital expense within the next 60 days. (Ord. 530 § 1, 2000)

3.60.020 Types of investments.

(1) Local Government Investment Pool. To provide immediate liquidity, allowing a portion of the town’s excess cash to be immediately available in event of emergency need, a minimum of $500,000 shall be invested with the Local Government Investment Pool (LGIP), operated and maintained by the Washington State Treasurer.

(2) Independent Investment. Excess cash beyond the town’s requirement for immediate liquidity shall be invested in instruments as allowed by Chapter 39.60 RCW. (Ord. 530 § 2, 2000)

3.60.030 Monitoring town investments.

(1) Investment of town funds shall be made and monitored by the town treasurer.

(2) The town treasurer shall provide monthly reports to the town council finance committee, showing all current investments, and noting those about to mature, as well as any new purchases.

(3) The town council shall be notified within the town quarterly financial reports, the amount of current investments and the earnings for the quarter. (Ord. 530 § 3, 2000)