§ 401-53. General policy and objectives.

A. 

It is the policy of the Town of Barnstable that, giving due regard to the safety and risk of investment, all available funds shall be invested in conformance with legal and administrative guidelines and maximize yields with the minimum of risk and utilization of collateralization when requested.

B. 

Effective cash management is recognized as essential to good fiscal management. An aggressive cash management and investment policy will be pursued to take advantage of investment interest as a viable revenue source. The Town's portfolio shall be designed and managed in a manner responsive to the public trust and consistent with state and local law. Investments shall be made with the primary objectives of:

(1) 

Preservation of capital;

(2) 

Maintenance of sufficient liquidity to meet operating needs;

(3) 

Security of Town funds and investments;

(4) 

Diversification of investments to avoid unreasonable or avoidable risks; and

(5) 

Maximization of return on the portfolio.

C. 

Massachusetts General Laws, Chapter 44, Section 55B, requires the municipal treasurer to invest all public funds except those required to be kept uninvested for purposes of immediate distribution. The state law further requires that invested funds are to be placed at the highest possible rate of interest reasonably available, taking into account the acceptable levels of safety, liquidity and yield. Therefore, these guidelines are intended to further the objective of securing the highest reasonable return available that is consistent with safety of principal while meeting the daily cash requirements for the operation of the entity's business.