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Taking advantage of an unforeseen significant opportunity that may be otherwise lost to the

community

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To protect the long-term fiscal security of the Town of Morrisville

If Fund Balance falls below twenty-five (25%) percent, the Town Council will adopt a written plan as part of

the following year’s budget process to restore the Fund Balance available to the policy level within twenty-

four (24) months from the date of the budget adoption. This plan may require reduction of services, increases

in taxes, fees, or rates, or some combination thereof.

If Unassigned Fund Balance available as calculated as part of closing-out a fiscal year is in excess of forty-five

(45%) percent, the Town Council may appropriate or designate the excess for one-time Capital Expenditures,

Economic Development related expenditures, or transfer the excess to a Capital Reserve Fund. Therefore,

the unassigned fund balance range target is forty-five (45%) percent.

INVESTMENT POLICY

The purpose of this investment policy is to guide the Town of Morrisville in managing cash on hand, to

preserve principal, and generate income to provide cash for daily operational and capital needs.

It is the intent of the Town that public funds will be invested to the extent possible to reduce the

need for property tax revenues. Funds will be invested with the chief objectives of safety of

principal, liquidity, and yield, in that order. All deposits and investments of Town funds will be in

accordance with N.C.G.S. 159.

The Town will use a Central Depository to maximize the availability and mobility of cash for all

funds that can be legally, and practically combined.

Cash Flows will be forecast, and investments will be made to mature when funds are projected to

be needed to meet cash flow requirements.

Liquidity: No less than 20% of funds available for investment will be maintained in liquid

investments at any point in time.

Maturity: All investments will mature in no more than thirty-six (36) months from their purchase

date.

Custody: All investments will be purchased “payment-versus-delivery” and if certificated will be

held by the Finance Officer in the name of the Town. All non-certificated investments will be held

in book-entry form in the name of the Town with the Town’s third-party Custodian (Safekeeping

Agent).

Authorized Investments: The Town may deposit Town Funds into any Board approved Official

Depository, if such funds are secured in accordance with NCGS-159 (31). The Town may invest

Town Funds in the North Carolina Capital Management Trust, US Treasury Securities, US

Agency Securities specifically authorized in GS-159 and Commercial Paper meeting the

requirements of NCGS-159 plus having a national bond rating.

Diversification: No more than 5% of the Town’s investment funds may be invested in a specific

company’s commercial paper and no more than 20% of the Town’s investment funds may be

invested in commercial paper. No more than 25% of the Town’s investments may be invested in

any one US Agency’s Securities.

Allocation: Investment income will be allocated to each participating fund or account based on a

fair and equitable formula determined by the Finance Director.

Reporting: The Town Council will receive a report summarizing the Town’s investment holdings

on a quarterly basis.