Stablization Investment Policy

This explains the legal requirements for Stabilization Funds and sets a floor and ceiling for the fund. The floor is intended to ensure that the fund is not depleted which would have a potentially detrimental impact on bond ratings. The ceiling is intended to not "oversave" in an environment where the cost of borrowing is relatively low and investment returns in legally accepted forms are quite low as well. Capital projects beyond the ceiling should first be considered to be funded through borrowing. In a future situation where inflation is rapidly increasing or municipal investment restrictions are loosened, this policy may need to be reconsidered.

Stabilization data:

Current Total Levy $ 17,949,653

6% = $1,076,979

12% = $2,153,958

Account 5 Year History:

Current Balance $ 1,410,490

FY14 $ 858,000

FY15 $ 865,000

FY16 $ 1,622,000 $750,000 deposit from free cash

FY17 $ 1,649,000 $ 10,000 deposit from free cash

FY18 $ 1,372,000 $300,000 purchase police station

FY19 $ 1,410,000