I.            Policy Statement and Scope

This document will govern the investment activities of the Altamont Free Library (AFL).  It is the policy of AFL to invest funds in a manner which will provide the highest return with the maximum security while meeting cash flow demands.  All investments will conform to all applicable laws and regulations governing Association Libraries.

 II.            Investment Objectives

The primary objectives, in priority order, of AFL’s financial investments are:

a.       Safety of Principal – Safety of principal is the foremost objective of the investment program.  All investments shall be undertaken in a manner that seeks first to preserve capital and second to fulfill other investment objectives.
b.      Liquidity – AFL’s investment portfolio will remain sufficiently liquid to enable AFL to meet all operating requirements which might be reasonably anticipated.
c.       Return on Investments (Yield) – AFL’s investments should generate the highest available return without sacrificing the first two objectives outlined above.

III.            Authorized and Suitable Investments

The following investments are deemed to be suitable for inclusion in AFL’s investment program.  The Treasurer is authorized to invest Library funds in only those investments specifically delineated below.

a.       U.S. Treasury Bills and Notes for which the full faith and credit of the U.S. Government is pledged for the repayment of principal and interest.  Bills are short term (one year or less) obligations issued and sold at a discount.  Notes have fixed coupon rates with original maturities of between one and five years.
b.       Certificates of Deposit (CDs) issued by local financial institutions.
c.       Investment grade corporate or municipal bonds or bond funds with a BBB-/Baa3 credit rating or higher
d.       Equity Securities of marketable high grade investment quality may be held with quarterly performance review by the Finance Committee.

IV.            Gifts and Bequests

Gifts or bequests received in the form of marketable securities may be held indefinitely, provided they are of marketable high-grade investment quality.  Otherwise these securities should be promptly liquidated and reinvested in accordance with paragraph III above.

V.            Reporting

The Treasurer shall provide to AFL’s Board of Trustees, no less than quarterly an investment report which clearly provides the following information regarding the investment portfolio:  types of investment, depository institutions, principal balances, rates of return and maturities.

VI.            Ethics and Conflicts of Interest

Library Management and Trustees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which would impair their ability to make impartial investment decisions and shall act at all times in accordance with the Altamont Free Library Conflict of Interest Policy.

VII.            Investment Policy Adoption

AFL’s Investment Policy shall be adopted by resolution of AFL’s Board of Trustees.  The Policy shall be reviewed at least every two years by the Finance Committee and any modifications made thereto must be approved by AFL’s Board of Trustees.

Approved:  December 21, 2020
Reviewed: November 15, 2021
Reviewed November 17, 2025