LOCAL OPTION / ACCEPTANCE OF M.G.L. CHAPTER 203C THE PRUDENT INVESTOR RULE

To see if the Town will vote to accept the provisions of Massachusetts General Laws Chapter 203C and to authorize the trustee of the town’s previously established Trust Funds, as authorized by Chapter 32B, Section 20  G.L. c. 44, § 54 and G.L. c. 44, §§ 55, 55A and 55B of the General Laws, as amended, to invest and reinvest the monies in such fund in accordance with the Prudent Investor Rule established under Chapter 203C of the Massachusetts General Laws; or take any action related thereto.

Inserted at the request of the Town Manager

Select Board voted (5 - 0). The Board inquired into the type of risk that acceptance of this law would invoke, and how much Town monies would be impacted.  The Board agreed that this local option allows Treasurers to broaden the options available to “balance safety, liquidity, and yield when investing public funds – in this case, trust fund monies. The Board then voted unanimously in favor of accepting the state law.

The Finance Committee supports affording greater choice in the selection of appropriate investment vehicles for the Town’s several existing trust funds. Before this state statute is adopted, however, the Finance Committee recommends that the Town’s Investment Policy with respect to these funds be updated and further oversight added. With these additional safeguards in place, the Finance Committee looks forward to this Article being brought before Town Meeting in the near future.

Select Board Recommended Vote:

That the Town does and hereby accepts the provisions of Massachusetts General Laws, Chapter 203C and authorizes the trustee of the town’s previously established Trust Funds, as authorized by Chapter 32B, Section 20, G.L. c. 44, s. 54, and G.L. c. 44, ss. 55, 55A and 55B of the General Laws, as amended, to invest and reinvest the monies in such fund in accordance with the Prudent Investor Rule established under Chapter 203C of the Massachusetts General Laws.

Finance Committee Recommended Vote:

That no action be taken under  Article 56.

Select Board Report

Finance Committee Report