Red Feather Mountain Library District
Investment Policy

Approved by the Red Feather Mountain Board of Trustees, July 25, 2023.

The intent of the RFMLD Investment Policy is to:
• Protect against the loss of any funds.
• Ensure that sufficient funds are available to maintain library operations.
• Optimize returns with the appropriate safety and liquidity parameters.
• Conform to all state and local statutes governing the investment of public
funds.
To RFLD’s best advantage, cash balances in any funds eligible for investments will
be invested temporarily in securities and/or deposits as defined in Colorado
Revised Statutes § 24-75-601.
Operating funds will be kept in FDIC insured instruments to fund RFMLD’s daily
operations. No less than 180 days of estimated operating expenditures should be
liquid and accessible to fund operations.
All deposit type securities and money market instruments will be collateralized as
required by law for any amount exceeding FDIC coverage.
All securities will be collateralized as required by the Public Deposit Protection
Act (PDPA) for any amount exceeding FDIC or Federal Savings and Loan
Insurance Corporation (FSLIC) coverage. Money market instruments such as
money market mutual funds registered by the U.S. Securities and Exchange
Commission and qualified under C.R.S.§ 24-75-601 and state pools qualified under
C.R.S. § 24-75-701 will be collateralized as required by law.
Red Feather Mountain Library District Investment Policy July 25, 2023 Page 2
Short-term investment maturities for all funds will be scheduled to coincide with
projected cash flow needs considering large routine expenditures and sizable
blocks of revenue.
All investments will be approved by the RFMLD Board of Trustees. The Library
Director, Finance Librarian, Finance Committee and Board of Trustees will work
collaboratively to manage investment activities. They will be guided by the
“Prudent Investor Rule” which states that investments will be made with
judgement and care under circumstances then prevailing, not for speculation but
for investment, considering the probable safety of the capital as well as the
probable income to be derived. The guiding principles for RFMLD investments
are safety, liquidity, and yield, in that order.
The Board of Trustees will not be held personally responsible for specific
transactions when exercising due diligence and when acting within the guidelines
of RFMLD policy and state law. They are responsible for maintaining a balanced
investment portfolio that ensures sufficient investment liquidity for continuing
operations.

Document history:
Approved by the Red Feather Mountain Board of Trustees, July 25, 2023.