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Council adopts ordinance allowing some town investments up to five years
Summary
The town adopted Ordinance 20-48 to renew its investment policy and permit select investments between two and five years, capped at 25% of short-term funds, to pursue higher yields; the adoption passed on a 5-0 roll call.
Schererville's town council voted unanimously July 8 to adopt Ordinance 20-48, renewing the town's investment policy and authorizing limited longer-term investments. Clerk‑Treasurer Michael Troxell told the council the change would let the town move some funds out of money-market accounts into instruments maturing between two and five years to improve returns.
Troxell said the town holds approximately $38 million in short-term investments and the ordinance would limit longer-term placements to no more than 25% of those funds. "We have an opportunity to take some of the funds that we won't be using or needing to use to extend those terms longer to get a higher yield," he said in explaining the proposal.
Council members asked staff to confirm that longer maturities would be invested with fiduciaries and through competitive bid processes when required. Troxell said debt-service and certain TIF funds would be evaluated individually; some TIF accounts could extend to 2030 because of their schedule. The ordinance was approved on initial motion and adopted on final passage by unanimous roll call (motion carries 5-0).
The measure renews an investment policy previously authorized four years ago and changes the allowable maximum maturities in selected funds from the baseline two years cited in state code to a range between two and five years under the town policy. Council members said the matter will be reviewed again in four years to decide whether to continue the extended terms.
