The town of Windham will be investing its funds with the Municipal Bond Insurance Association of Maine after the town council approval of an amendment to the town’s investment policy last week.

Town Manager Tony Plante said the MBIA of Maine is an investment group that is formed from municipalities like Windham that pool their money together. He will be investing the money town has on hand from taxes, state allowances and fees, such as car registration.

Plante said the amount of money the town will have on hand to invest varies wildly, and said it falls between at a few hundred thousand and a few million.

Finance Director Brian Wolcott said the town is currently investing its idle funds in certificates of deposit and make about 3.5 percent a year. Plantes plan will generate around 5.1 percent.

“I can’t think of a downside to this program,” said Wolcott.

Councilor David Tobin said he has complete confidence in Plante’s financial decision making. Plante was the finance and personal director of Bedford, New Hampshire for seven years before he came to Windham.

“My natural instinct would be to steer clear of anything like this,” said Tobin. He said Plante’s background in finance set him apart from other town manager candidates when he was hired in 1996. “If Tony is willing to put his job on the line, and he is recommending this, then I think it is something we should do.” said Tobin.

Plante said the most important aspect of municipal investing decisions is security.

“Security always always always comes first,” said Plante. “I like to sleep at night.”

The next detail is liquidity, or how easily the town can cash in the investment when it’s needed.

After that comes the amount of cash it will yield for the town.

Plante said municipal investing with MBIA will be good for the town.

“Every dollar that we can generate,” said Plante, “Is a dollar that we don’t have to raise through taxes and fees.”