The DeKalb County Board of Finance approved changes July 25 that add a long-term investment option for county funds, allowing investments with maturities between two and five years so long as total long-term holdings do not exceed 25% of the county’s invested funds.

A county official presenting the item said the change would permit investments longer than the policy’s current 24-month maximum. The amendment clarifies that earnings from investments must be returned to the fund in which they were designated at the time of investment unless otherwise specified. The long-term provision is written to expire after four years or at the end of the treasurer’s term, whichever occurs first.

At the time of the meeting the county had $24.8 million invested; under the 25% cap the maximum that could be placed in long-term investments would be roughly $6.2 million. The presenter noted the county has not yet evaluated long-term rate options because the policy had not previously allowed such investments.

A motion to accept the updated long-term investment policy was made, seconded and approved by voice vote.

The presenter also clarified that long-term investments would be limited to instruments that do not risk principal: early withdrawal would forfeit accrued interest but would not result in principal loss, according to statements on the record.

Next steps include coordinating with the county treasurer and county staff to assess cash-flow needs and to determine whether funds are available to commit under the new policy before placing any long-term investments.