Polk County investment committee reports $34 million portfolio, seeks liquidity balance amid yields drop

The county’s investment committee reported a snapshot of the county portfolio to the General Government Committee, saying the county had about $34 million under management and a portfolio yield of roughly 4%.

“Right now we've got about $34,000,000 under management, and it's roughly about 22% liquid,” the investment presenter told the committee. The committee described a shift from higher to lower liquidity over recent months as staff sought to lock in favorable longer‑term rates while maintaining a liquidity benchmark.

Presenters said the committee’s benchmark priorities are liquidity, safety, yield and diversification. The committee explained that many allowed instruments are considered safe (T‑bills, CDs) and that time diversification—staggering maturities—provides risk control. The committee also noted roughly $5 million in investments maturing before July 1 and a stated target to maintain at least $7 million available for county projects.

Staff described a current market curve in which short‑term cash yields dropped from about 5.5% to the low‑to‑mid 4% range, creating a trough where medium‑term maturities offer less attractive yields than both very short and very long maturities. The committee authorized the treasurer and staff to work with the county’s financial adviser to consider locking in longer term yields if conditions improve. The committee said it will favor T‑bills for most purchases to meet liquidity requirements while selectively using CDs to support local banks.

No vote was required; the committee reviewed the investment processes and controls and asked staff to report back at the next regular update.