Investment advisers tell Richland County commissioners portfolio is well positioned despite expected Fed cuts

The Richland County Investment Advisory Committee on Sept. 23 told county commissioners the county's portfolio is producing strong returns and is positioned to weather projected Federal Reserve rate cuts.

Jim McCourt, advisory services with METER Public Funds, said the county's total investments were a little over $141 million as of August, with about $22 million in Star Ohio and roughly $118 million in securities held in third-party safekeeping. "We appear to be up about 2.21% from this time last year," McCourt said.

The advisory presentation said the portfolio's weighted average yield is 3.61% and the weighted average maturity is about 2.5 years. McCourt told commissioners many of the securities held beyond two years are locked in at yields above 4%, providing a cushion if short-term rates fall.

"If the Fed does continue to cut rates, Star Ohio and other short-term rates will go down pretty much in lockstep," McCourt said, noting the market was pricing in additional rate cuts this year. He recommended keeping a base of liquidity in Star Ohio while continuing to lock longer-term yields into the securities portfolio to protect future income.

Bart Hamilton, Richland County treasurer, said realized cash-basis investment income rose from about $1.5 million in 2023 to more than $3 million in 2024. Through August 2025 the portfolio had realized just under $2 million, with roughly $1.3 million still expected to be realized in the last four months of 2025 under current holdings.

McCourt presented a forward-looking projection showing the securities currently owned would generate roughly $3.6 million to $3.7 million in 2026 and 2027 and nearly $3 million in 2028 if maturities and coupon payments were not reinvested. He cautioned those totals do not assume reinvestment and said reinvestment decisions will affect future income.

The advisory report also recommended a modest change to the county's investment policy: reference eligible investments to the Ohio Revised Code rather than itemizing instruments in the policy, which would align the policy automatically with state law and permit expanded corporate bond options (longer maturities and broader credit bands) than the county's current, more restrictive language.

Commissioners and staff discussed cash flow timing tied to property tax settlements and noted that Star Ohio balances often rise temporarily around settlement periods. McCourt said the county's mix of liquidity and longer-term securities provides a balance of safety, liquidity and yield and that the portfolio was "built pretty well for these next several years."

The committee made the detailed investment report available in an online portal and provided commissioners with a written packet and transaction-level report for further review.