Hunt County treasurer asks commissioners to fund $15,000 adviser to diversify investments

County Treasurer Britney Turner told the Hunt County Commissioners Court on July 11 that she wants the county to hire an outside investment adviser to help diversify the county's portfolio and protect income if short-term yields fall.

Turner said Hunt County's operating investments are currently concentrated in local government investment pools and short maturities and that she is requesting the minimum contract fee of $15,000 a year to retain METER Public Funds to advise the county. METER representative Barry Boyer told the court the firm would act on a nondiscretionary basis, presenting recommended trades to the treasurer for approval.

Why it matters: the county is largely invested in short-term pools and is exposed if interest rates decline. Turner and Boyer said adding carefully selected individual securities could lock in yields for several years and reduce volatility in the county's monthly investment income.

Turner said the county's pool yields were in the low 4 percent range earlier in the budget year and that futures markets indicate weaker yields by December; Boyer said the county currently holds about 89 percent of its portfolio in pools. He told commissioners the adviser fee applies only to assets placed into a custody account of individual securities, not to bank deposits or pool balances.

Boyer described METER's services: a policy review, cash-flow modeling, trade execution, custody setup, and consolidated monthly and quarterly reporting that would include pool balances and bank deposits as well as any securities held in custody. He said the arrangement would be fiduciary and that METER is an independent adviser, not a broker-dealer or custodian.

Turner said she reduced her personnel budget earlier this year and is asking for the adviser fee to be added without increasing net county costs: "Currently, I'm requesting the minimum, which is $15,000," she said. Boyer added the firm's fee schedule carries a $15,000 annual minimum, and the fee would remain at that level until the securities account reached roughly $15 million in assets.

County staff and commissioners asked practical questions about oversight and procurement. Boyer said the relationship would be nondiscretionary: "I can't touch your cash and I can't touch your assets," he told the court, describing the process by which METER would recommend trades and the treasurer would approve them. A staff member identified as Daniel said the procurement of a professional adviser is governed by Government Code 2254 and 254 and generally does not require a competitive bid, which the treasurer and Boyer echoed.

No formal vote was taken. Commissioners asked staff to add a budget line item (or place the expense under a general administrative fund) so the request can be considered during the county budget process.

What remains: Turner and Boyer provided data and a recommended framework; any decision to engage METER would require a subsequent administrative approval and a contract consistent with the Public Funds Investment Act and the county's investment policy.

Ending: Commissioners scheduled further review of budget items and directed staff to show the advisory fee as an option in upcoming budget materials; no contract was approved at the July 11 special session.