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Pasco County reports $38 million in investment earnings as portfolio tops $2.1 billion
Summary
County finance staff and PFM Asset Management gave the board a market update May 6, reporting $2.1 billion in invested assets and $38 million in interest income year‑to‑date, with expectations of roughly $16 million more from near-term term investments; presenters cautioned returns depend on Federal Reserve actions.
Pasco County financial staff and PFM Asset Management presented a market update to the Board of County Commissioners on May 6, reporting $2.1 billion in county invested assets and strong year-to-date interest earnings.
Sean Gannon, institutional sales and relationship manager for PFM Asset Management, told the board that short-term fixed-income markets have recently been favorable to returns and noted the Federal Reserve was meeting that week, which could affect future yields. "What we're looking at now here is the impact of tariffs and what the Federal Reserve is going to do, because what they do often directly impacts your portfolio," Gannon said.
Matt Lazar, director of financial services for the county, said the county’s total portfolio stands at about $2.1 billion and that the county had recorded approximately $38 million in interest income for the fiscal year so far, with a projected additional $16 million tied largely to Florida PALM-term placements. "For the fiscal year, the county has seen an influx of $38,000,000 in interest income earned through the efforts of my team. We anticipate that at least increasing by another $16,000,000," Lazar said.
Presenters described the county’s asset allocation: roughly 70% of the unrestricted portfolio is held in short-term instruments (less than one year) with typical maturities currently in the one- to three-month range; a portion is invested in longer-duration vehicles where the county seeks to balance liquidity and yield. Gannon said a quarter return for one sleeve of the county’s longer-duration portfolio was about 1.6%; on a trailing 12-month basis one sleeve returned about 5.67%.
Commissioners asked where interest revenue is booked and how it is used in the budget. County staff said interest earnings are recorded to the funds that held the cash (general fund, enterprise funds, etc.) and that interest assumptions were included in budget planning. "We do accounts for this, for a certain level of returns into our budget," the county administrator said.
Commissioners praised the returns and asked for regular reporting. Staff said they would provide more detailed quarterly reporting on portfolio earnings and allocation by fund if the board desired.
No board action beyond receiving the report was taken at the meeting; staff will continue to manage the portfolio under the county’s investment policy and to brief the board on material changes.
