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Treasurer outlines $20 million in invested cash; board asks for detailed earnings report
Summary
County Treasurer Randy Jones reported the county has invested about $10 million in the LGIP and another $10 million placed or to be placed in longer-term investments; Atlantic Union Bank presented a liquidity sweep option tied to Fed funds. Supervisors requested a detailed account of interest earned on daily balances.
County Treasurer Randy Jones told the Board of Supervisors on Feb. 4 that the county had begun investing large operating balances to earn higher returns and reduce idle cash. Jones said $10 million was placed in the state's Local Government Investment Pool (LGIP) on Sept. 1 and a further $10 million is slated for longer-term investments through the county's financial advisers (PFM), leaving roughly $24 million in short-term operating balances.
Jones introduced Buddy Karuklis, market executive at Atlantic Union Bank, who described an alternative liquidity product the bank can offer: a sweep-like vehicle that tracks the Federal Reserve's overnight rate and provides an APY reflected on statements. Karuklis said the bank had offered a short-term fixed-rate product as a relationship gesture and could provide a market-linked solution that is more liquid than some mutual-fund investments.
Supervisors asked for specifics on earnings from invested balances. Jones said he would provide a breakdown of interest currently being earned by account and the actual dollars deposited and returned; one supervisor asked the treasurer to present monthly interest earned on the $20 million invested and the larger operating balances. Jones agreed to follow up with a written report for the board.
Board members also asked staff to compare offers from multiple banks and from the county's existing investment adviser to ensure the county obtains market-competitive returns while keeping sufficient liquidity to meet cash-flow needs and capital projects.
