Treasurer outlines county investments, public safety sales-tax allocations and iFiber funds

Jim Spellich, LaSalle County treasurer, presented the monthly treasurer’s report and discussed investment strategy and public-safety funds at the Jan. 27 committee meeting. Spellich described the county’s practice of laddering certificates of deposit (CDs) from 12 to 36 months to capture favorable yields, holding some funds in brokered CDs and a liquid Illinois money-market sweep account.

On public-safety revenues derived from a quarter-cent sales tax, Spellich said receipts are reported a few months after collection and showed a month-over-month decline example: "last month you can see that we took in 331,000 and we're down about 2.53 from where we were the last month." He said the committee receives a monthly public-safety receipts report and that the funds are spent on approved public-safety items as the relevant public safety body votes.

On investing policy, Spellich explained brokered CDs behave like traded instruments and the county generally does not intend to sell them before maturity. He said the county earns higher yields now — examples of 4–5% on CDs — and that the county uses investments to earn interest where borrowing rates are lower (for example, investing to cover a 2% note). He said the county maintains both CDs for yield and money-market accounts for liquidity.

A committee member asked about iFiber settlement funds; Spellich said the iFiber money is in a separate Illinois sweep account and available to be moved for expenses if the county decides how to use it. "We do have money in Illinois funds which is the state money market account and it's more of a sweep account," he said.

The committee approved the treasurer’s report by voice vote. Spellich offered to meet with any member who wanted a walkthrough of the reports and underlying numbers.