Trumbull County advisory committee accepts second-quarter investment report; no CD activity noted

The Trumbull County Investment Advisory Committee on July 30 accepted the county treasurer's second-quarter 2025 investment report and discussed depository-agreement requirements and options for future investments.

Chief Deputy Gerhardt of the Treasurer's Office presented the report and told the committee that "there was approximately $139,000,000 invested," and that the treasurer's office would focus its review on certificates of deposit and securities during the meeting. Gerhardt said the treasurer's office recorded $179,537.50 in securities interest processed during the quarter and that no CD interest or CD purchases occurred in the period.

Why it matters: The committee provides oversight of how county funds are held and invested. The report outlines recent maturities, new purchases and revenue expectations that affect the treasurer's 2025 interest-revenue estimate and choices about short-term cash placement.

The presentation summarized yield context and recent market moves. Gerhardt reviewed the Federal Open Market Committee's effective federal funds range, which she said has been unchanged since December 2024 at 4.25%–4.5%. She also reviewed Star Ohio overnight yield history: June 2024 at 5.45%; Sept. 30, 2024 at 5.08%; Dec. 2024 at 4.60%; Q1 2025 at 4.48%; April 4.49%; May 4.48%; June 4.48%; and "as of yesterday" at 4.47%, per her remarks.

On securities, Gerhardt said the treasurer invested in five securities during the quarter totaling $6,000,000, with terms ranging roughly from two years to four and a half years and varied call features. She identified the quarter's lowest rate as 0.71%, earned on a matured Federal Farm Credit Bank security purchased in 2021, and the highest rate as 4.55% on a Federal Home Loan Bank security purchased in 2024. The report shows $2,000,000 matured in April and $1,000,000 matured in May, and a change in book value from a prior quarter total of $38,250,000 to $41,250,000 after purchases and maturities.

Gerhardt also reviewed the treasurer's office interest-versus-fees comparison and told the committee the office will submit a letter to the county auditor asking to increase the 2025 interest-revenue estimate by $250,000, which she recorded as moving the estimate to $4,672,435.61.

Discussion and committee commentary focused on where county cash is held and on depository agreements. Treasurer Sam Lamacusa (Treasurer) explained why a large portion of county balances are in Star Ohio, saying that while local banks currently offer few CD options, Star Ohio allows quick liquidity: "if something goes sour a little bit ... we can pull the money out of Star Ohio in 24 hours." Lamacusa said Star Ohio's liquidity and the current interest being earned were reasons for staying invested there.

Committee members discussed depository agreements and state requirements. Lamacusa said a state statute requires depository agreements every four years and that the agreements permit the county to deposit funds with designated depository banks and use approved brokers or investment advisers to purchase securities. The committee discussed the ability to add additional investment brokers during the term if they comply with required paperwork and noted changes to the applicable code that accommodate counties with unusual local banking circumstances.

Members asked whether county funds can be placed in credit unions; Gerhardt and others said that question would require review by the county prosecutor because credit-union eligibility depends on statutory and regulatory qualifications. The treasurer's office said it does not believe local credit unions currently meet those guidelines but deferred to the prosecutor for a definitive interpretation.

Formal actions recorded during the meeting included approval of the April 30 minutes (motion by Commissioner Hernandez, second by Commissioner Malloy; roll call: Hernandez, Malloy, Bernard, Law and Lamacusa voted yes) and acceptance of the second-quarter investment report (motion by Hernandez, second by Malloy; roll call recorded as yes votes from Hernandez, Malloy, Bernard, Law and Lamacusa). The committee also approved a motion to adjourn (motion by Bernard, second by Hernandez; roll call: Bernard, Hernandez, Malloy — recorded yes).

Outgoing committee remarks: Lamacusa reflected on his years of service on the Investment Advisory Committee, saying he had attended many meetings over roughly four years and expressing appreciation for staff work. Treasurer-elect Augustino Ragazino attended the meeting and was welcomed by members; the committee noted its next regular meeting is scheduled for the last Wednesday in October and that the October meeting will include a reorganization.

No changes to the county investment policy were proposed; Gerhardt said the committee did not need to review the policy at this meeting.

The committee did not vote on adding depository banks or on a change to list of approved brokers during this meeting; members discussed the statutory framework and the process for making future changes and directed staff and legal counsel to follow the statutory procedures if a need arises.