Hubbard County reviews quarterly finances and weighs longer-term investments

Hubbard County commissioners received a quarterly financial and investment update and discussed options to move some short-term cash into longer-term investments managed by Ehlers in order to capture higher yields while preserving liquidity.

The presentation, led by county finance staff, covered bank reconciliations, certificate of deposit holdings, cash-balance trends and the county—s use of a so-called "magic" money-market fund at Citizens. Staff noted that some CDs recently opened (including one for a fuel facility) carried interest near 4 percent and that interest rates on maturing CDs may fall when they rollover.

Commissioners were briefed on a possible strategy to move a portion of county-held cash into Ehlers-managed bond investments that could perform better over a multi-year horizon. Staff said Ehlers advised that longer-term placement could be appropriate for funds not needed for immediate liquidity and cited scenarios where a modest increase in yield would help the county—s 2026 revenue outlook. County staff said the 2026 budget currently assumes about $1,000,000 in investment revenue in the general fund.

Discussion also covered the county—s account structure. Staff reported closing two accounts (one for Heritage Manor rent and one for Northview human services), and said some accounts remain designated or restricted for specific purposes. Commissioners asked whether accounts could or should be consolidated; staff said some consolidation is possible but certain funds must remain segregated because they are restricted.

The board and staff reviewed the county—s fund-balance position and longer-term liquidity. Staff said the county has been operating from carryover funds through the spring until property-tax receipts arrive and noted the county—s fund-balance goal is about 50 percent, with a minimum target near 42 percent. Staff reported year-over-year increases in unrestricted cash driven in part by unspent capital allocations and said Ehlers— investment structures can be organized so principal remains accessible (with an interest adjustment if accessed early).

Commissioners also discussed how to present assumptions in the levy/budget. Staff reported the county has averaged about 97.1 percent of its labor budget spent over the past four years and proposed showing a 97.5 percent labor-spending assumption in levy summaries (a reduction from full staffing), which would reduce the projected use of fund balance by roughly $700,000 on a $27,600,000 labor base. Commissioners asked staff to include a clear footnote or cover memo explaining the assumption rather than concealing it in baseline figures.

Staff said they plan to continue quarterly reviews of upcoming maturities and to bring an options package back to the board for a future meeting. The board also discussed the practical implications of shifting some money from a money-market fund now owned by U.S. Bank, and staff proposed adding a short plain-language cover memo to future quarterly reports summarizing the county's financial position.

Clarifying details recorded in the meeting included: the county—s recent CD rate example (about 4 percent), the historical "magic" fund starting amount cited at $3,000,000, a 2026 budget investment-revenue assumption of about $1,000,000, and the labor-budget baseline ($27,600,000) and resulting $700,000 adjustment if labor is shown at 97.5 percent. Staff committed to publishing the quarter—s reconciled statements and a plain-language summary with the September reports.

The board did not take formal investment action at the meeting; staff were directed to return with options and timing for any consolidation or reallocation.