County accepts quarterly report on Millennium Capital Fund; portfolio valued at about $61.4 million

VISALIA — The Tulare County Board of Supervisors received a July 22 presentation from PFM Asset Management on the Millennium Capital Project Fund program. PFM said the market value of the portfolio was about $61.4 million as of June 30, 2025, including $3.9 million in tobacco-settlement receipts deposited in April 2025.

Mike Crombetter, PFM relationship manager, summarized the fund’s background: the Millennium program began with refinancing of tobacco-settlement‑backed bonds and since the payoff of the last outstanding debt the program’s investment policy was restated to allow a modestly longer-duration portfolio intended to earn market returns while maintaining safety and liquidity. Crombetter said the portfolio’s weighted average duration was about 3.15 years and the portfolio’s average yield-­at-cost was roughly 4.43% compared with a market yield of about 4.06% for similar securities, reflecting positions purchased earlier at higher yields.

PFM reported total returns of 1.64% for the three months ending June 30 (annualized ~6.56%) and a since-inception total return of 4.18% (annualized ~8.36%) for the shorter performance window the manager used; Crombetter cautioned that values include unrealized gains and that annual withdrawals and future market volatility mean performance will vary. The county’s policy permits up to $4.5 million in annual withdrawals; staff indicated a $3.0 million appropriation request would be presented as a budget item.

The presentation described a strategy of laddered maturities (permitted maturities up to 10.5 years under the investment policy with restrictions on amounts beyond five years), a focus on U.S. Treasuries and high‑grade corporates, and continued attention to liquidity and duration management to meet county disbursement needs.

The board voted to accept the report.