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Treasurer reports steady portfolio yields, $343M balance and rising local receipts; warns of federal debt limit and inflation risks
Summary
Deschutes County Treasurer Bill Kidd reported a May portfolio balance of about $343 million and a blended yield near 4.04%, noting rising yields from maturing investments and flagging federal debt-limit risk and recent inflation readings.
Deschutes County Treasurer Bill Kidd delivered the May financial update to the Board of Commissioners on June 23, reporting investment balances, yield trends and local economic indicators.
Kidd said the county’s portfolio balance at month‑end was roughly $343 million and net investment earnings for the month were $1.17 million — up from the prior month and higher than a year earlier. He reported a blended portfolio yield of about 4.04%, with the Local Government Investment Pool (LGIP) rate at 4.6% and the county’s First Interstate Bank account rate at 4.25%. Kidd said portfolio yields have been rising as maturing, lower‑yielding investments are replaced.
Kidd described several macroeconomic items that influenced markets in May: a tentative framework for U.S.–China trade talks that helped markets, a brief spike in oil prices after Middle East hostilities and an ongoing debate in Washington about the federal debt limit. He noted annual Consumer Price Index inflation at 2.4% in May and that the producer price index fell 0.5% for the month. On regional indicators, Kidd summarized housing and permit data in the Bend and Redmond markets and reported that Bend single‑family median prices and permit counts fluctuated month-to-month.
On portfolio management, Kidd said the county holds about $30 million in investments yielding below 1% that will mature by February; he said roughly $18 million is scheduled for redemption in that window and staff intend to extend the county’s laddered maturities using those proceeds. He also said the county invested an additional $8 million recently to fill maturing buckets.
Kidd flagged the federal debt‑limit calendar and said a congressional resolution remains uncertain; he said that could affect markets and should be monitored. He recommended continuing a cautious investment posture and adjusting maturities to match expected cash needs.
Why it matters: the treasurer’s report shows the county’s ability to earn higher interest on reserves than in previous years, but the report cautioned that global events and Washington budget decisions can shift markets and influence county cash management.
