Kalamazoo County midyear financials show seasonal tax timing, strong investment returns
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Summary
Administrator Dr. Catlin and Chief Deputy Treasurer Tyler White reported midyear financials: revenues lag property tax timing, expenditures at about 51.6% of budget, and investment returns are outperforming inflation with a projected $7.4–7.5 million in annual investment earnings.
Kalamazoo County officials received a midyear financial briefing July 15 showing revenues and expenditures tracking historical seasonal patterns and unusually strong investment returns.
Administrator Dr. Catlin summarized the county’s midyear position through June 30: general fund revenue collections were reported at about $18.7 million, roughly 19.9% of the amended budget, while expenditures were about $48.5 million, approximately 51.6% of budget appropriations. Property tax receipts are seasonally concentrated later in the year (Q3 and Q4), the presentation said.
Dr. Catlin told commissioners the county had recognized roughly $750,000 of disaster relief funds from the Michigan State Police tied to May events and an additional unbudgeted emergency-management grant of $18,259. Prior-year fund balances previously generated (roughly $627,000) have been applied to priorities including juvenile defense contracts, health‑related funds, and IT training.
Tyler White, the county’s chief deputy treasurer, presented the monthly investment report. As of June 30 the portfolio had a par value of $148,370,353.41 and a market value of $147,820,241.06; the mark‑to‑market variance was about $550,112.35. For the month of June the portfolio earned $589,735.28 on an average daily balance of about $151.2 million, an effective monthly yield of 4.74%. Year‑to‑date investment earnings were reported at $3,750,443.21 (effective rate 4.49%); White said the county is on track to earn between $7.4 million and $7.5 million for the year if trends continue.
White noted that June’s monthly return exceeded the 12‑month inflation rate (2.7% as reported by the Bureau of Labor Statistics for June) and that higher investment allocations cause a more pronounced drawdown of cash during the pre‑tax collection months because property tax receipts are not remitted between February and July. Commissioners praised the treasurer’s office for out‑performance and asked technical questions about reporting of money‑market yields in the investment reporting software.
The board also reviewed an accounts‑payable claims list totaling $5,531,872.67 and a standalone claims list for approval of $5,312,301.85; payroll disbursements were presented as $4,348,520.80 for the July payrolls.
Ending: County leadership said trends point to significant revenue acceleration in Q3 when property taxes are collected, and staff will continue monitoring spending and reporting investment performance to the board.
