Wichita County treasurer reports $17.5M in agency bonds, recommends maturity strategy

Steven Jones, county treasurer, presented Wichita County's second- and third-quarter investment report at the Nov. 4 Commissioners Court meeting.

Jones told the court the county holds about $17.5 million in agency bonds that were inherited from the prior treasurer and that the county is cashing those in as they mature. He said the county has approximately $2.7 million reserved for self-insurance and that it recently cashed a $3 million maturity on Oct. 20 to increase liquid funds for bills. Jones also reported an incoming $1.4 million tax receipt expected to allow immediate reinvestment.

The treasurer discussed weighted average maturity goals, saying the policy target is roughly 18 months and that the portfolio's weighted average maturity is about 1.21 years. Jones explained that unrealized losses shown on the report reflect market prices if securities were sold early; the county plans to hold most instruments to maturity to recoup full principal. He said the county is using investment pools for liquidity and noted pool yields around 4.5 percent as of the morning of the meeting.

Jones recommended continuing to stagger maturities so that investments come due during times of historically low cash balances, and he said the investment committee will explore more local issuance events and other instruments to expand options. Commissioners asked questions about liquidity, tax-pool mechanics and long-term debt service; Jones confirmed the county has enough funds to meet obligations and explained statutory constraints on how certain interest may be applied to debt service.