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Kalamazoo County reports strong midyear investment returns; commissioners press for budgeting discipline
Summary
County finance staff told commissioners the investment portfolio earned 4.74% in June and about $3.75 million year‑to‑date; commissioners urged using excess investment income for one‑time capital needs and questioned adding unfilled positions to ongoing payroll.
Kalamazoo County officials reported midyear financials on July 15 and highlighted strong investment performance even as property‑tax receipts remain seasonally low.
Chief Deputy Treasurer Tyler White told the Board of Commissioners the county’s investment portfolio had a par value of $148,370,353.41 and a market value of $147,820,241.06, producing a mark‑to‑market variance of $550,112.35. "For the month of June, our portfolio earned $589,735.28," White said, adding an effective monthly rate of return of 4.74%. He said year‑to‑date investment earnings total $3,750,443.21 and that returns exceed recent inflation (June 12‑month CPI 2.7%).
The finance administrator presented the accounts payable claims list and payroll disbursements: the full claims list totaled $5,531,872.67 and the portion requiring Board approval totaled $5,312,301.85; payroll disbursements for the July 3 and July 15 payrolls were reported as $4,348,520.80. The administrator and finance staff characterized the county’s position as generally stable heading into the second half of the fiscal year, noting seasonal timing of property‑tax receipts and several one‑time grants and awards.
Vice Chair Taylor said the county has now seen several years in which investment income exceeded initial budget assumptions and urged the Board to avoid approving new recurring positions that have remained unfilled for multiple years. "I don't know if I'm going to be voting in favor of any positions that don't have a JDQ written on it, and they're not ready to hire on day 1," Taylor said, arguing that unfilled positions have driven recurring carryover. Taylor suggested budgeting more aggressively for predictable investment income and directing one‑time gains to capital improvements instead of salaries.
White answered a technical question about money‑market reporting, noting the percentage displayed in the packet was an artifact of reporting software and offering to provide a calculated figure. He also said seasonal drawdowns of the portfolio reflect normal cash flows between property‑tax cycles.
What happens next: finance staff will take commissioners' feedback into the budget retreat and provide additional detail on money‑market holdings and position justifications as departments bring staffing requests forward.
