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Mental Health Board shifts $6 million into two brokerage accounts, seeks quicker sales-tax transfer
Summary
The McHenry County Mental Health Board moved $4 million to a Schwab separately managed account and $2 million to a more liquid 'I Prime' account, and asked county finance to transfer sales-tax receipts into its account within 2–3 days to improve cash access.
The McHenry County Mental Health Board reported this month that it has moved $6 million of board assets into two brokerage accounts and has asked county finance to accelerate transfers of sales-tax receipts into the board’s account.
Mel, a board member who presented the update, said, “In October, $4,000,000 in our assets were moved into an investment account,” and that roughly $2,000,000 followed into what she referred to as an “I Prime” account two weeks earlier. She described one account as structured for liquidity—“similar to a money market account, where we can access the funds, as needed”—and the other as intended for longer-term holdings.
The board was told the shift may reduce near-term investment income while funds were in transit; Mel said the board normally sees between $25,000 and $30,000 in monthly investment income and that November figures could be lower because of the timing of transfers. She also said the board has asked county staff to move pulled sales-tax receipts into the board’s account within a two- to three-day window after the county receives them from the state, to give the board quicker access to its funds.
Board members said the accounts are set up to comply with government investment limits and that the split was chosen for differences in investment makeup and liquidity. “Because of the makeup of how governments are allowed to invest, we are limited as far as percentages of things we can invest in,” Mel said, explaining why the broker placed funds into two different accounts.
The board’s finance lead, Carolyn, reported elsewhere in the meeting that fund balances are stronger than anticipated and sales-tax revenue is coming in slightly higher than projected, giving the board positive flexibility on year-end decisions.
Votes at a glance: The board approved the meeting minutes and later approved the consent agenda (items 6a–6d) during the session; a motion to adjourn was also moved and seconded and the meeting concluded. Specific roll-call tallies were not recorded in the transcript.
What’s next: The board will receive quarterly investment reports from the county representative (Donna), beginning in late January or at the February meeting, and staff said the board can request Donna to appear at a future meeting for additional detail.
