Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the County Finance topic
No spam. Unsubscribe anytime.
Rice County finance staff report year‑end investment posture; emphasize laddering and short maturities
Summary
Finance staff told the board they intentionally held shorter‑term maturities to manage volatility, reported about $39 million in CDs and elevated interest earnings tied to public‑safety center cash balances, and described a laddered five‑year approach while matching some long‑term obligations.
Fran (finance staff) presented the Rice County year‑end finance report, explaining an intentionally shorter maturity posture to address funding volatility and maintain liquidity for upcoming obligations. "We're more on the shorter side and that was intentional to address some of the uncertainty and funding," Fran said.
Fran said the county holds about $39 million in CDs (direct and brokered), with a portion in brokered CDs that track market rates and some direct bank CDs that carry early‑withdrawal penalties. Recent CD yields obtained ranged roughly from the mid‑3% range to 4.7%; Fran cited a 4.7% yield on a South Dakota housing development CD acquired earlier in the period.
The report noted elevated interest earnings (about $3.3 million on a cash basis) driven in part by large cash balances tied to the public safety center, and an expectation that investment earnings will moderate as those cash balances decline. Fran described a laddering strategy out to about five years to balance yield and liquidity and said some longer maturities (roughly $3–3.5 million) were purchased to match known long‑term needs such as landfill post‑closure and debt service.
A commissioner asked why the county was not extending maturities to 10 years given falling rates; Fran replied the county matches maturities to projected cash needs and has specific long‑term obligations to align with, but otherwise prefers a ladder that maintains flexibility and manages early‑withdrawal penalties.
Commissioners thanked Fran and Peggy for managing county investments; no formal action or vote was taken during the work session.
