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Treasurer's report: funds moved to PMA as county seeks to lock CD rates amid falling yields
Summary
The treasurer and finance director reported moving funds to PMA and said staff is working to secure CD and treasury rates now because market rates are falling; PMA was described as offering slightly higher yields than one community bank.
The treasurer and finance director updated the committee that a large balance has been moved to PMA and that staff is seeking to lock short‑ to medium‑term yields as market rates decline.
The finance director said the county has looked at securing certificates of deposit or treasuries with PMA and compared PMA's offerings to a community bank. "PMA has been beating one community bank's rates. We've been getting I don't know. It's, like, point 1% higher or 10 basis points higher than what the what one Community Bank is offering," the finance director said, adding that some CD offerings are almost a quarter point higher. Staff said they want to secure rates now because they expect rates to fall and want a clearer outlook for future interest income.
Supervisors asked whether the shift to PMA would affect interest estimates compared with last year; the finance director said the strategy is intended to stabilize and improve projected interest income. The treasurer's report was circulated to members that morning; no specific projected dollar change was provided during the meeting.
The committee did not take a separate vote on investment decisions in the meeting transcript but discussed securing competitive rates and using a mix of PMA, treasuries and community bank products to manage interest income volatility.
