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Pasco County reports roughly $24 million in investment earnings; portfolio outperforms benchmarks
Summary
PFM and county finance staff told commissioners the county's portfolio exceeded benchmarks over the trailing 12 months, reporting about $24 million in fiscal-year-to-date interest earnings and a total portfolio value above $2 billion.
Pasco County's investments produced about $24 million in interest earnings for the fiscal year to date, and the county's portfolio has outperformed its benchmarks over the past year, county and PFM presenters told the Board of County Commissioners on May 5.
At the semiannual financial investment briefing, Sean Ganon of PFM Asset Management and Matt Lazar, director of finance for the clerk's office, said the county's total portfolio tops $2 billion and that the unrestricted portion is roughly $1.7 billion. Ganon said the portfolio's yield-at-cost is about 4.1% and yield-at-market about 4.04% on March 31; trailing 12-month total return was reported near 4.26% compared with a benchmark of about 3.75%.
"We manage a portfolio of bonds of short-term fixed income on behalf of the county," Ganon said, summarizing the portfolio's diversification and the macroeconomic drivers that affect returns. Matt Lazar highlighted that the restricted-versus-unrestricted structure and liquidity rules are central to how earnings are allocated across funds.
Staff reported interest allocations within the unrestricted portfolio this fiscal year: about $3 million allocated to the general fund, roughly $1 million to the municipal services fire fund, about $650,000 to stormwater management, and $253,000 to the road rehabilitation capital projects fund. The team said short-term segments are earning in the low-to-mid 4% range and longer-term segments are around the high-3% range, and they showed the portfolio remains within policy limits across issuer and sector caps.
Commissioners lauded staff for steady results amid market uncertainty and asked routine questions about diversification and policy compliance. Presenters said a negative market-value movement in the most recent quarter offset some income gains, but that accrual-based earnings and 12-month returns remain strong.
Provenance: PFM market update and the clerk's investment slides, SEG 1949–SEG 2234.
