Delaware County board approves policy change letting two departments keep interest on their funds

The Delaware County Board of Finance voted June 1 to amend the county investment policy to allow Delaware County Community Corrections and the Delaware County Drainage Board to retain interest earned on their fund balances instead of directing those earnings to the county general fund.

The change adds a new Section 12 to the investment policy authorizing designated funds to keep interest earnings, requiring separate identification in the county accounting system and procedures from the treasurer and auditor for tracking and reporting. A commissioner moved the amendment and a colleague seconded; the motion passed in a roll-call vote with the commissioners and Treasurer Polk recorded as voting yes.

Why it matters: county officials said the change would channel modest but recurring interest income directly to the departments that generated it. Treasurer Polk estimated Trust Indiana’s rate at about 3.62 percent; at that rate Polk said roughly $16,000–$18,000 would be earned on an illustrative $500,000 balance, while other board members cited the county’s broader holdings closer to $1,000,000 and an alternate estimate of about $35,400 a year in interest on that larger base.

John Christie of the County Drainage Board asked that drainage-assessment dollars be used to support reconstruction and debrushing projects, saying the board hoped to accelerate work if it could retain earnings rather than have interest roll into the general fund. "I had provided you folks with some with the email with some information related to Drainage Board and our finances... and just hope that commissioners would, consider letting us retain our investment money," Christie said.

Jane Miranda, representing Delaware County Community Corrections, told the board the program manages roughly $670,000 across four cash accounts and that advisory board action authorized investing $300,000 of those funds as a first step. Miranda said Community Corrections currently pays most operating costs from cash and sees monthly outflows of about $80,000–$100,000; the agency expects state Department of Corrections cuts to begin in 2027 and views earned interest as a partial offset. "We deposit roughly 10 to $12,000 a week in those various accounts," Miranda said, adding that the plan was to start with a smaller investment and increase it later if results warrant.

Officials discussed how to implement the change without moving principal balances out of the originating funds. Staff and the treasurer described using Trust Indiana subaccounts and county accounting sublines so invested dollars would remain attributable to the originating fund while allowing separate tracking and monthly reporting; Polk said subaccounts and reporting are feasible but that wire fees apply when transferring funds.

Some commissioners raised budget concerns. One commissioner warned that county council could treat the retained interest as reduced anticipated revenue and adjust departmental budgets accordingly. Treasurer Polk noted that, depending on the balances investors choose to move into subaccounts, the county’s recognized general-fund revenue could decline by several tens of thousands of dollars at current rates.

The Board of Finance voted to amend the investment policy; the board indicated it will determine whether the change requires further action at a commissioners meeting and will coordinate with county council and the auditor’s and treasurer’s offices on accounting and reporting details.

The board also handled routine business, including tabling the prior meeting’s minutes and recessing the session.