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County approves four‑year reinvestment strategy to shore up landfill post‑closure reserve
Summary
The Board authorized reinvestment of approximately $7.8 million set aside for landfill closure and post‑closure costs into a four‑year U.S. Treasury strategy managed by FCB Wealth Management and gave the Finance Director quarterly reinvestment authority.
The Transylvania County Board of Commissioners on March 9 authorized a four‑year reinvestment strategy for funds reserved for landfill closure and post‑closure obligations.
Finance Director Meagan O’Neal told the Board the portfolio balance is approximately $7.8 million compared with a total post‑closure liability of roughly $8.6 million. Staff presented two options using U.S. Treasury‑backed securities with quarterly maturities: a three‑year model (consistent with prior Board direction) and a four‑year model that offered a slightly higher yield (about 3.51% versus 3.50% under the three‑year option).
O’Neal said the portfolio currently generates roughly $270,000 annually in investment income and that quarterly maturities under the three‑year model would be about $650,000–$675,000. She recommended the four‑year strategy to maximize returns while maintaining liquidity at each maturity. The Board voted unanimously to approve the four‑year approach and authorized the Finance Director to reinvest funds at each maturity at the most advantageous available rates.
Why it matters: County policy and state requirements call for setting aside funds to meet future landfill closure and maintenance obligations. Reinvesting to earn higher yields is intended to ensure the reserve grows with projected closure costs while preserving liquidity to meet future liabilities.
Next steps: The Finance Director will implement the four‑year laddered portfolio through FCB Wealth Management and will reinvest maturing amounts quarterly. The Board recorded that the portfolio remains highly liquid and available for future obligations.
