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County treasurer details investment gains, recommends shifting to longer-duration bonds
Summary
McHenry County's treasurer reported the Mental Health Board's $6 million portfolio has generated roughly $80,000 in accrued interest since January, with projected investment income approaching $250,000 annually and plans to move funds into higher-yield, intermediate-duration securities.
McHenry County's treasurer presented an update on the Mental Health Board's investment portfolio at the meeting, outlining returns to date and a proposed reallocation to increase yield.
The treasurer said the board's $6 million portfolio, invested in mid‑January, has produced roughly $80,000 in accrued interest so far and currently holds about $60,500 in interest and cash. With projected investment income and conservative estimates of capital appreciation, staff expect the portfolio to generate roughly a quarter of a million dollars this year. "One of my missions has been to make money with taxpayer money," the treasurer said, describing a strategy that balances liquidity and higher yields.
The treasurer described two primary account types: a Schwab account holding individual bonds (treasuries, mortgage‑backed securities, corporates) and a mutual fund book that currently yields lower returns. She noted the board pays a management fee of 10 basis points, and recommended shifting some short‑term holdings into intermediate and longer‑duration instruments to take advantage of a healthy yield curve and rising interest rates.
Staff said the portfolio includes diversified holdings — treasuries, mortgage‑backed securities, municipal bonds and short-term cash equivalents — and recommended moving approximately $1 million into intermediate-term securities to increase yield while preserving liquidity for expected cash needs. The treasurer and staff emphasized coordination with program managers to ensure funds remain available when programs require disbursements.
Board members asked about the investment advisor and staffing; the treasurer said the county is using North Shore as the investment advisor and credited internal staff Melanie and Bridget for portfolio guidance. Members praised the transparency and asked staff to provide further details on cash‑flow timing and the planned timing for the LTD rollover into the Schwab portfolio.
The presentation concluded with board members thanking staff for the report and supporting the proposed approach to seek higher yields while maintaining the liquidity needed for operations.
