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Ehlers proposes investing recent Vernon County bond proceeds; adviser role would forgo FDIC insurance
Summary
An Ehlers representative briefed the Vernon County Finance Committee on using an investment advisor to manage recently received bond proceeds, warning that such investments would not be FDIC insured and would require scheduled drawdowns.
Jim Groetsch of Ehlers told the Vernon County Finance Committee on May 19 that Ehlers can provide investment-advisor services for the county’s recently received bond proceeds and described arbitrage considerations for the funds.
Groetsch said the county could have Ehlers invest bond funds until the money is needed for projects, but that these investments would not be FDIC insured and that drawdowns would need to be scheduled when funds are required.
Committee members were also told the recent bond sale has closed and the proceeds are currently held in the State’s local investment fund. The minutes record discussion of the potential trade-off between seeking yield on idle bond proceeds and preserving liquidity and credit protections.
No formal decision or vote on hiring Ehlers as an investment adviser appears in the minutes; the presentation was recorded as an informational briefing to help the committee consider options for managing bond proceeds.
