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Commissioners approve GPA recommendation to deploy portion of tax receipts into core portfolio
Summary
After a GPA presentation on market conditions, the board authorized resetting the portfolio liquidity target to 30%, deploying about $7 million of incoming tax receipts into the core/book portfolio and approved a core allocation band of $71M–$75M by voice vote.
The Jefferson County investment committee convened to review a GPA presentation on the county's investment portfolio and recommended investment plan. GPA's presenter reviewed yield curves, liquidity ratios and maturities and said the county should plan for expected tax receipts of roughly $28,000,000. The firm recommended resetting the portfolio's liquidity ratio to 30 percent and deploying "about $7,000,000" into the core/book portfolio while leaving the remainder in liquidity.
GPA explained the county's core portfolio target (0–5 year duration), the current allocations across treasuries, agencies, municipals and corporates, and that roughly $16,800,000 in core holdings will mature in the next 12 months. After discussion about maturities and the risk of moving duration longer, a motion to allow the core balance range up to $75,000,000 (giving staff flexibility to move between $71M–$75M) was moved and seconded and carried by voice vote.
The board asked staff to report back in January on any additional deployment and to document actual transactions taken under the approved range. No dissenting recorded votes were announced in the meeting minutes.
"Our recommendation to the commissioners here is to now reset that liquidity ratio back up to 30%, which in this case would mean deploying 7,000,000 of that 28,000,000 to the book portfolio," GPA said during the presentation.
