Fiscal year 2024 will be another record-setting year for interest revenue in Collier County. As indicated in past articles one of the Collier County Clerk of the Circuit Court’s many statutory responsibilities as Collier County Comptroller is the investment of county funds. Funds are invested by the Comptroller’s Office pursuant to the provisions of the County’s lawfully adopted investment policy. The policy prioritizes the safety of investment principal, while recognizing the importance of liquidity and yield.
Through May 31, 2024, the program has generated over $49M in cash that will help to offset the cost of various County programs. This amount already exceeds the amount collected over the twelve (12) months of fiscal year 2023, which was a record-setting year for interest revenue. With four (4) months remaining in the current fiscal year in which to add to the $49M, the bar will likely be set very high for the future.
The Clerk and Comptroller’s investment program is run in house by Clerk’s employees. The techniques used to formulate investment strategy include a close monitoring of the Federal Reserve Banks’ actions and dialog, as well as acknowledging the role other commodities such as oil, gold and other precious metals play in the economic landscape. Heavy reliance is placed upon cashflow forecasts which allow for funds to be optimally invested. The cash forecast must account for both estimated receipts and disbursements of County funds. These forecasts are developed using the vast amount of historical data available and input from County staff. As noted above, all investment decisions are governed by the Board’s adopted Investment Policy. Key provisions of the Investment Policy are as follows:
- 100% may be invested in the United States Treasury
- 100% may be held at a Qualified Public Depository Bank
- Up to 80% may be invested in United States Agencies
- Maximum maturity is five (5) years
- No investment in equities, commodities, currencies and hard assets
Current investments held include United States Treasury holdings, various Federal agencies such as the Federal Home Loan Bank and Federal Farm Credit Bank, as well as corporate notes and local government investment pools. Collier County’s depository bank, First Foundation Bank, offers a 100% collateralized investment account indexed to the Florida State Board of Administration’s Florida PRIME pool rate. Collier County’s available bank balances earn interest at a contracted rate of 95% of the monthly Federal Funds Effective Rate. All bank deposits are 100% collateralized pursuant to Florida Statutes, Chapter 280, titled “Security for Public Deposits”. For more information on the investment of Collier County funds, including the Investment Policy, please visit our website at www.collierclerk.com.