2015-063-63A - Laserfiche WebLink

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Relevant Financial Policies In accordance with Section 218.415, Florida Statutes, the County adopted an investment policy, which guides the investment of County surplus funds. This policy establishes investment objectives, maturity and liquidity requirements, portfolio composition, risk and diversification requirements, and authorized investments. The primary objectives of investment activities are to preserve capital and maintain sufficient liquidity to meet anticipated cash flow needs. The secondary objective is to obtain competitive returns on the investment of County surplus funds. During fiscal year 2014, County investments had yields ranging from 0.05% to 0.70%. The overall annual yield of the portfolio as of September 30, 2014 was 0.30%. On September 23, 2008, the County established the OPEB (Other Post -Employment Benefits) Trust. An OPEB investment policy was approved by the Board of County Commissioners on February 3, 2009 and revised on April 6, 2010. The objective was to establish an advisory committee and to provide short- term and long-term investment guidelines. This policy also outlines the same criteria as noted in the County's investment policy, as well as including performance measures. The change in net position for the OPEB Trust for the fiscal year was $2.5 million. In addition, interest, dividend and mark -to -market adjustments resulted in net investment income of $764,319. The OPEB Trust annual yield was 5.92%. During FY 2014, the County approved a $630,000 interfund loan from the general fund to the golf course fund for construction of a new irrigation system. This mechanism will provide funds at a relatively low interest rate for the golf course (1.0%) as well as provide increased interest earnings for the general fund. The County's goal is to maintain an overall fund balance equal to 30% of the annual budget in all of its taxing funds, which provides a three month cushion for operating expenses. The three month reserve is necessary due to the timing of property tax levies in the State of Florida. Although the fiscal year begins in October, property tax monies are not typically received until mid to late December, which would require the County to operate in a deficit position for the first two months of the fiscal year without this reserve. Reserve funds are needed in order to allow the County to respond to events without facing serious financial burdens. County policy is to maintain fund balance levels and prohibit the use of fund balance to fund recurring expenses. Information 6n the County's fund balance policy can be found in County Note 19. In September 2014, Fitch Rating Service affirmed three ratings on Indian River County: • "AA+" on Spring Training Facility Revenue Bonds, Series 2001 • "A-" on Limited General Obligation Bonds, Series 2006 • "AAA" on implied unlimited tax general obligation In summary, Indian River County completed the year financially strong and well positioned. In a time of a strained world-wide economy and low investment returns, the County stood committed to manage funds and services for its citizens. v