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Resolution No. 89-76 currently governs Indian River County investment of funds in excess of current needs. This resolution authorizes all investments specified in Florida Statute 125.31. The Board of County Commissioners may authorize the use of investments in addition to those listed in F.S. 125.31. The Florida Association of Counties and the Florida Association of Court Clerks/Comptrollers joined in a venture to create an alternative investment for local governments to that offered by the State of Florida. We have been monitoring the development and progress of the FLIT Fund since early 1991. The FCIT Fund commenced operation on Jan 1, 1992. We did not chose to be a charter member. However, it is now operating successfully and deserves to be included in our portfolio of investments because of the increased yield it offers. The State of Florida operates the Local Government Surplus Funds Trust Fund commonly referred to as the SBA Fund since it is administered by the State Board of Administration in the Department of Revenue. On March 31, 1993, the SBA report showed 617 participating local governments with a total investment of $101 816, 718, 682. The SBA Fund is limited to an average maturity of 120 days. It is currently yielding about 3.5 per cent. Its 1992 yield was 4.3 per cent. Indian River County has been using the SBA Fund for several years as its principal investment for funds that need to be the most liquid. The FCIT Fund offers an attractive and safe alternative for a portion of the Counties' investment portfolio that has typically been at the SBA Fund. The FCIT Fund allowable investments are listed in Article IV, Section 4.02 of the Appendix A to the enclosed Joinder. The FCIT Fund maintains a longer average maturity than the SBA Fund. The FCIT Fund does not include investments with a maturity over five years. The current FCIT portfolio average maturity is approximately three years. This permits a higher yield while maintaining good safety and reasonable adequate liquidity. We may make a deposit or withdrawal to our SBA account for the current day as long as it is requested by 11:00 a.m. on that day. The FCIT requires a minimum of one day notice for any deposit or withdrawal. Therefore by using a combination of SBA and FCIT Funds, the County can increase its yield on investments and keep the necessary liquidity to meet weekly accounts payable requirements, biweekly payroll needs, periodic bond payments and all other financial liabilities. A copy of the most recent FCIT quarterly publication, the "Update", is enclosed. It highlights that in the first sixteen months of operation, the portfolio has grown to $148.8 million with participation by over 12 counties. Page three lists the current Board of Trustees and the Trust Staff. The investment advisor is Payden & Rygel, Investment Counsel. The custodian is Nations Bank. The auditor is Ernst & Young. , The current Board policy on investments, IRC Resolution No. 89-76, will be replaced by the enclosed proposed IRC Resolution 93- that authorizes the use of the FCIT Fund. I request the Board's approval of the enclosed ordinance and two resolutions approving the addition of the FCIT Fund as an alternative investment vehicle for funds excess to the County's current needs. 5 BOOK g® PAGE