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Jeffrey K. Barton, Clerk of Circuit Court, presented the following memo dated July 13, 1993: TO: Board of County Commissioners DATE: July 13, 1993 SUBJECT: Florida Counties Investment Trust FROM: Jeffrey H. Barton, Clerk of Circuit Court Enclosed is a proposed ordinance authorizing investment in the Florida Counties Investment Trust (FCIT) and a proposed resolution approving the Joinder to the Agreement and Declaration of Trust creating and establishing the Florida Counties Investment Trust. 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 FCIT 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 $10,816,718,682. 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 15 BOOK AU G 10 1993 90