Ada County treasurer reports $1M in May interest and 3.7% portfolio yield

The Ada County Treasurer briefed the Board of Commissioners on the county's May investment results at the June 9 meeting, reporting income and describing portfolio strategy.

The treasurer reported a yield-to-maturity on the portfolio of 3.7% and noted the county earned just over $1 million in interest revenue for May. She explained that roughly 55% of the county's interest income for the month came from the Local Government Investment Pool (LGIP), which allows the county exposure to a broader set of securities through the state treasury.

During the presentation the treasurer discussed a recent short-term purchase of a Freddie Mac security that was priced about 26 basis points over Treasuries and yields approximately 4%. The treasurer said the bond purchase was for just under $3.9 million and emphasized the county's policy to stagger maturity dates to preserve liquidity and avoid locking the portfolio into a single rate environment.

"On the far right column, you see that our yield to maturity on this portfolio is 3.7%," the County Treasurer told the board while walking through the report. She added that the county's policy is to hold investments to maturity and to stagger maturities so the county can meet operating cash needs without forced sales.

The treasurer also flagged near-term macroeconomic data, noting projections for May's Consumer Price Index and how prevailing higher rates influence reinvestment yields going forward.

Next steps: the treasurer will continue presenting portfolio reports during the budget process and make routine investment decisions within statutory constraints.