This report examines the performance of the public funds currently invested by the Will County Treasurer’s Office. This narrative covers investment activity and performance in June 2013.

Total Investment Portfolio

The county’s total holdings at the end of June had a market value of $226.8-million. The Treasurer’s Office has invested $175.4-million (77.3%) across a variety of fixed income security types (excluding cash). The total portfolio (including cash) has a Yield-to-Maturity of 83.6 basis points (0.836%) with an average maturity of 1,957 days (5.4 years).

The Treasurer’s Office began collecting the 2012 Real Estate Property Tax Levy in May 2013. Over the next six months, the office will collect and distribute approximately $1.67-billion in real estate taxes on behalf of more than 360 taxing districts.

One of our priorities is to distribute as much of the first installment as possible before the end of the school district’s fiscal year on June 30, 2013. We want schools to have healthy cash flows so they can set budgets, seek grants, and develop long-term strategic plans.

As of June 27, 2013, our office collected and distributed 50.21% of the $1.69-billion levy. This is the largest distribution of property tax, both in real terms and percentage distributed, since Mr. Weber became County Treasurer in 2010. We project uncollected balances to be in line with historical results for items such as tax exempt refunds, tax appeals, and commercial and industrial abatements.

Corporate Class C Fund

The Corporate Class C Fund is the principal operating account for the county. The Treasurer’s Office uses this fund to pay employees, vendors, and other operating liabilities.

As of June 31, 2012, the market value of the Corporate Class C Fund was $102.8-million. Yield in the Corporate Class C Fund, including cash and money markets, was 52.0 basis points.

As we discussed earlier, our office began collection of the real estate levy in May. Our office expects to invest $70-million of the county’s total levy in the next several months. By the end of June, we had invested $45.8-million, returning 68.9 basis points (0.689%) yield. Compared to our Benchmark Goal, to be ahead of the Six Month U.S. T-Bill by 50 Basis Points, we are ahead of our goal by 12 basis points.

We continued to focus our investments on high-quality commercial and municipal bonds. We continue to believe this sector of the fixed income market is a safe place to earn a respectable interest rate compared to bank certificates or money market accounts that return less than 0.2% APY.

Treasurer’s Class C Fund

The Treasurer’s Class C Fund is the county’s capital improvements fund. The Treasurer’s Office holds proceeds from the county and township motor fuel tax, automation funds, and other revenue.

As of June 31, 2012, the market value of the Treasurer’s Class C Fund was $121.8-million. Yield in the Treasurer’s Class C Fund, including cash and money markets, was 1.12%.

Benchmark Performance

The Will County Treasurer’s Investment Policy sets two benchmarks against which we compare the performance of our investments.

  1. The 90-Day Average of the 1-Year Jumbo Deposit National Rate as quoted by the FDIC
  2. The 90-Day Average of the 3-Year Treasury Note as quoted by the U.S. Treasury Department

We use these two benchmarks because they closely relate to the length of time we hold an investment.

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