County's investment income increases

CELINA - Mercer County is earning a solid return on its investments, taking in $306,000 in interest income in 2015.

And this year, it's poised to collect as much as $410,000, county recorder Dave Kaiser reported at Thursday night's township association spring meeting at the Mercer County Central Services Building.

Kaiser said several factors figure into the current investment return rates, including higher county agency balances and favorable market conditions.

"I know a lot of the agencies are carrying a higher balance. They pull that all together and it's just a little bit more money that we have to invest," he said.

The county treasury, he said, has had a larger balance in recent years. This year's balance is $30.1 million, compared with $29.3 million in 2015.

"There were some earnings that were being made in 2015 that actually matured in 2016. In other words, instead of getting monthly payments, the payment was made at maturity," he said.

Working with investment advisers in Columbus, Kaiser has strategically sought "longer return for shorter investments." In many cases, the county is investing in five-year agency bonds, which are callable and have yielded higher rates than a one-year CD.

"They're getting culled maybe after three months, six months, which is OK," he said. "We've got a five-year return on a three- to-six-month investment. That's a good thing. So we reinvest it and kind of follow that same pattern over and over again and hopefully we can continue."

Moreover, the county is investing in its political subdivisions, which Kaiser calls a "win-win" for all involved. The county, he said, is hitting a "sweet spot in the middle" for returns while offering low interest rates to local governments.

"Right now we have about $5.2 million of our total treasury invested in ourselves," he said. "And that works out pretty nicely because what we're able to do is we can offer a lower rate than you are able to get at a bank, and we're able to get a higher return than we would get if we would go out and buy a CD from a local financial institution."

Ohio Revised Code allows counties to invest in municipal debt, according to Kaiser. The county boosts its revenue streams by investing inactive funds with townships and municipalities. A county investment commitee comprised of two county commissioners and the treasurer reviews possible loans.

Kaiser said the county has investments with Marion, Gibson, Hopewell and Granville townships, the Southwest Mercer Fire District and county construction maintenance bonds.

Also, Celina officials this year moved to renew the city's $2.64 million debt on behalf of the Bryson Trust Fund to buy two lakeshore-area properties. They agreed to refinance with Mercer County, the lowest bidder, with a 1.5 percent interest rate, according to city auditor Betty Strawn. The city may repay early a portion or all of the debt without penalty.