Treasurer-Tax Collector: Treasurer (1520P)
Program Outcome Statement
Manages and protects the financial assets of the County.
- Investment of the County Pool
- Banking Services
- School Bond Paying Agent
The County Treasurer is responsible for the receipt, custody, and investment of all monies placed in the County Treasury for all County departments, schools, cities, and special districts. The Treasurer oversees all banking operations and the county investment pool. The primary objective of the Treasurer is to preserve principal, maintain sufficient liquidity to meet the financial needs of the County at all times, and earn a reasonable rate of return.
Investment Pool Compliance Remains Steady
All Compliance and Audit Reports were exception free. The Investment Specialists strive to ensure all transactions comply with both the investment policy and state code.
County Pool Dollar Earnings Increasing
We continuously outperform both the market as well as many other county pool's within the state of California. Earnings performance is hindered by the large dollar volume of voluntary participants currently in the pool, in excess of $1 billion dollars. We outperform in spite of having to maintain much higher levels of liquidity due to the uncertainty of these deposits. Dollar Earnings continue to increase as the pool size grows each year due to new bond issues, and the ever increasing balances of voluntary participants. More participants retain higher balances due to our above market earnings rate.
Yield is calculated on an accrual basis using a 365-day calendar year. Earnings are calculated as follows:
(Earnings* + Capital Gains) - (Fees+Amortized Premiums + Capital Losses)/Average Daily Pool Balance
* Earnings equal net interest payments + accrued interest + accreted discounts
County Pool Gross Earnings Rate Increasing
Our earnings rate remains consistently one of, if not the highest, in the state. The earnings rate has recently been increasing mainly due to market conditions and the active management philosophy. We practice the active management which is a much better strategy than a buy and hold strategy.
FY 2016-17 Year-End Story Behind Performance
In FY 2016-17, all compliance and audit reports were completed with no exceptions noted. The division strives to ensure that all transactions comply with the investment policy and state code. The County's investment pool earned $50 million, exceeding the target of $38.7 million for the fiscal year ended June 30, 2017. FY 2017-18, the estimated dollar earnings in the Pool is projected to be $59.8 million. The County Pool yield rate is expected to be 1.30 percent, which would outperform the Local Agency Investment Fund (LAIF) rate of 1.20 percent. As a Paying Agent for the County, the Treasurer is currently handling approximately 169 General Obligation bonds, Tax and Revenue Anticipation Notes, and Bond Anticipation Notes. The Treasurer manages a $5 billion investment pool that is comprised of 22.3 percent voluntary and 77.7 percent involuntary participants. Banking costs were maintained by charging departments for services more than general usage. Treasurer Office process over 100,000 transactions at its cash management area annually.
- Strive to stay competitive or outperform the LAIF
- Achieve an overall customer satisfaction rating of 90 percent or higher
- Process 98 percent of deposits within a day
- Continue cross-training for effective continuation of department functions during unanticipated absences