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01/27/25 03 PM: Agenda Approved; $242M Investments Reviewed; Policies Reauthorized

Agenda Approved; $242M Investments Reviewed; Policies Reauthorized

Committee approved agenda and minutes; Treasurer presented $242M investments and debts; unanimously reauthorized debt and investment policies; discussed future agenda.

Approval of Agenda and Minutes

Metadata

  • Time Range: 00:01:57–00:03:22 (Part 1)
  • Categories: other

Summary

The committee approved the meeting agenda following a motion by Heidi and second by Brenda, with unanimous approval. Minutes from October 23-24 were approved via motion and second, with one abstention by a member absent from that meeting.

Key Discussion Points

  • Noted that only auditor, treasurer, and board chair are voting members, with the meeting structured as special to allow broader participation.
  • One member abstained from minutes vote due to absence from prior meeting.

Public Comments

No public comment on this topic.

Supporting Materials Referenced

No supporting materials referenced.

Financials

No financial information discussed.

Alternatives & Amendments

No alternatives discussed.

Outcome, Vote, and Next Steps

  • Decision: Agenda approved; October 23-24 minutes approved.
  • Vote: Agenda unanimous; minutes approved with one abstention.
  • Next Steps: No next steps specified.

Treasurer's Report

Metadata

  • Time Range: 00:03:22–00:32:38 (Part 1)
  • Categories: budgeting

Summary

Treasurer Stacey presented December investment and debt reports covering county funds and special purpose districts (excluding PUD and Port Townsend). Total investments stood at $242 million, primarily in the LGIP state pool at $236.5 million, with county general fund cash balance at $8.46 million. Debt positions by district were reviewed, including upcoming principal payments.

Key Discussion Points

  • Treasurer Stacey: Investments include schools, ports, hospitals, fire districts; LGIP functions like a money market up to two years; yield curve trends discussed, noting recent normalization after inversion; JCIP effective rate 3.29%; detailed individual investments (e.g., Fire District 2, library) bought at discounts for higher yields at maturity.
  • Unidentified board member: Questioned negative accrued interest for library/general fund, clarified as accounting for premium/discount purchases.
  • Unidentified board member: Praised timely adjustments from CDs to LGIP during inverted yield curve, benefiting multiple entities.
  • Unidentified board member: Questioned school district debt schedule peaks; explained as structured maturities with variable rates.
  • Unidentified board member: Noted GAN draw discrepancy due to January Public Works draw of $1 million post-December 31.
  • Treasurer Stacey: Debt includes Tri-Area Sewer GAN ($2M beginning balance, matures 2026), Jeffcom bonds paid via communication sales tax retention (5% reserve maintained); Port Hadlock wastewater to 2033 ($1.27M); various fire districts, hospital, port, schools.

Public Comments

No public comment on this topic.

Supporting Materials Referenced

Multiple sheets referenced (e.g., investment overview page 3, LGIP portfolio, yield curves 2004-present and 2017-present, JCIP details, accrued interest, debt by district/period, 30-year summary, GO debt chart) but not provided for analysis.

Financials

  • Total investments: $242 million ($236.5 million LGIP, $44 million treasurer's cash in state pool).
  • County general fund cash balance: $8.46 million.
  • JCIP: $5.66 million total, treasurer's cash investments cost $4,998,300 (matures to $5 million).
  • LGIP December earnings on $236,571,000.
  • December interest received: $3,850 (accrued higher).
  • Debts: Tri-Area Sewer GAN $2M (2024), 2016B $898K, Jeffcom $335,477, Port Hadlock wastewater $1.27M (to 2033); School District 50 $26M (to 2035); county payments peak at $3.5M in 2026.

Alternatives & Amendments

No alternatives discussed.

Outcome, Vote, and Next Steps

  • Decision: Informational item; no action taken.
  • Vote: None.
  • Next Steps: Treasurer posts reports monthly; no further steps specified.

Debt Policy Review and Reauthorization

Metadata

  • Time Range: 00:32:50–00:47:33 (Part 1)
  • Categories: budgeting, other

Summary

Treasurer Stacey reviewed the debt policy (updated 2017, 2019, 2020) covering debt types, procedures, roles, limits, and reserve policy to support bond ratings (last AA). Discussion noted wording clarifications on commissioner roles, capital improvement plan review, reserve specifics (e.g., Public Health fixed $53,981), and pronoun consistency. Policy reauthorized unanimously.

Key Discussion Points

  • Treasurer Stacey: Policy aids credit ratings; covers GO debt, revenue bonds, local program loans; limits based on assessed valuation; uses professional services; includes refunding; treasurer handles GO debt payments for districts.
  • Unidentified board member: Questioned "commissioners shall initiate" language as potentially mandatory; clarified as non-binding with prior discussions.
  • Unidentified board member: Noted outdated "county council" reference; questioned capital improvement plan biennial review (confirmed via budget); Public Health reserve as fixed amount vs. percentage (tied to fund creation); suggested inclusive pronouns.
  • Treasurer Stacey: Reserves often from resolutions/seed money; will review Public Health with inflation.

Public Comments

No public comment on this topic.

Supporting Materials Referenced

Debt policy document referenced (pages 3, 13-14) but not provided for analysis.

Financials

  • Public Health reserve: $53,981 minimum.
  • No other new figures discussed.

Alternatives & Amendments

No alternatives discussed.

Outcome, Vote, and Next Steps

  • Decision: "Motion to reauthorize the debt policy."
  • Vote: Unanimous (Heidi motion, Brenda second).
  • Next Steps: Note font issue, wording/pronoun updates for future; Treasurer to maintain list of changes.

Investment Policy Review and Reauthorization

Metadata

  • Time Range: 00:47:42–00:58:33 (Part 1)
  • Categories: budgeting, other

Summary

Treasurer Stacey reviewed the investment policy detailing prudent standards, authorized investments (up to 5 years, no out-of-state except federal), brokers, fees (5% of interest, max $50/year), and local context (e.g., avoiding controversial corporate holdings). Scope, ethics, internal controls, and appendix terms noted for potential updates. Policy reauthorized unanimously.

Key Discussion Points

  • Treasurer Stacey: Prudent person standard; deputy treasurers under Treasurer authority; FDIC-approved CDs; no corporate investments due to local sensitivities (e.g., past Bank of America protests); investment service fee structure; safekeeping accounts; added brokers like Stifel (2022).
  • Unidentified board member: Noted campaign question on weapons corporations; confirmed no corporate investments.

Public Comments

No public comment on this topic.

Supporting Materials Referenced

Investment policy document referenced (pages 2, 8, appendix) but not provided for analysis.

Financials

  • Investment service fee: 5% of interest earned, max $50 per year per investment (LGIP $5-$50 monthly).

Alternatives & Amendments

No alternatives discussed.

Outcome, Vote, and Next Steps

  • Decision: "Motion to reauthorize the investment policy."
  • Vote: Unanimous (motion, Brenda second).
  • Next Steps: Potential scope update for audit fund types; note changes for future (e.g., pronouns).

Future Agenda Items

Metadata

  • Time Range: 00:58:33–01:00:35 (Part 1)
  • Categories: other

Summary

Brief discussion on next meeting agenda, suggesting invitation to Central Services Director for continuity amid Mark's retirement.

Key Discussion Points

  • Unidentified board member: Invite Central Services Director due to retirement transition.
  • Treasurer Stacey: Already includes Director in monthly reports; open to adding others.

Public Comments

No public comment on this topic.

Supporting Materials Referenced

No supporting materials referenced.

Financials

No financial information discussed.

Alternatives & Amendments

No alternatives discussed.

Outcome, Vote, and Next Steps

  • Decision: No formal action; suggestions noted.
  • Vote: None.
  • Next Steps: No next steps specified.

Background Materials

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