by Sue Wilson, Treasurer
The balance of unrestricted funds as of December 31, 2017 was $12,307,609 which includes a $2.5M cash reserve. Restricted funds include the Preservation and Improvement Fund (“PIF”) and the Capital Reserve Fund. As of December 31, 2017, PIF had a balance of $16,590,829 plus $666,000 collected in December that was transferred into the PIF account the first part of January 2018. The Capital Reserve Fund had a balance of $5,133,783 as of month end.
The corporation operated within its budget for the 2017 fiscal year.
Investment Report 4th Quarter 2017:
RCSC’s Investment Policy (Board Policy 33) is stringent in its requirements with the priority of investment objectives to be placed in this order: 1) safety, 2) liquidity, and 3) yield.
At the end of the fourth quarter 2017, $4,595,970 (cost basis) of the $2.5M unrestricted cash reserve and other unrestricted funds have been invested in various FDIC insured certificates of deposit and corporate bonds. In 2017, these investments along with the unrestricted money market account have produced interest income of $88,562.28 with management fees of $5,783.29 for a net income on unrestricted fund investments of $82,778.99.
As of December, 2017, $5,023,543 (cost basis) of the $5M restricted capital reserve plus interest earned has been invested in various FDIC insured certificates of deposit and corporate bonds. Year-to-date, these investments have produced interest income of $92,774.19 with management fees of $10,024.26 for a net income on restricted capital reserve investments of $82,754.93.
At the end of the fourth quarter 2017, $8,353,729 (cost basis) of the approximate $17M in the restricted Preservation and Improvement Fund has been invested in various FDIC insured certificates of deposit and corporate bonds. Year-to-date these investments have produced interest income of $156,554.86 with management fees of $4,234.12 for a net income on restricted Preservation and Improvement Fund investments of $152,320.74.