by Carol Lawry, Treasurer
The balance of unrestricted funds as of December 31, 2016 was $10,147,831 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, 2016, PIF had a balance of $9,429,123 plus $665,200 collected in December that was transferred into the PIF account the first part of January 2017. The Capital Reserve Fund had a balance of $5,051,033 as of month end.
The corporation has operated within its budget for the 2016 fiscal year.
Investment Report 4th Quarter 2016:
RCSC’s Investment Policy (Board Policy 33) in stringent in its requirements with the priority of investment objective to be placed in this order: 1) safety, 2) liquidity, and 3) yield.
At the end of the fourth quarter, $2,486,126.73 (cost basis) of the $2.5M unrestricted cash reserve has been invested in various FDIC insured certificates of deposit. In 2016 these investments along with the unrestricted money market account have produced interest income of $52,037 with management fees of $5,060 for a net income on unrestricted fund investments of $46,977.
As of December 31, 2016, $4,969,940.51 (cost basis) of the $5M restricted capital reserve has been invested in various FDIC insured certificates of deposit and corporate bonds. Year-to-date these investments have produced interest income of $63,181 with management fees of $10,054 for a net income on restricted capital reserve investments of $53,127.