by Carol Lawry
The balance of unrestricted funds as of March 31, 2017 was $12,690,861 which includes a $2.5M cash reserve. Restricted funds include the Preservation and Improvement Fund (“PIF”) and the Capital Reserve Fund. As of March 31, 2017, PIF had a balance of $10,628,302 plus $955,500 collected in March that was transferred into the PIF account the first part of April 2017. The Capital Reserve Fund had a balance of $5,064,504 as of month end.
The corporation operated within its budget for the 2017 fiscal year.
Investment Report 1st 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 first quarter 2017, $4,581,963 (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 $10,523 with management fees of $1,267 for a net income on unrestricted fund investments of $9,256.
As of March 31, 2017, $4,964,635 (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 $15,979 with management fees of $2,508 for a net income on restricted capital reserve investments of $13,471.
At the end of the first quarter 2017, $8,368,016 (cost basis) of the approximate $11M 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 $2,782 with no management fees for a net income on restricted capital reserve investments of $2,782.
