by Carol Lawry
The balance of unrestricted funds as of September 30, 2017 was $11,301,297 which includes a $2.5M cash reserve. Restricted funds include the Preservation and Improvement Fund (“PIF”) and the Capital Reserve Fund. As of September 30, 2017, PIF had a balance of $14,830,276 plus $611,000 collected in September that was transferred into the PIF account the first part of October 2017. The Capital Reserve Fund had a balance of $5,107,349 as of month end.
The corporation operated within its budget for the 2017 fiscal year.
Investment Report 3rd 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 third quarter 2017, $4,600,199 (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 $70,791.05 with management fees of $3,757.44 for a net income on unrestricted fund investments of $67,033.61.
As of September, 2017, $5,028,933 (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 $63,807.80 with management fees of $7,491.85 for a net income on restricted capital reserve investments of $56,315.95.
At the end of the third quarter 2017, $8,370,629 (cost basis) of the approximate $15M 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 $152,626.29 with no management fees for a net income on restricted Preservation and Improvement Fund investments of $152,626.29.
