by Sheila Rooney, Treasurer
The balance of unrestricted funds as of December 31, 2020 was $14,925,286 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, 2020, PIF had a balance of $19,994,188 plus $758,447 collected in December that was transferred into the PIF account the first part of January 2021. The Capital Reserve Fund had a balance of $5,423,355 as of month end.
The corporation operated within its budget year to date 2020.
Investment Report 4th Quarter 2020:
RCSC’s Investment Policy (Bylaws Article XIII) is stringent in its requirements with the priority of investment objectives which are placed in this order: 1) safety, 2) liquidity, and 3) yield.
At the end of the fourth quarter 2020, $4,211,991.64 (cost basis) of the $2.5M unrestricted cash reserve and other unrestricted funds have been invested in various FDIC insured certificates of deposit, treasury bills and corporate bonds. In 2020, these investments along with the unrestricted money market account have produced interest income of $121,090.92 with management fees of $10,101.39 for a net income on unrestricted fund investments of $110,989.53.
As of December 31st, 2020, $5,078,458.09 (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 $130,166.04 with management fees of $10,697.24 for a net income on restricted capital reserve investments of $119,468.80.
At the end of the fourth quarter 2020, $6,047,848.01 (cost basis) of the approximate $12.5M in the restricted Preservation and Improvement Fund has been invested in various FDIC insured certificates of deposit, treasury bills and corporate bonds. Year-to-date these investments have produced interest income of $203,571.11 with management fees of $14,398.24 for a net income on restricted fund investments of $189,172.87.