by David Wieland, Treasurer
The balance of unrestricted funds as of August 31, 2014 was $11,314,431 which includes a $2.5M cash reserve. Restricted funds include the Preservation and Improvement Fund (“PIF”) and the Capital Reserve Fund. As of August 31, 2014, PIF had a balance of $10,596,664 plus $501,000 collected in August that was transferred into the PIF account the first part of September 2014. The Capital Reserve Fund had a balance of $1,500,044 as of August month end.
The corporation has operated within its budget for the 2014 fiscal year.
Investment Report 2nd Quarter 2014:
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 second quarter, the Franklin Templeton unrestricted money market fund had an ending balance of $5,013,843.98 and the restricted Franklin Templeton money market fund had an ending balance of $7,840,962.66.
As of June 30, 2014, RCSC had invested in three fixed income funds: Franklin Adjustable U.S. Government Securities Fund Class A, Franklin Low Duration Total Return Fund Class A, and Franklin U.S. Government Securities Series Class A.
At the end of the second quarter in unrestricted funds, RCSC had invested $2,500,000 into the aforementioned three fixed income funds with an ending value of $2,513,439.69 as of June 30, 2014, showing a .54% increase in value of $13,439.69.
At the end of the second quarter in restricted funds, RCSC had invested $5,000,000 into the aforementioned three fixed income funds with an ending value of $5,080,002.09 as of June 30, 2014, showing a 1.6% increase in value of $80,002.09.
Updated Investment Report September 25, 2014:
On September 11, 2014, the RCSC Board of Directors sold both restricted and unrestricted investments in all three fixed income funds: Franklin Adjustable U.S. Government Securities Fund Class A, Franklin Low Duration Total Return Fund Class A, and Franklin U.S. Government Securities Series Class A. All funds are now in restricted and unrestricted money market funds at Franklin Templeton.
Restricted funds invested were $5,000,000 and were sold for $5,031,264.79.
Unrestricted funds invested were $2,500,000 and were sold for $2,517,785.39.