HomeMy WebLinkAbout2022/07/25 - Finance Committee Board of Mason County Commissioners
Special Finance Meeting Agenda
Commission Chambers
411 N 5t1 St, Shelton,WA 98584
July 25,2022
A:sl 10:15 a.m.
1. Call to Order—The Chairperson called the special meeting to order at 10:15 a.m.
2. New Business
a. Approval of Investment Policy and Debt Policy by Lisa Frazier
The report shows both the first and second quarter of 2022. As of June 30,2022,the cash balance was
$26,471,237.85 which is a$6.4 million increase from June 30,2021. The General Fund Reserve and
Contingency Policy was updated using the 2021 expenditures and uses the current policy at 15%,20%,
and 25%. Policy balances at 15%is$5,768,424.30;20%is$7,691,232.40;and 25%is$9,614,040.50.
There is$15,857,197.35 above the contingency policy. Cash and investment market value as of June
30,2022 was$224,838,912.60. Benchmark 90-day T-Bill rate was 1.69%. State Pool Rate and Market
Rate are well below that rate. The State Pool Rate will increase quicker than the Market Rate Yields.
Long term,Federal and US Treasuries,are out from 3-5 years. New investments are being done at
higher rates. Federal Reserve Rates have increased from.07%to 1.58%. County debt outstanding as of
June 30,2022 was$20,308,993.81.
b. Review Reserve and Contingency Policy by Jennifer Beierle
Remove part of the second paragraph on page one which states"these goals were established by the
Mason County Board of County Commissioners beginning in 2018 over a five-year period for all
reserves except the Contingency Reserve which was established beginning in 2019 over the next
successive five years"and add Section G on page two"General Fund Capital Facilities Reserve"stating
that"the County will maintain a Capital Facilities Reserve equal to$5,000,000,or other amount set by
the Board and adopted during the annual budget process. The purpose of the reserve is to pay for capital
costs of future debt payments included in the Capital Facilities Plan". if the market goes down,the
policy may be hindering if a"floor"is put in. Cmmr.Neatherlin discussed providing more services to
constituents. Cmmr.Shutty suggested paying down debt and asked about a minimum. Paddy McGuire
added that it makes sense to have the Capital Facilities Reserve as part of the annual budget process and
that there is flexibility. Mark Neary shared that the County has aging infrastructure and that there may
be time periods that emergency repair needs done. Projects not in the Capital Facilities Plan cannot use
REET funds.
Paddy McGuire/Cmmr.Shutty moved and seconded to bring the Reserve and Contingency Policy
forward to the Board of County Commissioners with recommendation for approval. Motion
carried.
c. Annual Review—Mason County Investment Policy
It is required to review the County Investment Policy annually. There are no recommended
changes.
Cmmr.Shutty/Paddy moved and seconded to approve the Mason County Investment Policy.
Motion carried.
3. Old Business
a. Project Funding Update
11 Special Finance Committee Meeting
b. Skokomish River Restoration
c. Belfair Wastewater System
4. Adjournment—the meeting adjourned at 10:40 a.m.
ATTEST: BOARD OF COUNTY COMMISSIONERS
MASON COUNTY, WASHINGTON
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McKenzie SmitIV,Clerk6f the Board
Kevin Shutty,C it
Sharon Trask,Vice-Chair
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R dy Neatherlin,Commissioner
2 1 Special Finance Committee Meeting