{"id":18333,"date":"2025-02-05T11:51:36","date_gmt":"2025-02-05T16:51:36","guid":{"rendered":"https:\/\/www.collierclerk.com\/?p=18333"},"modified":"2026-01-20T12:59:31","modified_gmt":"2026-01-20T17:59:31","slug":"fy-2024-interest-income-statement","status":"publish","type":"post","link":"https:\/\/app.collierclerk.com\/collierclerkcom\/fy-2024-interest-income-statement\/","title":{"rendered":"FY 2024 Interest Income Statement"},"content":{"rendered":"

Fiscal year 2025 looks like another great year for interest revenue in Collier County.\u00a0 As indicated in past articles, one of the Collier County Clerk of the Circuit Court\u2019s many statutory responsibilities as Collier County Comptroller is the investment of county funds.\u00a0 Funds are invested by the Comptroller\u2019s Office pursuant to the provisions of the County\u2019s lawfully adopted investment policy.\u00a0 The policy prioritizes the safety of investment principal, while recognizing the importance of liquidity and yield.\u00a0<\/span>\u00a0<\/span><\/p>\n

Safety, as it relates to the investment of public funds, refers to the risk involved with the future return of the underlying investment principal.\u00a0 The government must protect against the loss of principal by largely investing in products for which there is little to no risk that the principal will not be returned.\u00a0 These investments would include United States Treasury instruments and bank balances that are collateralized by an insurance program such as the State of Florida\u2019s Qualified Public Deposits program. These investments would also include Federal agencies, which enjoy the implied backing of the United States government.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

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Liquidity refers to the ability to convert the individual investment to cash, which is a primary concern for in the Clerk\u2019s investment program, as the County\u2019s $2B budget demands a continuous cash flow to support. Individual investments are chosen for their ability to be sold in a short period of time and thus converted to cash.<\/span>\u00a0<\/span><\/p>\n

Yield is the money earned by the investment of funds. The investment of money is important as during times of inflation the value of a dollar goes down over time.\u00a0 Investment yield helps to offset the loss of purchasing power brought about by inflation.\u00a0 While not the primary focus of a responsibly run governmental investment program, competitive and safe yields can significantly benefit government initiatives.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

e government must he he Through December 31, 2024, the investment program has generated over $16M in interest revenue that will help to offset the cost of various County programs.\u00a0 This amount exceeded the $15M earned during the same period during fiscal year 2024, which was a record setting year.\u00a0 One of the primary drivers behind the increased interest income was reinvesting funds in the investment portfolio at higher rates, offsetting the recent decrease in short term rates brought about by Federal Reserve actions. The earned interest on long term investments (US Treasuries, agencies and corporate bonds) currently totals $7M for fiscal year 2025 compared to $3M for the same period during fiscal year 2024.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

The Clerk and Comptroller\u2019s investment program is run in-house by Clerk employees. The techniques used to formulate investment strategy include a close monitoring of the Federal Reserve Banks\u2019 actions and dialog, as well as acknowledging the role other commodities such as oil, gold and other precious metals play in the economic landscape.\u00a0\u00a0 Heavy reliance is placed upon cashflow forecasts which allow for funds to be invested optimally.\u00a0 The cash forecast must account for both estimated receipts and disbursements of County funds. These forecasts are developed using the vast amount of historical data available and input from County staff. As noted above, all investment decisions are governed by the Board\u2019s adopted investment policy.\u00a0 Key provisions of the investment policy are as follows:<\/span>\u00a0<\/span><\/p>\n