Editorial: County's financial picture upbeat

Editorial: County's financial picture upbeat



Publication Date: 12/05/08


The first item on Tuesday's agenda for the St. Johns County Commission was a report from its investment firm, PFM Asset Management LLC.

It was upbeat. At a time when Florida's government sector is struggling with budget deficits due to statewide property tax reform, declining sales tax revenue and other funding cuts, St. Johns County is ahead of that curve. Its investments are making money.

The third-quarter report was for April to June 2008. The market value of the county's investment portfolio was $169.4 million, an increase of about $1.3 million from the same time in 2007. The good news was delivered by Steven Alexander, PFM Asset Management's managing director.

Alexander told the commission that the past year and especially the last few months were "probably the most troubling we've seen" in recent times. But he added that the county's investments had not been exposed to the subprime mortgage market that fueled a nationwide financial crisis in mortgage and banking industries.

Alexander said PFM's strategy is conservative and the county's portfolio is "well-diversified." It includes U.S. Treasury bonds, he said.

County Administrator Michael Wanchick gave PFM's investment strategy high marks. "I wish I had them managing my (personal) money," he said.

The county's only major exposure was in the State Board of Administration's Local Government Investment Pool in 2007. That money is not under PFM's management. The majority of county money was pulled from the SBA fund before the state imposed a freeze on withdrawals, Wanchick said.

Part of SBA's problems was its exposure to the subprime market through its heavy investment in mortgage-related securities, according to state officials.

PFM has been managing the county's investments for years, a sign of confidence by the County Commission and the Clerk of Courts, the county's chief financial officer.

The county trusts PFM to get the best bang for its bucks.

In addition to PFM, Wanchick spread the credit for the financial success to Clerk of Courts Cheryl Strickland; Finance Director Allen MacDonald; Doug Timms, director of the county's Office of Management and Budget, and his staff; and the County Commission.

"It's a team of individuals that work very well together to protect the public's assets," Wanchick said.

It should always be a team effort when our tax dollars are at stake. It's obvious the county's team members treat every dollar invested with great care, perhaps even better than their own money.


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