As interest rates rise, so do county interest earnings

Error message

  • Notice: Undefined index: taxonomy_term in similarterms_taxonomy_node_get_terms() (line 518 of /home/swiftcounty/www/www/sites/all/modules/similarterms/similarterms.module).
  • Notice: Undefined offset: 0 in similarterms_list() (line 221 of /home/swiftcounty/www/www/sites/all/modules/similarterms/similarterms.module).
  • Notice: Undefined offset: 1 in similarterms_list() (line 222 of /home/swiftcounty/www/www/sites/all/modules/similarterms/similarterms.module).
admin's picture

Swift County earned $170,000 in interest income on its investments in 2017. The earnings are due to a combination of more funds to invest and interest rates that are starting to creep up.

In all, the county had $20,141,095 invested at the end of 2017. But not all of that is made up of funds the county has sitting in reserves for general operations.

Nearly $5.2 million of the investment funds were just added this past year in the form of a bond sale to pay for renovations at the Swift County courthouse and at Countryside Public Health in Benson. Those monies are already being paid out to contractors. Another $1 million in funds are in a reserve that has been built up over the past several years from the county’s self-insurance health plan. There is $3.3 million in the road and bridge fund.

There is $5.09 million in the general revenue fund reserve. Other investment funds are tied to economic development and human services.

Swift County’s investments earned a low of 0.10 percent to a high of 1.85 percent on its bond in 2017. It earns 2 percent on the funds it has loaned to Swift County-Benson Health Services. The SCBHS loan has a balance of $1.609 million to be paid off. It receives 1.75 percent on the $132,293 balance on its loan to CNH. The CNH and SCBHS funds loaned are not counted in the $20.14 million total bond investments.

Interest Earnings 2017

Fund    Earnings
Revenue    $96,576
County highway    $25,303
Revolving loan fund    $15,055
Human Services    $11,174
Capital improvement bond    $21,911
Total    $170,020

On the bonds that were rolling over toward the end of 2017, Swift County Treasurer Ron Vadnais told commissioners at their meeting Feb. 6 that he was seeing a 50 to 60 basis point increase in interest rates. “That is a positive,” he said.

The most recent bonds invested in January “tickled the 2 percent mark,” Vadnais said. Interest rates haven’t been at 2 percent for at least 10 years.

“In the 35 years you have been the county treasurer, have we ever had balances this high?” Commissioner Ed Pederson, District 2-north Benson, asked Vadnais.

“No,” he replied. “But then again, we have taken some pretty active and progressive steps.” He pointed to the $1 million that is in the county’s self-funded health insurance balance. There has also been a concerted effort to build the funds in the county’s highway funds to pay for future projects....


For more on this story, and to keep up on all the latest news, subscribe to the Swift County Monitor-News print edition or our PDF internet edition. Call 320-843-4111 and you can get all the local news and sports delivered to you!


Rate this article: 
No votes yet