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Commissioner Hovis - Financial and Management Services - Finance - To Accept the Gaston County Investment Policy
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STAFF CONTACT
Kyle Sutherland - Finance - 704-866-3130
BUDGET IMPACT
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The Gaston County Investment Policy establishes a framework for investing public funds to generate income, support County operations, and potentially reduce reliance on property tax revenues. Investment earnings may provide a benefit equivalent to several cents on the property tax rate; however, actual returns will vary based on available funds, market conditions, and investment performance. Our investment priorities are the preservation of principal, maintaining sufficient liquidity to meet financial obligations, and earning a fair market rate of return, in that order. The policy requires at least 20% of funds available for investment to remain liquid and limits investment maturities to 60 months. Investment income will be allocated equitably among participating funds and accounts, with the Finance Director providing investment reports to the County Manager and Commissioners at least quarterly. Future investment earnings are not guaranteed, and any projected budget impact should be based on current financial data and reasonable market assumptions.
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BACKGROUND
Gaston County has a responsibility to serve as a prudent steward of public funds, ensuring that taxpayer dollars are managed responsibly, protected from unnecessary risk, and used in the best interest of the community. In accordance with North Carolina General Statute § 159-30, Investment of Idle Funds, local governments are authorized to invest available cash balances in legally permitted investments, subject to applicable restrictions and oversight. The statute requires investment programs to maintain the ability to convert investments into cash as needed and establishes requirements for the management, safekeeping, and accounting of public funds.
POLICY IMPACT
Establishing a consistent County-wide standard for the investment of public funds. Promoting transparency and accountability to taxpayers and County leadership. Ensuring compliance with North Carolina General Statute § 159-30 and the investment practices outlined therein. This policy supersedes the Cash Management/Investment Policy previously adopted as part of Resolution 2022-052 on February 22, 2022.
ATTACHMENTS
Gaston County Investment Policy Guidelines