HomeMy WebLinkAbout2025-01-27_Finance Committee Full Packet
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AGENDA Jefferson County Finance Committee
Regular Meeting – Monday, January 27, 2025 at 3:00 p.m.
This is a Hybrid meeting: Virtual and In-Person Attendance at
Jefferson County Courthouse – Commissioners’ Chambers
1820 Jefferson Street, Port Townsend, WA
Stacie Prada, Treasurer & Chair | Brenda Huntingford, Auditor & Secretary |
Heidi Eisenhour, Chair of the BOCC and Member of the Finance Committee
To view Agenda items, meeting materials and comments received, click here: www.co.jefferson.wa.us – www.co.jefferson.wa.us – Services – Laserfiche Web Portal (Username and Password is: public) – Treasurer -
Finance Committee -2025 – 2025-01-07 Finance Committee Meeting
You can join this meeting by using the following methods:
In the event of technical difficulties, at least one of the methods above will be accessible to the public. Please try all
methods first before calling 360-385-9100 to report any issues.
Individuals may provide Public Comment using the following methods:
• Video: Refer to meeting instructions above
• Audio-only: Refer to meeting instructions above
• Email: You may submit comments/correspondence to us at: treasurerstaff@co.jefferson.wa.us up through noon, the business day before the meeting. 1. CALL TO ORDER Finance Committee and Board of County Commissioners. This is a joint
meeting of the Finance Committee and Board of County Commissioners. All agenda action items will be made by the Finance Committee. 2. PUBLIC COMMENT PERIOD 3. APPROVAL OF THE AGENDA
4. APPROVAL OF THE OCTOBER 23, 2024 MINUTES 5. DISCUSSION re: Treasurer’s Report 4th Quarter 2024 covering county and district debt & investments 6. DISCUSSION and POTENTIAL ACTION re: Reauthorize Debt Policy 7. DISCUSSION and POTENTIAL ACTION re: Reauthorize Investment Policy
8. DISCUSSION re: Suggestions for next or future agenda 9. ADJOURNMENT (by 4:30 p.m.) Next Finance Committee meeting: April 28, 2025 3:00 pm – 4:00 pm, Jefferson County Courthouse
Americans with Disabilities Act (ADA) Accommodations Provided Upon Request
• Zoom Meeting: https://us06web.zoom.us/j/86933278686 This option will allow you to join the meeting live. You will need to enter an email address. If you wish to provide public comment, click on the hand icon at the bottom of the screen to “raise your hand.” Participation will be up to the Chair and Clerk
• Audio-only: Dial: 1-253-215-8782 and use Webinar ID: 869 3327 8686# This option will allow you to listen to the meeting live. If you wish to provide public comment, press *9 to “raise your hand.” Participation will be up to the Chair and Clerk Access for the hearing impaired can be accommodated using Washington Relay Service at 1-800-833-6384. If you need special accommodations, please contact our office 24 hours in advance.
• In-person: You are welcome to join this meeting in-person.
JEFFERSON COUNTY FINANCE COMMITTEE
THIRD QUARTER 2024
October 22, 2024 Minutes
Hybrid Meeting, Virtual and In-Person Attendance
Present:
Stacie Prada, Treasurer
Brenda Huntingford, Auditor
Kate Dean, Chair of Board of County Commissioners
Mark McCauley, County Administrator
Judy Shepherd, Finance Manager
Meeting was called to order at 8:30 by Chair Stacie Prada
Public Comment Period – No public comment
Motion for approval of Agenda by Kate, 2nd by Brenda, motion carries.
Motion to approve the July 23, 2024, Finance Committee Meeting Minutes by Kate, 2nd by
Brenda, motion carries.
Old Business and Information Reports
Treasurer’s 3rd Quarter 2024 Finance Reports reported by Stacie – see reports in
Laserfiche
County Line of Credit update – 2024 Grant Anticipation Note (GAN)
New Business
Finance Meeting Schedule – Potentially move the quarterly Finance Meeting to coincide
with the Monday, Commissioner’s Meeting in 2025.
Meeting was adjourned at 8:51am
Notice of Adjournment prepared by Jefferson County Treasurer
Meeting schedule – Hybrid: Virtual and In-Person 8:30am
October 22, 2024, Board of County Commissioner’s Chambers.
Approved:
_______________________________________
Stacie Prada, Jefferson County Treasurer
_______________________________________
Brenda Huntingford, Jefferson County Auditor
Jefferson County Finance Committee Treasurer’s Report
December 2024 Report Page(s)
Table of Contents 1
Treasurer’s Summary Report for quarterly meeting 2
INVESTMENT REPORTS
Investment Summary 3
LGIP Portfolio – Local Government Investment Pool
• Portfolio Summary
• LGIP Allocation and Ending Balances
• Treasury Par Yield Curve Rates and Local Government Investment
Pool (LGIP) Rates (all years and 2017-2024)
4-9
JCIP Portfolio – Treasurer and District Investments
• Portfolio Summary
• JCIP Investments by All Types
• Accrued Interest
10-13
DEBT REPORTS
Debt by District and Issue
• Positions by Period
• Statement of 30 years
14-16
Jefferson County GO Debt: Chart showing amount to be paid by Jefferson County and JeffCom 2024-2046
17
Page 1 of 17
Jefferson County Finance Committee Treasurer’s Summary Report
Meeting date January 27, 2024
Investment Reports
• Investment Summary: Total Investments $242,231,386 by Bank include $236,571,128 in the
State Investment Pool with Treasurer’s Cash of $44 million. General Fund cash balance on
12/31/2024 was $8.46 million, and the rest is comprised of ending fund balance of both county
and special purpose district funds not invested on their behalf.
98% of all county and special district investments are held in the state investment pool and 2%
in US Agency securities. For Treasurer’s Cash, the portion held in the LGIP is 90% and 10% in US
Agency Securities.
• LGIP Portfolio: Investments in the Washington State Treasurer’s Local Government Investment
Pool.
• Portfolio Summary: $236,571,128 was invested in the state pool at month end.
• LGIP Allocation and Ending Balances detailed by fund
• Treasury Par Yield Curve Rates and Local Government Investment Pool (LGIP) Rates
4.6023% for December. The second sheet shows fewer years to better see the treasury
and LGIP rates since 2017.
• JCIP Portfolio – Treasurer and District Investments in securities
• Portfolio Summary $5,660,257 invested at month end.
• JCIP Investments by All Types $4,998,300 was Treasurer’s Cash investments, and the rest
are dedicated investments for districts.
• Accrued Interest: shows detail per investment with accrued interest and interest received
this period.
Debt Reports
• Debt by District and Issue
• Positions by Period provided information per debt issue group summarized by district. This
shows the ending balance as of 12/31/2024.
• Statement of 30 years provides debt service per district. JeffCom is included in County
debt, and we have an agreement for them to pay their portion from communication sales
tax receipts. This includes the $1 million draw for the 2024 GAN done in the beginning of
January 2025.
• Jefferson County GO Debt: Chart showing amount to be paid by Jefferson County and JeffCom
2025-2030. This includes the $1 million draw for the 2024 GAN done in the beginning of January
2025.
Page 2 of 17
Investment Summary
Investment Type
District & Fund
Investments (997:998)Treasurer's Cash (999) All Investments (997:999) 100007:100009 Certificate of Deposit - - 0.00%- 0.00%100006 US Agency Securities 661,957 4,998,301 10.18%5,660,258 2.34%100005 Public Interest Checking - - 0.00%- 0.00%100004 Washington State Pool 192,478,624 44,092,504 89.82%236,571,128 97.66%193,140,581 49,090,805 100.00%242,231,386 100.00%
#Munis Object BANK 12/31/2023 1/31/2024 2/29/2024 3/31/2024 4/30/2024 5/31/2024 6/30/2024 7/31/2024 8/31/2024 9/30/2024 10/31/2024 11/30/2024 12/31/2024
275 100008 First Federal Bank 0 0 0 0 0 0 0 0 0 0 0 0 0
310 100007 Sound Community Bank 0 0 0 0 0 0 0 0 0 0 0 0 0
550 100009 Kitsap Bank 0 0 0 0 0 0 0 0 0 0 0 0 0
520 100005 Pacific Premier Bank 0 0 0 0 0 0 0 0 0 0 0 0 0
900 100006 U.S. Government Securities 9,411,565 9,264,164 9,264,164 8,764,164 8,764,164 8,764,164 8,764,164 7,764,164 7,764,164 7,764,164 7,764,164 6,665,444 5,660,258
999 100004 State Investment Pool 234,431,423 227,466,758 225,675,574 226,316,638 247,136,297 237,111,616 240,751,727 236,444,284 237,945,683 232,383,291 247,267,294 238,784,114 236,571,128
TOTAL 243,842,988 236,730,922 234,939,738 235,080,802 255,900,461 245,875,781 249,515,891 244,208,448 245,709,847 240,147,455 255,031,458 245,449,558 242,231,386
999-100004 Treasurer's Cash in State Pool: 42,221,364 39,964,927 43,350,975 44,102,004 60,403,341 39,845,846 43,917,696 43,330,130 47,590,763 42,212,231 55,965,941 50,632,503 44,092,504
12/31/2024
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
12/31/2023 1/31/2024 2/29/2024 3/31/2024 4/30/2024 5/31/2024 6/30/2024 7/31/2024 8/31/2024 9/30/2024 10/31/2024 11/30/2024 12/31/2024
Total Investments by Bank
First Federal Bank Sound Community Bank Kitsap Bank Pacific Premier Bank U.S. Government Securities State Investment Pool
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
Certificate of Deposit US Agency Securities Public Interest Checking Washington State Pool
All Investments
District & Fund Investments (997:998)Treasurer's Cash (999)
Certificate of Deposit, -, 0%
US Agency Securities, 4,998,301 , 10%Public Interest Checking, -, 0%
Washington State Pool, 44,092,504 , 90%
Treasurer's Cash (999)
Certificate of Deposit US Agency Securities Public Interest Checking Washington State Pool
Certificate of Deposit, -, 0%
US Agency Securities, 5,660,258 , 2%
Public Interest Checking, -, 0%Washington State Pool, 236,571,128 , 98%
All Investments (997:999)
Certificate of Deposit US Agency Securities Public Interest Checking Washington State Pool
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Certificate of Deposit US Agency Securities Public Interest Checking Washington State Pool
Treasurer's Cash
Certificate of Deposit US Agency Securities Public Interest Checking Washington State Pool
Page 3 of 17
JEFF Co WA LGIP
Portfolio Management
December 31, 2024
Jefferson County
Portfolio Summary
% of
Portfolio
Book
ValueInvestmentsMarket
Value
Par
Value
Days to
MaturityTerm
YTM
360 Equiv.
YTM
365 Equiv.
LGIP 236,571,128.06 1100.00 4.5391236,571,128.06236,571,128.06 4.602
236,571,128.06 100.00%Investments 236,571,128.06236,571,128.06 1 1 4.539 4.602
Current Year
December 31
912,504.38
Average Daily Balance
Effective Rate of Return
233,449,701.10
4.60%
Total Earnings Month Ending
__________________________________________________ ____________________
Stacie Prada, Treasurer
Portfolio LGIP
CP
Reporting period 12/01/2024-12/31/2024
Run Date: 01/24/2025 - 12:03 PM (PRF_PM1) 7.3.0No fiscal year history available
Report Ver. 7.3.6.1Page 4 of 17
1/24/2025
Ending Balance
JEFF Co WA LGIP
Allocation Account Activity
December 1, 2024 - December 31, 2024
Transfer Out / FeesTransfer In Disbursements /Contributions /Beginning Balance EarningsAllocated
Asset Num Fund Description
320.26 81,934.02301.2181,632.81IG-6935 HAVA 3 Grant10411810 320.26
16,610.70 55,998.032,090.6670,282.67Auditor's O&M10511810 235.40
75,320.88 829,060.6483,806.42817,179.73Hotel Motel12511810 3,395.37
580.87 148,606.74956.95147,649.79JC Inmate Commissary13411810 580.87
5.49 1,403.515.161,398.35Jefferson County Drug Fund13511810 5.49
20.46 5,234.2419.255,214.99Federal Forest Title III Fund14711810 20.46
93,152.90 1,058,242.5458,429.771,088,657.28Jeff Co Affordable Housing14811810 4,308.39
20,199.45 97,913.543,876.26113,799.19Homeless Housing Fund14911810 437.54
179.59 45,944.00172.9045,771.10Treasurer's O&M15011810 179.59
4,232.11 235,300.193,212.10235,394.21Veteran's Relief15511810 925.99
43.80 11,205.4441.1911,164.25Post Harvest Tmbr Mgmt Resv17811810 43.80
0.00 0.150.000.15County Roads18011810 0.00
6.74 1,725.556.351,719.20LTGO Refunding Bond 199820470118 6.74
820.81 75,664.49280.6975,908.59HJC PARK JUMP PLAYGROUND30411810 296.02
9,355.32 2,393,408.2790,714.492,302,693.78Public Insfrastructure Fund30611810 9,355.32
3,486.53 891,973.1822,899.45869,073.73Conservation Futures Tax Fund30811810 3,486.53
152,341.76 2,141,044.23819,253.701,465,515.74Solid Wastex40111810 8,616.55
71.59 18,315.8082.7718,233.03Solid Waste Post Closure Fund40211810 71.59
2,198.90 562,552.423,318.34559,234.08Solid Waste Equipment Reserve40311810 2,198.90
43.81 11,208.167,343.183,864.98Yard Waste Education40411810 43.81
2,021,478.00 631,702.831,126,312.921,521,031.51Tri-Area Sewer Fund40511810 5,836.40
69,187.96 1,589,829.530.000.00E R & R50111810 6,255.10
4,929.33 1,261,089.3424,442.391,236,646.95Employee Benefit Reserve Fund50511810 4,929.33
44.52 11,389.4841.8711,347.61JC Drainfield KP Village AssnY62068118 44.52
120.99 30,953.08113.7930,839.29JC Drainfield KP Condo AssnY62069118 120.99
66.82 17,094.9662.8417,032.12JC Drainfield KP RecreationY62070118 66.82
223.60 57,204.38210.3056,994.08JC Drainfield Bluffs Condo AsY62071118 223.60
48.48 12,402.3545.5912,356.76JC Drainfield K Hgts Condo AsY62072118 48.48
115.05 29,433.79108.2029,325.59JC Drainfield K Hgts PUD AssY62073118 115.05
64,785.80 1,227,307.4937,441.901,249,737.11SD #20 M&O64220118 4,914.28
94.31 24,151.86183.6923,968.17SD #20 Building64222118 94.31
343.09 87,861.30668.2587,193.05SD #20 Transportation64223118 343.09
30,401.32 396,521.554,419.09420,893.29SD #46 M&O64620118 1,610.49
432.80 110,725.22407.06110,318.16SD #46 Building64622118 432.80
Portfolio LGIP
CP
Run Date: 01/24/2025 - 12:04 LP (PRF_LPF) 7.1.1
Report Ver. 7.3.6.1Page 5 of 17
Ending Balance
December 1, 2024 - December 31, 2024
Page 2
Transfer Out / FeesTransfer In Disbursements /Contributions /
Allocation Account Activity
JEFF Co WA LGIP
Beginning Balance EarningsAllocated
Asset Num Fund Description
170,530.35 11,895.69669.61181,473.80SD #46 Transportation64623118 282.63
76,488.73 1,068,062.3645,164.501,095,136.05SD #48 M&O64820118 4,250.54
1,693.36 82,830.733,741.3780,465.53SD #48 ASB64821118 317.19
5,116.93 146,269.1411,797.46139,011.46SD #48 Building64822118 577.15
455.03 116,412.07427.96115,984.11SD #48 Transportation64823118 455.03
67.06 17,155.2163.0717,092.14SD #48 UTGO Ref Bond 201064833118 67.06
1,195,488.60 1,226,445.910.002,413,355.35SD #49 M&O64920118 8,579.16
5,436.15 195,612.130.00200,274.86SD #49 ASB64921118 773.42
214,457.98 2,591,638.180.002,795,549.67SD #49 Building64922118 10,546.49
1,605.36 410,705.230.00410,705.23SD #49 Transportation64923118 1,605.36
221,617.59 2,278,949.7163,260.002,427,870.71SD #50 M&O65020118 9,436.59
1,279.29 337,556.1520,923.00316,633.15SD #50 ASB65021118 1,279.29
1,016.42 260,188.02955.00259,233.02SD #50 Transportation65023118 1,016.42
568.03 145,322.61534.24144,788.37SD #50 UTGO Ref Bond 200765027118 568.03
248,514.55 3,029,815.090.003,266,176.09SD #50 - Bldg Capital Projects65031118 12,153.55
1,853.76 474,255.40143,818.19330,437.21SD #50 UTGO Bond 201665049118 1,853.76
14.85 3,799.750.003,799.75Cemetery District #1 General65100118 14.85
663.05 169,631.40623.61169,007.79Cemetery District #2 General65200118 663.05
194.88 49,857.49183.2849,674.21Cemetery District #3 General65300118 194.88
258,523.91 658,102.006,549.47906,814.14JeffCom Capital65930118 3,262.30
1,169,083.25 2,668,261.5347,000.003,778,125.10Fire Dist #1 General66100118 12,219.68
687,103.85 3,182,865.88362,000.003,495,578.18Fire Dist #1 - EMS66110118 12,391.55
3,811.19 975,033.033,478.83971,554.20Fire Dist #1- EMS Capital66111118 3,811.19
5,321.66 1,361,460.744,766.271,356,694.47Fire Dist #1- Fire Capital66113118 5,321.66
1,450.03 500,000.000.000.00Fire Dist #1- Reserve66115118 1,450.03
54,731.33 402,083.3390,690.93364,445.04Fire Dist #2 General66200118 1,678.69
41,960.98 456,712.9751,650.48445,157.39Fire Dist #2 EMS66210118 1,866.08
382,276.90 2,296,229.1011,433.982,657,204.37Fire Dist #2 Capital Projects66231118 9,867.65
45,365.14 486,588.3860,207.82469,794.46Fire Dist #4 General66400118 1,951.24
50,067.63 375,058.3468,720.06354,884.80Fire Dist #4 EMS66410118 1,521.11
61,985.47 154,392.531,364.00214,410.51Fire Dist #4 Bond 201966453118 603.49
18,719.45 453,668.2814,585.99455,985.14Fire Dist #5 General66500118 1,816.60
8,253.47 67,270.627,443.6467,798.35Fire Dist #5 EMS66510118 282.10
0.01 2.770.002.77Fire Dist #5 Project Fund 201666531118 0.01
Portfolio LGIP
CP
Run Date: 01/24/2025 - 12:04 LP (PRF_LPF) 7.1.1
Report Ver. 7.3.6.1Page 6 of 17
Ending Balance
December 1, 2024 - December 31, 2024
Page 3
Transfer Out / FeesTransfer In Disbursements /Contributions /
Allocation Account Activity
JEFF Co WA LGIP
Beginning Balance EarningsAllocated
Asset Num Fund Description
5,078.47 11,997.103,053.2913,957.61Park & Rec Dist #1 General67100118 64.67
1,345.56 429,401.20120,000.00309,401.20Library #1 General67600118 1,345.56
3,465.44 1,074,641.93268,082.68806,559.25Library #1 CPF Building67622118 3,465.44
510.26 130,541.93479.90130,062.03Library #1 CB & O67626118 510.26
1,108.91 283,697.041,047.81282,649.23Library #1 Unemp Reserve67627118 1,108.91
1,877.59 480,352.471,808.67478,543.80Library #1 Cap Asset Fund67632118 1,877.59
2,727.03 697,667.122,649.45695,017.67Library #1 Brd Designated Cash67633118 2,727.03
1,087,209.29 7,009,480.351,688,552.316,382,351.98Olympic Area on Aging67800118 25,785.35
223.63 57,212.06210.3357,001.73O3A Unemployment Compensation67828118 223.63
15,171.19 3,881,307.7114,966.893,866,340.82Port of Port Townsend Reserve67915118 15,171.19
32,552.45 8,328,026.53220,274.188,107,752.35Port of Port Townsend IDD-201967966718 32,552.45
801.30 205,000.000.00205,000.00Hospital #1 General68100118 801.30
87,269.56 25,181,366.074,582,211.7920,599,154.28Hosp #2 - Operating Reserves68215118 87,269.56
3,467.61 887,133.933,382.50883,751.43Hosp #2 - Capital Projects68231118 3,467.61
30,224.81 7,732,535.0263,900.577,668,634.45Hosp #2 Board Designated Cash68233118 30,224.81
39,487.89 10,102,348.0839,035.9610,063,312.12Hosp #2 Bond Reserve68234118 39,487.89
4,277.94 1,094,442.8111,343.401,083,099.41Hosp #2 2023 A Bond Fund68273A00 4,277.94
6.49 1,660.151,660.150.00Hosp #2 2023 B Bond Fund68273B00 6.49
5.48 1,400.861,400.860.00Hosp #2 2023 C Bond Fund68273C00 5.48
85,342.83 21,833,602.3684,423.9321,749,178.43Hosp #2 Funded Depreciation68276118 85,342.83
160,736.01 41,121,747.96176,119.6340,945,628.33Hosp #2 Project Fund68277118 160,736.01
27,726.45 7,093,371.000.007,093,371.00Transit Authority General69000118 27,726.45
54,221.17 13,871,621.690.0013,871,621.69Transit Authority Capital69030118 54,221.17
43.13 11,034.6740.5610,994.11Water Dist #1 General69100118 43.13
22,711.52 0.0083.1722,539.92Water Dist #1 Meter Fund69140118 88.43
1.95 500.000.00500.00Water Dist #2 General69200118 1.95
578.50 148,000.000.00148,000.00Pt Ludlow Drainage Dist Gen69500118 578.50
25,834,689.34 44,092,503.9519,133,654.4950,632,502.80Treasurer's Cashx999 161,036.00
236,571,128.0635,009,842.0829,731,704.01 912,389.34
Portfolio LGIP
CP
Run Date: 01/24/2025 - 12:04 LP (PRF_LPF) 7.1.1
Report Ver. 7.3.6.1Page 7 of 17
Treasury Rates and LGIP Prepared by Jefferson County Treasurer
LIQUID INVESTMENTSLocal Government Investment Pool (LGIP)Local Government Investment Pool (LGIP)
Sum of LGIP Column Labels
Row Labels Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2004 1.0671%1.0595%1.0334%1.0185%1.0169%1.0312%1.1543%1.3073%1.5181%1.7141%1.8810%2.0740%
2005 2.2197%2.3955%2.5502%2.7703%2.9758%3.0411%3.2135%3.3998%3.5788%3.7576%3.9627%4.1605%
2006 4.2322%4.4223%4.5000%4.6566%4.8542%4.9860%5.1637%5.1883%5.2023%5.1931%5.2229%5.2134%
2007 5.2113%5.2768%5.2372%5.2260%5.1936%5.2068%5.2053%5.2265%5.1232%4.9108%4.6985%4.5607%
2008 4.3596%3.7871%3.1375%2.6998%2.4281%2.2933%2.2758%2.3328%2.3892%2.4652%2.1903%1.8183%
2009 1.2669%1.0689%1.0301%0.8905%0.6678%0.7396%0.6507%0.6036%0.4703%0.4164%0.3300%0.3347%
2010 0.2864%0.2723%0.2245%0.2395%0.2709%0.3014%0.2762%0.2680%0.2997%0.2564%0.2155%0.2644%
2011 0.2328%0.2189%0.2338%0.1718%0.1394%0.1583%0.1561%0.1723%0.1688%0.1127%0.1480%0.1305%
2012 0.1213%0.1394%0.1367%0.1479%0.1443%0.1746%0.1764%0.1848%0.1807%0.1777%0.1792%0.2350%
2013 0.1745%0.1650%0.1778%0.1667%0.1351%0.1233%0.1197%0.1231%0.1233%0.1260%0.1161%0.1278%
2014 0.1112%0.1053%0.1137%0.1008%0.0922%0.0870%0.1087%0.1038%0.1089%0.0984%0.0929%0.1038%
2015 0.1345%0.1347%0.1577%0.1431%0.1428%0.1691%0.1449%0.1561%0.1871%0.1865%0.1676%0.2529%
2016 0.3868%0.4201%0.4484%0.4935%0.4241%0.4287%0.4894%0.4853%0.5166%0.4739%0.4684%0.5067%
2017 0.6304%0.6304%0.6996%0.8291%0.8687%0.9794%1.0733%1.1100%1.1285%1.1380%1.1560%1.2752%
2018 1.4286%1.4728%1.5742%1.7152%1.7949%1.8855%1.9858%2.0151%2.0685%2.2323%2.2818%2.3706%
2019 2.4920%2.5129%2.5228%2.5393%2.4996%2.5056%2.4775%2.2875%2.1960%2.0542%1.8307%1.7741%
2020 1.7233%1.6787%1.2939%0.8056%0.4984%0.3700%0.3109%0.2562%0.2061%0.1858%0.1613%0.1561%
2021 0.1395%0.1346%0.1139%0.1015%0.0766%0.0753%0.1773%0.0789%0.0871%0.0936%0.0862%0.0908%
2022 0.0909%0.1081%0.2253%0.4058%0.7035%1.0085%1.6098%2.2450%2.5900%3.0354%3.7543%4.1176%
2023 4.3957%4.6093%4.7564%4.9283%5.1498%5.1996%5.2383%5.3400%5.3854%5.3975%5.4342%5.4299%
2024 5.4220%5.4131%5.4066%5.3975%5.3985%5.4042%5.4110%5.3955%5.2290%4.9334%4.7255%4.6023%
0.0000%
1.0000%
2.0000%
3.0000%
4.0000%
5.0000%
6.0000%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMonth
Years
Sum of LGIP
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
JanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJan1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Average of 1 Yr Average of 2 Yr Average of 3 Yr Average of 5 Yr Average of 10 Yr Average of LGIP
Values
Years Date
Average of 1 YrAverage of 2 YrAverage of 3 YrAverage of 5 YrAverage of 10 YrAverage of LGIP
Page 8 of 17
Treasury Rates and LGIP Prepared by Jefferson County Treasurer
LIQUID INVESTMENTS
Local Government Investment Pool (LGIP)
Local Government Investment Pool (LGIP)
Sum of LGIP Column Labels
Row Labels Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2017 0.6304%0.6304%0.6996%0.8291%0.8687%0.9794%1.0733%1.1100%1.1285%1.1380%1.1560%1.2752%
2018 1.4286%1.4728%1.5742%1.7152%1.7949%1.8855%1.9858%2.0151%2.0685%2.2323%2.2818%2.3706%
2019 2.4920%2.5129%2.5228%2.5393%2.4996%2.5056%2.4775%2.2875%2.1960%2.0542%1.8307%1.7741%
2020 1.7233%1.6787%1.2939%0.8056%0.4984%0.3700%0.3109%0.2562%0.2061%0.1858%0.1613%0.1561%
2021 0.1395%0.1346%0.1139%0.1015%0.0766%0.0753%0.1773%0.0789%0.0871%0.0936%0.0862%0.0908%
2022 0.0909%0.1081%0.2253%0.4058%0.7035%1.0085%1.6098%2.2450%2.5900%3.0354%3.7543%4.1176%
2023 4.3957%4.6093%4.7564%4.9283%5.1498%5.1996%5.2383%5.3400%5.3854%5.3975%5.4342%5.4299%
2024 5.4220%5.4131%5.4066%5.3975%5.3985%5.4042%5.4110%5.3955%5.2290%4.9334%4.7255%4.6023%
0.0000%
1.0000%
2.0000%
3.0000%
4.0000%
5.0000%
6.0000%
2017 2018 2019 2020 2021 2022 2023 2024
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Years
Sum of LGIP
0.00
1.00
2.00
3.00
4.00
5.00
6.00
JanJulJanJulJanJulJanJulJanJulJanJulJanJulJanJulJan2017 2018 2019 2020 2021 2022 2023 2024 2025
Average of 1 Yr Average of 2 Yr Average of 3 Yr Average of 5 Yr Average of 10 Yr Average of LGIP
Values
Years Date
Average of 1 YrAverage of 2 YrAverage of 3 YrAverage of 5 YrAverage of 10 YrAverage of LGIP
Page 9 of 17
Jefferson County Invest Pool
Portfolio Management
December 31, 2024
Jefferson County
Portfolio Summary
% of
Portfolio
Book
ValueInvestmentsMarket
Value
Par
Value
Days to
MaturityTerm
YTM
360 Equiv.
YTM
365 Equiv.
Federal Agency Coupon Securities 5,288,246.76 1,70093.43 1.7035495,288,246.765,292,000.00 1.726
Treasury Coupon Securities 372,010.90 1,2636.57 4.2561,251372,010.90400,000.00 4.315
5,660,257.66 100.00%Investments 5,660,257.665,692,000.00 1,671 595 1.870 1.896
Cash and Accrued Interest
5,660,656.01Total Cash and Investments
398.35Subtotal
398.35
5,660,656.015,692,000.00
398.35
398.35
1,671 595 1.870 1.896
Accrued Interest at Purchase
Current Year
December 31
16,350.04
Average Daily Balance
Effective Rate of Return
5,863,698.42
3.28%
Total Earnings Month Ending
__________________________________________________ ____________________
Stacie Prada, Treasurer
Portfolio JCIP
CP
Reporting period 12/01/2024-12/31/2024
Run Date: 01/24/2025 - 12:07 PM (PRF_PM1) 7.3.0No fiscal year history available
Report Ver. 7.3.6.1Page 10 of 17
1/24/2025
Jefferson County Invest Pool
Investments by All Types
Jefferson County
December 31, 2024
Active Investments
Par Value
Call
Price
Maturity
Date
Current
Rate
Call
DateFundCUSIPInvestment #Issuer Remaining CostPurchase
Price
Fund: General Fund Treasurer
Federal Agency Coupon Securities
Federal Agricultural Mtg Corp10177001-250-000 1,000,000.0031422XSV5 01/19/2027100.0000000 1.5001,000,000.00
Federal Farm Credit Bank10167001-250-000 1,000,000.003133EMZ21 04/06/2026100.0000000 0.6901,000,000.00
Federal Home Loan Bank10178001-250-000 1,000,000.003130AQHM8 01/27/2027 100.0000000100.0000000 1.500 01/27/20251,000,000.00
Federal Home Loan Bank10179001-250-000 1,000,000.003130AQW25 02/25/2027 100.0000000100.0000000 2.000 02/25/20251,000,000.00
Federal Home Loan Bank10180001-250-000 500,000.003130ARP96 04/28/2025 100.0000000100.0000000 3.000 01/28/2025500,000.00
Federal National Mtg Assn10165001-250-000 500,000.003135G0X24 01/07/202599.6601900 1.625498,300.95
5,000,000.00Subtotal 4,998,300.95
5,000,000.00General Fund Treasurer Subtotal 4,998,300.95
Fund: Fire Dist #2 Capital Projects
Federal Agency Coupon Securities
Federal Home Loan Bank1018966231118 100,000.003130ATFG7 09/12/202599.4326200 3.87599,432.62
100,000.00Subtotal 99,432.62
Treasury Coupon Securities
STIFEL NICOLAUS & CO INC1019366231118 100,000.0091282CDK4 11/30/202694.4373500 1.25094,437.35
STIFEL NICOLAUS & CO INC1019466231118 100,000.0091282CAY7 11/30/202789.9864500 0.62589,986.45
STIFEL NICOLAUS & CO INC1019566231118 100,000.0091282CDL2 11/30/202889.7692600 1.50089,769.26
STIFEL NICOLAUS & CO INC1019666231118 100,000.0091282CFY2 11/30/202997.8178400 3.87597,817.84
400,000.00Subtotal 372,010.90
500,000.00Fire Dist #2 Capital Projects Subtotal 471,443.52
Fund: Library #1 General Fund
Federal Agency Coupon Securities
Federal Farm Credit Bank1018667600118 60,000.003133ENYE4 12/08/202599.2256167 3.37059,535.37
60,000.00Subtotal 59,535.37
60,000.00Library #1 General Fund Subtotal 59,535.37
Portfolio JCIP
CP
Run Date: 01/24/2025 - 12:15 AT (PRF_DT) 7.1.1
Report Ver. 7.3.6.1Page 11 of 17
Par Value Call
Price
Maturity
Date
Current
Rate
Call
DateFund
Page 2
December 31, 2024
Investments by All Types
Jefferson County Invest Pool
CUSIP Investment #Issuer Remaining CostPurchase
Price
Fund: Library #1 Capital Asset Fund
Federal Agency Coupon Securities
Federal Farm Credit Bank1018767632118 132,000.003133ENYE4 12/08/202599.2256212 3.370130,977.82
132,000.00Subtotal 130,977.82
132,000.00Library #1 Capital Asset Fund Subtotal 130,977.82
5,660,257.665,692,000.00Total
Portfolio JCIP
CP
Run Date: 01/24/2025 - 12:15 AT (PRF_DT) 7.1.1
Report Ver. 7.3.6.1Page 12 of 17
FINANCE REPORTS JCIP
Accrued Interest
Jefferson County
Sorted by Fund - Fund
December 1, 2024 - December 31, 2024
Maturity
Date
Security
Type
Current
Rate
Par
Value
* Beginning
Accrued Interest
* Ending
Accrued Interest
Adjusted Acc'd Int.
at Purchase
During PeriodCUSIPInvestment #
Interest
Earned
Interest
Received
General Fund Treasurer
3,743.061017531422XQV70.00 0.770FAC12/06/2024 106.94 3,850.00 0.000.00
5,500.001017731422XSV51,000,000.00 1.500FAC01/19/2027 1,250.00 0.00 6,750.000.00
1,054.17101673133EMZ211,000,000.00 0.690FAC04/06/2026 575.00 0.00 1,629.170.00
5,166.67101783130AQHM81,000,000.00 1.500FAC01/27/2027 1,250.00 0.00 6,416.670.00
5,333.33101793130AQW251,000,000.00 2.000FAC02/25/2027 1,666.67 0.00 7,000.000.00
1,375.00101803130ARP96500,000.00 3.000FAC04/28/2025 1,250.00 0.00 2,625.000.00
3,250.00101653135G0X24500,000.00 1.625FAC01/07/2025 677.08 0.00 3,927.080.00
25,422.235,000,000.00Subtotal 28,347.926,775.69 3,850.000.00
Fire Dist #2 Capital Projects
850.35101893130ATFG7100,000.00 3.875FAC09/12/2025 322.91 0.00 1,173.260.00
0.001019391282CDK4100,000.00 1.250TRC11/30/2026 41.21 0.00 41.210.00
0.001019491282CAY7100,000.00 0.625TRC11/30/2027 20.61 0.00 20.610.00
0.001019591282CDL2100,000.00 1.500TRC11/30/2028 49.45 0.00 49.450.00
0.001019691282CFY2100,000.00 3.875TRC11/30/2029 127.75 0.00 127.750.00
850.35500,000.00Subtotal 1,412.28561.93 0.000.00
Library #1 General Fund
971.68101863133ENYE460,000.00 3.370FAC12/08/2025 168.50 1,011.00 129.180.00
-209.00101823130ASBL20.00 2.850FAC12/23/2024 209.00 1,710.00 -1,710.000.00
762.6860,000.00Subtotal -1,580.82377.50 2,721.000.00
Library #1 CPF Building Fund
3,314.71101833130ASBL20.00 2.850FAC12/23/2024 461.54 3,776.25 0.000.00
3,314.710.00Subtotal 0.00461.54 3,776.250.00
Library #1 Capital Asset Fund
2,137.70101873133ENYE4132,000.00 3.370FAC12/08/2025 370.70 2,224.20 284.200.00
2,137.70132,000.00Subtotal 284.20370.70 2,224.200.00
0.005,692,000.00Total 28,463.588,547.36 12,571.4532,487.67
Portfolio JCIP
CPData Updated: SET_FNCE: 01/24/2025 12:20
Run Date: 01/24/2025 - 12:20 AI (PRF_AI) 7.2.8
Report Ver. 7.3.6.1
* Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest.
Page 13 of 17
Jefferson County
Positions by Period
Outstanding and Closed Debt Service
12/1/2024 to 12/31/2024
Primary Sort Issue Group, Secondary Sort Issue Group
[*Selected Issues]
Issue Maturity
Dates
Beginning
Balance
Bonds
Issued
Principal
Paid
Ending
Balance
Interest
Paid
Issue Group Dated
Date
Range of
Rates (%)
County Debt
2,000,000.00 0.00 0.00 2,000,000.00 0.00Dec/20262024 GAN County Debt 6/3/2024 Variable
1,036,557.00 138,087.00 11,472.14 898,470.00 0.00Dec/2017 - 2030LTGO REFG 2016B - Tri Area County Debt 12/1/2016 1 to 2.48
682,443.00 90,913.00 7,552.96 591,530.00 0.00Dec/2017 - 2030LTGO Refg 2016B E911 County Debt 9/15/2016 1 to 2.48
498,455.34 162,977.66 5,313.77 335,477.68 0.00Dec/2016 - 2026LTGOR 2016 E911 County Debt 6/16/2016 1.11 to 2.26
1,271,566.01 0.00 0.00 1,271,566.01 0.00Jun/2033Pt Hadlock Wastewater Ln 2012 County Debt 7/28/2013 0.5
Subtotal 5,489,021.35 391,977.66 0.00 24,338.87 5,097,043.69
Fire Dist 1
2,200,000.00 300,000.00 19,486.25 1,900,000.00 0.00Dec/2020 - 2030LTGO RFDG 2019 Fire Dist 1 9/12/2019 1.05 to 3
455,000.00 0.00 6,825.00 455,000.00 0.00Dec/2032LTGO RFDG 2019 Fire Dist 1 9/12/2019 3
Subtotal 2,655,000.00 300,000.00 0.00 26,311.25 2,355,000.00
Fire Dist 4
825,500.00 59,500.00 9,779.23 766,000.00 0.00Jun/2021 - 2030UTGO 2020 Fire Dist 4 1/28/2020 2.09 to 2.58
Subtotal 825,500.00 59,500.00 0.00 9,779.23 766,000.00
Fire Dist 5
80,000.00 25,000.00 1,000.00 55,000.00 0.00Dec/2017 - 2026ULTGO 2016 Fire Dist 5 5/3/2016 1.1 to 2.5
90,000.00 0.00 1,215.00 90,000.00 0.00Dec/2029ULTGO 2016 Fire Dist 5 5/3/2016 2.7
100,000.00 0.00 1,450.00 100,000.00 0.00Dec/2032ULTGO 2016 Fire Dist 5 5/3/2016 2.9
115,000.00 0.00 1,782.50 115,000.00 0.00Dec/2035ULTGO 2016 Fire Dist 5 5/3/2016 3.1
Subtotal 385,000.00 25,000.00 0.00 5,447.50 360,000.00
Hospital Dist 2
6,850,000.00 0.00 196,937.50 6,850,000.00 0.00Dec/20332023A REVENUE BOND Hospital Dist 2 12/19/2023 5.75
13,510,000.00 0.00 447,518.75 13,510,000.00 0.00Dec/20432023A REVENUE BOND Hospital Dist 2 12/19/2023 6.625
46,380,000.00 0.00 1,594,312.50 46,380,000.00 0.00Dec/20532023A REVENUE BOND Hospital Dist 2 12/19/2023 6.875
25,000,000.00 0.00 583,749.97 25,000,000.00 0.00Dec/2025 - 20532023BHospital Dist 2 12/19/2023 4.67
21,650,000.00 0.00 507,692.50 21,650,000.00 0.00Dec/2025 - 20442023CHospital Dist 2 12/19/2023 4.69
Report on : \Selected Issues - Sympro_Jefferson1.ARCGIS-DB
12:25:15PM01/03/2025 1Page
PBP - Build 2.99.9981Page 14 of 17
Jefferson County
Positions by Period
Outstanding and Closed Debt Service
12/1/2024 to 12/31/2024
Primary Sort Issue Group, Secondary Sort Issue Group
[*Selected Issues]
Issue Maturity
Dates
Beginning
Balance
Bonds
Issued
Principal
Paid
Ending
Balance
Interest
Paid
Issue Group Dated
Date
Range of
Rates (%)
948,000.00 0.00 0.00 948,000.00 0.00Jul/2025GOB 2017A Hospital Dist 2 7/26/2017 2.89
4,564,300.00 0.00 0.00 4,564,300.00 0.00Jul/2025GOB 2017B Hospital Dist 2 7/26/2017 2.89
Subtotal 118,902,300.00 0.00 0.00 3,330,211.22 118,902,300.00
Port of Port Townsend
365,000.00 0.00 8,212.50 365,000.00 0.00Dec/2015 - 2025LTGO 2010A Port of Port Townsend 6/9/2010 4 to 4.5
350,000.00 350,000.00 7,875.00 0.00 0.00Dec/2024LTGO 2010A Port of Port Townsend 6/9/2010 4.5
1,630,000.00 0.00 49,918.75 1,630,000.00 0.00Dec/2029LTGO 2010B Port of Port Townsend 6/9/2010 6.125
240,653.63 0.00 0.00 240,653.63 0.00Mar/2027LTGO 2021 Port of Port Townsend 10/10/2023 1.55
717,574.40 0.00 0.00 717,574.40 0.00Mar/2027LTGO 2021 Port of Port Townsend 11/6/2023 1.55
943,586.88 0.00 0.00 943,586.88 0.00Mar/2027LTGO 2021 Port of Port Townsend 12/12/2023 1.55
635,212.66 0.00 0.00 635,212.66 0.00Mar/2027LTGO 2021 Port of Port Townsend 1/19/2024 1.55
710,188.91 0.00 0.00 710,188.91 0.00Mar/2027LTGO 2021 Port of Port Townsend 2/28/2024 1.55
535,000.00 0.00 0.00 535,000.00 0.00Jul/2016 - 2025LTGOR 2015 Port of Port Townsend 6/10/2015 3
Subtotal 6,127,216.48 350,000.00 0.00 66,006.25 5,777,216.48
School District #50
27,785,000.00 1,600,000.00 619,200.00 26,185,000.00 0.00Dec/2017 - 2035UTGO 2016 School District #50 6/1/2016 2 to 5
Subtotal 27,785,000.00 1,600,000.00 0.00 619,200.00 26,185,000.00
Grand Total 162,169,037.83 2,726,477.66 0.00 4,081,294.32 159,442,560.17
[Selected Issues]
Issue Group Issue Issue Group Issue _______________________________________________________________________________________________________County Debt Pt Hadlock Wastewater Ln 2012 County Debt LTGOR 2016 E911 County Debt LTGO REFG 2016B - Tri Area County Debt LTGO Refg 2016B E911 County Debt 2024 GAN Fire Dist 1 LTGO RFDG 2019
Fire Dist 5 ULTGO 2016 Hospital Dist 2 GOB 2017A
Hospital Dist 2 GOB 2017B Hospital Dist 2 2023A REVENUE BOND
Hospital Dist 2 2023B Hospital Dist 2 2023C
Port of Port Townse LTGO 2010A Port of Port Townse LTGO 2010B
Port of Port Townse LTGOR 2015 Port of Port Townse LTGO 2021
School District #50 UTGO 2016 Fire Dist 4 UTGO 2020
_______________________________________________________________________________________________________
Report on : \Selected Issues - Sympro_Jefferson1.ARCGIS-DB
12:25:15PM01/03/2025 2Page
PBP - Build 2.99.9981Page 15 of 17
Jefferson County
Statement of 30 Years - Calendar Year Mode
Outstanding and Closed Debt Service
As of 1/1/2025
Primary Sort Issue Group
[*Selected Issues]
2054
2050 2045
2049 2044
2040 2035
2039
2030
2034 2029 2028 2027 2025 Total 2026
County Debt
493,203.31 0.00 0.00 0.00 0.00 24,489.52 17,970.36 24,034.35 29,713.35 200,540.67 INTEREST 196,455.06
6,097,043.69 0.00 0.00 0.00 0.00 1,247,573.74 312,798.45 307,798.45 302,798.46 457,270.67 PRINCIPAL 3,468,803.92
Fire Dist 1
236,670.00 0.00 0.00 0.00 0.00 38,800.00 26,850.00 36,450.00 40,790.00 48,872.50 INTEREST 44,907.50
2,355,000.00 0.00 0.00 0.00 0.00 790,000.00 325,000.00 320,000.00 310,000.00 305,000.00 PRINCIPAL 305,000.00
Fire Dist 4
62,246.07 0.00 0.00 0.00 0.00 2,586.45 5,938.45 9,098.55 12,086.67 17,613.70 INTEREST 14,922.25
766,000.00 0.00 0.00 0.00 0.00 134,000.00 132,000.00 129,000.00 126,000.00 121,000.00 PRINCIPAL 124,000.00
Fire Dist 5
68,095.00 0.00 0.00 0.00 1,240.00 22,685.00 7,275.00 8,085.00 8,895.00 10,270.00 INTEREST 9,645.00
360,000.00 0.00 0.00 0.00 40,000.00 175,000.00 30,000.00 30,000.00 30,000.00 25,000.00 PRINCIPAL 30,000.00
Hospital Dist 2
129,462,360.96 4,775,673.30 14,706,915.68 21,464,591.34 26,208,554.50 29,752,353.60 6,288,257.28 6,388,451.96 6,483,703.94 6,819,727.90 INTEREST 6,574,131.46
118,902,300.00 28,754,992.00 27,211,338.00 20,352,811.00 15,594,111.00 12,052,224.00 2,075,901.00 1,976,819.00 1,880,379.00 7,217,261.00 PRINCIPAL 1,786,464.00
Port of Port Townsend
465,658.38 0.00 0.00 0.00 0.00 0.00 26,337.50 51,756.26 81,699.85 178,987.06 INTEREST 126,877.71
5,777,216.48 0.00 0.00 0.00 0.00 0.00 430,000.00 415,000.00 1,059,827.24 2,183,877.44 PRINCIPAL 1,688,511.80
School District #50
8,018,500.00 0.00 0.00 0.00 159,250.00 2,798,650.00 865,475.00 948,075.00 1,016,500.00 1,158,400.00 INTEREST 1,072,150.00
26,185,000.00 0.00 0.00 0.00 3,185,000.00 13,205,000.00 2,195,000.00 2,065,000.00 1,955,000.00 1,725,000.00 PRINCIPAL 1,855,000.00
299,249,293.89 33,530,665.30 13,337,393.51 20,468,820.94 17,296,868.70 41,918,253.68 41,817,402.34 45,188,155.50 60,243,362.31 12,738,803.04 12,709,568.57
Principal Total
Grand Total
Interest Total 8,434,411.83 8,039,088.98 7,673,388.81 7,465,951.12 32,639,564.57 7,238,103.59 26,369,044.50 21,464,591.34 14,706,915.68 4,775,673.30
12,034,409.11 9,257,779.72 5,664,004.70 5,243,617.45 5,500,699.45 27,603,797.74 18,819,111.00 20,352,811.00 27,211,338.00 28,754,992.00
138,806,733.72
160,442,560.17
1Page01/03/2025 12:28:33PM
Report on : \Selected Issues - Sympro_Jefferson1.ARCGIS-DB STY - Build 2.99.9981Page 16 of 17
Jefferson County General Obligation Debt 12/31/2024
JC or JeffCom DataJeffCom JC Total Sum of Principal Due Total Sum of Interest DueDate Due Sum of Principal Due Sum of Interest Due Sum of Principal Due Sum of Interest Due
12/1/2025 257,767.21 10,382.37 141,705.00 89,139.88 399,472.21 99,522.25
12/1/2026 266,285.47 7,693.13 3,144,720.00 87,715.74 3,411,005.47 95,408.87
12/1/2027 97,265.00 4,750.80 147,735.00 7,215.95 245,000.00 11,966.75 12/1/2028 99,250.00 3,680.89 150,750.00 5,590.86 250,000.00 9,271.75 12/1/2029 101,235.00 2,534.55 153,765.00 3,849.70 255,000.00 6,384.25
12/1/2030 105,205.00 1,304.54 159,795.00 1,981.46 265,000.00 3,286.00
6/1/2025 10,382.37 57,798.46 90,636.05 57,798.46 101,018.42
6/1/2026 7,693.13 57,798.45 93,353.06 57,798.45 101,046.19 6/1/2027 4,750.80 57,798.46 12,995.80 57,798.46 17,746.60 6/1/2028 3,680.89 57,798.45 11,081.71 57,798.45 14,762.60
6/1/2029 2,534.55 57,798.45 9,051.56 57,798.45 11,586.11
6/1/2030 1,304.54 57,798.46 6,894.33 57,798.46 8,198.87
6/1/2031 57,798.46 4,623.88 57,798.46 4,623.88 6/1/2032 57,798.45 4,334.88 57,798.45 4,334.88 6/1/2033 809,178.37 4,045.89 809,178.37 4,045.89
Grand Total 927,007.68 60,692.56 5,170,036.01 432,510.75 6,097,043.69 493,203.31
-
500,000.00
1,000,000.00
1,500,000.00
2,000,000.00
2,500,000.00
3,000,000.00
3,500,000.00
4,000,000.00
JC - Sum of Interest Due
JC - Sum of Principal Due
JeffCom - Sum of Interest Due
JeffCom - Sum of Principal Due
JC or JeffCom
Values
Date Due
Sum of Principal DueSum of Interest Due
Page 17 of 17
Jefferson County, Washington
Debt Policy
Adopted July 25, 2017
Revised October 22, 2019 to reflect BOCC Resolution 41-19
Revised January 28, 2020 and October 27, 2020
Jefferson County Debt Policy, October 27, 2020 Page 1 of 14
Contents
Section I. Introduction .................................................................................................................................. 3
Purpose and Overview .............................................................................................................................. 3
Roles and Responsibilities ......................................................................................................................... 3
Section II. Ethical Standards Governing Conduct ......................................................................................... 4
Section III. Credit Objectives ........................................................................................................................ 4
Section IV. Legal Governing Principles, Type, Purpose and Use of Debt ...................................................... 5
Legal Governing Principles ........................................................................................................................ 5
Permitted Debt by Type ............................................................................................................................ 5
Unlimited Tax General Obligation Debt ................................................................................................ 5
Limited Tax General Obligation Debt .................................................................................................... 5
Revenue Bonds ..................................................................................................................................... 6
Special Assessment Bonds .................................................................................................................... 6
Local Option Capital Asset Lending (LOCAL) Program Debt ................................................................. 6
Lease Purchase, Certificates of Participation (COPS), or Other Financing Contracts ........................... 6
Short Term Debt .................................................................................................................................... 6
Variable Rate Obligations ...................................................................................................................... 6
Purpose for Borrowing .............................................................................................................................. 6
Unlimited Tax General Obligation Bonds .............................................................................................. 6
Limited Tax General Obligation Bonds .................................................................................................. 6
Revenue Bonds ..................................................................................................................................... 6
Special Assessment Bonds .................................................................................................................... 6
Local Option Capital Asset Lending (LOCAL) Program Debt .............................................................. 7
Lease Purchase, Certificates of Participation (COPS), or Other Financing Contracts ........................... 7
Short Term Debt .................................................................................................................................... 7
Legal Debt Limitations .............................................................................................................................. 7
Unlimited Tax General Obligation Debt ................................................................................................ 7
Limited Tax General Obligation Debt LTGO .......................................................................................... 7
Revenue Obligations ............................................................................................................................. 7
Assessment-backed Obligations ........................................................................................................... 8
The LOCAL Program debt ...................................................................................................................... 8
Lease Purchase or Other Financing Contracts debt .............................................................................. 8
Short Term Obligations ......................................................................................................................... 8
Jefferson County Debt Policy, October 27, 2020 Page 2 of 14
Section V. Authorized Professional Services ................................................................................................. 8
Bond Counsel ........................................................................................................................................ 8
Financial Advisor ................................................................................................................................... 9
Underwriter (or Placement Agent) ....................................................................................................... 9
Fiscal Agent ........................................................................................................................................... 9
Other Service Providers ........................................................................................................................ 9
Section VI. Debt Issuance ............................................................................................................................. 9
Maturity Structure ................................................................................................................................ 9
Method of Sale ...................................................................................................................................... 9
Competitive Sale ................................................................................................................................... 9
Negotiated Sale ................................................................................................................................... 10
Private Placement ............................................................................................................................... 10
Credit Enhancement ........................................................................................................................... 10
Section VII. Refunding Obligations ............................................................................................................. 10
Advance refunding .............................................................................................................................. 10
Current refunding ............................................................................................................................... 10
Section VIII. Other Duties and Obligations ................................................................................................. 11
Investment of Bond Proceeds ............................................................................................................. 11
Arbitrage and Tax Law Requirements ................................................................................................. 11
Disclosure Documents ........................................................................................................................ 11
Derivative Products ............................................................................................................................. 12
Bond Users Clearinghouse .................................................................................................................. 12
Appendix A: Jefferson County – List of Reserve Recommendations .......................................................... 13
Jefferson County Debt Policy, October 27, 2020 Page 3 of 14
Section I. Introduction
Purpose and Overview
The Debt Policy for Jefferson County is established to help ensure that all debt is issued both prudently
and cost effectively. The Debt Policy sets forth comprehensive guidelines for the issuance and
management of all financings of Jefferson County. Adherence to the policy is essential to ensure that the
County maintains a sound debt position and protects the credit quality of its obligations.
Roles and Responsibilities
In accordance with RCW 36.48.070, the Finance Committee (consisting of the Treasurer as Chairperson,
the Auditor as Secretary, the Chair of the County Legislative Authority, and referred to hereafter the
"Finance Committee" or "Committee") has been established. It shall be the duty of this committee to
approve the County debt policy and to make appropriate rules and regulations for the carrying out of the
provisions of RCW 36.48.010 through 36.48.060 not inconsistent with the law. In accordance with State
law, the Committee shall adopt a Debt Policy, (chapter 36.48.070 RCW) which shall be reviewed and
updated at least every four years.
The County Commissioners shall initiate all debt issuance upon request of the County Administrator.
Any debt issued by the County shall be incurred in accordance with a Resolution adopted by the County
Council (chapter 39.46 RCW).
The County Administrator and the County Central Services Director may attend Finance Committee
meetings and provide advice to the Finance Committee. The County Administrator may designate the
Central Services Director or other qualified personnel as his designee to complete the functions detailed
in this policy on behalf of the County Administrator. The County Administrator shall make a
recommendation to the Board of County Commissioners on all requests for action on financing based on
requests from elected officials or department heads or in accordance with the County's Capital
Improvement Plan (CIP). The County Administrator shall recommend if long-term debt should be issued
and if so, will recommend a debt repayment term that is less than or equal to the expected useful life of
the facility/project. The Administrator will recommend the amount of net proceeds required and
whether the debt will be voted general obligation bonds or limited tax general obligation bonds. See
Section IV for additional types of debt.
The County shall develop a Capital Improvement Plan (CIP) that lists the capital projects and needs of the
County for a five year period, to be reviewed and updated biennially. The plan shall include a description
of each project or need identified, the projected cost and timing of the project, and preliminary sources of
funds identified for payment of the project. Prior to seeking financing for new capital projects the County
shall ensure existing debt service obligations and county operations are sufficiently funded. In addition,
the County should ensure that existing capital assets are well maintained and preserved. Finally the
County should acquire new assets based on the greatest need and only when it has the capacity to service
new debt and to maintain the new assets.
Priorities shall be established based upon (1) the need for the project, in order to provide required County
services, (2) availability of funding or debt repayment source, and (3) availability of staff to carry out the
project in the time frames specified.
The County Administrator shall coordinate the biennial update of the CIP.
Jefferson County Debt Policy, October 27, 2020 Page 4 of 14
The County Administrator and the County Treasurer shall perform the activities and services
required for the issuance of debt, in consultation with required professionals and other service providers.
They will represent the County to the rating agencies.
The County Administrator shall inform the County's Finance Committee of all debt issuance plans.
The County Treasurer shall coordinate the debt issuance activities, shall inform the Finance Committee
of the status of all financings in process, and shall ensure that all debt service items are included in the
biennial budget.
The County Treasurer shall be notified at least 30 days in advance of authorization of the issuance of
bonds or the incurrence of other certificates of indebtedness (chapter 39.46.110 RCW). The County
Treasurer shall select the financial advisor (if any) and the bond underwriter consistent with the County’s
general authority to contract and Chapter 3.55 JCC; determine best method of sale for each issue; act as
Jefferson County's liaison to the selected financial advisor and/or bond underwriter; provide the County
Administrator with appropriate information for Commissioner’s agenda items necessary to adopt the debt
issue ordinance; and represent the County at bond closings.
The County Treasurer shall receive any bond proceeds on behalf of the County and shall provide for the
timely payment of principal of and interest on all debt; ensure that the fiscal agent receives funds for
payment of debt service on or before the payment date; and the payment of the County's debt service.
The County Treasurer and County Administrator shall supply all necessary financial information for
the debt issue; and prepare or review, and sign disclosure documents, such as official statements and
continuing disclosures. The County Treasurer shall be responsible for continuing disclosure requirements.
The County shall provide certain financial and operating information annually to the Municipal Securities
Rulemaking Board (the “MSRB”) and provide notice to the MSRB of certain events pursuant to any
Continuing Disclosure undertakings entered into with Underwriters per 15c2-12 regulations.
The County Treasurer and County Administrator shall monitor Jefferson County's financial status. On
an ongoing basis, the County Treasurer and County Administrator shall also evaluate the impact of capital
spending, operations, and debt service on the financial condition of the County. If a "material event"
occurs or if there is a likelihood that a material event will occur, the County Administrator will
immediately notify the County Treasurer and County Commissioners of the circumstances.
The County's Prosecuting Attorney working with the County Treasurer shall appoint Bond Counsel
(RCW 36.27.020 and RCW 36.27.040)
Section II. Ethical Standards Governing Conduct
The County Commissioners, the County Administrator, the members of the Finance Committee, and the
Prosecuting Attorney shall adhere to standards of conduct as stipulated by the following:
Jefferson County Personnel Administration Manual Chapter 4; Code of Ethics and
Appendix B
Public Disclosure Act, chapter 42.17 RCW; and
Ethics in Public Service Act, chapter 42.52 RCW.
Section III. Credit Objectives
The County will seek to maintain a credit rating or ratings for all categories of debt that will not
compromise delivery of basic County services and achievement of the County's policy objectives. It shall
Jefferson County Debt Policy, October 27, 2020 Page 5 of 14
be the County's goal to maintain at least one long-term general obligation bond rating in the "AA"
category or higher. Any change to the minimum credit quality level goal for the County shall be
established by the County Commissioners by resolution.
Consistent with maintenance of its current "AA" general obligation rating, the County shall maintain an
undesignated balance (i.e., unrestricted cash) in its general fund (or any related reserve fund that may be
created for this purpose), at least equal to 10% of its budgeted general fund expenditures. Jefferson
County has consistently held an undesignated balance over 15%. Additional policies intended to support
the maintenance of the County's current ratings are contained throughout this Debt Policy and include:
1) Length of debt and payback goals;
2) Purpose, type and use of debt;
3) Capital Improvement Plan;
4) A Resolution for Reserve Recommendations of all funds (Appendix A of this Policy);
and
5) A policy for building a Revenue Stabilization Reserve of up to 5% of general fund
expenditures, above and beyond the aforementioned 10%.
Section IV. Legal Governing Principles, Type, Purpose and Use of Debt
Legal Governing Principles
In the issuance and management of debt, Jefferson County shall comply with the state constitution and
with all other legal requirements imposed by federal, state, and local rules and regulations, as applicable.
State Statutes - Jefferson County may contract indebtedness as provided for by RCW 39.46.
Indebtedness is subject to the limitations on indebtedness provided for in RCW 39.52 and Article VIII of
the Washington State Constitution. Bonds evidencing such indebtedness shall be issued and sold in
accordance with RCW chapter 39.46.
Federal Rules and Regulations - The County shall issue and manage debt in accordance
with the limitations and constraints imposed by federal rules and regulations, including Internal Revenue
Code of 1986, as amended; the Treasury Department regulations thereunder; and the Securities Acts of
1933 and 1934.
Local Rules and Regulations - The County shall issue and manage debt in accordance with the
limitations and constraints imposed by local statutes, charters, resolutions, rules and regulations.
Permitted Debt by Type
The County may legally issue debt using only the debt instruments described below. Each financing
option requires the formal approval of the County Commissioners through a resolution.
Unlimited Tax General Obligation Debt is backed by the full faith and credit of the County and is
secured by general fund revenues and voted excess tax levies collected by the County.
Limited Tax General Obligation Debt is secured by regular tax levies and revenues, and includes all
types of obligations whether lease-purchase, financing contracts, loans, bonds or other payment
obligations. Rental leases are not considered debt, but financing leases are. Any financing of the County
completed through the LOCAL Program (discussed below) will constitute general obligation debt.
Jefferson County Debt Policy, October 27, 2020 Page 6 of 14
Revenue Bonds - The County is authorized to sell Revenue Bonds by County Commissioners’
resolution, in accordance with Section 3.16 of the County Code. Debt service coverage, reserve levels
and other covenants associated with the issuance of revenue bonds will be determined on a case by case
basis in consultation with the County's financial advisor (if any) and/or underwriter with the goal of
providing sufficient protection to the County and bond market acceptance.
Special Assessment Bonds -The County is authorized to sell assessment-backed obligations, based on
the formation of special districts such as road improvement districts (RIDs) and local improvement
districts (LIDs) the formation of which is detailed under chapter 36.88 RCW, subject to the approval of
the County Commissioners.
Local Option Capital Asset Lending (LOCAL) Program Debt - The County is authorized to enter
into a financing contract with the Office of the State Treasurer under chapter 39.94 RCW, subject to the
approval of the County Commissioners.
Lease Purchase, Certificates of Participation (COPS), or Other Financing Contracts - The
County is authorized to enter into capital leases subject to the approval of the County Commissioners.
These represent general obligations of the County. Other financing contracts include property acquired
subject to real estate contract.
Short Term Debt – The County is authorized to sell short term debt under Chapter 39.50 RCW, subject
to the approval of the Board of Commissioners. Short term obligations can take the form of bond
anticipation notes, tax anticipation notes, revenue anticipation notes, grant anticipation notes, a bank line
of credit, or registered warrants (Chapter 39.50 RCW).
Variable Rate Obligations– The County is authorized to sell obligations with variable interest rates
under Chapter 39.60 RCW, subject to the approval of the Board of Commissioners. (Chapter 39.60
RCW)”
Purpose for Borrowing
The County shall issue long-term debt solely for the purpose of design, acquisition and construction of
capital projects, and acquisition of other capital items, as defined in the Capital Improvement Plan.
Unlimited Tax General Obligation Bonds - The County shall use Unlimited Tax General Obligation
Bonds for capital purposes, when the project has broad support by the County's residents, or the use of an
excess tax levy is necessary for debt service payments.
Limited Tax General Obligation Bonds - The County shall use Limited Tax General Obligation Bonds
for general county purposes, when a specified repayment source has been identified within existing
revenue sources, through new revenue sources, or in the event of an emergency.
Revenue Bonds -The County shall use Revenue Bonds for the purpose of financing construction or
improvements to facilities of enterprise systems operated by the County, in accordance with a system and
plan of improvements. The enterprise systems must be an established system legally authorized for
operation by the County.
Special Assessment Bonds -The County shall use Special Assessment Bonds to finance projects that
will provide special benefit to certain property owners.
Jefferson County Debt Policy, October 27, 2020 Page 7 of 14
Local Option Capital Asset Lending (LOCAL) Program Debt - The County shall use LOCAL
Program Debt as it allows pooling of smaller equipment financing and certain real estate project needs
into larger offerings of securities, and allows local government agencies the ability to finance equipment
needs through the State Treasurer's office, subject to existing debt limitations and financial consideration.
Lease Purchase, Certificates of Participation (COPS), or Other Financing Contracts - In addition
to LOCAL, the County shall consider other lease purchase or other financing contracts when deemed to
be cost effective.
Short Term Debt - The County shall use Short Term Debt (obligations of less than 1 year) to provide
interim financing for capital projects (in conjunction with the development of a long term financing plan)
and to provide necessary liquidity.
To manage Jefferson County's cash flow, the County Treasurer may make loans with a term of twelve
months or less to any Jefferson County fund from another fund. The County Treasurer may make loans
from any Jefferson County fund from another fund with a term of greater than twelve months with
County Commissioners’ approval.
Legal Debt Limitations
The County shall issue debt with an average life less than or equal to the useful life of the assets being
financed. In no case will the term of any financing exceed the life of the asset being financed. Unless
otherwise stated in law, the final maturity of the debt shall be no longer than 40 years (RCW 39.46.110).
Unlimited Tax General Obligation Debt is payable from excess tax levies and is subject to voter
approval. Any proposition for UTGO debt must be approved by 60% of the voters casting a vote and the
total number of ballots cast must be at least equal to 40% of the total number of voters voting in the last
general county or state election (chapter 39.40 RCW). Total GO debt (including limited and unlimited
tax) is subject to a statutory debt limitation of 2.5% of the County's assessed value (chapter 39.36.020
RCW).
Limited Tax General Obligation Debt LTGO debt is subject to a statutory debt limitation of 1.5% of
the County's assessed value (chapter 39.36.020 RCW).
The target amount of limited tax debt outstanding will not exceed 40% of the statutory debt limitation
(subject to an affordability analysis of the county’s current expense fund) unless required for unique
capital improvement projects, circumstances, or to meet an emergency requirement caused by natural
disaster, legal judgment or similar unplanned events.
Revenue Obligations There are no legal limits to the amount of revenue bonds the County can issue, but
there are practical limits to the County's ability to repay obligations (chapter 36.67.570 RCW). Revenue
bonds are generally subject to certain tests and requirements, including (1) establishment and maintenance
of a debt service reserve fund (generally equal to average annual debt service), (2) rates and charges must
provide net revenue after payment of operating expenses equal to a multiple of a minimum 1.25 times the
debt service requirement, recognizing that from time to time the multiple may need to be higher than 1.25
times depending on the type and purpose of the enterprise and debt. Additional covenants and pledges
must be made for the benefit of bondholders. The County will not incur Revenue obligations without first
ensuring the ability of an enterprise system to consistently meet any pledges and covenants customarily
required by investors in such obligations, during the term of the obligation.
Jefferson County Debt Policy, October 27, 2020 Page 8 of 14
Assessment-backed Obligations The benefiting property owners are charged an assessment based upon
a formula developed to fairly reflect the benefit received by each property owner in the assessment
district. In the event of annexation of property from the County, the property owners will still be
responsible for payment of assessments. There are detailed statutes for the formation of assessment
districts and assessing property, which contain specific timeframes for notice and conducting public
hearings (chapter 36.88 RCW). The County will form road improvement districts (RIDs) or local
improvement districts (LIDs) upon petition of benefiting property owners, unless the County
Commissioners determine to establish the districts by resolution.
The County Administrator and County Treasurer shall be provided with enough detail to determine the
size, timing and characteristics of the project and any contribution the County is providing to the cost of
the improvements. No assessment district in which there is undeveloped land, land owned by
governmental entities, land designated as "open space," or a concentration of ownership in a few property
owners, will be formed without review by the County's financial advisor or underwriter, and bond
counsel.
The LOCAL Program debt limitations are the same as for general obligations debt.
Lease Purchase or Other Financing Contracts debt limitations are the same as for general
obligations debt.
Short Term Obligations
Unless otherwise justified, the County operates on a pay-as-you-go basis for operating expenses. The
Treasurer is, however, authorized to issue short-term debt in order to manage the County's cash flow
circumstances. The issuance of short-term debt may also be warranted if timing or other similar
circumstances occur on a long-term debt issue.
In no case will notes or other obligations be entered into for the purpose of funding operating deficits
without prior development and review of a long term deficit funding plan. The use of short term financing
shall be evaluated by the County Treasurer and compared with the cost of internal financing or interfund
loans. All interfund loan resolutions will be reviewed by the County Treasurer to ensure that the
appropriate "reimbursement" language is included, the correct fund numbers are used, and to develop the
appropriate debt repayment schedule.
Section V. Authorized Professional Services
The Finance Committee shall approve all debt related professional service contracts, unless Board
approval is required by Chapter 3.55 JCC, Letting of County Contracts. Selection of authorized financial
professionals may be made through a negotiated process, competitive bid process or a Request for
Proposal (RFP). Contract solicitations shall include efforts to address diversity and inclusion.
The highest ethical standards shall be maintained, which shall include but not be limited to disclosure by
the potential professionals of conflicts of interest, persons, firms, or corporations engaged by the
professionals to promote their selection by the County, experience in providing the requested professional
service, and other criteria that may apply to specific professional services. These professional services
include, but are not limited to:
Bond Counsel -All debt issued by the County shall include a written opinion by legal counsel affirming
that the County is authorized to issue the proposed debt, that all statutory requirements have been met
and a determination of the proposed debt's federal income tax status. This approving opinion and other
Jefferson County Debt Policy, October 27, 2020 Page 9 of 14
documents relating to the issuance of debt shall be prepared by a nationally recognized legal firm with
extensive experience in public finance and tax issues. The firm selected as bond counsel will be expected
to provide the full range of legal services required in connection with the successful issuance and delivery
of the bond issues and on-going legal services related to the bond issue. Bond Counsel will be appointed
by the Prosecuting Attorney working with the County Treasurer to serve as special prosecutor per RCW
36.27.040.
Financial Advisor - If the County Treasurer determines that it is in the best interest of the County to hire
a financial advisor, then the County Treasurer shall select a financial advisor consistent with the County's
general authority to contract. The financial advisor shall have comprehensive municipal debt experience,
including debt structuring and pricing of municipal securities. The County requires that the financial
advisor act in compliance with the MSRB's Rule G-23 (activities of Financial Advisors).
Underwriter (or Placement Agent) - For negotiated sales, the County Treasurer will select an
underwriter, consistent with the County's general authority to contract, taking into account the type of
issue, experience offered and other relevant criteria. The selection of underwriter may be for an individual
bond issue, series of financings, or a specified time period, as determined by the County Treasurer. The
underwriter shall have sufficient capitalization and experience to serve as underwriter for the County.
Fiscal Agent - The County Treasurer will appoint the Fiscal Agent (chapter 39.44.130 RCW) and may,
at his/her sole discretion, serve as registrar for very small issues or those privately placed with investors.
Neither the County or special purpose districts can obligate the County Treasurer to serve as registrar
without prior written approval of the Treasurer.
Other Service Providers - other professional services such as verification agent, escrow agent or
arbitrage rebate calculation firm shall be appointed by the County Treasurer, and are considered
incidental to undertaking the issuance of debt.
Section VI. Debt Issuance
Maturity Structure -In no case will the term of any financing exceed the life of the asset being financed.
The term of financing shall also take into account the repayment source when one is specifically
identified.
Debt issued by the County should be structured to provide level annual debt service, although assessment-
backed bonds may use equal annual principal. Certain debt supported by a unique revenue stream may be
structured to match the revenue stream. Deferring the repayment of principal should be avoided except in
select instances where it will take a period of time before project revenues are sufficient to pay debt
service.
Method of Sale - The County Treasurer shall determine the method of sale best suited for each issue of
debt. Possible methods of sale are described below.
Competitive Sale - If the County decides on a competitive sale of County debt, it will require a
Commissioner resolution authorizing the issuance and sale of debt, and terms and conditions of sale.
If County debt is issued by competitive bid it will be sold to the bidder proposing the lowest true interest
cost to the County, provided the bid meets all other requirements. A Commissioner resolution will direct
Jefferson County Debt Policy, October 27, 2020 Page 10 of 14
the County Treasurer to accept the winning bid and to complete the issuance and delivery of the duly
authorized debt.
Negotiated Sale - The Finance Committee or the County Treasurer may recommend negotiation of the
terms and conditions of the sale for large or complex transactions or for the refunding of debt, when in the
best interest of the County. The County Treasurer, working with the Finance Committee, and bond
counsel, shall be responsible for the negotiations. Any negotiated sale of County debt will require
Commissioner resolution.
Negotiation of terms and conditions occurs on all issues of negotiable sales. Guidelines will be based on
prevailing terms and conditions in the marketplace for comparable issuers.
Following the execution of a purchase contract, the lead underwriter will comply with all Municipal
Securities Rulemaking Board regulations governing order priorities and allocations, and submit to the
Treasurer a complete and timely account of all orders, allocations, and underwriting activities related to
the sale of County debt under its management.
Private Placement - The County Treasurer may deem it appropriate, in order to minimize the costs and
risks of the County's debt issue, to sell the County's debt obligations through a private placement or
limited public offering.
Credit Enhancement - For some bond issues, the County may consider the use of credit enhancement.
Credit enhancement will only be used when the projected present value benefit is greater than the cost of
insurance. The projected present value benefit will be determined by comparing the expected interest cost
for the financing both with and without insurance, when discounted by the expected interest rate on the
bonds.
For insured debt, the County will not purchase more than one bond rating unless required. For
competitive bond sales, the County may make insurance available at the option and expense of bidders.
Bidders may choose to purchase additional bond ratings at their own expense.
Section VII. Refunding Obligations
The County Treasurer shall continually review the County's outstanding debt and recommend issues for
refunding as market opportunities arise. Debt shall be refinanced only for the purpose of achieving debt
service savings, unless required to achieve specific debt management goals of the County.
The County will not refinance debt for the purpose of deferring scheduled debt service, unless unique
circumstances are present. The County is aware that refinancing for the purpose of deferring debt service
may have an impact on its credit rating.
Advance refunding transactions may be completed when net present value savings equal at least 3.5% of
the amount of debt being refunded. Advance refunding transactions are those undertaken in advance of
the first date on the refunded debt can be called for optional redemption, and require the establishment of
an escrow account for the defeasance of the refunded debt. All costs incurred in completing the refunding
shall be taken into account when determining the net present value savings.
Current refunding transactions shall be considered whenever possible. Current refunding transactions
are those undertaken up to 90 days prior to or after the call date on outstanding debt, and provide for
immediate redemption and replacement of refunded debt. The savings level for a current refunding should
take into account the number of years remaining on the bonds, within the following general guidelines:
Jefferson County Debt Policy, October 27, 2020 Page 11 of 14
Years Between Call Date
and Final Maturity
Present Value
Savings Target
1-2 years 1%
3-4 years 2%
5-6 years 3%
7-8 years 4%
9 plus years 5%
The County may purchase its bonds in the open market for the purpose of retiring the obligations, when
cost effective.
Section VIII. Other Duties and Obligations
Investment of Bond Proceeds - Each Bond Resolution will provide for establishment of funds and
accounts, which will be designated in advance by the county Treasurer. The County Administrator will
give direction to the County Treasurer on the length of time bond proceeds are to be invested. Investments
will be made, in accordance with the Jefferson County Investment Policy and procedures established by
the County Treasurer.
Arbitrage and Tax Law Requirements - Prior to any debt issuance, the County Administrator shall be
provided with, or shall prepare, a schedule that shows the expected timing and amount of expenditures to
be made from the project fund. This schedule will be provided to Bond Counsel for use in developing an
Arbitrage Certificate.
The County Treasurer shall be responsible for compliance with arbitrage reporting and will keep records
of investment of bond proceeds and bond funds sufficient to develop calculations required for compliance
with arbitrage and other tax law requirements and may retain the services of a qualified professional firm
to provide computations relating to potential arbitrage liability of the County.
The County Administrator shall be responsible for compliance with any other tax law requirements.
Disclosure Documents
Primary market disclosure - The County Administrator and County Treasurer will serve as the focal point
for information requests relating to official statements to be used in the initial offering of the County's
bonds or notes. The County Administrator or County Treasurer will request from relevant departments,
information required for disclosure to investors and rating agencies. Each department bears responsibility
for the information provided for use in the County's official statements.
The Board of County Commissioners will be provided with a copy of the official statement for each issue
of debt, and the Chair of the Board will sign a statement attesting to the accuracy and completeness of the
information therein.
Secondary market disclosure -The County Administrator and/or Finance Manager and County Treasurer
shall review any proposed undertaking to provide secondary market disclosure, and will provide
secondary market disclosure annually, if the County has contracted to provide any.
Financial Updates and Budget Reports – Monthly budget reports showing the current status of revenues
and expenditures will be prepared and distributed to appropriate legislative, staff and management
personnel in a timely manner and made available for public inspection.
Jefferson County Debt Policy, October 27, 2020 Page 13 of 14
Appendix A: Jefferson County – List of Reserve Recommendations
Adopted by Resolution 41-19 on July 22, 2019, or as may be subsequently amended by Resolution
Fund % Minimum
reserve Description
001-GENERAL FUND 15% 15% of Total Spending - 10% for routine short-term cyclical cash flow
needs and 5% for longer term revenue stabilization
105-AUDITOR'S O&M 10% 10% of Total Spending, excluding capital
106-COURTHOUSE FACILITATOR N/A None Required
107-BOATING SAFETY PROGRAM 10% 10,000 10% of Total Spending, or $10,000 whichever is larger, excluding capital
108-COOPERATIVE EXT. PROGRAMS 10% 32,000 10% of Total Spending, or $32,000, whichever is larger
109-NOXIOUS WEED CONTROL 10% 10% of total spending
113-4-H AFTER SCHOOL 10% 10,000 10% of Total Spending, or $10,000, whichever is larger
114-ECONOMIC DEVELOPMENT N/A None Required
119-JEFFCOM BOND FUND 5% 5% of Debt Service Expense
120-CRIME VICTIMS SERVICES 10% 10% of Total Spending
123-JEFF CO GRANT MANAGEMENT FUND 10% 34,000 10% of Total Spending, or $34,000, whichever is larger
125-HOTEL-MOTEL 25% 25% of Total Revenue
126-H&HS SITE ABATEMENT N/A None Required
127-PUBLIC HEALTH N/A 253,981 Minimum recommended reserve is 253,981
128-WATER QUALITY 10% 171,000 10% of Total Spending, or $171,000, whichever is larger
130-MENTAL HEALTH N/A Pass Through Fund only
131-CHEMICAL DEPEND/MENTAL HEALTH 10% 10% of Total Revenues
135-JEFFERSON COUNTY DRUG FUND 10% 10% of Total Spending
136-SHERIFF DRUG INVESTIGATION 10% 10% of Total Spending
140-LAW LIBRARY 10% 10% of Total Spending, Excluding Capital
141-TRIAL COURT IMPROVEMENT 10% 10% of Total Spending
143-COMMUNITY DEVELOPMENT 10% 153,000 10% of Total Spending, or $153,000, whichever is larger
147-FEDERAL FOREST TITLE III N/A None Required
148-JEFF CO AFFORDABLE HOUSING 10% 10% of Total Spending
149-HOMELESS HOUSING FUND 10% 10% of Total Spending
150-TREASURER'S O&M N/A None Required (RCW84.56020(08)
151-REET TECHNOLOGY FUND N/A None Required
155-VETERANS RELIEF 10% 10% of Total Spending
160-WATER POLLUTION CNTRL LOAN FUND 10% 67,000 10% of Total Spending, or $67,000, whichever is larger
174-PARKS AND RECREATION 10% 64,000 10% of Total Spending, or $64,000, whichever is larger
175-COUNTY PARKS IMPROVEMENT FUND N/A Capital projects only; Fund requires no working capital
178-POST HARVEST TIMBER MGMT RESV N/A Special Projects only, Based on prefunding expenses
180-COUNTY ROADS 25% 25% of Operating Expenses, excluding capital
181-EMERGENCY ROAD RESERVE N/A Emergency Projects only, based on prefunding
183-FACILITIES MANAGEMENT 10% 66,000 10% of Total Spending, or $66,000, whichever is larger
185-FLOOD/STORM WATER MANAGEMENT N/A Capital projects only; Fund requires no working capital
186-BRINNON FLOOD CONTROL SUB-ZONE N/A Capital projects only; Fund requires no working capital
187-QUILCENE FLOOD CONTROL SUB-ZONE N/A Capital projects only; Fund requires no working capital
301-CONSTRUCTION & RENOVATION N/A 10% of Total Spending, excluding capital
302-COUNTY CAPITAL IMPROVEMENT 50% 50% of Annual Debt Service expense
306-PUBLIC INFRASTRUCTURE Varies Unpaid portion of approved grants
308-CONSERVATION FUTURES TAX 10% 10% of Total Spending, excluding capital
401-SOLID WASTE 10% 10% of Total Spending
402-SOLID WASTE POST CLOSURE N/A Based on prefunding post-closure expenses
403-SOLID WASTE EQUIPMENT RESERVE N/A Capital projects only; Fund requires no working capital
Jefferson County Debt Policy, October 27, 2020 Page 14 of 14
404-YARD WASTE EDUCATION FUND N/A Prefunded expenses
405-TRI-AREA SEWER FUND 10% 10% of Total Spending, excluding capital
501-EQUIPMENT RENTAL & REVOLVING 25% 25% of 12/31 Accumulated Depreciation for Equipment
502-RISK MANAGEMENT RESERVE N/A 216,000 10% of Total Spending, or $216,000, whichever is larger
503-JC UNEMPLOYMENT RESERVE N/A None Required
504-INDUSTRIAL INSURANCE RESERVE N/A None Required
505-EMPLOYEE BENEFIT RESERVE N/A 125,000 10% of Total Spending, or $125,000, whichever is larger
506-INFORMATION SERVICES 25% 25% of 12/31 Accumulated Depreciation for Equipment
Jefferson County, Washington
Investment Policy
Adopted October 27, 2020
Updated April 26, 2022
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 1 of 18
Contents
Section I. Introduction .................................................................................................................................. 2
Policy ......................................................................................................................................................... 2
Scope ......................................................................................................................................................... 2
Section II. Ethical Standards Governing Conduct ......................................................................................... 2
Section III. Policy Objectives ........................................................................................................................ 2
Section IV. Prudent Person Standard and Ethics .......................................................................................... 2
Prudent Person Rule ................................................................................................................................. 2
Ethics and Conflicts of Interest ................................................................................................................. 3
Section V. Internal Controls .......................................................................................................................... 3
Section VI. Investment Authority .................................................................................................................. 4
Section VII. Authorized Financial Dealers and Institutions ........................................................................... 4
Section VIII. Authorized Investments ............................................................................................................ 5
Section IX. Investment Restrictions, Limits and Diversification .................................................................... 6
Section X. Maximum Maturities ................................................................................................................... 6
Section XI. Investment Procedures ............................................................................................................... 7
Section XII. Portfolio Review ......................................................................................................................... 7
XIII. Safekeeping Requirements .................................................................................................................... 7
XIV. Accounting Methods.............................................................................................................................. 8
XV. Investment of Excess Monies of Municipal Corporation ........................................................................ 8
XVI. Investment Service Fee .......................................................................................................................... 8
XVII. Finance Committee ............................................................................................................................... 9
XVIII. Investment Policy Adoption ................................................................................................................ 9
APPENDIX A: Authorized Investments for All Funds ................................................................................... 10
Authorized By Statute: ............................................................................................................................ 10
Bank Depositories ................................................................................................................................... 10
Credit Unions (FDIC) ................................................................................................................................ 10
APPENDIX B: Securities Not Eligible as Investments for County Funds ...................................................... 11
APPENDIX C: Investment Firms Accepted as Dealers by Jefferson County ................................................ 11
APPENDIX D: Glossary of Investment Market Terms .................................................................................. 11
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 2 of 18
Section I. Introduction
Policy
It is the policy of the Jefferson County Treasurer to invest public funds in a manner which will provide
the highest investment return with the maximum security while meeting daily cash flow demands and
conforming to all state and county statutes governing the investment of public funds. (R.C.W. 36.29.020)
Scope
This investment policy applies to all financial assets held by the Jefferson County Treasurer's office.
These funds are accounted for in the County's annual financial report and include:
General Funds
Debt Service Funds
Capital Project Funds
Trust and Agency Funds
Any new fund, unless specifically exempted
Section II. Ethical Standards Governing Conduct
The County Commissioners, the County Administrator, the members of the Finance Committee, and the
Prosecuting Attorney shall adhere to standards of conduct as stipulated by the following:
Jefferson County Personnel Administration Manual Chapter 4; Code of Ethics and
Appendix B
Public Disclosure Act, chapter 42.17 RCW; and
Ethics in Public Service Act, chapter 42.52 RCW.
Section III. Policy Objectives
Primary objectives of the Jefferson County Treasurer's office investment procedures are three-fold:
1. Safety of principal is the foremost objective. Each investment transaction shall seek to ensure
that capital losses are avoided, whether from securities defaults or erosion of market value.
2. The Treasurer's investment portfolio shall be sufficiently liquid as to enable county and districts
to reasonably meet operating requirements.
3. The investment portfolio shall be designed to equal or exceed the average return on three or six
month U.S. Treasury bills or the average rate obtained from the State’s Local Government
Investment Pool (“LGIP”), whichever is higher. This shall be considered minimum standard for
the portfolio's rate of return. The U.S. Treasury bills rate may currently be found online at the
U.S. Department of the Treasury Resource Center as “Daily Treasury Yield Curve Rates”. The
current web link is: http://www.treasury.gov/resource-center/data-chart-center.
4.
Section IV. Prudent Person Standard and Ethics
Prudent Person Rule
A. The Prudent Person Rule shall be the standard by which Jefferson County makes its'
investments. Prudent Person Rule "Investment shall be made with the exercise of that
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 3 of 18
judgment and care, under circumstances then prevailing, which men of prudence, discretion
and intelligence exercise in the management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the probable income to be
derived."
B. All participants in the investment process shall seek to act responsibly as custodians of the
public trust. Investment officials shall avoid any transactions that might impair public confidence
in Jefferson County Government.
C. The Treasurer will avoid incurring unreasonable and avoidable risks, either with regards to
individual financial institutions or types of investments (such as financial forwards and futures or
any leveraged investment purchases).
Ethics and Conflicts of Interest
D. Persons authorized to invest shall not accept gifts from the institution with which the County
places investments. Occasional meals are acceptable and must be reported to the Treasurer (see
Treasurer's Policy Manual.)
E. Investment officials shall be bonded to protect the public against possible embezzlement and
malfeasance. For the purposes of this policy, the Jefferson County Treasurer is the Investment
official, and Deputy Treasurers work under the guidance and direction of the County Treasurer.
Internal controls shall be in place to ensure the County Treasurer has knowledge and oversight
of investment decisions. If a Deputy Treasurer is delegated the role of investment official, that
person shall be bonded.
F. Officers and employees involved in the investment process shall refrain from personal
business activity that may conflict with the proper execution of the investment program,
or may impair their ability to make impartial investment decisions. Employees and
investment officials shall disclose to the Jefferson County Finance Committee any
material financial interests in financial institutions that conduct business within this
jurisdiction, and they shall further disclose any personal financial/investment positions
that could be related to the performance of Jefferson County’s portfolio. Employees and
officers shall subordinate their personal investment transactions to those of Jefferson
County, particularly with regard to the timing of purchases and sales.
Section V. Internal Controls
Day-to-day procedures concerning investment management and accounting are outside the
scope of this policy. The County is subject to annual independent review of its internal controls
by the Office of State Auditor. This review will provide internal control by assuring that policies
and procedures are being complied with. Such review also may result in recommendations to
change operating procedures to improve internal control. The controls shall be designed to
prevent loss of public funds due to fraud, error, misrepresentation by third parties,
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 4 of 18
unanticipated market changes, or imprudent actions by employees or officers of the County
.The specific internal controls maintained by the County are contained in normal operating
procedures of the Treasurer.
Section VI. Investment Authority
According to R.C.W. 36.29.20, the Treasurer is the authorized Investment Officer for the county
and its' taxing districts. That authority may be delegated to a Deputy designated as the
Investment Officer. Investments shall be placed in authorized investments when directed by
the governing body in whose name the funds are held. Length of time is determined by
resolution of the governing body; specific investment is determined by the Treasurer and/or
Investment Officer (Appendix A). (R.C.W. 39.29.020). Currently the Jefferson County Treasurer
is the Investment Officer, and Deputy Treasurers work under the guidance and direction of the
County Treasurer. Internal controls shall be in place to ensure the County Treasurer has
knowledge and oversight of investment decisions. If a Deputy Treasurer is delegated the
investment authority of Investment Officer, that person shall be bonded consistent with Section
IV of this policy.
Section VII. Authorized Financial Dealers and Institutions
A. The County Treasurer will update a list of financial institutions through which
investments may be made, at least annually. Banking institutions must be authorized as
public depositories by the Public Deposit Protection Commission. (R.C.W. 39.58.080)
(Appendix B). Broker/Dealers must be registered with the US Securities and Exchange
Commission and a member of Financial Industry Regulatory Authority (FINRA).
B. Quarterly reports of the PDPC will be used to assist in determining with which
institutions investments are to be placed.
C. Banking investments may not be placed outside the State of Washington. In addition, a
list will be maintained of approved security broker/dealers selected by credit
worthiness, who maintain an office in the State of Washington (Appendix). Out of state
banking is permissible through the State Finance Committee’s enactment of the
Certificate of Deposit and Registry Service (CDARS) program operating within the state.
D. To obtain name placement on the list, broker/dealers who wish to handle investments
for the County must apply for certification by the County Treasurer. The certification
process will require detailed financial experience and existing client profiles be
submitted to the County Treasurer in writing. Approval or non-approval will be
determined upon review of the application.
E. Current financial statements are required of all institutions with whom the County
invests.
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 5 of 18
F. Prior to undertaking any transaction other than the purchase of eligible Certificates of
Deposit, each financial dealer and institution is required to read this investment policy,
certify its understanding of the policy parameters, and pledge to honor the policy in all
transactions with the County Treasurer.
Section VIII. Authorized Investments
The following investment instruments are authorized as follows:
A. U.S. Government and U.S. Agency Securities:
1. U.S. Treasury Bills
2. U.S. Treasury Bonds
3. U.S. Treasury Notes
4. Federal Home Loan Banks (FHLB)
5. Federal Farm Credit Bonds (FFCB)
6. Federal National Mortgage Assoc. (FNMA “Fannie Mae”)
7. Federal Home Loan Mortgage Co. (FHLMC “Freddie Mac”)
8. Student Loan Marketing Assoc. (SLMA “Sally Mae”)
B. Bankers Acceptances
1. Bankers Acceptances will be purchased from State authorized Financial
institutions and authorized broker/dealers. They will be delivery versus
payment (DVP).
2. BA's will be limited to 6-month maturities.
3. May be either foreign or domestic
C. Bank and/or Credit Union Investment (made per statutory regulations)
1. Certificates of Deposit
2. Insured Money Market Funds
3. Checking and Saving Accounts held at approved banks in Washington State
per the Public Deposit Protection Commission (PDPC)
D. Repurchase Agreements
1. Overnight or short-term monies are invested with the LGIP
2. The County does not use Repurchase Agreements, because the LGIP provides
similar benefits at low risk and low cost to the County.
E. Registered Warrants
1. According to R.C.W. 39.59.020(3), the Treasurer is authorized to invest in
(purchase) registered warrants of junior taxing districts in the County,
within the liquidity needs of the County.
2. Interest rate on warrants will be fixed by the Treasurer on the first business
day of each month, based on the LGIP rate plus a reasonable percentage
to cover administrative costs.
3. Requirements of R.C.W. 36.29.060 are applicable to the call of these warrants.
F. State Local Government Investment Pool
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 6 of 18
1. Authorization is granted to the Treasurer by the Jefferson County Board of
Commissioners, Resolution 102-86, to deposit and withdraw monies in
the LGIP in the Washington State Treasury.
Section IX. Investment Restrictions, Limits and Diversification
A. Financial institutions must be insured by the Federal Deposit Insurance Corporation with
investment limits as specified in the State Finance Committees Public Depository
protection Commission documentation.
B. Investments in Bankers Acceptances must be in
1. Top twenty banks in the world or
2. Top twenty-five banks in the U.S. or
3. Selected approved banks in Washington State per the Public Deposit Protection
Commission (PDPC) https://www.tre.wa.gov/pdpc/
C. Collateral must be marked to market daily.
D. PORTFOLIO INSTITUTION LIMIT: Districts with a portfolio over $2,000,000 shall have no
more than sixty-five percent (65%) of any one fund of that district exposed to any one
institution's credit worthiness. The LGIP is not considered an institution for the purposes
of this limitation, and investments in the LGIP are allowed up to 100%.
E. PORTFOLIO INVESTMENT TYPE LIMIT: Jefferson County will diversify its investment portfolio
so that no more than seventy percent (70%) will be invested in a single security type,
except those investments in the State Pool will be allowed up to 100%. This limitation
applies to Jefferson County funds and Districts. Bank accounts and CDs are not
securities and do not fall under this limitation.
F. In the event any state or federal legislation or regulation should further restrict instruments
or institutions authorized by this policy, such restrictions shall be deemed to be
immediately incorporated in this policy. If new legislation or regulation should liberalize
the permitted instruments or institutions, such changes shall be available and included
in this policy only after review by the Finance Committee.
Section X. Maximum Maturities
The Treasurer will not directly invest in securities maturing more than five years from date of
purchase. The Treasurer may collateralize using longer dated securities.
Bond sinking funds or reserve monies may be invested as set forth in the Bond Resolution or
any agreement for bond insurance (which may specify the type and term of investments
allowed).
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 7 of 18
Section XI. Investment Procedures
A. Selection of investments will be based on the following: yield, quality, liquidity, need for
diversification, duration and institution limit.
B. Bids by brokers or financial institutions may not be disclosed to the other bidders until after
investment closes. Bids may be disclosed, but the other bidder may not.
C. All things being equal, investment will be rotated between bidders.
Section XII. Portfolio Review
The Investment Officer will routinely monitor the contents of the portfolio, the available
markets and the relative values of competing instruments, and will adjust the portfolio
accordingly.
XIII. Safekeeping Requirements
A. A signed safekeeping agreement shall be entered into with a Trust Department of a
Federally regulated financial institution. U.S. Treasury Securities, Agencies and Bankers
Acceptances are delivery versus payment (DVP). Jefferson County will utilize the
safekeeping services of the Washington State authorized service contract.
B. Bankers Acceptances and wireable securities purchased from Federally Regulated banks
may be held in the Trust Department of that bank in the name of Jefferson County.
C. Statewide Custody Contract: RCW 43.08.280 authorizes the Office of the State Treasurer
(OST) to negotiate a statewide securities custody contract on behalf of local governments
and institutions of higher education. The most important benefit of this program is the
opportunity for local governments, at their option, to obtain the best rate and terms from a
single financial institution for custody services.
This contract will save significant time and money for local entities, who will no longer have
to do their own custody search. Financial institutions, by the same token, will need to
participate in only one search process, rather than separate RFPs for each local entity. The
“pooling” feature of the program will allow smaller jurisdictions to earn the same
advantageous rates and terms now available to larger local governments.
OST’s role has been to select the provider and negotiate a model contract. However, OST
will not be a party to the contracts – individual contracts for custody services will be
between the Statewide Custody Provider and the local participants.
The State Treasurer appointed the Wells Fargo Bank, N.A. as the Statewide Custody
Provider effective April 1, 2016 through March 31, 2020 with an optional four-year
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 8 of 18
extension. Effective January 24, 2020, Principal Financial Group acquired Wells Fargo Bank,
N.A. Institutional Retirement & Trust, and the Jefferson County Treasurer acknowledged
and appointed Principal Financial Group as Jefferson County’s Statewide Custody Provider.
XIV. Accounting Methods
A. Investments will be carried at cost. Gains or losses from investments will be credited or
charged to investment income at the time of sale.
B. Five hundred ($500) will be the minimum required to open a new investment Fund account.
Subsequently, smaller amounts may be added to the fund.
C. Any investments may be placed at the LGIP
D. Fixed rate investments will be credited with interest at the time of maturity, except for
coupon items.
XV. Investment of Excess Monies of Municipal Corporation
A. In accordance with R.C.W. 36.29.020, the Treasurer will invest any and all Funds which meet
the following conditions:
1. The funds belong to a municipal corporation, and
2. Are in the custody of the County Treasurer, and
3. Are not required for immediate expenditure, and
4. The governing body of the municipal corporation has not provided direction as to
the investment of said funds.
B. The interest or other earnings thereon shall be deposited in the current Expense fund of
Jefferson County and may be used for general county purposes.
XVI. Investment Service Fee
In accordance with R.C.W. 36.29.020, the Treasurer will charge a fee of Five percent (5%) on the
interest or other earnings from investments made as directed by a written resolution from the
board of a municipal corporation. This fee will be levied at the time the interest or other
earnings is credited to the account. It shall not exceed $50.00 for any specific investment. For a
multi-year investment, not more than $50.00 per year shall be authorized.
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 9 of 18
XVII. Finance Committee
A Finance Committee consisting of the Treasurer as Chairman, the Auditor as Secretary, and the
Chairman of the Board of County Commissioners, shall meet quarterly to review the investment
performance and the investment plan. (R.C.W.36.48.070)
The County Administrator and the County Central Services Director may attend Finance
Committee meetings and provide advice to the Finance Committee.
XVIII. Investment Policy Adoption
The Jefferson County Investment Policy will be formally adopted by the Finance Committee and
reviewed for appropriate modifications on a yearly basis. Any amendments to this policy must be
approved by the Finance Committee. The Investment Policy of Jefferson County as set forth in this
document has been reviewed and is hereby accepted.
Approved and adopted this 26th Day of April, by the Jefferson County Finance Committee.
Stacie Prada, Chair of Finance Committee and County Treasurer
Rose Ann Carroll, Secretary Finance Committee and County Auditor
Heidi Eisenhour, Member of Finance Committee and Chair of County
Board of Commissioners
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 10 of 18
APPENDIX A: Authorized Investments for All Funds
Authorized By Statute: Jefferson County’s authorized investments are guided by RCW
36.29.020 and per RCW 39.59.040 whereby any local government in the state of Washington
may invest in the following:
1) Bonds of the state of Washington and any local government in the state of Washington;
2) General obligation bonds of a state and general obligation bonds of a local government of a
state, which bonds have at the time of investment one of the three highest credit ratings of
a nationally recognized rating agency;
3) Subject to compliance with RCW 39.56.030, registered warrants of a local government in
the same county as the government making the investment;
4) Certificates, notes, or bonds of the United States, or other obligations of the United States
or its agencies, or of any corporation wholly owned by the government of the United States;
or United States dollar denominated bonds, notes, or other obligations that are issued or
guaranteed by supranational institutions, provided that, at the time of investment, the
institution has the United States government as its largest shareholder;
5) Federal home loan bank notes and bonds, federal land bank bonds and federal national
mortgage association notes, debentures and guaranteed certificates of participation, or the
obligations of any other government sponsored corporation whose obligations are or may
become eligible as collateral for advances to member banks as determined by the board of
governors of the federal reserve system;
6) Bankers' acceptances purchased on the secondary market;
7) Commercial paper purchased in the secondary market, provided that any local government
of the state of Washington that invests in such commercial paper must adhere to the
investment policies and procedures adopted by the state investment board; and
8) Corporate notes purchased on the secondary market, provided that any local government
of the state of Washington that invests in such notes must adhere to the investment
policies and procedures adopted by the state investment board.
Bank Depositories
FOLLOW LINK TO State Treasurer listing http://tre.wa.gov/pdpc-banks/
The Treasurer’s Banking Contract is with 1st Security Bank of Washington effective May 2016.
Additional funds are held in Pacific Premier Bank, formerly Opus Bank effective January 2018.
Certificates of Deposit held in banks with a physical presence in Jefferson County including
Kitsap Bank, Sound Community Bank and First Federal. CDs may be purchased without
modification to this Investment Policy if they comply with the criteria for the investment in this
policy.
Credit Unions (FDIC)
FOLLOW LINK TO State Treasurer listing http://tre.wa.gov/pdpc-credit-unions/
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 11 of 18
APPENDIX B: Securities Not Eligible as Investments for County Funds
Commercial Paper
Collaterized Mortgage Obligations (includes REMICS)
Mortgage-backed securities
Corporate Stocks
Corporate Bonds
Foreign Government Obligations
Options and Futures Contracts
Real Estate
Limited Partnerships
APPENDIX C: Investment Firms Accepted as Dealers by Jefferson County
Investment Firm Acceptance Date of Firm
Stifel, Nicolaus & Company Incorporated** April 2022
**Purchased Vining Sparks IBG in April 2022,
Approved Broker for Jefferson County since January 22, 1996
Piper Jaffray January 1999
Time Value Investments January 2011
Wells Fargo N.D. January 2011
Multi-Bank Securities, Inc. October 27, 2015
Principal Financial Group* January 2020
*Safekeeping contract purchased from Wells Fargo
APPENDIX D: Glossary of Investment Market Terms
ACCRUED INTEREST: Interest due on a security from the issue date, or from the most recent
interest payment date to the present. The buyer of the Security pays principal plus accrued
interest.
ARBITRAGE: Applied to municipal bond market, is the act of paying one interest rate to bond
holders and investing the principal at a higher rate of return.
ARBITRAGE REBATE: Return to the Internal Revenue Service the arbitrage earned as described
above, using a system of calculations based on future valuing of funds involved.
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 12 of 18
BANK WIRE: A computer message system linking major banks and public depositors. Is used to
advise the receiving bank of some action that has occurred.
BANKERS ACCEPTANCE: A draft or bill of exchange accepted by a bank or trust company. Once
accepted, the bank or trust company guarantees payment of the bill.
BAN: Bond Anticipation Notes are used by states and municipalities to obtain interim financing
for projects that will be funded long term through the sale of bond proceeds.
BASIS POINTS: A measure of small differences in yields, 100 basis points equal to 1 percent. If
two bonds are quoted in yields of 1.30 and 1.10 percent, there is a spread of 20 basis points
between them.
BEARER BONDS: Bonds whose principal and interest are paid to bearer --anyone in possession
of the bond or coupon.
BOOK ENTRY SECURITIES: Treasury and Federal Agencies are moving to a book-entry system in
which securities are not represented by engraved pieces of paper but are maintained by
computerized records at the FED in the names of member banks, which in turn, keep records of
the securities they own as well as their customers.
BONDS: Credit instruments that contain a promise to pay a specific amount of money on a
specified date; usually more than 10 years after issuance. The relationship between the
bondholder and issuer is that of creditor and debtor.
BROKERS: A middleman who brings buyers and sellers together and executes their orders,
charging a commission for these services. Unlike a dealer, a broker does not own or take a
position in the security.
BUY BACK: Another term for Repurchase Agreement.
CALLABLE SECURITY: A security with an embedded call provision that allows the issuer to
repurchase or redeem the security by a specified date. Since the holder of a callable security is
exposed to the risk of the security being repurchased, the callable security is generally less
expensive than the comparable securities that do not have a call provision.
CERTIFICATES OF DEPOSIT (CDs): Certificates issued against funds deposited in a bank for a
definite period of time and earning a specified rate of return. Certificates of Deposit typically
bear rates of interest in line with money market rates current at the time of issuance.
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 13 of 18
COUPON: (1) The annual rate of interest on the bond's face value that a bond's issuer promises
to pay the bondholder. (2) A certificate attached to a bond showing interest due on a payment
date.
COLLATERAL: An obligation or security attached to another to secure its performance and
protect the interest of the lender.
COLLATERAL TRUST BONDS: Bonds protected by a lien on specified securities which are
deposited with a trustee as collateral. Obligations not secured by a specific lien on property are
called debentures.
COMMERCIAL PAPER: An unsecured, short-term debt instrument issued by a corporation.
Maturities on commercial paper rarely range longer than 270 days.
CORPORATE NOTE: An unsecured debt instrument issued by a corporation. Corporate bonds
are considered to have higher risk than Treasurer notes and nearly always have higher yields.
CURRENT ISSUE: In Treasury Bills and Notes, the most recently auctioned issue. Trading is more
active in current issues than in older issues.
CUSTODIAN: An independent third party (usually bank or trust company) that holds securities in
safekeeping as an agent for the investor.
DEBENTURE: A bond secured only by the general credit of the issuer.
DEBT SECURITY: IOU created through loan-type transactions -bank CD's, bills, bonds,
commercial paper, etc.
DEFAULT: Failure to pay debt interest or principal when due, or to perform other obligation
required by contract.
DELIVERY: The providing of a security in an acceptable form to the agent independent of the
seller. Acceptable forms can be physical securities or the transfer of book-entry securities.
DELIVERY VERSUS PAYMENT: Delivery of a security prior to release of monies.
DIVERSIFICATION: Dividing investment funds among a variety of instruments offering
independent returns so as to minimize risk.
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 14 of 18
DISCOUNT SECURITIES: Non-interest bearing money market instruments issued at a discount
and redeemed at maturity at full face value. The discount equals the difference between the
price paid for a security and the security’s par value.
DURATION: A measure of the sensitivity of the price of a fixed-income investment to a change
in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling
bond prices, while declining interest rates mean rising bond prices. The greater the duration,
the greater the interest-rate risk or reward for bond prices.
FANNIE MAE: Securities sold by the Federal National Mortgage Association.
FREDDIE MAC: Securities sold by the Federal Home Loan Mortgage Company.
FICO: Investment securities backed by the Federal Insurance Corporation.
FEDERAL CREDIT AGENCIES: Agencies of the Fed. Govt. designed to supply credit to various
classes of institutions and individuals.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal Agency that insures bank
deposits; The maximum insurable amount is currently $250,000 per depositor, per bank.
FEDERAL FUNDS: Non-interest bearing deposits held by member banks at the Federal Reserve.
Also refers to immediately available funds in the clearing sense.
FEDERAL HOME LOAN BANKS (FHLB):
Institutions that regulate and lend to savings and loan associations.
FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) The Financial Industry Regulatory
Authority (FINRA) is an independent, nongovernmental organization that writes and enforces
the rules governing registered brokers and broker-dealer firms in the United States.
In addition to overseeing securities firms and their brokers, FINRA administers the qualifying
exams that securities professionals must pass to sell securities or supervise others who do.
FINRA provides resources, such as BrokerCheck, that help to protect investors.
FLOAT: The difference between credits to an account and debits to that account. Float is always
positive because in the clearing of checks, the credit sometimes precedes the debit. Float adds
to the money supply.
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 15 of 18
G.O. BONDS: General obligation bonds to which the issuer pledges as security its' full faith,
credit and taxing power. Most G.O. Bonds are supported by unlimited taxes (the taxing
authority can legally levy any tax rate necessary to pay the debt).
GINNIE MAE: Debt security issued by the Government National Mortgage Association.
GOVERNMENTS: Negotiable U.S. Treasury securities.
INDENTURE: Document used in connection with a bond issue. A contract detailing the terms
and conditions on which funds are borrowed; the rights and duties of the issuer and
bondholder. Parties to the indenture are the borrowing company and the legal trustee for the
bondholder. Indentures contain protective covenants designed to reduce the risk of the issuer
defaulting.
INVESTMENT RISK: Degree of uncertainty of return on an investment.
JUNK BONDS: High-risk bonds that have low credit rating or are in default.
LIQUIDITY: The ability to convert a security into cash promptly with minimum risk of principal.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political
subdivisions that are placed in the custody of the State Treasurer for investment and
reinvestment.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or
sold.
MONEY MARKET FUNDS: Financial institutions accept savings subject to withdrawal on demand
and invest in short-term money market obligations.
NEGOTIABLE CERTIFICATE OF DEPOSIT: A large denomination (generally $1 million) CD that can
be sold but cannot be cashed before maturity.
NOTE: Coupon issues with relatively short maturity. Municipal notes have maturities ranging
from a month to a year and pay interest only at maturity. Treasury notes are securities that
have an original maturity of up to 10 years.
ORIGINAL MATURITY: Maturity at issue. A 5-year note has an original maturity at issue of 5
years; 1 year later it has a current maturity of 4 years.
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 16 of 18
PAPER: Money market instruments, commercial paper, etc.
PORTFOLIO: Collection of securities held by an investor.
PREMIUM BOND: Bond selling above par.
PRIMARY DEALER: A security firm who participates in the securities market and helps set price
and distribute securities.
PRIME RATE: Rate at which banks lend to their best customers.
PRINCIPAL: Face amount or par value of a security.(2) One who acts as a dealer buying and
selling his own account.
PROSPECTUS: A detailed statement prepared by an issuer and filed with the SEC prior to the
sale of an issue.
RAN: Revenue Anticipation Note. An issue by states and municipalities to finance current needs
in anticipation of the future receipt of non-tax revenues.
RATINGS: An evaluation given by Moodys, Standard & Poors, Fitch and other rating services of a
security's credit worthiness.
REFUND: To replace one bond issue with another.
REVENUE BONDS: Bonds payable solely from the income produced by a publicly owned facility,
such as a toll bridge or turnpike.
REPURCHASE AGREEMENT: (Repo): Sale of a security with a simultaneous commitment by a
bank to repurchase the security from the investor at a specified price.
SAFEKEEPING: A service to customers of a bank for a fee whereby securities and valuables are
held in the bank's vault for protection; in the case of book-entry securities, are held and
recorded in the customer's name and are inaccessible to anyone else.
SAVINGS & LOAN ASSOCIATION: Federal or state chartered institution that accepts savings
deposits and invests the bulk of the funds in mortgages.
SECONDARY MARKET: Market in which previously issued securities are traded.
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 17 of 18
SECURITIES: Bonds, notes, mortgages, or other forms of negotiable or non-negotiable
instruments.
SECURITIES EXCHANGE COMMISSION: Agency created by Congress to protect investors in
securities transactions by administering securities legislation.
SETTLEMENT DATE: Date on which trade is cleared by delivery of securities against funds.
Settlement date may be the trade date or a later date.
SHOPPING: Seeking to obtain the best bid or offer by calling a number of dealers/brokers.
SKIP-DAY SETTLEMENT: Trade is settled one business day beyond what is normal.
SLGS/SLUGS: State and Local Government Securities purchased from government for specified
rate. Usually bond funds for arbitrary purposes.
SPREAD: Difference between bid and asked price on a security .
STATEWIDE CUSTODY CONTRACT: A contract negotiated between the state treasurer and a
financial institution that establishes the terms and fees for custody services which are optional
to any local government for the terms of the contract. Such institution may be referred to as
“Custodian.”
TAN: Tax Anticipation Note issued by state or municipalities to finance current operations on
future tax receipts.
TERM BONDS: Bond issue in which all bonds mature at the same time.
TIGHT MARKET: A tight market, as opposed to a thin market, is one in which volume is large,
trading is active and highly competitive and spreads between bid and asking price are narrow.
TIME DEPOSIT: Interest-bearing deposit at a savings bank that has a specific maturity date.
TAX-EXEMPTs: A term applied to municipals, it refers to the fact that interest on these
securities is fully exempt from income tax.
TREASURY BILL: A non-interest bearing discount security issued by the U.S. Treasury to finance
the national debt. Bills are generally issued to mature in 3 and 6 months or 1 year.
Jefferson County Investment Policy, rev. APRIL 26, 2022 Page 18 of 18
VARIABLE RATE CD: Short-term CD that pays interest periodically on roll dates; on each roll date
the coupon on the CD is adjusted to reflect current market rates.
YIELD TO SECURITY: Rate of return yielded by a debt security held to maturity when both
interest payments and the investor's capital gain or loss on security are taken into account.