Holmes County portfolio remains strong amid inflation
Holmes County’s finances remain strong as uneven inflation numbers continue to create a nervous atmosphere nationally.
Finances were at the top of the recent Holmes County Board of Commissioners meeting at the Old Jail on Monday, April 15.
The commissioners met with Eileen Stanic, regional director, advisory services, public funds at Meeder Investment Management, along with Leslee Mast, Holmes County treasurer, to discuss the county’s financial well-being and financial trends that are likely to drive the next quarter.
According to Stanic, the recent sales numbers were stronger than expected, which she said reflects consumer spending.
She also said the national job market numbers were better than expected.
Much of the discussion centered around dealing with rising inflation, which she said the Fed has recently embarked on raising interest rates at the fastest pace in 40 years.
“The pace of inflation has slowed and continues to slow, but certainly not at the pace it had been slowing last year and earlier this year,” Stanic said.
She said some sectors of the market are concerned inflation will pick back up soon versus returning to lower levels it had seen previously.
“The Fed has a target of 2% inflation. There is talk that maybe 2 1/2% or 3% is a better number,” Stanic said. “But the Fed has signaled that lower rates are on the horizon.”
She said the biggest driving factor in rising inflation comes from the housing market, which she said has consumed about 60% of the inflation percentage, while another component is a 22% increase in auto insurance.
She also said that with one rate cut having already taken place, there are two more meetings after September that could change the data supporting the Fed cutting rates three times in 2024, which was forecast.
“We don’t think rate cuts are off the table in 2024,” Stanic said. “I characterize this time as a transition period. We went through what was a very clear monetary policy period of higher rates to combat inflation. Prior to that, it was keep rates low to drive employment. There are still many uncertainties out there.”
She said with the volatility of the interest rates, Holmes County’s portfolio remains solid. She said $8.35 million of the county’s funds were reinvested with an average yield of 4.35%, and locking in those long-term investments at rates of 4%-plus is good money management.
“It’s about positioning and improving the county’s cash flow over time as well as positioning the portfolio to make it better,” Stanic said.
She said the county currently has maturity distribution of 34% of the portfolio maturing beyond three years, something she would like to see built up to around 40% because it generally locks in higher yields for the county.
Stanic said earned income from the securities will be more than $1.1 million.
“Our aim is to make that income sustainable and repeatable,” Stanic said.
The commissioners also officially adopted a resolution approving the application and liability waiver for the Holmes County Dog Warden and Adoption Center that will allow the public to utilize the facility’s new dog playground area — known as the Bark Park — outside of normal working hours from 4:30 p.m. until dusk.
Additionally, the public is welcome to use the park Saturdays from sunrise to 10 a.m. and from 2 p.m. until dusk, as well as on Sundays from sunrise to dusk.
Anyone wishing to utilize the Bark Park must sign a liability waiver, which can be signed at the dog warden office.
In addition, the commissioners passed a resolution authorizing a lease between the commissioners and Ronda Steimel, Holmes County clerk of courts, that will keep the Holmes County Department of Motor Vehicles in its current facility in the Clinton Street Building in Millersburg.
Finally, the board approved the Holmes County Department of Job & Family Services’ Program Year 2024 and 2025 Subgrant Agreement.
The agreement is designed to create a working relationship and guidelines between the Holmes County Department of Job & Family Services and the Greater Ohio Workforce Board Inc.
The agreement hopes to continue the united effort for both parties to provide comprehensive, business-driven workforce development services in coordination with other partners providing such services throughout GOWBI.