Treasurer’s Report – January 2014
by Dave Wieland
The balance of unrestricted funds as of December 31, 2013 was $8,885,003 which includes a $2.5M cash reserve. Restricted funds include the Preservation and Improvement Fund (“PIF”) and the Capital Reserve Fund. As of December 31, 2013, PIF had a balance of $12,273,058 plus $437,500 collected in December that was transferred into the PIF account the first part of January 2014. The Capital Reserve Fund had a balance of $1,000,044 as of December month end.
The corporation has operated within its budget for the 2013 fiscal year.
Investment Report 4th Quarter 2013:
At the end of the second quarter, the Franklin Templeton unrestricted money market fund had an ending balance of $5,013,843.98 and the restricted Franklin Templeton money market fund had an ending balance of $8,273,102.11.
RCSC’s Investment Policy (Board Policy 33) is stringent in its requirements with the priority of investment objectives to be placed in this order: 1) safety, 2) liquidity, and 3) yield.
As of December 31, 2013, RCSC had invested in four fixed income funds: Franklin Adjustable U.S. Government Securities Fund Class A, Franklin Limited Maturity U.S. Government Securities Fund Class A, Franklin Low Duration Total Return Fund Class A, and Franklin U.S. Government Securities Series Class A.
At the end of the fourth quarter in unrestricted funds, RCSC had invested $2,500,000 into the aforementioned four fixed income funds with an ending value of $2,488,386.35 as of December 31, 2013, showing a .46% decrease in value of $11,613.65.
At the end of the fourth quarter in restricted funds, RCSC had invested $5,000,000 into the aforementioned four fixed income funds with an ending value of $4,972,512.90 as of December 31, 2013, showing a .55% decrease in value of $27,487.10.
The fixed income fund producing the largest decrease in value was the Franklin U.S. Government Securities Series Class A which has an average duration of 5.3 years, longer than the other funds. Our broker continues to monitor the bond markets and our account very closely.