Decreasing investment interest rates might result in $400,000 less income for employee raises and projects for Athens County in 2009.
The Athens County treasurer's projected investment income for next year is $600,000, compared to about $1 million for this year.
But income projections can be conservative as a safeguard against overbudgeting, said JaVon Kittle Cooper, the county treasurer. For example, last year's projected investment income for 2008 was $800,000. The county now predicts it will exceed that by $200,000.
Investment income supplements the county's general fund, which supports 23 different departments and agencies. It makes employee raises and extra projects possible, said Cooper, who is running unopposed for her fourth term as county treasurer. She earns $53,214 per year.
Investment income is the difference between having a good year and a bad year
Cooper said.
The county might not be able to give any raises next year, to hire new employees or to fill vacant positions, but it is too soon to tell, said Athens County Commissioner Mark Sullivan.
We should be able to weather that (loss of investment revenue) but it won't be easy he said.
The county's investment interest rates have dropped from about 5 percent last September to 2 to 3 percent, according to county documents. These interest rates decrease as demand for safer means of investing rises, Cooper said.
With everything else going on in the county and the world
everybody wants to know how it will affect us
she said. It will affect us in that our income will be lower.
The state and county investment policies mandate Cooper's investment decisions.
The treasurer manages an average of $25 million every month in government guaranteed bonds, certificates of deposit at local banks and a state-run investment fund for government agencies.
With these investment strategies, the county will break even in a worst-case scenario and will not lose its base investment.
We invest for stability
security and safety
Cooper said.
rb279905@ohiou.edu
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Rebecca Black
