Overview:
There are currently three major focuses of the Treasury Department – cash, investment, and debt management. Cash management includes timely provision of adequate funds for necessary District disbursements through liquidity cash flow analysis by fund and inflows/outflows of cash via wire and ACH transfers. Investment management is the investment of District receipts and revenues with emphasis on preservation of principal while maximizing yield through varying economic cycles. Debt management includes making on-time payments to bond holders, maintaining an ongoing efficient debt structure, monitoring the debt service extension base capacity, and maintaining the District’s AAA credit ratings.

History:
From 1998 through 2008, Investment Interest Income realized by the District totaled $280.8 million, reaching a historic high of $46.2 million in 2007. These funds permitted the Abatement of Real Estate Taxes over the ten-year period, totaling $106.2 million. Savings realized from the refunding of outstanding bond issues over the period contributed additional Real Estate Tax Abatements in the amount of $32.7 million for a total of $138.9 million over the ten years. This represents a direct reduction of taxes levied and collected from District taxpayers.

An OPEB (Other Post Employment Benefits) Trust has been created to provide control over the unfunded liability for District Retiree Healthcare. The Trust has been funded in the amount of $40 million to date and will receive $10 million in each of the next three years. Operation of the Trust falls within jurisdiction of the Treasury Department, and oversight is provided by an Executive Committee composed of the Chairman of the Finance Committee, the Director of Finance, and the District Treasurer.

Vision statement:
The Treasury Department currently utilizes the Bloomberg system in researching daily investment rates available for Commercial Paper, U.S. Treasury and Governmental Agency securities. Envisioned for the future is an expansion of this utility as well as other data and information systems online to provide a thorough range of alternatives for investment on a daily basis, permitting knowledgeable and confident investment decisions.

Additionally, development or acquisition of an investment modeling system will assist in investment decision making by testing “what if” alternatives in rates and length of maturities to determine the optimum investment under the assumptions being applied. The objective is an ongoing information system to provide a thorough range of data and knowledge in determining the best investment decisions on a daily basis.

Mission statement:
To direct the District’s financial program to maximize investment interest income while preserving safety of principal; issue bonds to meet District capital requirements; make timely payment of required debt service; and provide continuing sound financial management to maintain the District’s exceptional AAA bond rating.