Treasurer Burke Reports Record High $7.9 Million Interest Income

At the recent quarterly meeting of Medina County Investment Advisory Board, County Treasurer John Burke reported that last year interest income from the County’s investment portfolio hit $7.9 million. “That is the highest earning on record in the past 30 years,” said Burke. Treasurer Burke is chairman of the Investment Advisory Board which also includes the County Clerk of Courts and all three County Commissioners.
 
According to Treasurer Burke this extra money income from investments helps pay for county services and expenses. “In a time where the county’s cost of everything from wages and health care to road construction and bridge maintenance is increasing, this interest income helps to deliver on the county’s core commitment to provide necessary services to our growing county while keeping the quality of life high and our taxes low,” Burke said.
 
Burke credits the record high earnings to the use of sound fiscal conservative investment strategies. Since taking office Burke has made over $88 million from interest earnings for the County. “The annual County budget is $70 million, so the total investment interest earned over my tenure has provided enough extra money to run the County free for over one year.” Burke stated.
 
The Medina County Treasurer oversees the collection, deposit, and investment of an annual cash flow of $730 million. Burke explained that $412 million of that figure is from collection of real estate property taxes. The remaining $318 million is collected from all other county agencies which legally must deposit their money with the Treasurer within 24 hours of receiving it. The Treasurer is responsible for the safe investment of this money.
 
When asked how the money is invested, Burke explained that the Ohio Revised Code allows for investment in interest-bearing vehicles with a maturity limited to five years, but restricts investing in equities or stocks, because of the risk. “The size of our portfolio averages about $220 million on any given day which is invested in 100 to 120 different investments”, said Burke. Currently the portfolio is well balanced over a five-year majority with 45% in different US Agencies, 44% in US Treasury bills, 5% in commercial paper, 5% in municipal bonds and 1% in municipal bonds. 
 
Burke considers himself to be a conservative investor with the public’s money. His investment strategy has three basic goals: 1. Safety of principle. 2. Maintain liquidity. 3. Earn the highest yield possible. “We have always met these 3 goals and in these volatile economic times, I am proud to say that we have never lost any money from investments” reported Burke
 
“Education and experience investing public funds is a necessary part of being County Treasurer,” said Burke. The Ohio Revised Code requires Treasurers to complete 12 hours of continuing education each year as approved by the State of Ohio Auditor and Treasurer. Treasurer Burke has always met this requirement by attending professional conferences and seminars. He has received numerous advanced educational certifications from State and National organizations such as CTAO, IAGO, and NACTFO. Treasurer Burke has been honored as a recipient of Ohio’s Public Fund Manager of the Year Award by the State of Ohio Treasurer out of 3,500 public fund managers.