ALLEN COUNTY, Ind. (WANE) — Allen County is reaping the benefits from higher interest rates.
That is what Allen County Commissioners learned Friday at their weekly meeting when Allen County Treasurer William Royce reported favorable growth from 2021 through last year.
“All of 2021, we earned $782,000 in interest. In 2022, and remember, rates weren’t high for the whole year, they’ve been gradually going up as the year’s gone along, we’re at $3.2 million,” Royce announced for all the county investments. “So quite an increase, and that’s a really good thing for the county.”
In the county general fund, the comparison was about $413,000 in 2021 compared to $1.44 million this year, according to a graph provided by Royce.
The county general fund is one of 10 funds called the “Top Ten Funds.” The fund with the second highest interest income was the ARPA Coronavirus Fiscal Recovery Fund. In 2021, interest amount to $61,000; in 2022, the interest income came to nearly $760,000.
According to statistics Royce included in his annual investment report, bank rates were at .25% in 2022 and close to 4% as of Jan. 1 of this year. On Jan. 1, 2021, the federal interest rate was at zero. The commissioners also serve as the Allen County Board of Finance.
Royce appealed to the commissioners to allow his department to lengthen the time the county holds treasury notes from two years to 2.5 years. “State law allows us to go up five years. We never wanted to do that because it was too unpredictable. That’s not good. We always stay conservative with two, I would like to move to 2.5 years.”
“His job is to take those dollars we have on deposit and earn whatever interest can be made outside of a checking or savings account,” said Therese Brown, Allen County Commissioner. “Interest rates have not been very positive over the last several years. Recently, interest rates have gone up considerably, so he’s doing his annual report to us which basically gives each of the funds and operating funds that are out on our books the ability to yield more revenue so that they can go farther.”
The end result is that the county will have more money for programs “depending on what fund they go to,” Brown said.