Elbert County adopts investment policy; pool’s total remains unclear

Elbert County commissioners adopted a new investment policy effective July 22 that allows most county cash and reserves to be pooled, while imposing tighter limits and oversight.

The policy replaces the county’s 2017 framework and applies to all investable county funds except pension and deferred-compensation plans. It permits participating funds to pool cash and reserves, with investment income allocated according to each fund’s participation. Restricted or special-fund cash may remain outside the pool. Debt proceeds are to follow the county’s general investment philosophy.

The policy does not state the pool’s dollar amount or identify how much each fund will contribute. The county’s January-June 2026 financial report lists June ending balances of $26.66 million in the General Fund, $3.19 million in Road & Bridge, $9.47 million in the Road & Bridge Sales & Use Tax Fund, $6.04 million in the Impact Fund, $2.45 million in Social Services, $678,352 in Sun Country Meadows PID and $793,621 in the Conservation Fund. Those balances total about $49.3 million, but they are not a confirmed pool total or a complete accounting of covered funds. The six-month report is incomplete and has OCR and formatting problems that prevent a reliable report-wide reconciliation.

The adopted policy gives County Treasurer Sheryl Hewlett responsibility for administering the program, while the Board of County Commissioners retains authority to adopt the policy. Hewlett must develop written procedures and internal controls, maintain lists of authorized broker-dealers and financial institutions, and protect county assets from loss, theft or misuse. Transactions generally must be competitively bid when practicable, with prices recorded. Securities generally must be held by a third-party custodian in the county’s name and settled through delivery versus payment.

The policy sets a five-year maximum maturity for most investments. Corporate and bank securities are limited to three years and 30% of portfolio book value, with no more than 5% exposure to a single issuer. Municipal securities also are capped at 30%, with a 5% single-issuer limit. At least 10% of the portfolio must mature within 90 days, and callable securities are limited to 20%. Futures, options, margin trading, foreign-currency securities and speculative rate-direction trading are prohibited.

Hewlett must review the portfolio at least twice a year for compliance and establish procedures for reporting major or critical violations to the board. Downgraded securities must be reviewed and, if retained, monitored and reported monthly. The policy also requires an annual performance report, an investment plan for the following year and a policy review within 120 days after the fiscal year ends.

The policy establishes the rules and oversight structure, but the records do not show how much will ultimately be invested, how the portfolio will perform or whether the county has executed a pooled transaction.