Looking over the county code can be dry but educational, according to Berks County Commissioner Mark Scott.
While perusing the code last fall, he noticed that the commissioners were responsible for investment options regarding the county’s sizeable budget surplus.
“Most were operating under the erroneous assumption that the treasurer had this responsibility,” Scott said.
During Thursday’s commissioners’ meeting, commissioners’ Chairman Christian Leinbach credited fellow Republican Scott with discovering a way to generate more revenue for the county through that investment.
Since last fall, the board and the county’s Chief Financial Officer, Robert Patrizio, have met with different investment firms, narrowing the search and eventually choosing National Penn Investors Trust.
At the March 5 budget meeting, the board plans to sign an agreement after representatives from National Penn make their final recommendations.
“The investment policy represents the harvesting of another piece of low hanging fruit. We often say we think we picked it all,” Scott said.
The policy will most likely include investing 20 percent of the $100 million surplus in a five-year treasury note, which would increase the interest yield by .5 percent, Scott said. The result could be a gain of $500,000 a year.
“Five years from now, we may need that money, but in the meantime, let’s earn on that money while we can,” Scott said.
The commissioners plan to move quickly on the recommendations made by National Penn at the March 5 budget meeting, to begin earning the higher interest rate as soon as possible.
“Make a note that it is our intention, to review the recommendations and move forward,” Leinbach said.
Patrizio added that National Penn could begin executing the transactions involved in the investment the following day.
