(The Center Square) – The Spokane County Treasurer’s Office announced Thursday that its investments earned local taxpayers more than $47 million this past year alone.
Treasurer Michael Baumgartner, recently elected to the U.S. House of Representatives, issued a news release Thursday morning touting the success. In addition to collecting property taxes, Baumgartner and his team manage the Spokane Public Investment Fund.
Over 80 local government entities contribute to the SPIF, from airport and transit authorities to school, fire and cemetery districts. Each commits portions of their cash reserves, which the treasurer invests in fixed-income assets before returning the earnings to SPIF members.
“Every dollar we earn is another dollar that county residents don’t have to pay in taxes,” Baumgartner wrote in the release. “Local government can meet financial needs with this income rather than with tax increases.”
Investment Officer Dan Bisbee told The Center Square that historically high interest rates are driving SPIF earnings to new heights. However, as nice as that is, he said it’s not the primary goal.
The main objective is preserving capital by avoiding risky investments, followed by liquidity. Investments are scattered to provide long-term growth and ensure there’s money available if someone needs it. The yield comes last as an added benefit but could slow with interest rates.
The resulting earnings support local services, benefiting the entities contributing, which they pass on to the community. Bisbee compared the SPIF to a bank, with the entities acting as checking accounts that earn interest based on how much an investment makes.
He said each receives a monthly payment of the earnings proportionate to their contribution.
Baumgartner will assume his new congressional role next month, leaving the county treasurer position open. However, Bisbee said the change wouldn’t affect the portfolio much, which is tied to a 2021 investment policy, preventing any dramatic shifts in management.
The SPIF was valued at $1.9 billion last year and earned over $40 million, which increased to over $47 million this year. According to Thursday’s release, the fund has earned local taxpayers approximately $170 million since Baumgartner took office about six years ago.
“It’s been a benefit to us and our constituents that we’ve been able to make the earnings like we have,” Bisbee said, “but it was certainly not our main objective.”
