In preparing a balanced budget, the first option in making ends meet should be finding new sources of revenue before considering an increase in taxes. And, yet, raising taxes is almost a spontaneous reaction any time a budget gap is discovered – or even suspected.
At three+one®, we believe tax increases should only be levied as a last resort, not as the starting point.
Before a tax increase is even considered, can you, as a conscientious public official, say unequivocally that you’ve implemented every source of cost savings or new avenues of untapped revenue?
I estimate that nationally at least $500 billion of public cash is underperforming at marketplace rates. These dollars are either being kept on the sidelines for “just-in-case” expenditures or being left dormant since cash is considered to be a low-value asset. In many cases, this cash is being left in bank accounts with such little attention it may as well be invisible.
Just consider if the average yield on a public deposit was 2.0%. On a national basis, that equates to over $10 billion in new revenue for public entities. Let me repeat that: $10 billion per year of new revenue.
The revenue an entity can earn on all cash is no small amount. It’s generally enough to cover budget gaps, offset tax increases, or even enable offering tax rebates. I could go on and on. cashvest® by three+one® provides liquidity analysis and time horizon data that identifies and allows an entity to capture the full marketplace value on “all” cash.
Bear this in mind: the money public entities handle is not really their money; it belongs to the taxpayers.
Realizing the value of all cash is the first option one should consider before an entity even considers raising taxes.
Let cashvest® by three+one® help you put your cash to work.
Are you looking for a way to alleviate escalating expenses, cut
out miscellaneous fines/taxes for your taxpayers, or close a budget gap—but
can’t seem to find a solution? CFO Sarah Sullivan and her team at the Richland
Library in South Carolina have experienced similar issues. After working closely
over the last couple of years, developing and implementing a clear liquidity
plan, the library has increased its interest earnings by over 150%. This has
enabled the library to solve some serious financial challenges.
With Sarah’s proactive approach, and by incorporating three+one®’s time horizon and
treasury data, the library will completely eliminate all overdue fines this
upcoming fiscal year. The library is able to go fine free and put their mission
first by encouraging current and past customers to use the resources, services
and programs that they offer—without the fear of fines.
With Sarah and her team’s hard work and dedication to increasing interest
earnings over the last year, the library recorded over $208,000 in interest
earnings (net of fees) and has the potential to exceed $260,000 (net of fees)
over the next 12 months. Here are a few ways the library has achieved record interest
• By ensuring 100% of all the library’s funds are providing value,
either through direct interest earnings or by offsetting banking fees.
• By continuing to work on balancing the library’s operating
balances and using three+one®’s time horizon data as cash flows change to ensure all low- and
non-performing cash receive the maximum rate potential.
• By utilizing three+one®’s liquidity data to identify solutions
within their current banking relationship for short-term funds. Doing so
ultimately resulted in 50% of their annual earnings.
We’re thrilled for Sarah Sullivan and her team and are pleased to
share the Richland Library’s success
Now let three+one® help put all your entity’s cash to work, finding solutions for
potential budget shortfalls, lowering tax burdens on constituents, and so much
Lycoming County, Pennsylvania is located
approximately 130 miles northwest of Philadelphia and is the largest county in
the state by land area. It has a population of approximately 113,000, and its
county seat, Williamsport, is the birthplace of Little League Baseball.
Lycoming County is divided by the Appalachians and is beautified by rivers,
creeks, and watersheds. As gorgeous as the landscape in this county is, what
makes it such an incredible place is the people; they are kind, hardworking,
professional, and the county officials are true public servants.
With the partnership and collaboration of the
county’s Commissioners, Director of Administration, Fiscal Services,
Treasurer’s Office, and the Controller’s Office, the county has made cashVest®
by three+one® an integral part of its liquidity monitoring
responsibilities. All officials have made earnings and savings a priority for
the taxpayers’ cash. When asked about the importance of the cashVest®
program, Matthew McDermott, Director of Administration, stated: “Counties have
a myriad of responsibilities and functions they carry out to serve their
residents. Lycoming County recognized
that it did not possess the in-house capability or expertise to effectively
monitor and conduct the analysis of its liquidity, so we turned to three+one®
to make the most out of our cash.”
During the county’s initial cashVest® period (January 2017 – December 2017), the county was focused on investing its available cash. With an annual budget of nearly $103 million, the county earned $603,165 in interest during that initial 12-month period.
Over the last 12 months, Lycoming County used
liquidity data, technology, and treasury services and is on track to earn no
less than $2.1 million in interest—an increase of over 248%. “I’m here to
do everything I can for the Lycoming County taxpayers. This program has
increased our collaboration with the county’s banks and has provided valuable
data that the Treasurer’s Office uses,” says County Treasurer Connie
The question your entity should be asking is
this: Would such an increase in interest income/savings benefit your taxpayers?
Whether it helps fund a new capital project, hire an additional staff member,
increase wages for current staff, pay down debt services, or something else, the
answer must be an emphatic ‘Yes!’
Lycoming County officials have done an
outstanding job utilizing three+one®’s data and analytics to
maximize the potential of its cash in the following ways:
● Allowing 100% of funds to provide value to
the county by having equitable banking relationships.
● Increasing liquidity proficiency by ensuring
its cash is taking advantage of time-horizon data.
● Maximizing the rates earned on all cash
through market statistics.
● Optimizing cash flow through banking
technologies and account-balance optimization.
These steps have all led to providing the
greatest value to the county’s taxpayers. The county is now earning over 3% of
its total tax revenue from interest income and savings on an annual basis,
creating a new stream of revenue which the county will use to mitigate tax
By taking advantage of three+one®’s
independent and objective analytics, you can be certain that all opportunities
to earn more will be achieved. Just remember that Lycoming County is earning in
excess of $150,000 in interest income and savings each month.
Let three+one® provide your entity
with the tools it needs to prosper, just like we’ve done for Lycoming County.
We were thrilled to introduce our new website to the world last month,
and now we have the cherry on the cake!
Our marketing team at Steven James Media Group has delivered the new cashvest®
by threeplusone® overview video that features our founders along with two of
our valued clients explaining what we do , how we do it, and what results are available
for public entities and institutions of higher education across the nation.
Scott German is the Genesee County Treasurer, New York State, and Maria
Walls holds the same position in Beaufort County, South Carolina. We sincerely thank them for their generosity
of time and spirit in their efforts helping us explain the process of using
cashvest® by threeplusone® and what our partnership with their respective
counties has achieved for their bottom lines.
We do not use the term ‘partnership’ frivolously when describing our
relationships. When working with a
client, we are fully vested in helping them achieve their goals and
aspirations. At threeplusone® we
intimately understand the challenges and increasing pressures that face public
sector officials and financial officers in higher education these days. We have served in the same capacity ourselves
as public representatives and university overseers of fiscal operations. There are new regulatory oversights
constantly appearing on the radar, time-crunches that only seem to tighten but
never loosen, and a host of security and protective measures that must be
considered in this age of ubiquitous social media and digital finance.
cashvest® by threeplusone® exists to find you new revenue sources from
your existing cash holdings, to help ease the pain points that we know are
faced by public officials and higher education officers, and to strengthen your
relationships with the financial and banking institutions with whom you conduct
business. Feel free to contact us for
more information at threeplusone.us