First Option to Consider

First Option to Consider

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? 

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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.

A Story to Tell

A Story to Tell

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 with three+one® 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 earnings:

• 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 story.

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 more.

Leading By Example

Leading By Example

by Tyler Frame

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 Rupert. 

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 increases.

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.

Lights, Camera, Cashvest!

Lights, Camera, Cashvest!

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