A 10% Difference

A 10% Difference

If you could make one move that would positively affect your entity’s credit rating, would you consider it?

three+one +10% Credit RatingToday, various credit rating agencies are looking at the overall liquidity health of public entities, especially after the impact of the COVID-19 pandemic.

What level of cash does your entity have on hand? What’s its ability to pay bills? How does carrying debt look on the balance sheet, both quantitatively and qualitatively?

The fact is that rating agencies are currently weighing the impact of liquidity on an entity’s credit rating by at least 10%. That means having an up-to-date liquidity analysis on hand could favorably impact your credit outlook and your actual rating.

Remember, liquidity is more than just having cash on hand. It is the level of information that can impact what you can borrow and the rate you have to pay.

Consider it as a 10% difference that could be worth millions to your entity—and your taxpayers.

cashvest® On the Road: MACo 2021

cashvest® On the Road: MACo 2021

three+one® was honored to spend time with county officials from across the state of Maryland at the 2021 MACo Summer Conference in Ocean City. While there, we had the chance to listen to many MACo members, better understand the challenges faced by local communities, and provide some of our own insights into preparing for 2022 and beyond.

We feel privileged knowing that our liquidity tools are mitigating the frustrations so many public finance offices face in meeting their ongoing cash-management challenges. Like your public service colleagues in Maryland, you and your entity can benefit significantly from our proven 6-step Pathway to Recovery®.

Take the 1st Step

Pathway to Recovery

Playing It Safe!

Playing It Safe!

your fiduciary responsibility to use this valuable resource wisely, especially given the unpredictable nature of this pandemic. This is definitely a moment in time when you’d want to “Play It Safe.”What if the COVID-19 delta variant takes a more dire path than one could imagine? Any renewed level of restrictions placed on the public, educational and business communities, overlaid with potential heavy burdens on healthcare and frontline workers must be considered. While actions like these are not expected, they should be top of mind when making emergency plans.

The good news is that you are prepared. You have the experience, the data, and the resources necessary to respond to these possible events. As you make such preparations, you should prioritize the actions that need immediate attention.

In my view, Job One should be preserving your newly received American Rescue Plan (ARP) funds. They may well be needed as an additional resource as this pandemic runs its course. As hard as it was to secure this high level of federal funding, it’s unlikely your state, county, municipality, or institution will receive any additional COVID relief funds.

Your community, institution, or public entity has been provided with a major source of support. It is now your fiduciary responsibility to use this valuable resource wisely, especially given the unpredictable nature of this pandemic. This is definitely a moment in time when you’d want to “Play It Safe.”

We Are On the Right Track

We Are On the Right Track

Over the past two years, we have seen our partners experience operational challenges that most folks would say could not have been planned for. The data we provided to these entities led to well-developed strategic plans, enabling them to maximize the value of their liquidity in any market condition.

Clearly, we were on the right track.

Here are just three examples:

cashvest On the Right TrackA New York State county: A comprehensive treasury-services review allowed its finance office to evaluate their banks on an “apples-to-apples” basis and streamline their service arrangements. This effort led to $299,000 in fee savings.

A Pennsylvania county: Prior to its relationship with three+one®, the entity felt it could practicably invest no more than $30.5 million. The cashvest® data we provided showed the county’s finance officers they could confidently invest $83.1 million. Before our assistance, they were earning only 81% of peer benchmarks. Now, using cashVest liquidity management and data, the county is outperforming benchmarks by 3500%.

A South Carolina city: During Q2 of 2021, the city’s effective interest rate on funds was earning a net yield of 0.59%. It should be noted that the federal benchmark during this same period was just .016%. Thanks to cashvest® data, this city’s finance officials can tell its stakeholders that their management practices are exceeding benchmarks by a whopping 3587%.

You will often hear our teammates say, “Nothing bad will come from planning.” Our track record of results confirms that message.

We’d like to help you and your entity on the Pathway to Recovery®.

cashvest® On the Road: NACo 2021

cashvest® On the Road: NACo 2021

three+one® was honored to spend time with county officials from across the country at the 2021 NACo Annual Conference in Prince George’s County, Maryland. While there, we had the chance to listen to many NACo members and understand the challenges they face in 2021 and beyond.

We feel invigorated knowing that our liquidity tools are alleviating the frustrations public-finance offices face in meeting their ongoing cash-management challenges.

A special guest speaker at the conference, Suffolk County (NY) Comptroller John M. Kennedy, Jr., shared his story of how our cashvest® liquidity analysis program has created new value for his taxpayers.

Listen to Comptroller Kennedy’s presentation:

 

We found our biggest takeaway from the conference to be: “Nothing bad can come from planning.” Our cashvest® program—a NACo-recognized best practice in liquidity management—is helping a fast-growing number of public entities and higher Ed institutions across the country create better financial outcomes for their constituents.