Aurora’s $165,000 Example

Aurora’s $165,000 Example

The Town of Aurora, New York is located southeast of Buffalo and includes the Village of East Aurora. Its Main Street is famous for its energetic small-town ambiance with specialty shops, restaurants, and historic homes. It may be most celebrated as the home of Fisher-Price, the internationally renowned toy manufacturer.

The Town of Aurora, with a population of approximately 13,000 (2010 census), has an $8.9 million budget (all funds). In August 2017, Supervisor Jim Bach and the Town Board engaged the cashvest® & rfpPrep® services by three+one®, seeking to provide their taxpayers with as much additional revenue/savings as possible.

Supervisor Bach and Assistant to the Supervisor Kathleen Moffat have carried out three+one®’s plan. Over the past twelve months, the Town has achieved $165,820 in realized interest earnings and “soft savings” of $35,902 in banking fees.

Here are some of the ways the town accomplished this substantial spike in additional revenue:

(1)  100% of the town’s cash is earning interest and 79% of all the town’s cash is providing value through a diversified-liquidity strategy that is meeting the 30-day Treasury index. Current investments are earning between 1.89% and 2.15%. Due to the town’s proactive liquidity strategy employing time horizon data and stress-test modeling, the town has a significant portion of cash locked in fixed-income solutions earning 2.10% through October 2020 – something that could not have been achieved without time horizon data and fixed income solutions.

(2)   The town does not look at its cash in select “buckets.” The three+one® plan benchmarks all cash on a quarterly basis and helps the town implement a comprehensive liquidity strategy on all cash in order to guarantee all assets are bringing value to the taxpayers. There’s a science behind continually earning while offsetting banking services, ensuring cash flow for A/P & payroll, and strategic liquidity time horizons.

(3)   The Town Board revised and updated its investment policy statement and took steps to adopt electronic payment solutions. These steps provided the framework necessary to ensure the safety of public dollars while meeting all legal requirements and maximizing the value on cash. The adoption of electronic payment options: (1) decreased costs, (2) increased float (increased investment potential on funds), and (3) provided increased transparency through online ePayable technology.

The Town of Aurora’s Board is enthusiastic about trying solutions that provide additional revenue to the taxpayers. With proposed AIM (Aid and Incentives for Municipalities) funding cuts in New York, tax-cap limits, infrastructure needs, and abundant taxpayer service essentials, this new income will provide a much-needed boost in revenue.

If you are a town/village/city or school district weighing the options of whether to take advantage of bringing revenue benefits to your entity, consider the size of your budget and identify your year-to-date interest earnings.

Here are some examples of where interest earnings using cashvest® by three+one® should be:

$5 million budget = at least ~$94,860 in income

$19 million budget = at least ~$353,400 in income

$22 million budget = at least ~$409,200 in income

$69 million budget = at least ~$1,283,400 in income

$92 million budget = at least ~$1,711,200 in income

Finally, bear in mind that there is no one solution in today’s public banking marketplace. Be cautious and skeptical of any vendor that suggests a “one size fits all” product; they simply don’t exist. Public entities have different banks, ever-changing liquidity variations, strategic-liquidity amounts of different sizes, varying degrees of experience, and available time horizons.

We’re proud of the success The Town of Aurora has achieved. We stand ready to do the same for your entity.

Vlog: Celebrating 5 Years!

Vlog: Celebrating 5 Years!

Join our team at three+one® in officially celebrating the firm’s 5 year anniversary! This journey started as a mere dream between Joe Rulison & Peter Forsgren 25 years ago. Today we are able to boast more than $150M in new revenue for the public & higher-ed entities our company serves, and in turn for your taxpayers & students. 

Will you be a part of this continued success in our next 5 years?

 

Vlog: Investing in Public Finance Officials

Vlog: Investing in Public Finance Officials

Finance is a continuous and rapidly evolving industry. Technology, regulatory requirements, and obligations to our taxpayers or higher-ed stakeholders are at the forefront of policy considerations.

In today’s vlog we discuss the importance of investing in the education of our finance officials. Professional development is vital to the success of your finance office and your entity.

 

New rfpPrep Site Launch!

New rfpPrep Site Launch!

We are excited to share with you the launch of our new rfpPrep® website!

 

rfpPrep® is the first-ever digital RFP (request for proposal) for public sector & higher-ed financial services.

Reduce the RFP process time by 75% while evaluating financial services options for your entity using an error-free & fair bidding platform. rfpPrep® is an entirely online tool for your needs in BANKING, INVESTMENT, MERCHANT SERVICES & E-PAYMENTS.

Visit rfpPrep® by three+one® to learn how this tool can work for you.

 

There’s No One Way

There’s No One Way

There’s no one way to manage cash. Different banks, investment advisors, and financial advisors have their own approaches and perspectives in the management of short-term cash.

However, there is one essential in managing short-term cash: to manage all cash as a revenue-generating asset. You must keep in mind that cash is not linear, but rather multi-dimensional, with different purposes, both in time and value.

Cash Management

Cash is multi-dimensional, with different purposes, both in time and value.

The ability to capture the ebbs and flows of all cash is in the data. Cash patterns are similar to human behaviors since humans are the ones who are conducting the timing of transactions. The genuine need for cash is often far different than when you thinkyou need it. The patterns detected through the data will show actual needs vs. assumed ones.

The cashvest® platform by three+one® is the first of its kind in the public and higher Ed marketplace. It looks at every individual banking transaction, thus detecting the flows of cash through an entity’s financial systems, and then matches it as the cash flows through your bank’s systems. It’s through cashvest® that patterns surface, enabling unparalleled liquidity management. This level of data puts the power of managing your cash in your hands and the financial institutions that manage your cash.

The strength of liquidity analysis and data leads to a greater precision of knowing when you need cash and how to best maximize its value in the marketplace.

Yes, there are different methods to managing cash. But now there is one definitive way to identify all of your cash’s investment potential. That is cashvest® by three+one®.