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.

Transparency

Transparency

In an era when information of all kinds is instantly available online, requested fiscal data from finance officers is expected at the snap of a finger. Greater awareness and access of information, through technology and social media, forces finance departments to be ready and able to provide a new level of transparency. This is especially true when it comes to taxes, budgets, and expenditures.

Whether it be the elected officials to whom you report, the media, the public, or your own employees, the expectation for accurate, real-time information has escalated.

The pressure to provide increased transparency—with fewer resources and in a more immediate time-frame to do so—creates greater stress to those in the government and Higher Ed. sectors. These areas are under more intense scrutiny due to new and stricter regulations, enhanced media coverage, and ongoing tax/tuition pressures.

When it comes to accountability, being able to report the level of cash an entity has on hand may be more difficult than one may think. With several banking relationships and dozens of bank accounts, an entity’s ability to tabulate and chart all cash can seem to be an overwhelming task. However, given that it is the taxpayers’ cash one is talking about, the need to be timely and proactive is imperative.

At three+one®, our cashvest® liquidity analysis and data can provide you with a complete picture of all your cash at the click of your mouse. Having such information at your fingertips gives you the confidence you need when difficult questions are asked—and transparency is expected.

The request for information today is more demanding than ever, but it doesn’t have to be a dreaded task. With our help, you can have the information you need at the moment you need it.  You will not have to divert precious time and labor to the calls for transparency that seem to be ever-increasing in current times.

The Power of Cash

The Power of Cash

Imagine the power that cash holds in today’s marketplace. With short-term rates still hovering above 2.0%, the income generated on idle cash can have a major impact on one’s entity and those they serve 

As we enter the budget season mid-year or at year end, the challenge of stretching tax dollars often leads to less resources or decisions of where to cut, especially when tax caps can easily be outweighed by insurance premium increases, pension obligations, cost of living increases, or other essential services. 

Too many times the frame of mind in forming a budget comes down to cost controls, rather than revenue-producing opportunities. While this may be understandable at one level, it is not a mind-set that will move your entity forward.  At best, you will be in constant ‘treading water’ mode.  


A great example is the value of one’s cash. So many see the need to have idle cash available for ‘just in case’ circumstances rather than viewing cash as an asset to generate additional income and opportunities. 

At three+one® we can help a public entity find new sources of revenue through all levels of cash. In 2019, three+one®’s flagship service cashVest® will provide proprietary liquidity analysis and data that will result in over $100 million of new revenue to communities that will lead to:

  • Closing a budget gap
  • Preventing additional tax increases
  • Providing additional teachers, police, firefighters & EMTs 
  • Technology upgrades
  • New community services 
  • After-school programs
  • Student field trips 
  • Arts & Cultural community events 
  • New musical instruments 
  • Enhanced sports Programs 
  • Continuing Education & Online Learning

Obviously, the list can go on.  Simply put, the power of cash can have a wonderful impact on one’s budget today and in the future. The time is now to have a conversation with the team at three+one® about our cashVest® liquidity analysis service. The result could make all the difference between stagnation and growth in your 2019 and 2020 budgets. 

It’s TIME

It’s TIME

Last week the Federal Reserve stated that there will be no more short-term rate hikes for the remainder of 2019. Their outlook seems to be influenced by concerns of slower economic growth both in the U.S. and worldwide.

While many may view the Federal Reserve’s recent announcement as a concern, we view it as a major opportunity. CashVest® by threeplusone® is specifically designed to transform stagnant cash holdings into a vibrant revenue- generating source for your entity.

 

It’s TIME

 

This move triggers a major strategy shift around the value of cash. Over the last two years, those who have invested cash have kept to a 30-90 day rollover strategy.

This is now the time to extend your cash through the use of cashVest® by threeplusone® and its powerful time-horizon liquidity data. Through our proprietary liquidity analysis, we can demonstrate the actual need for cash while balancing the levels of cash needs over a 5-year period. This allows one to maximize the value of all cash, while allowing your financial institutions and advisors to invest your cash over an extended period of time, allowing the ability to preserve 2.25%+ on your cash.

Cash has value. The knowledge and power to accurately identify when you most need cash allows one to capture and preserve interest earning through the remainder of 2019 and into 2020.

You have a fiduciary obligation to manage the cash for those you serve. It’s time to preserve your cash’s value in the marketplace for a longer period of time, especially if you have the time-horizon data to provide the confidence to you and your financial institutions.

Allow your public sector organization or higherEd institution to find out what so many others across the country have learned: CashVest® by threeplusone® will provide new revenue quickly and directly by increasing the yield you receive from your existing cash.

As a Taxpayer

As a Taxpayer

As one looks through the eyes of a taxpayer, how do you think they would react to any one of the following responses from a public official when asking about how the entity manages their public cash?

1.) Why bother? Cash has no value.

2.) I don’t have the time, given all our other priorities.

3.) All our money is already invested in our bank.

4.) I don’t want to risk not having cash when I need it.

5.) I don’t currently have the staff or resources to look into this.

6.) It’s probably not going to be worth the effort.

7.) My board won’t approve it.

8.) It’s only going to bring in another $50K to$100K. That’s not enough to really impact my bottom line.

9.) All our cash is spread among so many banks and bank accounts, it would be a giant hassle.

10.) I don’t want to upset my bank or bankers.

Just imagine if those you serve heard those responses as they open their tax bill or tuition bill.

Given the financial stresses and tight margins public and higher Ed institutions experience, the need to have a single asset sitting dormant provides little cover when asked this hard question: “Why didn’t you?”

As a Taxpayer

cashVest® by threeplusone® is our proprietary liquidity analysis service that helps public entities take unrecognized and underappreciated cash and turn it into a revenue-generating asset.

Cash has real value in today’s marketplace—on average 2.25%. That can add up to real income in the six- or even seven-figure levels.

As a treasurer of a public authority and a trustee to a university, I truly understand the stresses on a finance staff. One more request can mean putting something else aside. However, you do not need to do this alone. The threeplusone® team can analyze all your cash, develop time-horizon patterns on it, and work alongside you in having a conversation with your bank(s). The end result: higher earnings on your cash.

Regarding private higher Ed institutions, our liquidity analysis will substantiate your Financial Accounting Standards Board (FASB) liquidity-disclosure requirement in 2019.

Join the ranks of our clients whose most common question after using cashVest® by threeplusone® for the first time is: “Why didn’t I do this sooner?”

Time Horizon = More Money

Time Horizon = More Money

Time has worth. Time-horizon data are what makes cash worth more in the marketplace. The ability to know how soon you need cash and how long you don’t need it at the ready, is the very foundation of liquidity analysis.

Whether short-term rates continue to move up or flatten out, the ability to time the flows of your cash is a speciality that has its rewards in today’s marketplace, with rates floating at 2.25%+.

The need to keep cash handy to pay a “maybe” vendor bill is no longer a sound strategy. Rather, using historical “ebbs and flows” allow an entity to take advantage of the marketplace rates going forward. Some may consider this cash-flow management. At threeplusone, we see it differently. To us, it’s liquidity management.

Capturing higher rates and maintaining it is all about understanding the time-horizon concept.

One might say, “had I only known.” That no longer has to be the case. By using time-horizon data, one can look forward and map out a strategy to manage all cash, both short or long term. Using this data can lead to six-figure (or greater) increases in interest earnings.

At threeplusone, we have been recognized as the pioneers of liquidity analysis for public and higher Ed entities. We have developed proprietary algorithms that design time horizons around all levels of cash, enabling our clients to understand the value of their cash in marketplace, while adhering to all legal, safety, and liquidity requirements.

The time has come to make more on your cash by applying our liquidity analysis principles. You’ll be thrilled with the results!