Lake County Treasurer Michael Zuren has announced that his office’s total interest income for 2023 is projected to increase “substantially” this year, exceeding $11 million.
In comparison, 2022 showed $3.8 million in interest income.
“I am very proud of my team’s development and execution of our investment strategy,” Zuren said. “We have focused on the rate of return and implementing corporate bonds as a tool to maximize the safest and greatest return for county investments.”
The work has led to an “unexpected windfall” for the residents of Lake County, the treasurer added.
In 2020, interest income totaled $3.1 million; in 2021, interest income was at $1.5 million; and in 2022, interest income was at $3.8 million.
According to Zuren, the $11 million will make a vast difference.
“This has been a total team effort,” he said, expressing gratitude to fellow investment committee members (Lake County Commissioners) John Plecnik and Richard Regovich.
The investment team is also advised by Meeder Investment Management.
Zuren additionally noted the investment advisory board took a layering strategy to boost return by focusing on shorter-term maturities offering greater interest income to maximize return.
“Based on the Federal Reserve’s projections, interest rates should continue rising through 2023,” he said. “We are able to lock in the reinvestment of short-term funds and longer-term investments on treasuries and corporate bonds near or exceeding five percent.
“The increase in interest income from county investments would be the best return for Lake County in recent years,” Zuren added. “In 2023, the county’s investments that are maturing are roughly $80 million, which will result in a significant rate of return improvement when these funds are reinvested.”