In accordance with state law (T.C.A. §5-8-301 (PDF)), the Shelby County Trustee, acting as the banker on behalf of the Shelby County Government, has the responsibility for investing county funds which are not designated for immediate use. Each day the Trustee reviews bank balances from over 40 different bank accounts to identify money that can be invested for periods ranging from one day to two years. Interest earnings from these investments enable various county offices to increase operating revenue.
How and Where Are Tax Dollars Invested?
Treasury analysts within the Trustee's Office continually monitor economic and market conditions to maximize interest earnings. All investments are made in compliance with state guidelines and include:
Agencies of the United States Government
Certificates of Deposit
Tennessee Local Government Investment Pool (LGIP)
Commercial Paper or other Short-Term Debt Instruments
U.S. Bonds, Notes, or Treasury Bills
The three main objectives in managing the investment portfolio are to provide safety of principal, to ensure liquidity to meet operating requirements, and to generate a market rate return on the investments without assuming undue risks.