Hospital district considers investment option

In the light of recent cost-of-living increases and a nationwide period of high inflation, Crook County Medical Services District is seeking new ways to increase its liquidity.

The Board of Trustees recently approved a rate increase for services and, last week, listened to a presentation from a local government investment pool called Wyoming CLASS.

The name stands for “Wyoming Cooperative Liquid Assets Securities System”, a program organized in 2020 to provide public entities in this state with a competitive investment alternative. Participants are invested in short-term, prime or high-grade fixed income instruments.

The board is interested, says Chairman Mark Erickson – particularly so because the organization already works with all 23 counties and various cities.

Regional Director of Marketing Troy Hunsucker was asked to visit with the board at last week’s meeting and the board felt it would like to proceed with next steps.

“We have requested the information packet and we will have it reviewed as due diligence by our outside accounting firm, Casey Peterson,” he says.

Wyoming CLASS is averaging a 5.3% interest rate, he says. This makes it potentially a better way to “store” funds that are not currently being used.

For example, the district has a construction account into which it has been funneling money when possible for needed upgrades to its infrastructure. This money will not be spent today, or next week – it could be years before it is put to use.

Instead of leaving it in a run-of-the-mill savings account, Erickson explains, the board is considering putting money allocated to different savings into Wyoming CLASS, where it has the potential to bring a much bigger return.

The money is not tied up, he notes. The board can request some or all of it at any time and it can be accessed the same day if requested by 1 p.m.

The board has discussed placing roughly $4 million from, says Erickson, “accounts not accessed on a daily or weekly basis” into Wyoming CLASS.

Wyoming CLASS describes itself as having three investment objectives: minimizing risk, managing investments to make sure cash is available as required by the participants and maximizing current income. It is overseen by a board of trustees and open to any county, city, educational district, hospital district, special district or political subdivision.

It has an “AAAm” rating from S&P Global Ratings Services – the highest rating assigned to principal stability government investment pools, says Erickson. This rating takes into account factors such as credit quality, market price exposure and management.

At this time, no final decision has been made on whether the district will participate. Erickson anticipates that this will take place at the next regular board meeting in September.