Windsor-Essex Hospital Plan Portfolio Performance

On April 25, 2016, per CR 282/2016, the City committed to fund its' share of the Windsor-Essex Hospital Systems Plan beginning with a one-time dedicated property tax levy increase of $3,875,000 starting in 2016 and projected to continue through 2029 or earlier based on interest earned. Additional sources of funding will be added to the annual levy beginning in 2020 which will then assist to meet the City’s obligatory share of the Windsor-Essex Hospital plan estimated at a total of $200 million (jointly shared between the City and County). City Council also approved the establishment of a new reserve fund (Fund 203) for purposes of placing and recording annual funding contributions.

The financial projections provided to City Council in 2016 contained various estimates as it related to minimum investment yields over the term of the special levy based upon current economic forecasts. Given the projected accumulated value of the hospital reserve fund and the average value of the general investment portfolio Administration was granted approval to treat the hospital reserve fund as a separate portfolio in term of complying with maximum portfolio limitations (both sector and institutional). The portfolio is defined as the total projected future fund balance (estimated City share at $108 million) as opposed to actual funds cumulatively available each year. This allows greater flexibility in each year to place funds in larger amounts with institutions offering higher yields and thereby increasing investment returns.

As of December 31, 2019, the City held $16.4 million in the Windsor Essex Hospital plan portfolio. For 2019 the fund realized an overall return of $461,882 resulting in an average yield of 3.33%.

Sector	Total, December 31, 2019	% ofPortfolio, December 31, 2019	2019Return	2019Average Yield
Deposit InvestmentsSchedule I Banks	$5,070,435	30.85%	$81,171	2.87%
Credit Unions	11,365,717	69.15%	380,711	3.45%
Total	$16,436,152	100.00%	$461,882	3.33%