Fall 2016 issue of Horizons

Even for those municipalities with less stringent investment policies that allow more freedom to choose investment options beyond U.S. treasuries, returns on investments have not been relatively strong recently. Securities issued by other governmental agencies (such as Freddie Mac) have also yielded near-record lows in recent years. In addition, significant political events internationally (such as Great Britain’s vote to exit the European Union) and domestically (like the upcoming presidential election) have only created more uncertainty for the markets. This makes it difficult for finance officers within state and local governments to forecast what type of returns to expect (and how they’ll be able to utilize those returns for the benefit of the people).

Economic uncertainties continue to face leaders within state and local governments. Some factors appear to indicate optimism that the economy will continue to grow, and with it, the level of services provided. Other factors clearly demonstrate that states and local municipalities are taking a cautious approach to the near future, not wanting to commit to expenditures and programs that might not end up being funded. In either case, it is important that all public sector entities maintain enough fiscal flexibility to adjust to any scenario that presents itself in today’s constantly changing environment.

RubinBrown’s Public Sector Services Group Through our extensive list of clients, including many cities and governmental entities, we understand the issues unique to the public sector.

Jeff Winter, CPA, CGMA — St. Louis Partner-In-Charge Public Sector Services Group 314.290.3408 jeff.winter@rubinbrown.com

Ted Williamson, CPA — St. Louis Partner & Vice Chair Public Sector Services Group 314.678.3534 ted.williamson@rubinbrown.com

Kaleb Lilly, CPA — Kansas City Partner & Vice Chair Public Sector Services Group 913.499.4417 kaleb.lilly@rubinbrown.com

Pat Miller, CPA — St. Louis Manager Public Sector Services Group 314.290.3217 pat.miller@rubinbrown.com

Cheryl Wallace, CPA — Denver Partner & Vice Chair Public Sector Services Group 303.952.1288 cheryl.wallace@rubinbrown.com

www.RubinBrown.com | page 39