Flathead County’s investments are chugging along, albeit at continued historically low interest rates, County Treasurer Adele Krantz told the county commissioners on Monday.

The interest rate on the short-term investment pool run by the state has slipped even further, from .29 percent at the end of the first quarter of fiscal year 2013 to .24 percent for the quarter ending Dec. 31. The county pulled its money from that investment pool in early 2010 when the interest rate then had dropped to an unprecedented .31 percent, and hasn’t tapped into it since.

Before the recession began close to five years ago, the county was making 5.5 percent on its pooled short-term investments.

Interest earned from the county’s sweep account was $68,216 for the second quarter. That’s the account in which the county takes all the excess available money at the close of each business day and invests it in overnight interest-bearing instruments such as money-market mutual funds or repurchase agreements.

The top investment for the second quarter was a 1 percent certificate of deposit with First Interstate Bank and a government agency step-up investment with D.A. Davidson & Co. that starts at .75 percent interest and graduates to 3 percent by the time it matures in November 2017. The step-up investment has a call feature, though, Krantz said.

“If it gets called [before the maturity date] we get the money back, plus the interest earned and we start over,” she said.

The county began purchasing CDs through brokers last July. At the time that was a bright spot for investments, and Flathead County purchased numerous CDs for the maximum $250,000.

Broker CDs remain a viable option for the county, but several local banks aren’t taking any big deposits for a while, Krantz told the commissioners, noting that local loan demand is still lagging.

Over the first two quarters of fiscal 2013 the county investments have averaged $131.7 million, with average monthly interest distributions of $60,469. By comparison, during fiscal year 2009, investments averaged $102 million, with average monthly interest distributions of about $228,600.

Krantz invests money from the county, local school districts and other districts, such as fire and rural special-improvement districts, in a variety of short- and long-term funds, then distributes the interest back to those entities.

A local governing body may invest public money not necessary for immediate use in a limited number of eligible securities, including U.S. Treasury bills and agencies such as the Federal Home Loan Bank, Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal Farm Credit Bank.

County money also is deposited in local financial institutions, but the county requires those institutions to “pledge” or secure the investments.

Krantz noted that Flathead County currently has $4.4 million in delinquent taxes owed, and $3.6 million in protested taxes as of Dec. 31, 2012.

The county is sending out courtesy notices to delinquent taxpayers this month, including 1,400 notices to mobile home owners and 4,000 notices to real estate property owners.

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.