Florida Special District Handbook Online

Section 3 - 6: Investment of Surplus Funds

Special districts may invest surplus funds in the Local Government Surplus Funds Trust Fund to maximize earnings. The State Board of Administration, consisting of the Governor, Chief Financial Officer, and Attorney General administers the fund.

Features

  • Provides liquidity and preserves capital by pooling investments in a portfolio of money market instruments.
  • Maintains an average maturity ranging between 30 and 90 days.
  • Maintains current balances for individual accounts while maximizing earnings in a commingled investment pool.
  • Distributes pooled investment earnings to each account monthly, based on the average daily balances of the participating accounts on the accrual basis of accounting.
  • Provides a monthly statement concerning the deposits, withdrawals, balances, earnings, and administrative expense.
  • Provides as much security as possible by having a diversified overall portfolio. The investment pool's diversification of assets includes the following issuer sectors (which may have constraints):
    • United States Government
    • United States Government guaranteed
    • United States agency obligations
    • United States corporation obligations
    • Domestic bank certificates of deposit
    • Euro Dollar certificates of deposit
    • Bankers' acceptances
    • Commercial paper
    • Repurchase agreements
    • Other investment instruments provided by the Florida Statutes

Requirements

At the time of first investing surplus funds in the Local Government Surplus Trust Fund, the special district must prepare and file the following three items with the State Board of Administration:

  1. Resolution for Investment of Surplus Funds - This resolution must authorize investment in the Local Government Surplus Funds Trust Fund and include the following:
    • The official seal of the entity or be notarized
    • The name of the chief administrative or financial officer, or the independent trustee responsible for the funds
  2. Financial Statement Disclosures (Disclosure Statement for Participation in the Local Government Surplus Funds Trust Fund Investment Pool) - This must be signed and sent to the State Board of Administration, Financial Operations, before enrolling in the Local Government Investment Pool.
  3. Participant Account Maintenance Form - The State Board of Administration will provide this form to special districts. Complete this form for each account opened in the fund. Use it to make changes or updates to each account. Special districts can open a maximum of ten accounts.