Letters to the Editor

Don't assume Joy Logan made poor choices

While visiting Bluffton for Easter I was surprised by the lack of information provided in your April 28 story regarding two bond investments made by Beaufort County treasurer Joy Logan, and by the comments of Beaufort County Council Chairman Weston Newton. There wasn't enough information to make an accurate assessment of the job Logan is doing managing the county's funds.

Most citizens might assume some of the county's road funds, invested in the bonds, are tied up for the next 10 and 28 years. The 2021 bond steps to 6 percent in October 2012, which means it's highly likely the bond will be redeemed early. In the meantime the county is earning 1.25 percent. The state pool is currently paying .28 percent, so the county is earning an additional .97 percent on these funds. On $3 million, this translates into $29,100 annually, certainly much better than putting the funds "in Mr. (Gary) Kubic's drawer," as Newton suggested. The Ginnie Mae is a bit riskier since it could turn into an 8- to 14-year instrument, depending on how the loans in the pool pay off. Yet the bond is earning 3 percent currently.

Assuming the $4 million in question isn't needed immediately, and the road fund has adequate cash on hand to "fill potholes," then Logan is doing her duty to seek a reasonable return on county money. With interest rates low and expected to remain low, sticking all the county's money in the state pool is not prudent.

Stephen Bennett

Issaquah, Wash.

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