By Alyssa Schnugg
News editor
alyssa.schnugg@hottytoddy.com
Before COVID-19 hit the United States, it was already wreaking havoc on the economy as the stock market plummeted at the beginning of 2020.
Oxford and Lafayette County’s multi-million dollar investment from the sale of Baptist hospital in 2012 felt the effects from the stock market’s rollercoaster ride as well, both ending the fiscal year on March 31 with significant losses.
However, the stock market has since rallied and the two investment funds are also bouncing back.
When Baptist Memorial Hospital-North Mississippi wanted to build a new hospital, they sold the old hospital back to the city and county, granting each $30 million. Lafayette County used $10 million to pay off debt and put the remaining $20 million in a trust fund. Oxford leaders invested all $30 million.
Each year, after fees are paid, the city and county take 3 percent of the interest earned, if the fund is valued above the original investment.
The fiscal year for both funds runs from April 1 to March 31. The Lafayette County fund was valued at $19,629,220 on March 31. However, as of July 7, the fair market value of the fund rose to $20,819,262.
The Lafayette County Board of Supervisors decided not to take the 3 percent payout as by doing so, would set the fund below the initial investment. In the past, the 3 percent funds generally went to repaving county roads above the amount that is budgeted for road repair each year.
Oxford’s investment also showed a loss on March 31, down from $34,874,671 on March 31, 2019, to $33,819,351 on March 31 of this year.
In February, the fund dipped drastically to $29 million, according to city officials, and is now worth $35 million.
Since the city’s ending balance on March 31 was still $3 million over the initial investment, the city of Oxford will receive a payment $883,422 after fees are deducted that goes into the city’s general fund and is used for purchasing equipment and funding capital projects that are not part of the city’s regular budget.
Both boards approved the year-end accounting report of the investment funds, prepared by Watkins, Ward and Stafford accounting firm. The city’s investment is managed by Glenemede and the county’s fund is managed by Green Square Capital Advisors.
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