La Grange SD 102 approves participation in ISLAF after PMA presentation on investments

The La Grange SD 102 Board of Education voted to approve a resolution allowing the district to participate in the Illinois School District Liquid Asset Fund (ISLAF) after hearing a detailed presentation from PMA, a public‑funds investment manager.

PMA representative Charlie Zacker told the board the firm manages public funds exclusively, works with more than 500 Illinois school districts and runs ISLAF, a pooled money‑market style fund sponsored by the state school associations. "We report to a board consisting of three superintendents, three school business officials and three board members," Zacker said. He described PMA's core service as a cash‑flow analysis that maps investment terms to the district’s high and low fund‑balance points, and said the firm would provide daily consolidated reporting and web access.

The board’s approval authorizes the district to establish checking accounts and participate in the ISLAF investment pool. Zacker said BMO Harris would serve as the custodian for ISLAF checking accounts and that PMA’s fee is effectively built into quoted yields, approximately 0.21 percentage points (21 basis points) on average. He recommended an eight‑week window to set up checking accounts and back‑office files so payrolls and payables can run through the district’s new accounts after the district’s withdrawal from the township treasurer arrangement on July 1.

Board members asked about the safety of investments and whether transitioning funds out of the township treasurer (TTO) would be disruptive. Zacker described the public‑funds investment universe as "plain vanilla" — insured certificates of deposit, collateralized instruments, letters of credit from the Federal Home Loan Bank, or U.S. government and government‑agency debt — and said "safety, liquidity and yield" guide PMA's recommendations. Tanisha, the district treasurer, and district staff confirmed payroll and accounts payable are processed in‑house now and that the change would shift ownership of the checking accounts from the treasurer to the district’s new accounts.

On a roll call vote the board approved the resolution to participate in ISLAF. The board also discussed next steps: making the ISLAF participation resolution official, establishing BMO Harris checking accounts, submitting forms to Cook County and the state to redirect revenue deposits, and coordinating with PMA on the cash‑flow analysis and investment decisions. Zacker emphasized PMA would not take unilateral discretion to invest funds; the district would have to sign off on purchases.

The board’s action moves the district away from reliance on the township treasurer for cash custody and into a structure where the district holds its own accounts and receives consolidated, daily reporting from PMA.

La Grange SD 102 did not finalize any contract with PMA at this meeting; the approved document authorizes participation in ISLAF and cooperation with PMA and does not create a required minimum balance with the fund.