PMA outlines cash-flow investment option for CCSD 62, cites ISLAF and a net-fee approach

PMA, a public-funds investment firm, presented options for district investment of CCSD 62 funds at the March 17 board meeting, describing a cash-flow-driven approach, program governance and the typical fee structure.

Charlie Zacker, senior vice president at PMA, said PMA specializes in public funds investment for school districts and works through the Illinois School District Liquid Asset Fund (ISLAF) to provide institutional pricing and reporting. Tim (PMA) described the firm's cash-flow analysis, which maps district high-point fund balances and expected low points so investments can be time‑matched to cash needs.

Why it matters: School districts that do not use a county treasurer can place idle cash into short-term instruments to earn yield; board members asked about control, local-bank participation and fees.

Key points from the presentation

• Investment types and priorities: PMA said public-funds portfolios emphasize safety, liquidity and then yield. Typical instruments mentioned were U.S. Treasuries, agency securities and certificates of deposit (CDs).

• Cash-flow analysis: PMA's signature service maps the district's cash in and out flows to time investments so funds are available when needed while maximizing yield.

• Fees and reporting: PMA described a fee structure that is expressed as a spread taken from the gross yield; presenters said typical costs average about 20–21 basis points and that there is no invoiced fee — the quoted rate to the district is net of the fee.

• Local bank and dealer network: PMA representatives said they can include local banks in competitive bid processes and that they work with a large network of banks and primary dealers for treasury and agency rates. PMA emphasized the district retains approval authority on investments and that the firm handles execution and back‑office paperwork.

Board questions

Board members asked about the number of banks PMA works with in Illinois (presenters said hundreds over time), whether local banks receive business, how often local banks participate, and whether PMA receives any overrides or additional compensation from partner banks (presenters said the firm is capped on fees and does not receive additional overrides that would reduce district yield).

Next steps

PMA said the typical onboarding includes a cash-flow analysis and development of an investment plan. If the board chooses to proceed, PMA will work with the business office on a competitive bid process, reporting access and multi-factor authentication for transaction initiation.