Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Investments topic
No spam. Unsubscribe anytime.
District investments up; Cornerstone projects more than $7 million in general-fund income for year
Summary
Cornerstone portfolio manager Kevin Karpuk told the finance committee that the district's general funds earned about $3.9 million in the first six months of the fiscal year and that, if trends continue, the district should exceed the budgeted investment income for the year.
Kevin Karpuk, a portfolio manager with Cornerstone, told the Council Rock School District Finance Committee on Feb. 13 that the district's invested general funds produced roughly $3.9 million in gains from Sept. 30 through the end of the calendar year.
"For the first 6 months of the fiscal year, the general funds earned about 3,900,000.0 in increase," Karpuk said. He added the district has positioned its holdings with a mix of locked and floating rates so the cash is "both safe but at a reliable income level." Anthony Rapp, director of administration, introduced the presentation and discussed how the investment outlook feeds into the budget work.
The presentation noted that, extrapolating the six-month cash-flow results, Cornerstone does not expect general-fund investment income to come in below $7,000,000 for the fiscal year, exceeding a budgeted number of about $5.5 million. Karpuk said market forecasts now show a higher probability that the Federal Reserve will delay rate cuts, and that short-term yields have strengthened, improving near-term income for cash balances.
Committee members asked how that projection should be used in budgeting. Karpuk told the committee the firm is "feeling pretty good that that budget number" is a reasonable figure to plug into planning. He cautioned, however, that forecasts change with incoming inflation and employment data.
Rapp and board members discussed how the investment income is being shared with the district's budget team. Rapp said the finance staff will incorporate Cornerstone's outlook into the budget numbers being prepared with business office staff.
The committee did not take a formal vote during this presentation; action on investment policy or changes to allocations was not recorded at the meeting.
Ending note: The district requested members and the public rely on official council resources for up-to-date information; the district web site is www.crsd.org, the presentation said.
