Boom Township treasurer reports $1.26M interest for Flossmoor SD 161; announces retirement

Boom Township treasurer Rob Grossi reported to the Flossmoor SD 161 Board of Education that the district earned roughly $1,014,000 in pooled interest for the fiscal year ending June 30, 2024, and $1,263,000 when bond-escrow interest is included.

“The pool generated $20,100,000 in interest to the 20 school districts we service,” Grossi said during his presentation, noting that funds were invested primarily in short-term instruments to maintain liquidity for district payroll and bills. Grossi told trustees that the pool held roughly 400 different investments and certificates of deposit at about 40 banking institutions; yields on reinvested funds ran roughly between 4% and slightly more than 5% during the fiscal year, and the portfolio yield at the end of December was about 4.5%.

Grossi, who said he will retire June 30 after 35 years serving as treasurer for the pool, warned trustees that labor-cost pressures may remain the primary long-term fiscal risk for school districts even as interest rates and inflation moderate. He highlighted a national labor-market imbalance — more job openings than unemployed workers — and said teacher supply has declined in recent years, which could drive ongoing wage pressure for districts.

Grossi described the pool’s investment constraints: state law limits the types of instruments that public funds may be invested in, and the treasurer’s primary duty is matching maturities to cash-flow needs. He said about 71% of the current portfolio was scheduled to mature by the end of 2025, reflecting the short-duration profile the pool maintains to ensure payroll coverage in June.

Trustees thanked Grossi for his service and asked procedural questions about oversight and the transition to a new treasurer. Grossi said the pool is overseen by the Boom Township trustees, a body made up of representatives from the districts served by the pool, and that the pool is audited annually to ensure compliance with the Illinois Public Funds Act.

Why it matters: The district’s stronger interest earnings — the FY24 amount more than doubled the previous year’s earnings, when the district recorded about $520,000 in interest — helps offset operating costs and provides flexibility for district planning. But Grossi’s presentation flagged a persistent budget risk: rising labor costs and a shrinking teacher pipeline that could increase district personnel expenses even if interest-rate-driven revenues remain healthy.

Next steps: Trustees asked administration to continue five-year financial projections and monitor state-level developments in Springfield that could affect school funding and pension obligations.