District finance review: investment laddering, rising insurance and steady teacher pay noted; board accepts investment report

The New Albany-Floyd County Consolidated School Board’s Board of Finance on Jan. 13 reviewed the district’s investment policy and financial indicators, heard staff analysis of recent changes in revenue and expenses, and voted to accept the investment report.

Chris Street, the corporation treasurer and district CFO, told the board the district’s investment policy restricts holdings to insured depository institutions, certificates of deposit (CDs), U.S. Treasury instruments and similar low-risk vehicles; it does not permit equities or cryptocurrencies. He said the district established a laddered series of CDs (six months, one year, 18 months and two years) to lock in higher short-term yields after interest rates rose in 2022–23.

Street reviewed recent interest-rate and earnings context: the federal funds rate rose to roughly 5.5% in mid-2023 and has since drifted lower to approximately 4.25%–4.5%, which affects future interest earnings. He said the district had moved some cash into CDs and holds operating deposits at German American Bank and TrustIndiana; the district also has deposits with Everwise (referenced as a teachers’ trust vehicle). The board unanimously accepted the investment report…