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Keystone Central finance committee reviews July interest earnings and short-term CD decision
Summary
District finance staff reported July interest earnings across several funds, explained why the district reduced its CD holding to $3,000,000 and plans to revisit a larger placement in September depending on state basic education subsidy timing.
Keystone Central School District finance staff reported July and year-to-date interest earnings, described why the district reduced a certificate-of-deposit (CD) holding, and said a further decision on large cash placements will depend on timing of state basic education subsidy payments.
The district’s presenter said the district maintains an average general fund balance of about $2,000,000. For fiscal year 2025–26, interest credited to the general fund was $2,513; the district has set $3,000,000 in a CD that pays quarterly interest at 4.25 percent rather than leaving the full prior-year amount in the CD so it retains more immediate liquidity. The presenter said total interest earned to date across accounts was 795,270 (amount as reported in meeting materials). The district reported July interest of $12,026 in its money-market account and $7,618 in Fund 39 for July; Fund 39’s ending balance as of 07/31 was stated as “1.4” (unit not specified in the transcript). The tax office (Fund 15) earned $18.09 in July.
The presenter said the CD renewed June 11 for three months at 4.25 percent and will expire in September; the committee chose to hold $3,000,000 in the CD rather than the $7,000,000 level used previously so the district would have more cash on hand while the state budget remained unsettled. The presenter said if the state passes a budget and basic education subsidy payments are expedited, the district could receive a large payment (the presenter mentioned the possibility of a $10,000,000 inflow) and would revisit how much to hold in short-term instruments at that time.
Committee members asked clarifying questions about the fiscal year (which runs July 1–June 30) and liquidity planning. No formal motion or roll-call vote was recorded in the transcript; the presenter described an administrative decision to keep $3,000,000 in the CD and to reassess in September based on cash receipts.
The committee also reviewed other accounts and noted the district’s money-market balances fluctuate as real-estate tax receipts arrive through December. Staff said the district structures cash to cover January–March cash needs and will continue monitoring receipts and interest opportunities.
The committee did not take a formal vote during this segment and the presenter invited questions before moving to the next agenda item.
