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New finance chief outlines district investment strategy and reports $2.3M earned since 2022 transition to NYCLASS
Summary
Assistant Superintendent Will Herman reviewed Mineola's switch to NYCLASS for short-term investments, reporting roughly $764,000 earned in 2022–23, $1.5 million in 2023–24 and about $2.3 million total since November 2022; he recommended continued participation while cautioning returns will follow market rates.
Will Herman, the district’s assistant superintendent for business and operations, presented an overview of Mineola’s investment strategy and performance after the district’s November 2022 transition from TD Bank to NYCLASS.
Herman said NYCLASS (a New York local government cooperative liquid asset pool) offers liquidity and market-based interest; he described the portfolio composition and fees and stressed that the vehicle is designed for municipal reporting and audit needs. “This is a very stable and safe form of investment,” Herman said, noting NYCLASS’s long track record and S&P rating referenced in the presentation.
Herman reported the district’s realized interest earnings as approximately $764,000 for the 2022–23 school year and about $1.5 million for 2023–24, with roughly $2.3 million earned in total since the transition. He said the district’s average yield reached about 5.22% in 2023–24 and that the district currently pays a management fee near 0.14% of invested funds.
Herman explained how NYCLASS invests—U.S. Treasury securities, repurchase agreements and bank deposits make up the pool—and emphasized the tradeoffs: earnings fluctuate with the federal funds rate and the district’s balances. “Past performance does not indicate future success,” he said, and advised the board that anticipated cuts to the federal funds rate could reduce yields, though the portfolio’s structure may moderate declines.
Board members asked practical questions about how interest is allocated; Herman confirmed interest on reserve accounts posts to those reserves while general fund interest flows to surplus. He also noted NYCLASS’s reporting features are tailored for school districts and simplify audits.
Herman concluded by recommending continued use of NYCLASS for the district’s short-term investments and offered to provide updates at future meetings.
