Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Debt Management topic
No spam. Unsubscribe anytime.
Board approves Ampersand Inc. to manage $9 million bond proceeds; potential returns presented
Summary
After an RFP to five firms, the board approved Ampersand Inc. to manage reinvestment of approximately $9 million in construction bond proceeds; staff presented projected returns of roughly $380,000–$425,000 (variable) and described fee ranges used in selection.
The Pewaukee School District board on Aug. 14 approved a resolution naming Ampersand Inc. as the district's manager for reinvestment of the first round of construction bond proceeds.
Assistant Superintendent and CFO John Gahan said the district issued debt to fund construction needs and sought proposals to maximize earnings while balancing liquidity and fixed income timing. "We approached five different entities…based on an evaluation of five different criteria…the lowest fees really was the determining factor, when it came to awarding this contract," Gahan said.
Gahan presented projected dollar returns on the roughly $9,000,000 in proceeds in respondents' scenarios ranging approximately $380,000 to $425,000, but emphasized outcomes are variable depending on market assumptions. He also described fee ranges: about 10–20 basis points typical for fixed investments (CDs) and 0–43 basis points among respondents for liquid investments.
Board members pressed for clarity on net return and fee structures; Gahan said managers also provide the ability to spread funds across multiple banks to increase FDIC coverage, which the district could not manage as efficiently on its own. The board approved the resolution to designate Ampersand Inc. and to authorize reinvestment arrangements by voice vote.
