Finance director reports large OPEB investment gains as board approves $593,0XX in payments

The Proctor Public School District finance director reported Jan. 26 that the district’s OPEB (other post-employment benefits) investment fund produced sizable investment earnings while the district’s annual OPEB payouts remain small.

Finance Director Garrett told trustees that the district’s Fund 25—a revocable trust holding OPEB investment dollars—earned roughly $600,000 in investment returns while the district’s OPEB spending in fiscal 2025 was about $14,000. Garrett said the district has been moving toward a higher equity allocation in that fund; historically the portfolio has targeted roughly a 45% equity / 55% fixed-income mix, and the board heard that the district will increase its equity allocation and rebalance as needed.

During the meeting the board approved payment of bills dated Jan. 13, 2026, in the amount of $280,548.57 (checks 125525–125633 and related ACH transfers) and payment of bills dated Jan. 21, 2026, in the amount of $312,430.99 (checks 125634–125708 and ACH transfers). The motions to approve payments were moved by Amy and seconded by Tammy; members voted "aye" and the motions carried.

Garrett explained that OPEB dollars are governed under a different statute than routine cash (referenced in the meeting as statutes 118a and 356a), allowing the trust more investment flexibility. He said Fund 25’s long-term rate of return since inception is roughly 9.9%, and that the finance team monitors liquidity to cover draws during the year. Garrett noted a small liquid cash balance to meet expected draws and suggested convening a finance committee meeting to review details.

Next steps: the finance director will schedule a finance committee meeting to provide more detailed analysis and the board will continue oversight of the OPEB portfolio allocation.