Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Investments topic
No spam. Unsubscribe anytime.
Board hears investment options from First Interstate, rolls maturing CD into 90-day CD at Black Hills
Summary
After a First Interstate presentation on conservative investment options for school funds, the board voted to leave a maturing CD of $525,491.03 at Black Hills Federal for 90 days while it develops a longer-term plan.
The Wall School District 51-5 board heard a presentation from Anthony of First Interstate Wealth Management on options for investing district funds and voted to roll a maturing certificate of deposit into a 90-day CD at Black Hills Federal.
Anthony described two conservative approaches for public-school funds: laddering government-issued securities such as treasuries and treasury bills, or placing funds in a managed fixed-income portfolio governed by an investment policy statement. "What you're seeing here in option 1, that's literally buying you government issued, like, treasuries and treasury bills and government bonds, and you ladder them out with different durations," Anthony said, summarizing the laddered-treasuries approach.
Business staff told the board the CD coming due on Oct. 12 had a balance of $525,491.03 and that those funds are not used for daily operating expenses. First Interstate offered a 90-day option at about 4.05% as a short-term lock; Black Hills Federal indicated a 4% yield across multiple terms. Board members asked clarifying questions about FDIC and SIPC coverage, liquidity, and the legal parameters for investing public funds; Anthony said funds for the district’s general account would be limited to fixed-income investments under current rules.
To preserve flexibility while the budget committee reviews longer-term options, Dr. Phil (S3) moved to leave the funds at Black Hills Federal in a 90-day CD; the motion carried on a voice vote. Board members asked First Interstate to return to meet with the budget committee in the next two months for a more detailed review of portfolio options and fees.
The district will monitor the maturing CD and revisit a longer-term strategy after the budget committee evaluates investment-policy options and returns from possible portfolio management.
