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Treasurer explains district's short-term investments, citing commercial paper and bankers' acceptances
Summary
The district treasurer reviewed July financials and described the district's short-term investment strategy (commercial paper and bankers' acceptances) managed in part by Red Tree Investments and noted reported figures are amounts invested, not returns.
At the Aug. 8 meeting the treasurer presented the July treasurer's report and walked the board through the district's short-term investment strategy, including commercial paper and bankers' acceptances used to generate monthly investment earnings.
The treasurer said the district uses an outside manager, Red Tree Investments, to manage a portion of discretionary funds and that those funds are FDIC insured. He explained commercial paper as an unsecured promissory note with maturities typically less than 270 days and described bankers' acceptances as bank commitments that are transferable prior to maturity; he said many of the instruments have maturities of one to six months and that the manager layers investments so something comes due each month.
The treasurer emphasized that the figures included in the report reflect amounts invested rather than profit and that deductions (retirement contributions, board share of retirements, EFC fees) reduce monthly net receipts. He also noted a reporting line that listed the district's commercial paper and bankers' acceptance investments for fiscal year 2324.
Board members asked clarifying questions about the totals and the treasurer reiterated that the report is informational and no resolution was required.
The report will be posted with the meeting materials on the district website; the board took no further action on the investments during the meeting.
