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Board member urges review of district investments after low-yield securities highlighted
Summary
At the same meeting a board member flagged district-held treasuries and CDs with low yields dating to 2021, estimated potential opportunity cost in the low millions, and urged quarterly review of investment managers and expiring securities.
During the Community Finance Committee meeting, a board member raised concerns about several district-held securities purchased in earlier years that now yield far less than current market rates.
The board member said the district held two treasuries paying 1% and 7% from 2021 and described the aggregate opportunity cost as material: "That's $7 million... technically it's about three million bucks, but let's say it's like a billion-dollar loss," they said, noting that selling some securities today could realize losses depending on market movement but that officials should at least evaluate options and manager performance.
Other trustees and attendees cautioned the district's investment options are limited by law, and that some long-term securities can show large unrealized losses if sold early. Still, the committee discussion produced a clear recommendation: the finance subcommittee should review expiring securities and the district's money managers on a recurring basis and present options for reinvestment or liquidation when feasible.
The discussion concluded with a request to schedule budget- and staffing-related follow-ups in the June meeting and to add a regular investment-review item to the subcommittee agenda.
