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Manatee schools report ~$27M investment earnings and $487M in pooled assets for fiscal 2023–24
Summary
District investment advisers reported that the school district's combined operating and bond-proceeds portfolios exceeded $487 million and generated about $19.4 million on operating reserves and $7.7 million on bond proceeds in fiscal 2023–24, citing diversified local government investment pools and high credit ratings.
The Manatee County School Board received the district's annual investment report, in which investment advisers described current market conditions, portfolio structure and fiscal-year earnings.
David Chang of the Deep Blue investment team told trustees the economy and markets look favorable for the district's cash-management strategy as the Federal Reserve prepares for what advisers expect will be a modest rate reduction. The district's operating portfolio and segregated bond proceeds together total just over $487 million, advisers said; $344 million sits in the operating portfolio and the remainder in bond proceeds and other restricted accounts.
Key figures: the presenters reported the district earned approximately $19.44 million on nonbond operating funds in FY2023—24 and about $7.7 million on bond proceeds for a combined total of nearly $27 million in investment income for the fiscal year. Advisers credited short positioning in local government investment pools and diversified exposure across four Florida LGIPs (Florida Fixed Income Trust, Florida Prime, Florida Palm, Florida Class) for the returns; the pools carry top ratings from nationally recognized agencies, the presenters said.
Why it matters: higher investment earnings can help offset budgetary pressures at the district level and provide liquidity for ongoing capital projects. Advisers also reminded trustees of IRS arbitrage rules that limit how borrowed proceeds may be invested and when rebates to the federal treasury may be required.
Quote: "You have a total of over $487 million right now between your bond proceeds and your regular investment portfolio," David Chang said during the presentation. He added later: "for total you earned almost $27 million on in your investment portfolio for both your bond proceeds and your regular operating reserves for the fiscal year."
What's next: staff will continue to monitor markets and report back on opportunities to align investment strategy with upcoming capital needs and potential COP sales in early 2025.
