Board directs district office to reinvest maturing sinking-fund certificate; staff recommended 18-month term

Trustees at the Stevensville School District special meeting on Dec. 17 directed the district office to reinvest a maturing sinking-fund certificate, delegating the exact investment decision to staff.

The district’s staff presented a comparison of bids from local institutions offering 6-, 12- and 18-month terms and said the certificate comes due in June 2026. A bank representative explained the difference between quoted rate and APY and recommended an 18-month certificate of deposit, noting the bank would honor quoted rates despite short-term market volatility. The staff recommendation presented to trustees favored placing the funds with Farmers for an 18-month term, citing the account structure, security and an equitable distribution of the district’s deposits across institutions.

Trustees discussed quorum and voting risk for decisions taken with a small number of voting members present; staff cautioned that a vote with fewer members might be vulnerable to legal challenge. After hearing that staff and a banking representative preferred an 18-month CD and that other district funds were distributed for security, a trustee moved that the district office be directed to invest the sinking-fund certificate (CD 3270) as the business office deems appropriate. The motion was seconded and approved by voice vote.

Stephanie, serving as presiding trustee, asked staff to follow up by email after the investment is made. A trustee who represented the bank thanked the board for the opportunity to present and emphasized FDIC insurance and the community relationship in the bid.

The board did not specify the final institution or the exact APY in the meeting; staff said they would implement the direction and notify trustees once the investment is completed.