Board schedules April 1 special meeting to decide investment approach amid fiduciary concerns

The JAL Public Schools board agreed to hold a special meeting on Tuesday, April 1 at 6:00 p.m. to consider the district’s investment options and possibly take action to select an investment advisor or broker.

Board members and staff compared two approaches presented by potential vendors: a fiduciary firm (discussed as Morton/Mortimer) and a commission-based broker (UBS). Several board members emphasized the difference in legal obligations: fiduciaries are legally bound to act in the district’s best interests, while commission-based brokers may prioritize transactions that generate fees. "A fiduciary absolutely does [have a legal obligation] — they're legally bound to act in our best interest," one participant explained during the discussion.

Staff described a possible mechanism to improve returns by converting encumbrances into an investable draw schedule attached to construction draws, which could allow the district to capture higher yields on funds currently sitting in low-interest accounts. Board members expressed a desire for vendor presentations and follow-up materials to be available for the April 1 meeting and asked staff to arrange vendor availability and any explanatory materials in advance.

The board did not make a final selection at the regular meeting; members said they preferred to have a focused discussion at the special meeting with vendors on hand and the district’s financial team available to answer technical questions. Staff recommended gathering vendor portfolios and sample draw schedules so board members can compare fees, services and projected returns before deciding.