PENINSULA : School District Studies Surplus Funds Options
Trustees of the Palos Verdes Peninsula School District are considering how to invest at least $4 million in surplus money from the sale of school property.
After a discussion Monday with county investment officer G. W. Jeffries, trustees asked for a staff report outlining ways to invest the money.
The district has $7 million since selling land that was designated for a high school, said Director of Fiscal Services Carleen Vose. In a memo to trustees, Vose recommended that $2 million be set aside to replace roofs and buy computers during the next year.
School district money in the county pool, a collection of funds from school and special districts throughout the county, now earns about 4.8% interest, Jeffries said.
By investing in one-year U.S. Treasury notes, the district could earn 6.2% interest, resulting in tens of thousands of extra dollars, Jeffries said.
The district, however, could lose money if it invests in a one-year treasury bill and needs the cash before the year is up. Also, a fixed, one-year investment could cost the district if interest rates dramatically rise.
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
