District 220 invests cash received from property taxes until it is needed to meet payroll and operating expenses.
In Fiscal year 2006-2007, the District experienced positive results on interest earned on investments. The District utilized an Investment Planning Process with our 3rd party financial administrator (PMA). Under this plan, the District exceeded previous year results by $930,000 or 158%. This success can be attributed to an investment plan as shown below along with higher interest rates that averaged 5.2% throughout the fiscal year.
In coordination with PMA, the District's Investment Planning Process includes:
Maximizing interest income by creating an optimal investment schedule by investing the funds as soon as they become available and extending the investment duration as long as possible to produce the highest interest rates
Prioritizing and maintaining the safety, liquidity and yield of all investment activities
Identifying future near-term cash requirements
Ensuring that all liabilities are properly funded by matching cash inflows to the date that cash outflows are required
Establishing an adequate liquidity level which the District currently maintains at $5,000,000