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PENINSULA : School District Studies Surplus Funds Options

October 27, 1994|JEFF KASS

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.

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