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Conestoga Valley School District: Cash Flow Projections and Investment Strategy Overview

This document summarizes the cash flow projections for the Conestoga Valley School District for the 2011-12 fiscal year, detailing monthly cash receipts and disbursements. It outlines permissible investment strategies, including US Treasury Bills, obligations of US agencies, and FDIC insured CDs, among other options. The report reviews historical bank failures and current interest rates of various investment vehicles. The investment strategy emphasizes short-term investments, with considerations for staggered maturities in relation to projected interest rate changes.

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Conestoga Valley School District: Cash Flow Projections and Investment Strategy Overview

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  1. Conestoga Valley School District Cash Flows & Investment Strategy

  2. Cash Flow Projections 2011-12

  3. Monthly Summary of Cash Receipts, Disbursements

  4. Permissible Investments • US Treasury Bills – 1 year or less • Obligations of US Agencies – 1 year or less • FHLB, FFCB, FNMA, FHLMC, SLMA • Obligations of US Government backed by full faith & credit – short-term or long-term • GNMA (collateralized mortgage obligations) • CDs insured by FDIC - $250,000 • C0llateralized CDs • 102% Market Value Collateral (US Treasury/ Agency Securities only), or Federal Home Loan Bank Irrevocable Letter of Credit

  5. Bank Failures • 2000 through 2007 total of 27 bank failures • 2008 – 25 bank failures • 2009 – 140 bank failures • 2010 – 157 bank failures • YTD 2011 – 51 bank failures • Total since 2000 = 400 bank failures

  6. 20 Year History of T-Bill Interest Rates

  7. Current Interest Rates • US Treasury Bills – 0.13% • Agencies – 0.16% • FDIC Individual Bank CDs – 0.25% - 0.35% • Collateralized CDs – 0.20% - 0.25% • Minimal increase in interest rates is projected for 2011-2012

  8. Current Portfolio

  9. CV’s Investment Strategy • FDIC Insured CDs – properly rated • Collateralized CDs • Agencies such as FHLB, FNMA, FHLMC • US Treasury Bills if interest rates increase • Investment term within 12 months unless rates increase • If rates increase, invest longer term with staggering maturities, i.e. 12 month, 15 month, 18 month, 24 month maturities

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