Strategy pays off
The financial future for the Clay Community School Corporation looks bright, and green.
“It’s been a banner year for investments and interest,” Director of Business Affairs Mark Shayotovich said about using a portion of the bonds sold to finance the current secondary renovation project at three schools within the county to implement various types of short-term investment strategies. “We borrowed almost $33 million, and we weren’t going to use all that during those first few months of the project.”
Instead of “sitting in a checking account doing nothing” while waiting to be used to pay bills, Shayotovich explained $23 million in funds from the building project were invested through the local Fifth-Third Bank. Several of those investments have already matured, paying out returns and more will mature through 2020. As the project uses funds to pay the bills, Shayotovich said the amount available to invest will decline, as will the returns.
“The investments have paid back big dividends,” Shayotovich said, adding that interest payments were so large he contacted the bank to confirm the amounts. “In the last couple of months we’ve been making $12,000-$13,000 just in interest. That’s almost a 5X gain over normal months.”
The corporation’s checking account annually accrues between $21,000-$22,000 in interest, like the past two years, but the implementation of these new strategies will enable the corporation be able to see a return of approximately $250,000-$275,000.
The success of this strategy has Shayotovich on the look out to take advantage of more opportunities like this in the future.
“This comes from not just holding the money in the right place, but using it wisely,” said Shayotovich. “This is all positive news.”
The report/presentation is required by Indiana Code 5-13-7-6 - Indiana School Laws and Rules, 2012-2013, p. 157.
During the short Financial Board meeting, trustees also approved the appointments of Shayotovich as treasurer and Sheri Yocom as deputy treasurer. A full financial report for the school corporation will be provided at the February meeting.
In regular business
* By acclimation, President Kevin Kumpf, Vice President Shane Wiram and Secretary Tom Reberger will continue as officers for 2018. Trustee Ron Scherb was also appointed with the full support of the board in the position as the assistant secretary for 2018.
* The Bid Opening Committee consists of administrative staff members who open bids and prepare award recommendations to the trustees each time a bid process is open. The board approved Superintendent Jeffery Fritz, Director of Extended Services Michael Howard and Shayotovich’s appointments to the committee.
* Attorney Jeff Boyll was approved as the corporation’s local attorney. However Boyll will not be placed on a retainer. He will be used only on an as-needed basis due to the accessibility to free legal advice to the corporation through the Indiana School Boards Association. Bose, McKinney & Evans will continue to be used for major legal issues while Barnes & Thornburg will continue to be used for financial matters and Lewis & Kappes will be used for negotiations.
Trustees also approved a recommendation to continue to meet in the Board Room of the Central Administrative Offices, 1013 S. Forest Avenue, at 7:30 p.m. for their regular monthly school board meetings the second Thursday of each month.
The next school board meeting is scheduled for Feb. 8.