Finance director reports bond receipts; board agrees to raise depository limits pending vote

The district's finance director reported to the Pleasant Valley board that recent bond activity produced a large inflow into capital accounts and recommended raising the district's maximum allowable bank balances to avoid audit comments and to provide flexibility in cash management.

The finance presentation noted April showed 10% of the sales-tax bond proceeds posted to the capital projects fund and that the remaining roughly 90% (~$27,000,000) posted when the bond closing occurred on May 8. "We received 10% of our bond proceeds in April, and then on May 8 we received the other 90% of our bond proceeds, so another approximately $27,000,000 was received," the finance director told the board.

To accommodate the larger on-hand balances and to follow an auditor recommendation, staff proposed increasing the district's maximum deposit authorization for each named financial institution from $30,000,000 to $75,000,000. The board discussed collateralization and FDIC protection; one member asked what would happen if a bank became insolvent and whether diversification across banks would be preferable.

The board also received a first reading of a new bond-disclosure board policy/regulation (802.4 R1) recommended by bond counsel to help meet obligations under SEC Rule 15c2-12, including annual filings and certain 10-business-day material-event notices to EMMA (Electronic Municipal Market Access).

The board moved and adopted the depository resolution as presented (roll-call vote recorded). The recommendation to adopt the disclosure policy was provided as a first reading; staff said it would return for a second reading and adoption at subsequent meetings.