- Special Sections
- Public Notices
Los Alamos Public Schools and Los Alamos National Bank are forming a partnership. LAPS has money it would like to invest and LANB wants to help in guiding those investments.
On Thursday night, the school board, Superintendent Gene Schmidt and Chief Financial Officer John Wolfe met with LANB officials to discuss an investment strategy for LAPS’ funds. The district currently has $37.7 million in accounts at LANB and under a plan proposed by LANB, $8 million of those funds would be used for investments, leaving $29.6 million in LAPS’ accounts. This plan, according to LANB officials, would continue the safety and cash availability, but increase the yield.
Under the current investment structure, deposits are 100 percent collateralized by the Federal Home Loan Bank; they’re FDIC insured and are highly liquid.
Under the proposed investment structure, funds would be invested in U.S. Treasuries or AAA agency bonds, all investments are backed by the full faith and credit of the U.S. government and they’re highly liquid.
LANB officials said using this strategy would be a good choice because deposit yields likely will continue to decline.
No decision was made at the Thursday night meeting, but Wolfe will work on a plan to be presented later month during the school board’s work session.