|
|
|
|
|
Meeting Date:
|
2/22/2024 - 6:30 PM
|
|
Category:
|
ITEMS OF BUSINESS
|
|
Type:
|
Action
|
|
Subject:
|
11. Action on a Request to Approve the Long Term Capital Improvement Plan and Waive Administrative Policy 3.09(9)(e) and Authorize an Agreement with PFM Asset Management LLC for the Investment of the Long Term Capital Improvement Trust Fund
|
|
Strategic Plan Compatibility Statement:
|
Goal 3 Effective and Efficient Operations
|
|
Attachments
|
PFMAM Fixed Income IA Agreement for MPS LT Cap Improvement Fund
LT Capital Improvement Trust 10 Year Projection
|
|
File Attachment:
|
|
|
Background:
|
Wisconsin Statute 120.137 has been created to allow school districts to establish a trust fund for the purpose of funding long-term capital improvements. The fund, which the Department of Public Instruction (DPI) has identified as Fund 46, enables school districts to make deposits to the trust on an aid-eligible basis to accumulate funds for future capital projects.
Milwaukee Public Schools established the trust fund in May of 2015. Currently, the Long Term Capital Improvement Trust has $129 million in funds.
Attached to this item is an agreement with a ten-year term to work with PFM Asset Management LLC as an investment advisor for the trust and an updated ten-year plan for using the long-term capital improvement trust. Investments will be established following Wisconsin State Statutes.
With respect to the agreement with PFM Asset Management LLC, the Administration is requesting to waive Administrative Policy 3.09(9)(e) three-year term limit for a ten-year term limit until February 28, 2034, to align with the term of the long term capital improvement plan attached to this item.
|
|
Fiscal Impact Statement:
|
The fiscal impact is laid out in the long term capital improvement plan with an initial $50 million use of funds in fiscal year 2024-25.
|
|
Implementation and Assessment Plan
:
|
Upon approval of the Milwaukee Board of School Directors, the Administration will implement the plan and agreement as attached.
|
|
Recommendation:
|
The Administration recommends that the Board approve the Long Term Capital Improvement Plan; waive Administrative Policy 3.09(9)(e) term limit and authorize an agreement with PFM Asset Management LLC for the investment of the Long Term Capital Improvement Trust Fund.
|
|
Approvals:
|
|
Recommended By:
|
|
Signed By:
|
|
|
Martha Kreitzman - Chief Financial Officer
|
|
|
Signed By:
|
|
|
Keith Posley, Ed.D. - Superintendent
|
|
|
|
|
|
|
|
|