Approve Investment Account with Fifth Third Bank (Business Division)

The prudent investment of public funds is a key responsibility of government officials entrusted with public monies. The success or failure of an investment program must include ensuring that the funds are safe and secure, and at the same time, yielding market rates of return.

The district currently has investment dollars with the State Board of Administrations Florida Prime, Northern Trust, and BB&T banks. The rate of return on these accounts is in the range of 22 to 25 basis points.

The investment process involves many players. Ultimate responsibility for the investment function belongs with the governing body. The Hillsborough County Public Schools has a formal investment policy. This agenda item is seeking approval to invest our dollars with Fifth Third Bank.

Fifth Third Bank will pay a rate of return equal to the One-Month LIBOR rate (currently 26 basis points), this rate would reset no less than monthly. Fifth Third is a Qualified Public Depository in the State of Florida meaning total deposits would be insured.

* Align financial resources to support the district’s strategic goals, * Demonstrate best financial practices

Interest earnings would be calculated at One-Month LIBOR. Fifth Third anticipates no monthly fees being charged on the account.