The Manatee County school district administrators want to play it safe.
On Monday, they will ask the school board to open a money market account - a move that allows the district to diversify its investment portfolio.
"We want to find more secure ways to invest," said Superintendent Roger Dearing.
The district plans to invest between $5 million and $25 million in the new account, as tax revenues trickle in, said Tim McGonegal, assistant superintendent. The district will be collecting and spending money over the year.
The district also has $8 million in the State Board of Administration, an agency that invests local government money, he said.
The SBA investment fund was hit by a multibillion-dollar run by investors last year after they discovered it contained downgraded mortgage-backed securities, and froze accounts.
"They haven't assured us, as we have requested, that we would have full and daily access to our money," McGonegal said. "With their actions a year ago, we would rather deal with entities that would allow us to draw money on a daily basis."
But taxpayers should not let the Wall Street jitters worry them, he said.
School board policy does not allow the district to invest more than 50 percent of its money in money market accounts. The district purchases U.S. securities directly, and has three money market accounts.
In each account, $250,000 is insured by the Federal Deposit Insurance Corporation, he said. The remainder is backed by the federal government.
"The rules are different," McGonegal said. "We have a very conservative policy. ...We're not buying corporate bonds or corporate papers."
Other local municipalities are staying put with their investment plans.
Manatee county's investment portfolio of about $655 million holds Standards and Poor's highest rating and is handled by the office of R.B. "Chips" Shore, Manatee Clerk of the Circuit Court and Comptroller.
Shore's office has indicated the county's investments are well insulated from the recent market fluctuations, so the county is holding pat instead of fleeing the market.
Shore said there is "no likelihood of loss" in Manatee's portfolio because it is so diverse.
The City of Palmetto has $3 million in reserves invested with the Florida League of Cities bonds fund, said Jim Freeman, city clerk of Palmetto.
Wayne Poston, mayor of Bradenton, said the city is conservative with its investments and has a firm that keeps them up to date.
If you go
What: A Manatee County school board meeting
When: 5:45 p.m., Monday, Oct. 13
Where: The school district administration building, 215 Manatee Ave. W.
Information: 708-8770 or to view the agenda, visit www.manatee.k12.fl.us.
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