Celina ISD officials are considering investing $40 million worth of bond funds into local banks.

The district’s board of trustees discussed the investment during an Oct. 2 meeting with Superintendent Thomas Maglisceau.

“When it comes to bond money, we need to be mindful of being good stewards of public goods and public funds,” Maglisceau said.

Current situation

Last summer, CISD sold $100 million of bonds from the 2019 bond program with knowledge of the upcoming projects it had going into the next year, Maglisceau said.

The district has those funds invested in Texpool, he said. The Houston-based investment company was created to offer public entities an opportunity to combine investment dollars in a pool, according to the company’s website.

Of the $100 million in bond funds, Maglisceau proposed the district’s school board could split up $40 million of the funds and invest them into Celina banks, including Lamar Bank, Texas Republic Bank and First State Bank.

“We have local banks who support our schools and support our programs,” Maglisceau said.

Going forward

The district’s board of trustees unanimously voted to work with local institutions that are willing to put a certificate of deposit in place for 52 weeks at a 5.35% interest rate. The $40 million would be split among the entities, CISD board President Jeff Gravley said.

“It was worth bringing up to [the school board] if this brings dollars back into our community [and] brings back dollars into our banks that can support our community,” Maglisceau said.