Directors of the Rossmoor Community Services District have decided to invest district money with the state treasury instead of the county to avoid the high-risk investments that had led to the county bankruptcy.
Although county investments are expected to turn more conservative once the bankruptcy is resolved, district officials said that pulling out from the county fund is the only prudent thing to do.
"We're just looking for a sound, safe, secure way to earn a modest income on district monies," General Manager Bill Sheldon said. "That's a better place for our money at this juncture."
But because of the county bankruptcy, it will take some time before the county account is closed, he said.
About $700,000 of the district's money is frozen in the bankrupt county pool. Once the money is released, whatever is left after expenses will be deposited with the state treasury, Sheldon said. In addition, income from property taxes, interest, fees, property assessments and other sources will be "parked" in the state treasury before they are used for operations or bond payments.
Linda Goodrich, who was chosen Wednesday as president of the five-member district board, said that investing with the state treasury was the "prudent thing to do." Staying with the county pool "was not even an option," she said.
She said the district will not have cash-flow problems through the end of the current fiscal year in June.
According to a district financial study, anticipated income from Jan. 1 to June 30 will be sufficient to pay for operations expenses even if the district does not receive any money from the frozen funds.
"We don't need dramatic adjustments this year," Sheldon said.