WESTMINSTER : Trustees Approve Investment Settlement

The governing board of the Westminster School District has agreed to accept a settlement plan that would immediately return 90% of the money it had in the county’s investment pool, a spokeswoman said Tuesday.

Under Option A, the Board of Trustees would receive about $11.6 million of its investment in cash and recovery notes by June 5 but would also waive its right to sue the county. The remaining 10% of the district’s investment would be converted to repayment claims to be paid over an unknown period of time, said district spokeswoman Audrey Brown.

Under Option B, the district would have received 76% of its money while retaining the right to sue for the remainder, she said.

The district had $13.5 million invested in the pool when the county declared bankruptcy Dec. 6. If the settlement is approved, the district will be able to make minor changes to its 1995-96 budget without need for major cuts or layoffs. The district’s annual budget is about $35 million, Brown said.

To become effective, the proposed settlement must be approved by at least 80% of the investment pool participants holding at least 90% of the money.