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Eastpointe board votes 5–2 to join Michigan Liquid Asset Fund Plus after staff presentation
Summary
After a presentation from PFM Asset Management, the Eastpointe board voted 5–2 to place some district funds into the Michigan Liquid Asset Fund Plus; two trustees said they were not comfortable. Administration said the move is intended to earn higher, prudently managed returns while preserving liquidity.
The Eastpointe Community Schools Board of Education voted 5–2 on Dec. 8 to adopt a resolution authorizing the district to participate in the Michigan Liquid Asset Fund Plus, a pooled local‑government investment vehicle administered by PFM Asset Management. The motion was moved by Mr. McCain and supported by Mr. Williams.
Assistant Superintendent for Finance and Operations John Dean introduced Tasha Dent of PFM, who explained fund options and safeguards. Dent told the board the fund holds U.S. treasuries, agency securities and highly rated commercial paper; she said quoted yields are net of a small administrative fee and that the fund is designed to preserve principal while offering more yield than a typical checking account. "Whatever dollar you put in, you must be able to get that dollar back," Dent said, describing the fund's net asset value structure and liquidity classes.
Board members pressed Dent and district leaders on operational safeguards, cut‑off times for transfers and whether staff would need to be hired to manage cash flow. Superintendent Gibson and Dent said the district would keep a separate commercial bank account for day‑to‑day operations, use only a portion of the district’s $16 million checking balance for the fund, and rely on internal cash‑flow monitoring and a complimentary cash‑flow analysis offered by PFM.
Two trustees — Mrs. Richardson and Mrs. Whitby — voted against the resolution and told the board they were not comfortable with the change; the motion otherwise carried 5–2.
Votes at a glance - Approve agenda: passed 7–0 (motion by Mr. Rosco; second Mrs. Whitby) - Consent agenda: passed 7–0 (moved Mr. McCain; second Mr. Rosco) - Join Michigan Liquid Asset Fund Plus (resolution): passed 5–2 (moved Mr. McCain; second Mr. Williams) - Approve HVAC rooftop catwalk change order (~$100,000): passed 7–0 - Approve 2% retention bonus and contract addendum: passed 7–0
What happens next Administration said it will work with PFM to select the district’s initial liquidity class and bring back implementation details as needed; any term investments would be selected consistent with the board’s direction and with daily oversight of payroll and cash requirements.
