Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Investments topic
No spam. Unsubscribe anytime.
Stronach board hears Michigan CLASS presentation, tables creation of investment policy
Summary
The Township of Stronach heard a presentation from Michigan CLASS about a pooled municipal investment option offering daily liquidity and an AAA rating; the board directed staff to draft an investment policy and resolution for consideration next month.
The Township of Stronach on Oct. 8 heard a presentation from Michigan CLASS about a pooled investment product that the presenter said offers higher yields than traditional certificates of deposit and money-market accounts.
Mr. Bradford, a representative of Michigan CLASS Investments, told the board the program uses short-term securities, applies interest daily and provides daily liquidity. He said the fund is AAA-rated but noted it is not an FDIC-insured bank deposit. The board did not adopt any policy on the spot and agreed to table formal action until the next meeting to allow staff to prepare a draft investment policy and a formal resolution.
The move follows Treasurer reporting that certain township certificates of deposit were recently reinvested for six-month terms, maturing in March. During the treasurer’s report the board approved a separate resolution to accept credit-card payments for tax bills through BSA Payments, with the 2.8% plus $0.50 per transaction fee passed to taxpayers who opt to use the service; Mr. Bradford had recommended that payment option during his presentation.
The board’s decision to defer formal action gives staff time to draft and circulate proposed policy language before the next meeting. The agenda for the following meeting includes the Michigan CLASS investment policy and a resolution for board consideration.
