New refuse authority investment policy expected to earn additional interest

By: K. Michelle Moran | Grosse Pointe Times | Published September 19, 2023

Shutterstock image

GROSSE POINTE PARK — The Grosse Pointes-Clinton Refuse Disposal Authority is taking advantage of a new — and safe — investment opportunity that will enable their cash to work harder for them.

The GPCRDA Board voted unanimously during a meeting July 11 in Grosse Pointe Park in favor of an investment policy that will allow it to place the authority’s cash in Michigan Cooperative Liquid Assets Securities System and Robinson Capital/ADM Consulting LLC. The GPCRDA previously was only able to invest through a handful of named banks/financial institutions, including Fifth Third, Flagstar, Chase and Huntington.

CPA Lynn Gromaski, who handles the finances for the GPCRDA, said the new investment options are for governmental agencies only; the general public can’t invest with them.

“I’ve used both of these companies,” said Gromaski, who has also worked for other municipal agencies. “They’re both good options.”

Gromaski said the GPCRDA had been receiving roughly 1% in interest from its current investments. That’s expected to increase to 4% to 5%, she said.

In addition, she said the funds remain “totally liquid,” so they can be accessed if an emergency expenditure arises. Gromaski said funds can be withdrawn with only 24 hours’ notice.

She said she anticipates seeing an annual increase in interest revenue of roughly $7,500.

“We really don’t have a lot of money to invest,” Gromaski said.

The funds are also secure. Gromaski said they’re all FDIC-insured.

GPCRDA Attorney John Gillooly said the policy passed muster with him. The board decided at its meeting in May to wait until Gillooly had reviewed the policy before voting on it.

“It meets with my approval,” Gillooly said. “It will withstand legal (scrutiny).”

Gillooly said Gromaski would be the primary signer for the investment paperwork. GPCRDA Board Chair Terry Brennan would be listed as the “director” on the policy application. The policy took effect July 11.