As fall settles in, bringing with it cooler temperatures and tailgates, my work continues in bringing new
and diversified investments into the Township’s investment portfolio. The Treasurer is charged with investing the surplus funds - meaning cash it does not need to meet everyday disbursements - and with managing the investments of the retirement systems.
The Township has built significant reserves through prudent financial management over the years so that we can be ready to respond to any emergency situation that might arise. I put this reserve cash in a portfolio consisting of money market funds, bank CD’s, investment pools, and bonds. The goal is to strive for return on investment without sacrificing liquidity or principal. Last year we generated $4.3 million in earnings and interest on our reserves beating our budget by 20%.
As was common with municipalities in the 1960’s, new employees were offered a pension if they stayed with the Township for most or all of their career. As we all remember, these pension liabilities began to wreak havoc on municipal (and corporate!) budgets with the help of modern medicine extending the lengths of people’s lives. As a result, in 2005 Bloomfield Township joined many other local governments in closing its pension system to new employees, instead offering them a defined contribution style retirement plan known as a 401(a).
For employees starting prior to 2005, they were participants in the Township’s Pension Plan which has over $200 million in assets; and is managed by the Treasurer in consultation with paid investment advisers. The investments in this Plan run the gamut from bonds and equities to real estate and private equity. While I monitor the plan’s investments every day, the Township has a committee that meets quarterly to provide advice and a fresh perspective. We have an important duty to
ensure our retirees get the income they’ve earned.
As the staff in the front office are collecting payments for taxes and assessments, behind the scenes I am also keeping a watchful eye on our Township investments to deliver meaningful return to our bottom line.
Michael Schostak, Township Treasurer | 248.433.7705 | treasurer@bloomfieldtwp.org