Sustainable Investments Preserve Natural Areas

About the Program

Category: Financial Management (Best in Category)

Year: 2022

The Washtenaw County Treasurer and the Washtenaw County Parks and Recreation Commission partnered to create a new funding mechanism to support the perpetual maintenance of the County’s extensive natural area preserves and trail system. Michigan law restricts investment options for public entities’ surplus operating funds but allows special revenue funds for parks operations and maintenance to be invested like pension funds. Washtenaw County’s Natural Areas Preservation Program special revenue fund is the first to be created under this provision. Washtenaw County Parks purchases unique natural areas to ensure their preservation for the benefit of all County residents, plants, animals, and people. The Washtenaw County Parks and Recreation Commission manages the program, identifying and caring for lands with special ecological, recreational, and educational benefits. The County Treasurer manages the investment fund, using Vanguard as the custodian and coordinating with a financial advisor for specialized expertise. She invests in environmentally conscious stocks and green bonds for long-term growth in support of stewardship and sustainability. The special revenue fund, adopted by the Board of Commissioners, is designed to work like an endowment, providing a permanent source of funding to maintain these preserved natural areas in perpetuity without future revenue sources.