Northwest Hills Council of Governments
5/14/26 10 AM
Present via Zoom: Board Vice Michael Criss, Secretary Patrick Roy, Chair Casey Flanagan, Henry Tirell, Brad Bremer, Eric Epstein, Gordon Ridgway, Jim Brinton, Kitty Kiefer, Maggi Winslow, Todd Arcelaschi. Present in person: Board Chair Dan Jerram, Treasurer Tom Weik, Douglas Thompson, Denise Raap, Greg LaCava, Molly Spino, Paul Harrington, David Barger, Curtis Rand, Jim Brinton, Jesse Bunce. Absent: Seth Breakell, Meaghan Cook.
Seeking more flexibility, the Northwest Hills Coalition of Governments (NHCOG) is considering changes to banking and investment options.
Recently, coalition members have been in conversations with representatives from Torrington Savings Bank to learn about ways to boost how much it receives in annual percentage yield (APY) from its NHCOG’s accounts.
Annmarie Ryan, NHCOG’s grant financial manager, said at the coalition’s May 14 meeting that the bank proposed NHCOG establish a money market account. According to the U.S. Consumer Financial Protection Bureau (CFPB), money market accounts tend to pay higher interest rates than other types of savings accounts. These accounts also require higher minimum balances in order for account holders to avoid user fees.
Money market accounts also allow a less restrictive flow of the organization's funds. NHCOG’s current Certificate of Deposit (CDs) accounts, typically have early withdrawal penalties, effectively locking down funds for a set term. Moving the money out of NHCOG’s CD accounts would cost $918, Ryan said.
“[The money market account] is much more flexible. We'd be able to move assets between accounts, unlike the CDs, which are currently locked.”
Ryan said the account would collect 3.5% interest for three months and then adjust to a different rate.
“At that point, our rate would go more in line with the market,” Ryan said, estimating that the rate would be 3.3%.
Through Torrington Savings Bank, NHCOG would also have access to a sweep account. According to J.P. Morgan, sweep accounts automatically transfer excess funds, based on balance thresholds set up by the account holder. Those excess funds can be used to directly invest in interest earning accounts or to pay down debt.
Litchfield’s First Selectman Denise Raap (D), a member of NHCOG, asked about the amounts in money market accounts that are insured by the Federal Deposit Insurance Corporation (FDIC). Typically, the FDIC offers protection up to $250,000 per depositor, per bank. This coverage is automatic and protects principal and accrued interest in the event of a bank failure.
“How do we go above that?” Raap asked.
Ryan responded that Torrington Savings Bank offers protection for up to $200 million.
“The way that Torrington Savings Bank, as it's structured, they actually end up moving investments between multiple financial institutions overnight,” Ryan said. “So their limit for that is actually $200 million.”
Ryan also noted NHCOG could look to invest in a short-term investment fund (STIF), which typically makes high-quality, low-risk investments. The STIF Ryan has monitored has steadily yielded returns of about 3.7%, she said. That fund would offer around $500 more than the services offered by Torrington Savings Bank, Ryan added.
“I would simply note that we do have a long-standing relationship with Torrington Savings Bank. I know it has been mentioned in the past that it is nice to maintain these local relationships,” Ryan said. “The STIF account is very very highly rated, and I am not particularly concerned about risk, but Torrington Savings Bank would be completely FDIC insured, which reduces our risk overall.”
Republican Michael Criss, NHCOG’s vice chairman and the 1st Selectman of Harwinton, said he wanted to ensure NHCOG was maximizing its revenue earning potential. NHCOG Chair Dan Jerram (R), the 1st Selectman of New Hartford, concurred.
“The only thing I would suggest is that we call around on those interest rates, because although we have had a long-lasting relationship, then [Torrington Savings Bank] should be able to match any interest rates that we can get anywhere else at a better rate,” Criss said, “So you want to use that as leverage with them.”
Criss said the STIF account could be a fruitful option for NHCOG.
“The STIF account is more projectable for the income that we're not using, and it's more stable,” he said. “I would suggest we take a look at the STIF and you can usually liquidate that money in 24 hours. There are no penalties with that. I would probably try to call around before we lock in with Torrington to ensure that they're giving us that long term relationship ‘love you rate.’”
Jerram said NHCOG should consider moving funds into a STIF account while members value the financial options laid out by Ryan.
“We could be moving that money now and be getting that interest now while we're talking about other options,” Jerram said. “So that's opportunity lost, but I do appreciate the effort.”
Criss attempted to make a motion to move funds into a STIF account, but Executive Director Robert Phillips said that is left to the purview of Treasurer Tom Weik (R), the 1st Selectman from Morris.
Board members then decided to leave further operations on the matter to Ryan and Weik.
“We didn't want to do that arbitrarily without at least the treasurer being involved,” Phillips said.
