Minimize Lost Earnings Opportunities

By Robert "Bob" Kalafate

Encourage City Council to adopt a more forward-looking General Fund portfolio policy, centered on future opportunities, to growth reserves.

Good policy is formulated by experience and foresight. My priority as Treasurer, within state guidelines, is to ensure the income and potential growth of remaining General Fund and Reserve assets.

Nowadays, rates are less than 3% and our City reserves must remain geared short-term and wait years for rates to eventually rise. Just 2 years ago, treasury rates paid 5% plus. In 2006, our City could have locked those higher rates in through 2011 with a fraction of the reserves. The extra income up to now and for a few more years would have been tens of thousands of additional dollars. This could alleviate pressure on the General Fund to maintain community services, such as street and sidewalk repair, police services, eliminate blight and attract new business.

Additionally, with the decline of real estate values, $1.75 million dollars was taken away from property tax revenue we would normally receive this year. That, in addition to low income earnings, further restricts the General Fund.