The Municipal Organization of Anchorage (MOA) fiduciary board reported investment returns and told the Assembly Budget and Finance Committee on Sept. 18 that it selected Callan as the consultant recommended for a new contract after a competitive RFP process. Board Chair Slifka said the fund returned 9.4% over the trailing three years through June and that fund value in August was about $467,000,000.

The selection matters because the board will seek assembly approval of the consultant contract at an upcoming meeting. The board chair, Slifka, told the committee that while Callan’s proposed fee was higher than other bidders, the majority of the fiduciary board judged Callan’s capabilities—especially for expanding private investments—worth the additional cost. “It was the judgment of the majority of the board…that Callan would be best served to provide those services,” Slifka said.

Why it matters: committee members said the fee gap between Callan and the lowest bidder is substantial and asked for a written justification. Assembly Member Constant requested that the fiduciary board submit a memorandum by the next business day or Tuesday night detailing the value represented by the cost differential and the board’s minority opinion. Constant said he would ask the assembly to postpone consideration of the contract if that memo was not provided.

Board details and near-term steps: Slifka said the fiduciary board is in the process of accepting applicants for a director of investment operations and expects to complete hiring in the coming months. He also said the board had completed an RFP and chosen a new consulting firm and will ask the assembly to approve the contract at a future meeting (item listed as 11b on the Sept. 23 agenda, AM 6506:2025).

Discussion versus decisions: the fiduciary board has recommended Callan and will ask the assembly to approve a contract; no assembly vote occurred at the Sept. 18 committee meeting. Constant’s request for a memorandum is a direction to the board to provide more detail prior to assembly action; he stated he would move to postpone if the memorandum was not submitted. Slifka confirmed the board would try to provide the requested documentation.

Context and caveats: Slifka cautioned that returns above 9% are not guaranteed annually and noted the fund aims to meet an inflation-plus-4% objective to maintain purchasing power and support a 4% dividend payout. He told the committee the expected payout to the municipality could rise by roughly $400,000 next year compared with the current year’s payout.

Next steps: the contract award recommendation for Callan will appear as an unfinished item on the assembly agenda for Sept. 23; the assembly will consider the board’s contract recommendation and any supplemental memorandum before any formal vote.