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Auditor details city investment yields; council schedules appropriations meeting for portfolio review
Summary
City Auditor Jim Stasiak told council the city's investment portfolio is yielding in excess of 4% for much of the balance but council members raised questions about recent declines in withholding revenue; members voted to schedule an appropriations (or committee-of-the-whole) meeting to review portfolio returns and cashflow projections.
City Auditor Jim Stasiak delivered a detailed explanation of the city’s cash investments and recent changes in income‑tax withholding at the March 18 council meeting and agreed to make data available at a follow-up appropriations meeting after council requested fuller disclosure.
Stasiak said the city’s total cash investments were roughly $96.5 million as of Feb. 28, and that ‘‘all of it, except $22,500,000 is receiving well in excess of 4 and typically closer to 5% return.’’ He described yields to maturity (YTM) driven by purchases made at a discount and said the portfolio has used a best‑practices bid policy to obtain higher yields. He told council some recent year‑over‑year reductions in withholding (the lion’s share of income‑tax collections) reflected fewer large bonuses and stock option exercises this year compared with last.
Councilman Dan DeArmond moved that the council schedule a meeting — either an appropriations committee meeting or a committee of the whole — within the next 60 days for a portfolio review. The motion was seconded and approved by voice vote; council asked the administration to email the specific questions promptly to Director Martin and copy council so staff could gather the requested documents.
DeArmond asked for line‑item returns for 2022–24, a forecast for 2025, comparison to consumer price index and benchmarks, and descriptions of permitted investments under Ohio Revised Code. Auditor Stasiak said he would provide the requested data and make himself available to answer questions but said he would not create a ‘‘dog and pony show’’ presentation; instead he will bring data and respond to inquiries during the committee meeting.
Separately during reports, members discussed a ‘‘very real reduction’’ in withholding receipts year‑over‑year and cautioned that the reduction is not a timing issue tied to tax‑day withholdings but reflected actual declines versus a year with atypically high bonus payments.
