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Finance committee receives quarterly treasurer's report; Chandler cites strong portfolio performance and $75M unencumbered funds
Summary
Selena introduced a new quarterly treasurer's report and Carl Meng of Chandler reviewed economic conditions and portfolio performance (portfolio market value ~ $112.7M; consolidated holdings ~$134.1M). Committee discussed $75M of appropriated but unencumbered funds and a $115M CIP carryover; the report was received.
The Salinas Finance Committee on Dec. 2 received a quarterly treasurer's report outlining where city monies are held, reserves, and the investment portfolio's recent performance.
Selena presented the treasurer's report, explaining the city's day-to-day cash at banking institutions versus custodial holdings (BNY) and the role of the Local Agency Investment Fund (LAIF) as a short-term buffer. She summarized carryover funds, saying the city has roughly $115 million in CIP carryover across funds, and cited large encumbered projects such as Buranda Road (~$19 million) and Closter Park (~$8.6 million).
Carl Meng of investment manager Chandler provided an economic overview and portfolio update, noting some federal economic data lag due to a recent government shutdown. He reported the Chandler-managed portfolio market value at about $112,709,000 as of Sept. 30 and said the consolidated Chandler-managed financial assets were about $134,085,000; average purchase yields were reported around 4.08% with a current market yield near 3.81%. Meng also described an enhanced cash account strategy that had been wound down and noted remaining liquid funds were placed in a money-market sweep earning about 4.03% as of Sept. 30.
Committee members questioned benchmark selection, credit quality and what constitutes sufficient liquidity. Meng said Chandler and city staff jointly set the Bank of America ICE 1—2 year U.S. Treasury & Agency benchmark for the portfolio and recommended a cash-flow analysis before defining a fixed liquidity target.
A notable conversation focused on appropriated but unencumbered funds: a committee participant asked whether there were roughly $75 million "running around" that had not been spoken for; Selena confirmed those dollars are appropriated but not yet encumbered and said staff will work with department directors to bring project options back to the finance committee prior to council consideration as the city moves toward a two-year budget cadence.
The committee formally received the treasurer's report; staff plan to return with more detailed options on how to use unencumbered funds and project prioritization in an upcoming finance committee meeting.
