Treasurer reports $608M in pooled investments; committee sets direction for FY 2026–27 budget

City Treasurer Ray McCrayer told the Finance Committee on April 13 that the city’s pooled investments totaled about $608,000,000 as of Dec. 31, 2025, producing roughly $18,000,000 in interest earnings in the first half of the fiscal year and an average portfolio return of about 3.9 percent. McCrayer described portfolio structure — internal cash/Wells Fargo money market (~$18M), three external managers (Chandler Asset Management ~$165M, JPMorgan ~$231M, Invesco ~$112M), and allocations to treasuries, agencies and corporate bonds — and emphasized liquidity constraints and investment policy limits (no holdings longer than five years by policy for these funds).

Budget officer Felicia Galindo then reviewed the FY 2026–27 budget development schedule and departmental augmentation requests. Staff summarized proposed increases and one‑time requests across departments totaling roughly $8.3 million across all funds, with general‑fund ongoing requests near $900,000 and one‑time general fund requests also near $900,000. Major capital and program asks included continued funding commitments for the aquatic center, streets/roadway maintenance, IT software/cybersecurity, police equipment and public‑works fleet and cross‑connection specialist staffing in water/wastewater divisions. Public‑works requests comprised the largest single total across funds.

Committee members had no substantive objections and moved to direct staff to proceed with the proposed departmental requests and funding objectives within the budget calendar; staff will return the proposed FY 2026–27 budget for Finance Committee review on May 18 and then to Council for adoption in June.