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City hears PFM quarterly investment update showing portfolio outpacing inflation over the past year
Summary
PFM presented the city's short‑term, operating cash portfolio (focused on 0–2 year bonds), reporting roughly $3.7 million in interest earnings over the past year and a 1‑year return of about 4.15%, above the March inflation figure cited by consultants.
City finance director Holly Queen introduced PFM Asset Management consultants who reviewed the quarter ending March 31, 2026 and explained how short‑term fixed‑income holdings are influenced by Federal Reserve policy and energy price volatility. Consultant Sean Gannon said the portfolio is invested for safety and liquidity (treasuries dominate) and that performance over the past year generated roughly $3.7 million in interest and showed a 1‑year return of about 4.15% compared with an inflation figure of 3.3% in March.
Gannon explained the firm's approach to duration management in a short‑term portfolio (0–2 year focus) and said managers will continue to monitor cash‑flow needs and may bring investment policy changes to the commission if warranted. Commissioners asked questions about duration, the role of corporate notes and commercial paper to pick up incremental yields, and how the portfolio connects to town reserves and capital flows; consultants said safety and liquidity are primary and yield is pursued only once near‑term obligations are ensured.
Mayor McCann and commissioners thanked PFM and finance staff for the briefing; consultants agreed to continue frequent communications if markets shift.
