Micromanaging Benicia’s portfolio is allowing the city to take advantage of changes in the bond market despite the state’s restrictions on the city’s investments, said Carlos Oblites, director of San Francisco-based consultant PFM Asset Management.
Speaking Thursday to the Finance Committee, Oblites gave a brief first-quarter review of the portfolio, saying his firm has been monitoring the city’s investments and judiciously buying and selling to give Benicia the best returns it can get while remaining in compliance with California Government Code and Investment Policy.
No one has a crystal ball about future economic changes, he said, but the Federal Open Market Committee said economic growth has moderated somewhat and is less bullish.
“The world is focused on what the Fed is going to do next,” he said, adding that it may not act on interest rates until the end of the year or later.
In other matters, the committee agreed to take up again the issue of the role of city treasurer, using information they will receive from city Finance Director Karen Schnaider and City Treasurer Kenneth Paulk, based on a recent treasurers conference they attended.
In another report, Schnaider said Benicia may not get third-quarter revenue numbers from California until May, and Solano County true-up numbers may come some time between June and August.
However, she said, the city has been told it will receive a one-time, nine-year “bump” in sales tax that could be used for infrastructure and capital expenses.
A recurring quirk in the city’s computing system keeps introducing report computation errors that have to be adjusted manually, she said.
That is one of several problems city staff expects to eliminate once a citywide finance software program is bought — erroneous reports that need to be corrected before they’re sent to the City Council. The new software may make Benicia more appealing to bidders for banking service, Schnaider added.
The Finance Committee also decided to add updates on Measure C revenues and projects as a regular agenda item.
Thomas Petersen says
“A recurring quirk in the city’s computing system keeps introducing report computation errors that have to be adjusted manually”
The funny thing is that computers are much like people, in that when they age, they are more prone to computation errors.