After a lengthy review of the city’s $20 million investment portfolios, the San Jacinto City Council learned they have made only small gains in the marketplace due to a sluggish but improving economy as reported by their two financial advisory firms.
“I really expected more,” Mayor Scott Miller said after hearing from their two investment advisors, Chandler Asset Management and Public Trust Advisors, formerly BLX. The two advisors, each handling $10 million in city investments, reported small gains in the city portfolios in the 2 to 3 percent range. The city gained approximately $24,000 from their investments with Chandler Asset Management. Public Trust Advisor similarly showed a small 1 to 2.5 percent gain in the city investments, as they reported a gain of almost $14,000, according to the San Jacinto public records pages for the Aug. 1 meeting.
Chandler Asset Management has maintained its city portfolio for a little over five years, and Public Trust Advisor has managed theirs for almost the same amount of time. The advisors said that even the small gain was good, considering the nation’s uncertain economy with its new president and Congress. They suggested that interest rates will most likely rise changing the economy in the next year.
Cities and counties may invest certain amounts of their revenues into allowable securities, like government bonds, for their residents. The investments, which hopefully will rise, will provide more economic security for city needs in the future. The government bodies may choose investment firms to help with their investments. The firm or firms are required to review the city’s recommended investments with the councils or boards each year following a Statement of Investment Policy. The last SIP for San Jacinto was reviewed Nov. 1, 2016, with no changes from the investment firms. The council approved their continued employment at the regular city council meeting. The council may still change financial advisors as they see fit.
There was a question by Councilwoman Crystal Ruiz following the review, asking why the city had chosen to use two investment firms instead of one and showing concern about the difference in the amount of gain from the two firms. The issue may be brought up at another meeting.
In other business, the San Jacinto City Council approved the purpose, objectives, scope of work and priorities of the soon to be appointed Cannabis Program Oversight Team, now known as CPOT. The CPOT will be made up of 10 members of the community minimum, two city councilmembers and nonvoting advisors.
A discussion about creating another 10-member citizen’s advisory committee or having the CPOT members being the same was also brought to the council’s attention.
The recruitment requirements and how to apply for CPOT or the advisory committee was referred to City Manager Robert Johnson and his staff who will announce the public application process for the CPOT oversite committee soon.
The council set the priorities for the CPOT to be the following: work to reduce the illegal market, develop youth prevention strategies, review the impact or legalization on and regulation on the San Jacinto community, unintending consequences for business community, higher or lower property values, public cannabis events/festivals, social consumption of cannabis, homeless and vagrancy issues, chronic municipal code issues and other issues as they emerge.
Mayor Scott Miller made a recommendation to define the differences between ad hoc, standing and regional commissions and committees and to eliminate all those on a list of committees and commissions that are no longer needed nor have no work to accomplish. He said some of those listed on the mayor’s list had been there for 10 years and have no work or have finished what they were appointed to do. The committees and commissions are appointed by the mayor and the council with some requiring an application process.
Miller and the council revised the appointment lists as recommended, bringing them up do date and erasing those not doing any work.
The charts and investment details about the city’s investment portfolios can be found on the San Jacinto City webpage under the Aug. 1 agenda “view.”