Salinas Finance Committee members on Dec. 2 received the first quarterly treasurer's report and an investment-portfolio update from Chandler, the city's asset manager, that showed the Chandler-managed portfolio had a reported market value of about $112,709,000 as of Sept. 30 and an average purchase yield in the low-4% range.

"The goal of the treasurer's report is to present the city's monies are held and in which accounts," Selena (finance director) said as she introduced the report, which described cash-management practices spanning daily bank accounts, the state Local Agency Investment Fund (LAIF) and a Chandler-managed investment portfolio.

Carl Meng of Chandler presented economic context and portfolio performance, noting some official economic data lags caused by a recent government shutdown and summarizing key indicators including September nonfarm payrolls and a year-over-year CPI measure. On portfolio figures he said: "Total market value of the portfolio is 112,709,000, and that is up from fiscal year end of 111,369." Chandler said the portfolio has outperformed its benchmark since inception (annualized return since inception reported at 3.77% vs. benchmark 3.24%) and described a tactical allocation favoring short-duration instruments and corporate new issues to capture relative value.

Selena and Chandler also discussed an enhanced cash strategy that had laddered short-term securities to capture higher yields; Selena told the committee remaining liquid funds were directed into a money market sweep yielding about 4.03% as of Sept. 30 for day-to-day liquidity.

Committee members pressed staff on reserves and available funds. The presentation noted roughly $37,000,000 in general fund carryover and larger capital carryovers; when the chair asked about the investment portfolio, Selena confirmed there is approximately $75,000,000 of appropriated but unencumbered funds within the overall portfolio that could be reviewed for prioritization in the coming budget cycle. The chair and other members emphasized prioritizing infrastructure projects, and Renee (city manager) said the finance director will work with Chandler and department directors to bring project recommendations to the Finance Committee and then to City Council as the city moves toward a two-year budget.

No formal committee action was taken on the treasurer's report; the committee received the report and directed staff to return with a deeper review of unencumbered funds and project options.