Tim Willert
CITY HALL -- For years, Ron Borucki sold bank products and financial
services to city treasurers and finance directors.
Now he sits on the other side of the desk.
Borucki left banking in 1999 after 34 years to become Glendale's city
treasurer.
As such, Borucki is the city's banker, the man who manages the city's
$425-million portfolio.
Borucki makes investment decisions for the city, following state
guidelines. As a result, the city only invests in bonds and does not
invest in the stock market.
"The main goal as investment manager is to maximize return without
compromising safety and liquidity," Borucki said.
The city invests in U.S. agencies and treasuries, and is permitted to
invest up to 15% in U.S. corporations.
Borucki, though, only invests in AAA and AA bonds even though the
state permits investing in higher-risk A bonds.
Wal-Mart and General Electric Credit Corp. are among the corporations
the city invests in, Borucki said.
"This is the cream of the cream," he said. "These corporations are
very safe and almost risk-free."
For fiscal year 2001, which ended June 30, the city portfolio earned
just under $412 million, nearly $90 million more than the previous year.
Interest earnings totaled $22.6 million, almost $6 million more than
the previous year. The effective rate of return for the past year was
6.23%, up from 5.62% in fiscal year 2000.
"I like the challenge of maintaining a portfolio, particularly in
these tough economic times," Borucki said.
Most of the city's portfolio consists of money that is earmarked for
future programs. In the meantime that money collects interest.
Besides investing city money, the treasurer's office collects between
$20 million and $25 million in monthly revenue from various city
departments.
"We pay all the city's bills and payroll checks," Borucki said.
Borucki relies heavily on Deputy City Treasurer Angela Peterson, who
acts as office manager and oversees the department's other three
employees.
"She's been around for 25 years, so she is familiar with the city,"
Borucki said.
THE GLENDALE CITY TREASURER'S OFFICE
* DEPARTMENT HEAD: City Treasurer Ronald T. Borucki.
* PERSONNEL: Five employees, including Deputy City Treasurer Angela
Peterson, an administration associate and two cashiers.
* BUDGET: $391,470.
*PHONE: 548-2066.
