City Treasurer:

What investment strategy do you intend to follow through these turbulent financial times?

In my 10 years as city treasurer, I am proud of my record of proven performance and of keeping your city dollars safe. In these 10 years, more than $180 million of interest has been earned and returned to the people in the form of city services. And as your city dollars are now more than $444 million, I am particularly proud that not one dollar of principal has been lost in these 10 years.

There is nothing broken with our city portfolio today. It is safe and sound, and in “normal times,” it would require minimal maintenance. However, these are not “normal times.” Today, investment losses are as near as the neighboring cities of Long Beach, Burbank, Santa Clarita and Ventura. Each has lost millions of dollars in Lehman Bros. and/or Washington Mutual.

The city of Glendale has not, nor have we taken losses in Bear Stearns, IndyMac or AIG. Experience has been the difference. In these turbulent financial times, even a portfolio as safe and sound as ours needs additional vigilance to protect and keep your city dollars safe. And I intend to continue to do just that using my investment and banking experience.

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What is the single greatest challenge to municipal investment portfolios today, and how do you intend to address it?

Today, the financial landscape is fractured and fragile. The investment community is experiencing challenges not seen in 60 years. The earliest forecasts for economic stability and recovery are put at the end of this calendar year. Record amounts of government debt are being issued, keeping interest rates low. The goal is to revive bank lending that in turn will help all sectors of the economy: the housing market, the business community and the consumer.

This low interest rate environment and the uncertainty of its length, presents the greatest day-to-day challenge in managing the city portfolio. Interest rates in our marketplace have compressed; maturity dates do not reflect true value. Our approach has been to stay short and liquid. Daily, we look for rate or spread opportunities. Longer term, we are well-positioned when the market moves in our favor.

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Explain your view on the role of the city treasurer.

The city treasurer position should be one of the easiest for voters to determine who the best-qualified candidate is.