At the beginning of the fiscal year, City Treasurer Ron Borucki had questioned the market’s ability to recover, but was hopeful that despite two-year lows, interest rates would rise.
His hopes didn’t last long.
“Would this third year be the one where the recovery catches fire, where people go back to work, where consumer spending picks up, and where interest rates finally pick up and start to rise? Nope, not this year,” Borucki wrote in a report to the City Council.
Glendale’s investment portfolio dropped to $409 million, down $39 million from $448 million at the end of last fiscal year, according to the report. The portfolio’s rate of return was 1.43%, slightly less than the expected 1.5%. Last year’s rate of return topped that at 1.89% because interest rates were a bit higher, Borucki said.