Findlay Council at odds over city investments

FINDLAY — In a split vote Tuesday, Findlay City Council agreed to form an Ad Hoc Investment Committee charged with developing recommendations to update the city's investment policy, which could include hiring a third-party professional portfolio manager. The vote was 6-4, with council members Holly Frische, R-1, Jim Niemeyer, R-6, and at-large Republican council members Randy Greeno and Jeff Wobser opposed. Despite the differing opinions, discussion about the handling of city investments was decidedly more cordial on Tuesday than in months past. Tuesday's discussion and eventual vote were prompted by a letter to council, signed by three of its members and included on the agenda. The letter, dated July 9, was signed by council members Dennis Hellmann, R-2, Beth Warnecke, R-3, and Dan DeArment, R-4, and asked council to address their concerns about the management of the city's investment accounts. "So this whole issue around investments started over a year ago, when I was asking basic questions about our investments with no substantive answers," said DeArment. "So, I started peeling back the layers and learning more, and this has evolved into looking at the entire process around our investments: communication, transparency, reporting, accountability and strategy. Every aspect needs to be evaluated against best practices." DeArment said forming the committee is the first step. "Let's just take it one step at a time and not get ahead of ourselves by assuming an outcome," said DeArment. "The Ohio Revised Code says city council is the governing body over investments. Let's work together and govern with best practices." Both Frische and Wobser said the issue should be reviewed by council's Appropriation Committee, which is a standing committee. Wobser said he has concerns about forming an ad hoc committee "on this topic specifically," but didn't explain why. While DeArment says there has been no "substantive" response from the auditor's office, City Auditor Jim Staschiak insists that the information DeArment is seeking is already reported to council. Staschiak has accused DeArment of being politically motivated in continuing to make the request. On Tuesday, Staschiak said, "But in terms of trying to talk to this group, it's become very frustrating. And this letter fully illustrates that, and it was so frustrating. My deputy auditor is in the audience tonight because she's beside herself in terms of the misstatement of facts and information. We don't know if it's a misunderstanding. We don't know if it's not paying attention. We don't know if it's intentional." Staschiak also said the issue would be best handled by council's Appropriation Committee and said formation of the ad hoc committee is "not proper." He said the letter has "too much personalities" and politics. In April, DeArment and Warnecke sought legislation to revise the city's investment policy. Two supporting members of council are required to request legislation. So far, no legislation has been introduced. At that time, the city's investment total as of March 31, according to the auditor's report to council on April 15, was $95 million, invested over several funds. The invested amount is not leftover money. Municipalities routinely invest their cash flow to generate returns until access to the money is needed. In the July 9 letter, council members state that a policy change could have earned the city as much as $2.3 million more on its investments since 2023. On Tuesday, Staschiak said talking about the city's money with the goal of "maximizing the return on investment is completely contradictory to the Ohio Revised Code in terms of that being a primary function." Staschiak said the city doesn't track "return on investment." "The primary function is to protect every dollar of the taxpayers' money and then enhance it over and above that," Staschiak said. Wobser called for an Appropriations Committee meeting to be held at 5 p.m. Aug. 5, just before the regular meeting of council at 6 p.m., to discuss the city's mid-year budget review and the investment policy. The meeting will be held in the Findlay Municipal Building, 318 Dorney Plaza. All committee and council meetings are open to the public.