Jim Ward. Courtesy photo

DIXON, CA (MPG) - Our city’s financial investments bring dividends and earnings into the City without additional taxation or fees. Almost all cities do this, and for Dixon it requires an elected city treasurer to be involved in the discussion. Experts plus myself meet quarterly to discuss the investments and the revenues they bring to us to ensure we are getting the most for our dollar.

This meeting reviewed the quarter ending September 30, 2023:

The U.S. economy inflation is still high but moving slowly lower. We show economic growth, with lots of uncertainty, but a strong GDP.

GDP stands for gross domestic product. It has become widely used as a reference point for the health of national and global economies.

GDP measures the monetary value of final goods and services bought by the final user in a country in a given period of time. It counts all of the output generated within the borders of a country. When GDP is growing, it is good because people are working, more companies are being created, there are more goods and services, and the economy is expanding.

There were fewer workers in the workplace due to a number of national factors including labor strikes.

Our credit qualities have a AA+ rating. Our accrued interest returns were down (-5%) on stocks and federal bonds.

California has only had small gains from its lost jobs since the COVID times. The statewide unemployment rate is still increasing at approximately 4.7% as of October 30, compared to 4.6% the previous month, and 4.0 as of last year.  The Federal unemployment rate was at 3.5%.

The Federal Reserve stated in the beginning of 2023 that there was going to be possibly two rate hikes in the Federal Funds Rate. The Federal Funds Rate is the target interest rate that is set by the feds at which commercial banks borrow and lend to one another overnight.  They have maintained the two hikes thus far.

In our city portfolio, we are diversified and have over $26 million in high quality investments. These are in short-term and long-term investments, but don’t get overjoyed about the potential dividend earnings as it is still not enough to avoid the need to increase taxes to cover any emergencies. Remember the City is growing, and therefore so is the need for services.