Evan Vitale Consulting: Prenzler hires separate investment consultant

Thursday, December 11, 2014

Prenzler hires separate investment consultant – Alton Telegraph

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EDWARDSVILLE — In the wake of Madison County hiring an investment consultant last month, Treasurer Kurt Prenzler has hired his own consulting firm as well.

The treasurer’s office recently contracted Public Funds Consulting to provide consultation for investment of the county’s approximately $145 million portfolio. In the agreement, the treasurer’s office will pay $4,600 for roughly 20 hours of consulting from the firm.

The agreement comes less than a month after the county hired PFM Asset Management to take a thorough look at the county’s finances. As part of that $28,500 agreement, PFM will look at each department within the county as well as the county as a whole and recommend a course of action in regards to the county’s investment policy.

PFM was selected after a months-long search and interview process, a process in which Prenzler declined to participate for his belief that it was political in nature. County Board Chairman Alan Dunstan expressed his frustration with Prenzler’s lack of cooperation in the process, saying the recent hiring by the treasurer’s office was “redundant.”

“We asked Mr. Prenzler to be involved with that process. He was not involved with the process, and he just went out and did this,” Dunstan said.

The hiring did not require approval from the Finance Committee or the County Board. Because it was under $5,000, the treasurer’s office did not need to go out for bids before hiring the firm.

One of the reasons Prenzler decided to hire Public Funds Consulting, he said, is its principal, Sofia Anastopoulos. Anastopoulos does work with the Government Finance Officers Association, and in 2007 she wrote the book “An Elected Official’s Guide: Investing.”

Prenzler, who doesn’t have a designated investment consultant on staff, said he believes he could benefit from Anastopoulos’ guidance.

“It’s prudent for us to talk to this kind of caliber of person,” Prenzler said. “I’m going to listen to her and see what she has to say.”

Prenzler said he doesn’t know whether he will pursue further consulting from the firm after the initial agreement expires.

The discussion about the county’s investment policy has become more prevalent in recent months. Dunstan, among other officials, has taken issue with the county’s low returns under Prenzler — investments yielded just 0.23 percent in the last reporting quarter. In response, Prenzler has stressed safety in investing, choosing to put roughly two-thirds of the county’s funds in local banks and short-term commitments.

Although he was displeased with the circumstances surrounding the recent hiring, Dunstan said he hoped it will still have a positive impact on the county’s finances.

“I’m just flabbergasted by this, but at least maybe he’s looking into getting some professional help on the investment policy,” Dunstan said. “We need to work together and the bottom line (is) if this helps increase our investment income, more power to him.”

Nathan Grimm may be reached at 618-208-6451 or on Twitter @GrimmTelegraph.

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