GALT, CA (MPG) - The city of Galt continues to get record returns on its investments, Treasurer Sean Farrell said at the May 7 Galt City Council meeting. 

In the first three quarters of fiscal year 2023-24, the city’s investments earned close to $2.8 million in interest, a record amount, Farrell stated in his quarterly report.

“There was only one year while I’ve been sitting in this chair that we’ve actually earned over $2 million. That was the (2008-09) fiscal year, so we’re already at a record-breaking pace,” Farrell said. “I do expect the city to earn $3 million … at the end of this fiscal year.”

Farrell noted that these earnings are distributed to the different city departments, based on their portion of the investment pool.

Three months ago, after the first two quarters of the year, the city had already collected nearly $1.9 million in interest, Farrell stated in his February report.

High federal interest rates are boosting the city’s earnings, according to Farrell.

At the May 7 meeting, Farrell told City Councilmember Shawn Farmer that it appears as if the Federal Reserve will keep interest rates where they are for the time being, with speculation of a decrease in November or December. A lower interest rate would probably cause the city’s investments to earn less.

While Farrell had earlier added some short-term investments to take advantage of the higher interest, he said he is returning his focus to longer-term options.

Farrell spoke about the local economy. Galt’s unemployment rate is 6.8%, according to figures from the state Employment Development Department. Farrell said that this was an overestimate, however, as he believes that actual unemployment is closer to Sacramento County’s average rate of 4.9%. He said 25 houses were sold in Galt during April, with a median price of $503,000.

During public comment, several Galt residents asked for action on a neighboring house whose owner they accused of letting the house fall into disrepair, behaving in antisocial and dangerous ways, and handling unregistered vehicles.

The three speakers said they began to suspect that the house in northern Galt was being used as a “chop shop” for processing unregistered vehicles after a family moved in in 2018. Neighbor Brenda Pinasco said nearby residents saw unregistered vehicles coming and going from the house and vehicle identification numbers being removed. Since the owner died last year, his 18-year-old son has lived in the house, according to the speakers.

“This young man … started having weekend parties; music into the late hours; illegal fireworks; racing motorcycles and vehicles on our public roads, in the backyard, and, yes, inside his home and out the front door,” Pinasco said. 

Pinasco said she first contacted the city about the house in 2021. The city began issuing weekly fines for the unkempt front yard; the owner at the time “would make attempts, but the yard never fully got in order, and then we are right back to where we started,” Pinasco said.

Galt Police Department became involved in 2023. Police Chief Brian Kalinowski said the police department can mainly act on issues in front of the house, such as illegally parked cars. On the evening of the council meeting, he said that there were “no vehicles that are on the street that are unregistered and parked improperly.” He said concerns about vehicles on the property are handled by code enforcement.

“My staff has been directed to address the issues as appropriate,” Kalinowski said.

Interim City Manager Chris Erias said the house has received weekly code fines, which “recently” changed to daily.

“But based on what I heard today, I don’t think that’s going to matter much to the youngster at the home,” Erias said. 

The city might eventually address the situation with abatement or place a lien on the house, according to Erias.

Also during public comment, Planning Commissioner Bonnie Rodriguez asked that City Council consider raising the individual campaign contribution limit for City Council candidates. She said the $100 limit is too low and discourages some potential candidates.

In other business, City Council issued a proclamation recognizing National Public Works Week from May 19 to 25. Additionally, it unanimously accepted a change to the Parks and Recreation Commission’s bylaws, clarifying that it provides recommendations to City Council on general matters relating to parks and rec, rather than policy specifically; interim City Attorney Frank Splendorio said this better reflects the commission’s actual practice and avoids extra paperwork for the commissioners.

City Council also approved holding the upcoming City Council elections during the November general election. The seats of Council Members Jay Vandenburg and Kevin Papineau will be up for votes.