L.A. Shortfall
Your editorial “Can’t We All Count Better?” (Dec. 3), concerning the city treasurer’s overestimation of the income earned by the city of Los Angeles, only focused on the overestimation and the problems resulting therefrom.
Your editorial stated: “The treasurer overestimated income from the city’s $2-billion investment portfolio, predicting $39.4 million in income this fiscal year; the city will net just $18 million.”
If these figures are correct, then it would appear that not only did the city treasurer overestimate the investment income, but was unable to earn more than 9/10 of 1% on the $2-billion investment portfolio.
The Business section of the same edition states that the average yield on 7-day money market funds had increased from 2.74% to 2.77%, and that the average discount rate on 3-month Treasury bills as of Nov. 30 was 3.31%.
I suggest that you consider making inquiries of the city treasurer seeking an explanation for what appears to be an abysmal record in making investment decisions.
JAMES J. DAMBACH, Canoga Park
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