Council debates whether pension advisory committee should advise on town investments; members split on bylaws change

Portsmouth councilors spent an extended portion of the May 11 meeting debating whether the pension advisory committee should be authorized to advise on town pooled investments or whether the council should instead form a one‑time review or ad hoc subcommittee.

Finance staff reported the town pools cash across general, special‑revenue and enterprise funds; the pooled account has returned interest income (cited in the backup as $362,000 for a stated period). Councilors pressed for options to increase returns while preserving liquidity for day‑to‑day operations.

Tom Grieve (S5), who said he calculated recent monthly averages, told the council that if the town’s roughly $20 million average balance had been in the Ocean State Investment Pool in April it would have returned 3.61% versus 2.1% where it was invested — a 1.5 percentage‑point difference that he said could amount to roughly $300,000 annually on a large balance. Grieve also noted the Portsmouth Water and Fire Department used laddered treasury bills with a higher return in the same period.

Opponents, including one councilor who noted the council is the pension board, warned against changing bylaws without advertisement and cautioned that advisory committees can create conflicts of authority. Several councilors suggested compromises: staff could pursue an ad hoc one‑time review with financial experts or ask a small pension subcommittee to draft specific proposals for advertised bylaw changes. The finance director (S12) said staff is looking into options and that the investment policy (last approved in 2012) could be updated.

What happens next: Councilors asked for clearer proposals and recommended putting a detailed, advertised item on a future agenda. Staff will gather comparative data on alternative vehicles (for example, the Ocean State Investment Pool) and return with specifics, and some councilors volunteered to help draft advertised bylaw language if the council chooses to proceed.