Thomas Krouse Jr. ran in a special election to the Carlsbad City Treasurer in California. He was on the ballot in the special general election on November 5, 2024.[source]
Thomas Krouse Jr. completed Ballotpedia's Candidate Connection survey in 2024. The survey questions appear in bold and are followed by Krouse's responses.
I am a native Californian and 27 year resident of Carlsbad with more than 25 years of experience in professional investment management. I hold the Chartered Financial Analyst ("CFA") designation, I have been an S.E.C. Registered Investment Adviser, and I have been the CEO of two S.E.C. Registered Investment Adviser firms.
I earned my Bachelor's degree in (Quantitative) Economics from Stanford University and my M.B.A. from the University of Southern California. I previously served as a non-profit Board member at the North County Humane Society and SPCA, Californians for Electoral Reform, and at the Mayfield Community Clinic (where I also served as Treasurer).
I am the ONLY candidate for Carlsbad Treasurer who has ANY professional direct investment management experience, and I have been in this field for over 25 years.
Unlike in most other cities, the job description of Carlsbad City Treasurer is almost entirely focused on the direct investment management of the city's $900 million reserve fund.
A "Treasurer" in most other California cities has little or no role in directly managing city reserve investments which, if needed, is outsourced to a 3rd party professional investment management company. Carlsbad's Treasure has zero role in setting city policy or determining how or when funds are spent - these are decisions for the Carlsbad City Council.
It's of critical importance that Carlsbad have an experienced direct investment management professional as Treasurer because the reserve fund is $900 million, and the previous Treasurer incurred over $42 million in losses in just 2 years (FY2022-FY2023). For context, the annual Carlsbad City budget is less than $300 million per year.
In addition, Carlsbad's public safety pensions (police & fire departments) are underfunded at CalPERS by more than $50 million at the current CalPERS expected rate of return which is widely expected to be reduced over the next few years. Based on the future expected rate of performance for CalPERS, Carlsbad's public safety pensions are estimated to be underfunded by more than $130 million.
The activities of the Carlsbad Treasurer's office and the related Carlsbad Investment Review Committee have been far too opaque. The records (agendas, agenda packets, minutes, reports) and even membership of the IRC are not even listed on the Carlsbad City website where the respective information is available for all other Carlsbad city boards and commissions. Only after I brought up this fact at a City Council meeting did the city finally post the agenda and agenda packet for just one Carlsbad Investment Review Committee special meeting held on October 24, 2024.
In any case, this Investment Review Committee did nothing to stop the repeat multi-million dollar losses under the previous Treasurer, and they failed to notify the public.
Regarding public policy relevant to the position of Carlsbad City Treasurer, I am passionate about effectiveness, efficiency, transparency, accountability, and direct availability to the public.
Carlsbad City Treasurer is a technocratic role. In other cities, the role is usually outsourced to a professional investment management firm because the role is so technical and so critically important - it's your money that the city needs to maintain Carlsbad's infrastructure (parks, roads, water, sewage, etc.) as well as all of the services (police, fire, lifeguards, etc.). I am passionate about delivering to the city and the people of Carlsbad the prudent investment management that you and I deserve.
All elected officials must have a well grounded set of ethics where they are committed to doing the right thing even when it is difficult or personally costly.
Elected officials also must have empathy for all of the constituents they serve. This does not mean that elected officials can please all of the people all of the time - in fact it is usually impossible to please all of the people anytime. But, elected officials must be able to stand behind their decisions and actions and be able to explain to all constituents the general rationale and justification for any decision, action, or inaction.
Elected officials also must accept the fact that the future is unknowable for certain and generally difficult to predict. As such, elected officials should be very careful about committing to public policies and expenditures that might not be appropriate or useful in the future - otherwise they risk wasting precious financial resources and/or creating problems for the citizenry in the future that can be difficult to mitigate and resolve.
Elected officials should understand that at all times, the people are better able to make decisions for themselves than the government is able to make decisions for them. The liberty of constituents should be top of mind of all elected officials.
Prudent and effective direct investment management (buying and if necessary selling securities - primarily bonds) constitutes almost the entire role of Carlsbad Treasurer.
At a much lower level of importance, the Treasurer is also responsible for selecting the bank with which the City Manager conducts the business of the city.
The Treasurer is also responsible for attending infrequent meetings and working with city staff to produce certain financial reports regarding Carlsbad's investments.
My first job was babysitting. I was 10 years old, I think. My mother was a public school teacher and knew many of the families with children in the neighborhood. One of the families a few blocks away had 9 and 8 year old boys that the parents didn't trust leaving home alone together because they would "argue". So, the parents hired me to be the babysitter when they went out for dinner. I have 5 siblings, so I learned diplomacy skills at a young age, and I was very responsible.
Yes! The Carlsbad City Treasurer is responsible for personally buying (and if necessary, selling) individual securities (typically bonds) for the city reserve fund which is currently approximately $900 million.
Based on my discussions with voters across the city, fewer than 10% of Carlsbad residents know that this is the role of the Treasurer and almost the entire scope of the Treasurer's authority.
The Treasurer does NOT utilize an outside investment management company like most individuals would with their retirement or other investments accounts.
The above is the reason why it would be terribly dangerous to allow an amateur investor fill the role of Treasurer. Carlsbad's previous Treasurer incurred over $42 million in losses in just 2 years (FY2022-FY2023), and Orange County famously went bankrupt in 1994 due to the mismanagement of the county's investments. Carlsbad cannot afford to take such risks with the future of our children and the future of the city.
No. Previous government experience is irrelevant to the position of City Treasurer.
The City Treasurer position is entirely technical/professional. So, the only skill that matters is the ability to manage the city reserve fund prudently and effectively while maximizing returns within the risk management framework of Carlsbad's Investment Policy Statement which is ratified by the City Council.
Imagine electing a pilot or a plumber...you just need a good one - it does not matter if they are flying a government or a private plane nor if they are fixing a pipe at your home or at the local school.
The most important skill or expertise is in professional direct investment management, and I am the only candidate on the November 2024 ballot for Carlsbad Treasurer with any of this experience.
Consider who you would want to manage your personal retirement account investments. That is the person whom you should vote to elect for the City to manage its investments because indirectly these are your investments.
The Carlsbad Treasurer's position is unique because the Treasurer is elected by all of the voters in Carlsbad, but the position has no authority on City policy or budgeting.
The position is a professional public service position that is only part-time with a salary of less than $1,200 per month.
George Corrales;
Shirley Anderson;
Summer Boger;
Tamara Rodriguez;
Patti Siegmann, USMC ret.;
Duane Siegmann, USMC ret.;
Joel Anderson, San Diego County Board of Supervisors;
Bill Wells, Mayor of El Cajon;
Richard Rider, Chairman, San Diego Tax Fighters;
North County Conservatives;
Citizens for Community Oversight;
Maureen "Mo" Muir, former San Dieguito Union High School District Boardmember;
Mark Muir, former Fire Chief at City of Encinitas, Del Mar and Solana Beach & former Encinitas City Councilmember;
When the government spends our money, it should be as transparent as our banks and credit card companies are with us.
Note: Ballotpedia reserves the right to edit Candidate Connection survey responses. Any edits made by Ballotpedia will be clearly marked with [brackets] for the public. If the candidate disagrees with an edit, he or she may request the full removal of the survey response from Ballotpedia.org. Ballotpedia does not edit or correct typographical errors unless the candidate's campaign requests it.
Note: Krouse submitted the above survey responses to Ballotpedia on November 3, 2024.
I am a native Californian and 27 year resident of Carlsbad with more than 25 years of experience in professional investment management.
I hold the Chartered Financial Analyst ("CFA") designation, I have been an S.E.C. Registered Investment Adviser, and I have been the CEO of two S.E.C. Registered Investment Adviser firms.
I earned my Bachelor's degree in (Quantitative) Economics from Stanford University and my M.B.A. from the University of Southern California.
I previously served as a non-profit Board member at the North County Humane Society and SPCA, Californian for Electoral Reform, and at the Mayfield Community Clinic (where I also served as Treasurer).
I am the ONLY candidate for Carlsbad Treasure who has ANY professional direct investment management experience, and I have been in this field for over 25 years.
Unlike in most other cities, the job description of Carlsbad City Treasurer is almost entirely focused on the direct investment management of the city's $900 million reserve fund. A "Treasurer" in most other California cities has little or no role in directly managing city reserve investments which, if needed, is outsourced to a 3rd party professional investment management company.
Carlsbad's Treasure has zero role in setting city policy or determining how or when funds are spent - these are decisions for the Carlsbad City Council.
It is of critical importance that Carlsbad have an experienced direct investment management professional as Treasurer because the reserve fund is $900 million, and the previous Treasurer incurred over $42 million in losses in just 2 years (FY2022-FY2023). For context, the annual Carlsbad City budget is less than $300 million per year.
In addition, Carlsbad's public safety pensions (police & fire departments) are underfunded at CalPERS by more than $50 million at the current CalPERS expected rate of performance which is widely expected to be reduced over the next few years. Based on the future expected rate of performance for CalPERS, Carlsbad's public safety pensions are estimated to be underfunded by more than $130 million.
The activities of the Carlsbad Treasurer's office and the related Carlsbad Investment Review Committee have been far too opaque. The records (agendas, agenda packets, minutes, reports) and even membership of the IRC are not even listed on the Carlsbad City website where the commensurate information is available for all other Carlsbad city boards and commissions. Only after I brought up this fact at a City Council meeting did the city finally post the agenda and agenda packet for just one Carlsbad Investment Review Committee special meeting held on October 24, 2024.
In any case, this Investment Review Committee did nothing to stop the repeat multi-million dollar losses under the previous Treasurer, and they failed to notify the public.
Regarding public policy relevant to the position of Carlsbad City Treasurer, I am passionate about effectiveness, efficiency, transparency, accountability, and direct availability to the public.
Carlsbad City Treasure is a technocratic role. In other cities, the role is usually outsourced to a professional investment management form because the role is so technical and so critically important - it is your money that the city needs to maintain Carlsbad's infrastructure (parks, roads, water, sewage, etc.) as well as all of the services (police, fire, lifeguards, etc.). I am passionate about delivering to the city and the people of Carlsbad the prudent investment management that you and I deserve.
All elected officials must have a well grounded set of ethics where they are committed to doing the right thing even when it is difficult or personally costly.
Elected officials also must have empathy for all of the constituents they serve. This does not mean that elected officials can please all of the people all of the time - in fact it is usually impossible to please all of the people anytime. But, elected officials must be able to stand behind their decisions and actions and be able to explain to all constituents the general rational and justification for any decision, action, or inaction.
Elected officials also must accept the fact that the future is unknowable for certain and generally difficult to predict. As such, elected officials should be very careful about committing to public policies and expenditures that might not be appropriate or useful in the future - otherwise they risk wasting precious financial resources and/or creating problems for the citizenry in the future that can be difficult to mitigate and resolve.
Elected officials should understand that at all times, the people are better able to make decisions for themselves than the government is able to make decisions for them. The liberty of constituents should be top of mind of all elected officials.
Prudent and effective direct investment management (buying and if necessary selling securities - primarily bonds) constitutes almost the entire role of Carlsbad Treasurer.
At a much lower level of importance, the Treasurer is also responsible for selecting the bank with which the City Manager conducts the business of the city.
The Treasurer is also responsible for attending infrequent meetings and working with city staff to produce certain financial reports regarding Carlsbad's investments.
My first job was babysitting. I was 10 years old, I think. My mother was a public school teacher and knew many of the families with children in the neighborhood. One of the families a few blocks away had 9 an 8 year old boys who the parents didn't trust leaving home alone together because they would fight. So, the parents hired me to be the babysitter when they went out. I have 5 siblings, so I learned diplomacy skills at a young age, and I was very responsible.
Yes! The Carlsbad City Treasurer is responsible for personally buying (and if necessary, selling) individual securities (typically bonds) for the city reserve fund which is currently approximately $900 million.
Based on my discussions with voters across the city, fewer than 10% of Carlsbad residents know that this is the role of the Treasurer and almost the entire scope of the Treasurer's authority.
The Treasurer does NOT utilize an outside investment management company like most individuals would with their retirement or other investments accounts.
The above is the reason why it would be terribly dangerous to allow an amateur investor fill the role of Treasurer. Carlsbad's previous Treasurer incurred over $42 million in losses in just 2 years (FY2022-FY2023), and Orange County famously went bankrupt in 1994 due to the mismanagement of the county's investments. Carlsbad cannot afford to take such risks with the future of out children and the future of the city.
Previous government experience is irrelevant to the position of City Treasurer.
The City Treasurer position is entirely technical/professional. So, the only skill that matters is the ability to manage the city reserve fund prudently and effectively while maximizing returns within the risk management framework of Carlsbad's Investment Policy Statement which is ratified by the City Council.
Imagine electing a pilot or a plumber...you just need a good one - it does not matter if they are flying a government or a private plane nor if they are fixing a pipe at your home or at the local school.
The most important skill or expertise is in professional direct investment management, and I am the only candidate on the November 2024 ballot for Carlsbad Treasurer with any of this experience.
Consider who you would want to manage your personal retirement account investments. That is the person whom you should vote to elect for the City to manage its investments because indirectly they are your investments,
The Carlsbad Treasurer's position is unique because the Treasurer is elected by all of the voters in Carlsbad, but the position has no authority on City policy or budgeting.
The position is a professional public service position that is only part-time with a salary of less than $1,200 per month.
Joel Anderson, San Diego County Board of Supervisors
Bill Wells, Mayor of El Cajon
Richard Rider, Chairman, San Diego Tax Fighters
North County Conservatives
Citizens for Community Oversight
Maureen "Mo" Muir, former San Dieguito Union High School District Boardmember
Mark Muir, former Fire Chief at City of Encinitas, Del Mar and Solana Beach & former Encinitas City Councilmember
Jerome "Jerry" Stocks, former Mayor of Encinitas
Patti Siegmann, USMC ret.
Duane Siegmann, USMC ret.
Note: Ballotpedia reserves the right to edit Candidate Connection survey responses. Any edits made by Ballotpedia will be clearly marked with [brackets] for the public. If the candidate disagrees with an edit, he or she may request the full removal of the survey response from Ballotpedia.org. Ballotpedia does not edit or correct typographical errors unless the candidate's campaign requests it.
Note: Krouse submitted the above survey responses to Ballotpedia on November 2, 2024.
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