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Finance director Steve Charelian retires after 35 year career with the City of MB

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Finance director Steve Charelian retires after 35 year career with the City of MB

by Mark McDermott 

Finance Director Steve Charelian is retiring after a 35 year career with the City of Manhattan Beach. His final day is July 5. 

Charelian has served as the head of the Finance Department since 2018, taking over after his predecessor, Bruce Moe, was named City Manager. He had big shoes to fill. Moe was lauded locally and regionally for his stewardship of city finances and particularly in helping Manhattan Beach earn its much-vaunted AAA bond rating, the highest credit rating possible for a city. 

Charelian proved more than up to the task. During his tenure, the City faced one of the biggest financial challenges in its history, the COVID-19 pandemic. Charelian provided a steady, experienced hand, and the City emerged from the pandemic on strong footing. Charelian was instrumental in helping the City make some critical course corrections, such as seizing on historically low interest rates to issue $91 million in pension obligation bonds, saving an estimated $31.8 million over the next 25 years in retirement costs. Likewise, Charelian played a key role in addressing gaps in City funding, including an increase to its transient occupancy tax that generated $1.25 million annually and helped pay for 10 additional police officers; and the passage of a ballot measure last fall that provided $2.1 in annual revenue, replacing a subsidy of the City’s Storm Water Drain enterprise fund that had already bled the City’s General Fund of $6 million and threatened to take another $11.6 million over the next five years. 

Moe, at the June 4 council meeting at which Charelian introduced his final budget, took a moment to praise the finance director for the vital, time-consuming, and often thankless tasks he undertook. 

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“Steve has just been a tremendous asset to the City,” Moe said, referencing Charelian’s accomplishments over the last six years. “The one thing I’ll say about Steve, is he’s kind of like that song, ‘Put me in coach, I am ready to play.’ It didn’t matter how much was on Steve’s plate, he would always come to me and say, ‘How can I help you?’ And that was true with the TOT, the pension obligation bonds, any of those projects. Steve was the first one to step up and say, ‘I know I’ve got a lot of shrimps on my barbie,’ as he would say, but he was always willing to take on additional. I want to publicly thank Steve for that.” 

Charelian said the he as not a “maestro with words” like Moe, but offered a few words to mark the occasion. He began his career with Manhattan Beach in July, 1989, he noted, which was only two months after Moe was hired by the city. 

“So we kind of had that career path together and grew together and learned and everything together,” he said. “My 35 year tenure has been filled with wonderful professional opportunities. I really want to express my gratitude to Bruce for entrusting me with the role of finance director. For nearly the last six years together, we achieved significant milestones of fortifying the city’s financial framework.” 

Charelian and Moe were both devotees of former City Controller Henry Mitzner, the no-nonsense municipal philosopher who worked for the City of Manhattan Beach for 48 years before retiring in 2020. Charelian learned early in his career, by observing Mitzner, that that traditional 9 to 5 workweek meant nothing —  weekends, early mornings and late nights, he’d see Mitzner come to City Hall when there was work that needed to be done. Through the years, Mitzner peppered him with words of wisdom from his own heroes —  the likes of football coach Vince Lombardi and basketball coach John Wooden. Charelian recalled one of those Wooden quotes at the time of Mitzner’s retirement: “Success comes from knowing that you did your best to become the best that you are capable of becoming.” 

At this week’s meeting, Charelian’s last, the City Council held a brief ceremony recognizing his contributions. Moe recalled an instance in which Charelian did just what that Wooden quote advised, although in a uniquely Charelianesque way. In 2008, the City’s revenue service director was retiring, Moe said, and Charelian applied for the position. Moe was hesitant, because he just didn’t think Charelian was “quite ready.”  

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“And Steve, being the social guy that he is, and the closer that he is, invites me to Il Fornaio for a happy hour,” Moe recalled. “So we sit there, and by the end of 45 minutes and a couple glasses of wine and a few margherita pizzas, Steve had me convinced, because he brought so many qualities… that gave me a nice runway. He was just always there, on the spot, to get things done. But it was that enthusiasm, that intangible thing that you can’t necessarily learn. It’s just part of Steve’s personality that really sold it, and I never looked back.” 

Mayor Pro Tem Amy Howorth went through the many notes of recognition sent by neighboring cities as well as MBUSD, State Senator Ben Allen, U.S. Congressman Ted Lieu, and even more unusually —  particularly for a finance director —  the Los Angeles County Sheriff’s Department and State Treasurer Fiona Ma. 

“So you have touched not just all of us and the residents in our town, but obviously been a presence in the county and have been recognized by state leaders,” Howorth said. “It is so well deserved and well earned. You have done excellent work with your whole heart, and you’ve even convinced some of my colleagues that they were wrong, I’ve been told…. [which speaks to] how much we have trusted your judgment and how much that has meant to all of us in our community. Because there’s numbers on a page, but they tell a story, and you have helped us understand that story, and write the story for our community.” 

Councilperson Steve Napolitano, who was first elected to council in 1992, three years after Charelian began his career, said he was among those sometimes convinced to change his mind by Charelian’s arguments. 

“I want to say, Steve, as a friend, we’ve shared a lot of thoughts together and dedication to this city,” Napolitano said. “And you know that thing about being wrong and changing gears? We’ve had so many great discussions over the years where I think we’ve pushed each other to get outside the norm and our comfort zones. We’ve gotten —  you’ve gotten —  a number of things passed that have put this city on a financial foundation that is going to keep us in good stead, especially our recent vote on storm drains. You’ve helped get us 20 years of good budgets, and now we need to address our CIP [Capital Improvement Projects] and you’ve set us up for that.” 

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“The good folks who work in any institution, especially here in the City, are the ones who leave the place better than how they found it,” Napolitano said. “And Steve, you’ve done an amazing job here. You’re leaving Manhattan Beach in a better place than you found it…As a dedicated employee who bleeds Manhattan Beach, you can’t look for a better employee than someone who just believes in what they’re doing.” 

Councilperson Richard Montgomery, who worked closely with Charelian as mayor during the Great Recession and then again as mayor at the onset of the pandemic, said that so much of what Charelian has done is work that is essential but unknown to the general public, such as successfully “clawing” for federal reimbursement for funds needed during the pandemic. 

“All these things you don’t see behind the scenes, this is the guy who made it happen,” Montgomery said. “Along with Bruce, and learning from Howard Fishman in Risk Management, and Henry Mitzner from the old Finance days. It’s a long succession of leaders here, and in finance you don’t see them all, and all the work goes unheralded. But we know what they do.” 

Mayor Joe Franklin presented a gift from the City, a green street sign that said, “Charelian Way.” 

“We are going to add that to Google Maps, right?” Franklin said. 

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Charelian closed with some brief remarks, thanking his wife, RC, and his sons Knox and Chase, as well as the council and the City employees he worked alongside. Charelian, a Manhattan Beach resident whose unconventional professional journey began at El Camino College, vowed to remain steadfast in his dedication to the community. 

“I leave with a profound sense of gratitude for the privilege of serving a City of Manhattan Beach employee for the past 35 years,” he said. “The lessons learned and relationships forged will forever hold a special place in my heart. Thank you all for this incredible opportunity and for being part of my remarkable journey. This isn’t goodbye, but I’ll see you later.” ER

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Finance

Chart of the Week: The jobs report's instant expectations shift

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Chart of the Week: The jobs report's instant expectations shift

This is The Takeaway from today’s Morning Brief, which you can sign up to receive in your inbox every morning along with:

The labor market offered an unexpected surprise on Friday as the September jobs report showed 254,000 payrolls added in September — 104,000 more than expected.

Worries of a flagging labor market have been the main point of economic focus over the past month as the conversation has turned from inflation, which appears to be in control at last, to the other half of the Fed’s dual mandate.

In the leadup this week, two key reports showed mixed data. The JOLTS numbers showed more job openings, but more conservative hires and quits. The ADP numbers showed surprising strength in private payrolls, but lower wage gains for job switchers — a key labor market thermometer that dogged the inflationary 2021 and 2022 years.

As our Chart of the Week shows, the economists have been caught off guard. September’s report has suddenly changed expectations for the Fed’s trajectory, as the market now sees four 25 basis point rate cuts over the next four meetings and a higher terminal rate when the cuts end.

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Renaissance Macro Research’s Neil Dutta sees the print as bolstering the guidance of a 25 basis point cut per meeting until 2025, noting that the report “overwhelms all other employment indicators” that showed a weakening labor market.

“Today’s data might be the first sign of stabilization,” Dutta wrote on X, formerly Twitter.

Nearly every note we saw from Wall Street economists Friday was in agreement. This shifting dynamic suggests that not only is 50 basis points off the table for November’s meeting — some are even questioning any further cutting with numbers so strong.

“Looking at the [labor] market strength evident in September’s employment report, the real debate at the Fed should be about whether to loosen monetary policy at all,” Capital Economics chief North America economist Paul Ashworth wrote in a note to clients on Friday. “Any hopes of a [50 basis point] cut are long gone.”

On the one hand, life comes at you fast. A new report comes and blows everybody’s views out of the water and even threatens to pull the dreaded topic of inflation back in, just when we thought we were out.

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On the other, to quote Fed Chair Powell from the June meeting, “it always makes sense to look at a series … rather than just one report.” The “totality” of data, not just one report — which of course will get more weight because it’s still warm from the printer, magnifying the effect of an already huge beat.

What is clear is that the Fed’s wait-and-see, meeting-by-meeting attitude is far from ready to be abandoned, as the moment’s uniqueness keeps showing itself.

Besides the unexpected headline numbers, the unemployment rate-focused Sahm Rule — which has already been played down by its creator, Claudia Sahm — showed an unusual retreat after previously surpassing a recessionary mark that, once passed, usually keeps going up. Another point for the “this time could be different” camp.

It doesn’t end there. Year-over-year wage growth was 4%, up from 3.9%, a gain that would typically spark serious inflation concerns, but hasn’t. Putting aside whether “not cutting” is perhaps tantamount to hiking, the fundamental narrative of the Fed’s directionality hasn’t changed, only adjusted.

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Counterbalancing the jobs numbers is survey after survey that shows labor sentiment declining — a factor arguably as important as the actual numbers. (If people feel like jobs are scarce, they may also feel like spending a little more conservatively.)

“On the face of this the Fed should be hiking rates with these sorts of figures, not cutting rates,” wrote ING’s James Knightley. “Nonetheless, we feel that the risks remain skewed towards weaker growth and lower Fed funds given the perception amongst households of a deteriorating jobs market (even if today’s numbers don’t confirm that), which may lead to consumers spending more cautiously.”

For the Fed, at least, the wait-and-see approach looks even better than it did previously as it seeks to gently land the plane. With both the economy looking strong and inflation getting in check, nothing sits to force its hand — for now.

Ethan Wolff-Mann is a Senior Editor at Yahoo Finance, running newsletters. Follow him on X @ewolffmann.

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New Mountain Finance Strategizes for Future with Financial Restructuring

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New Mountain Finance Strategizes for Future with Financial Restructuring

The latest update is out from New Mountain Finance ( (NMFC) ).

New Mountain Finance Corporation has revamped its financial strategy by amending its NMFC Credit Facility, increasing commitments to $638.5 million, extending maturity for a majority of the funds to 2029, and adjusting the interest margin. Additionally, the company has fully terminated its DB Credit Facility, including the associated collateral security, aligning with the completion of its obligations to the lenders. This strategic financial restructuring marks a significant shift in the company’s approach to managing its credit facilities and debt portfolio.

For detailed information about NMFC stock, go to TipRanks’ Stock Analysis page.

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US jobs report crushes expectations as economy adds 254,000 jobs, unemployment rate falls to 4.1%

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US jobs report crushes expectations as economy adds 254,000 jobs, unemployment rate falls to 4.1%

The US labor market added far more jobs than projected in September while the unemployment rate unexpectedly ticked lower, reflecting a stronger picture of the jobs market than Wall Street had expected.

Data from the Bureau of Labor Statistics released Friday showed the labor market added 254,000 payrolls in September, more additions than the 150,000 expected by economists.

Meanwhile, the unemployment rate fell to 4.1%, from 4.2% in August. September job additions came in higher than the revised 159,000 added in August. Revisions to both the July and August report showed the US economy added 72,000 more jobs during those two months than previously reported.

Wage growth, an important measure for gauging inflation pressures, rose to 4% year over year, from a 3.9% annual gain in August. On a monthly basis, wages increased 0.4%, in line with August’s reading.

The key question entering Friday’s report was whether the data would reflect significant cooling in the labor market, which could prompt another large Fed interest rate cut. Robert Sockin, Citi senior global economist, told Yahoo Finance that the better-than-expected jobs report makes it less likely the Fed moves with the “urgency” it did at its September meeting when the central bank cut interest rates by half a percentage point.

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“This pushes the Fed out a lot,” he said, adding that it’s uncertain the Fed will make a 50 basis point cut again this year.

Read more: Jobs, inflation, and the Fed: How they’re all related

Following the report, markets were pricing in a roughly 5% chance the Fed cuts interest rates by half a percentage point in November, down from a 53% chance seen a week ago, per the CME FedWatch Tool.

“Looking at the labour market strength evident in September’s employment report, the real debate at the Fed should be about whether to loosen monetary policy at all,” Capital Economics chief North America economist Paul Ashworth wrote in a note to clients on Friday. “Any hopes of a [50 basis point] cut are long gone.”

Futures tied to major US stock indexes rallied on the news. S&P 500 futures (ES=F) put on nearly 0.8%, while Dow Jones Industrial Average futures (YM=F) added roughly 0.5%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) moved 1.1% higher.

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Renaissance Macro head of economics Neil Dutta wrote in a note following the release that September’s jobs report was “undeniably good news” for the equity market.

“At the end of the day, the Fed is still cutting policy rates even as the economy grows,” Dutta wrote.

Also in Friday’s report, the labor force participation was flat from the month prior at 62.7%. Food services and drinking places led the job gains, rising 69,000 in the month. Meanwhile, healthcare added 45,000 jobs, and government jobs ticked higher by 31,000.

Earlier this week, data from ADP showed the private sector added 143,000 jobs in September, above economists’ estimates for 125,000 and significantly higher than the 99,000 seen in August. This marked the end of a five-month decline in private-sector job additions.

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“This is a pretty healthy, widespread rebound,” ADP chief economist Nela Richardson said. “And probably unexpected by many people who thought the job market was on a downward slide. This month, of course, gives pause to those kinds of assessments. Hiring is still solid.”

Construction workers work on the roof of a house being built in Alhambra, California on September 23, 2024. The Federal Reserve's interest rate cut last week has given prospective home buyers lower borrowing costs as the half-percentage-point cut lowered rates from a 23-year-high where it had been for more than a year. (Photo by Frederic J. BROWN / AFP) (Photo by FREDERIC J. BROWN/AFP via Getty Images)

Construction workers work on the roof of a house being built in Alhambra, Calif., on Sept. 23, 2024. (FREDERIC J. BROWN/AFP via Getty Images) (FREDERIC J. BROWN via Getty Images)

Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.

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