The Carpinteria Valley Water District held a meeting on February 28, 2024, to discuss several key agenda items, primarily focusing on updates to the district's investment policy and administrative matters.

The meeting commenced with a review of the investment policy, which has not been updated since February 2006. An investment adviser had reached out to the district, prompting the discussion on the need for an updated policy that complies with current laws and best practices. The proposed draft policy, included in the meeting packet, emphasizes three main objectives: safety, liquidity, and return on investment. The safety of public funds is prioritized, followed by the need for liquidity to ensure that funds can be accessed when necessary, and finally, the goal of maximizing returns on investments.

The current policy only allows investments in the Local Agency Investment Fund (LAIF), which is noted for its low returns. The updated policy aims to expand the range of permissible investments to include U.S. Treasury bonds, certificates of deposit, and other investment pools, thereby enhancing potential returns while maintaining safety. The board discussed the importance of establishing clear internal controls and designating authority for investment decisions.

During the discussion, board member Sherry raised concerns about the clarity of documentation presented to the board, specifically regarding the labeling of the draft policy. She emphasized the need for careful record-keeping, especially as the district manages significant assets. Additionally, she suggested that the investment policy should include provisions for quarterly reporting of investment returns.

The board also addressed the timeline for considering different investment options, with a consensus that a review could occur within the next three months. The adviser’s role would be to provide guidance on investment strategies without directly managing the funds.

In other agenda items, the Administrative Committee reported on changes to the district's bargaining unit and the ongoing compensation study, which is expected to inform future negotiations. The committee also discussed succession planning in light of anticipated retirements among staff.

Overall, the meeting underscored the district's commitment to updating its investment strategies and ensuring prudent management of public funds, with plans for further discussions and reviews in the coming months.