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Board approves first reading to revise county investment delegation and adopt tighter county investment policy
Summary
Supervisors removed a longstanding prohibition on delegating investment authority to the county's chief financial officer and approved a draft county investment policy that staff say is more restrictive than state law; the board voted unanimously on first reading.
Orange County supervisors on Feb. 11 approved first reading of an ordinance that would remove a decades‑old prohibition on delegating the county’s investment authority to the chief financial officer and adopted a draft county investment policy that county staff said is more restrictive than state law.
The change would give the chief executive and the chief financial officer additional flexibility to manage pooled county investments; the draft policy also requires greater diversification and aims to preserve liquidity and safety of county funds, county officials said.
Sherry Friedenridge, the county treasurer‑tax collector, urged the board to reconsider relinquishing fiduciary duties. “I’m asking the board to reconsider this decision and absolve the board of this significant fiduciary responsibility by editing the investment policy,” she said, noting the county’s 1994 bankruptcy shaped the current delegation rules.
County Counsel and CEO staff told the board the recommended policy removed a prohibition dating to concerns about past treasury management, and that the proposed policy imposes restrictions that are more conservative than state law. The CEO’s office said the action adds flexibility while maintaining prudent guardrails.
Supervisor Vicente Sarmiento and other board members asked staff to return with more detail on voluntary pool participation and oversight arrangements; staff said the voluntary pool currently remains under the treasurer and that participating special districts would need to find another investment option if the board rescinded their authorization.
The board approved first reading and directed staff to return with annual review language for the county investment policy. The motion passed unanimously.
The vote: motion moved and seconded; carried unanimously.
