Lake County supervisors back ‘in or out’ approach as fire districts seek to leave county treasury pool

Lake County Treasurer and Tax Collector Patrick Sullivan told the Board of Supervisors on Oct. 25 that several special districts — most notably fire districts — have recently moved to withdraw funds from the county treasury pool or are actively pursuing that option, a development staff said creates operational and investment risks for remaining pool members.

Sullivan said the county provides combined banking and investment services for the county, school districts and various special districts, and that recent departures have produced a “half in, half out” configuration that is difficult to manage. “You need to either be with us, and it's government code supported. … You're in or you're out, right?” Sullivan said, describing the choice given to a district that left last year.

The nut of the board discussion centered on protecting the pooled investments and ensuring continuity of banking services for agencies that must remain in the pool by law. Sullivan and Sophie Harrington, the county’s auditor-controller, said the relevant government-code sections are old and sometimes contradictory, and that an Attorney General opinion…