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Board adopts first reading of revised county investment policy, debates fiduciary oversight
Summary
Board approved first reading of an ordinance to amend delegation of investment authority and adopted a more restrictive county investment policy; Treasurer Sherry Friedenridge and other speakers urged caution and clarity on fiduciary duties and oversight.
Board members approved first reading of an ordinance that would amend Orange County’s codified investment authority and adopt a county investment policy that the county attorney said is more restrictive than state law. The ordinance would delete a historical prohibition so the CEO could delegate authority to a chief financial officer, giving the CEO more flexibility while the policy itself narrows permissible investments and requires diversification.
Sherry Friedenridge, the Treasurer-Tax Collector, told the board it should reconsider delegating fiduciary authority, noting the legal and fiduciary responsibilities tied to pooled funds. A department head and the district attorney reminded supervisors of historical oversight failures and the legal standards the board faces when exercising direct oversight. Supporters said adopting a clear, conservative policy would strengthen safeguards and allow the board to exercise direct fiduciary responsibility rather than abdicating oversight.
Board discussion covered voluntary pool participation, the statutory authority for delegation, and whether rescinding voluntary participation resolutions could affect special districts that currently invest through the county treasurer. The motion for first reading and to set second reading/adoption passed unanimously.
