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Board advances new county investment policy and restores flexibility to delegate authority
Summary
Supervisors approved an investment policy that tightens county investment rules and removed a long-standing prohibition on delegating investment authority to the CEO/CFO, prompting debate about fiduciary oversight and historical county investment failures.
The Board of Supervisors voted on Feb. 11 to adopt an updated Orange County investment policy and to remove a statutory-era prohibition that prevented delegating investment authority to the county CFO. The changes set an annual investment‑policy review and allow the CEO to delegate authority to a chief financial officer if the board so chooses.
Sherry Friedenridge, the elected Treasurer-Tax Collector, urged the board to reconsider and recommended keeping fiduciary authority with the treasurer, citing feedback from pooled-fund participants and the county’s historical experience. She asked the board to change the draft policy language replacing “county investment manager” with “treasurer” if the board intended to keep that authority with the elected official.
County staff and legal counsel defended the change, saying the proposed county policy would impose restrictions more conservative than state law and would increase diversification and oversight. A county department head and the district attorney recalled prior county investment controversies and urged the board to clarify who would have day‑to‑day oversight. Interim CEO Michelle Aguirre and staff described the CEO’s office and the CFO candidate’s qualifications and said some oversight recommendations are already in progress.
Supervisors debated the tradeoff between continuity with the treasurer and flexibility for the CEO’s office. After discussion and questions about voluntary pool participants and audit mechanisms, the board approved the measure unanimously and set second-reading/adoption dates for further formalization. The policy requires staff follow-up and annual reviews and directs implementation steps for the recommended oversight practices.
