Memorandum
Date: August 25, 2020
To: The Honorable Moke Simon, Chair, Lake County Board of Supervisors
From: Treasurer-Tax Collector Ad Hoc Committee, Lake County Board of Supervisors;
The Honorable Bruno Sabatier, Vice-Chair;
The Honorable Rob Brown, District 5 Supervisor
Subject: Consideration of Ad Hoc Committee Recommendations on Investments
Executive Summary: (include fiscal and staffing impact narrative):
On October 8, 2019, our Board continued its review of investment policy and best practices as part of our ad hoc committee's continuing collaboration with the Treasurer - Tax Collector (T-TC). Our Board had considered whether to renew its annual option to delegate investment authority to the T-TC pursuant to Government Code 27000.3. At that time, our Board secured the commitment of the T-TC to begin the required monthly reporting on investments, which unfortunately has still not begun.
Subject to Government Code Section 53607, our Board may again delegate this authority to the T-TC, who would then be required to provide a monthly report on investments. However, in light of the difficulty in meeting this requirement, some of the alternatives previously discussed may be appropriate reconsideration. Our ad hoc committee has explored solutions that would both allow the Board to meet its fiduciary duty to monitor the County's investments while at the same time reducing the burden on the T-TC by avoiding the need to create a reporting system.
One previously discussed option was procuring a licensed investment advisory firm capable of doing more than the present consultant. Such firms have the capability, for example, to assist with investment portfolio review, asset allocation development, determination of risk tolerance, establishment of portfolio benchmark, and cash flow forecasting. As part of these agreements, the firms are able to produce the monthly reporting required by state law.
Presently, the County's investment ...
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