COSTA MESA : Council to Consider New Investment Policy
The City Council is to vote today on a new investment policy.
Officials said extensive policy changes have been proposed in the wake of the county’s bankruptcy.
If the proposed policy is passed, Costa Mesa, and anyone investing on behalf of the city, will be prevented from investing in a number of derivatives. Investment in the high-risk derivatives helped cause the county’s financial crisis.
The new policy includes a number of new reporting requirements, including expansion of portfolio updates that are given to the council and annual portfolio audits.
The new policy would also bring the city into compliance with legislation that is expected to be passed in Sacramento regarding cities’ investment policies.
For example, the city would seek an oversight committee of financial experts from the community to advise the council on its portfolio, a measure expected to be mandated by the Legislature this year.
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