Council Likely to OK Investment Rules
New city investment guidelines recommended by a citizens advisory group will likely be adopted, City Council members said.
The proposals include a ban on investing city money with Orange County until the county “is deemed clear from all bankruptcy encumbrances by appropriate legal opinion” and gets an A rating from investor analysts.
The city had $1.28 million in the county investment pool when it collapsed last year. Mayor Bob Patchin said that the city has recovered slightly more than $1 million.
Though the council took no vote on the issue at last week’s meeting, members said they will probably approve them after making a few refinements.
They also supported a recommendation that the city never invest in derivative securities, the investments that caused last year’s financial havoc in the county pool.
The major point of contention between the council and the advisory group was investment diversification.
The panel group recommended percentage limits on investments, which several council members said were too restrictive.
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