Metropolitan King County Council 516 Third Ave., Rm. 1200 Seattle, WA 98104 Phone: 206-296-1000 Toll Free: 800-325-6165 TTY/TDD: 206-296-1024 Fax: 206-296-0198 council@kingcounty.gov
|
|
Oct. 20, 2008 County Council creates Advisory Committee to monitor $4 billion King County Investment PoolPublic agencies gain a voice in investment policyThe Metropolitan King County Council continues to take steps to bring the King County Investment Pool in line with industry best practices and minimize the impacts of recent market turmoil on its investments. The Council today established an advisory committee, comprised of 10 representatives from the pool’s roughly 100 member agencies, to give those agencies a formal voice in the pool’s decision-making process.
“We are dealing with increasingly complicated financial markets, and it is important that our pool members have a seat at the table as we make decisions for the investment pool,” said Councilmember Bob Ferguson, prime sponsor of the legislation.
“The public agencies that participate in King County’s investment pool have a significant stake in how their money is managed,” said Councilmember Larry Phillips, the Council’s representative to the Executive Finance Committee which oversees the investment pool. “The advisory committee gives those groups a voice in the process. Their input will provide valuable advice for safeguarding investments on which taxpayers in King County and many other taxing districts rely.”
“It always is important to take advantage of all the financial expertise that is available to us in order to safeguard King County’s investments, especially during turbulent financial periods,” said Councilmember Kathy Lambert. “Our regional partners each bring a unique perspective to the table, and we welcome their participation in this effort.”
“This new advisory committee will help provide accountability and transparency during these difficult economic times,” said Councilmember Jane Hague.
The advisory committee will be comprised of 10 members, to include representatives from school, fire, water, sewer, and other districts, county fund managers, the county treasury manager, and a private citizen who is an investment professional. The committee will help ensure that the pool’s policies, practices and portfolio reflect the needs and goals of its members.
Creation of the advisory committee was recently identified by the King County Investment Pool Advisory Panel as the best way to provide representation to pool members given the current restrictions of state law. The panel was tasked with examining governance options.
The King County Investment Pool invests the cash reserves for all county agencies and approximately 100 special districts and public entities, including fire, school, sewer, and water districts within the county. The pool’s assets total approximately $4.5 billion. Between August 2007 and January 2008, four of the pool’s commercial paper investments, totaling $207 million, were identified as impaired investments.
In response, Councilmember Ferguson led the creation of the Advisory Panel to conduct a comprehensive review of the pool. The panel issued an independent report urging action to address the pool’s “significant deficiencies” and to bring it in line with best practices. The panel’s report included a recommendation to re-examine the governance structure of the pool and provide all members with formal representation in the decision-making process.
|
|
|
