Summary

Advisory committee recommendations improved investment policies and led to new cash management agreements

Story

Citing improved financial stewardship of the King County Investment Pool since creation of the Investment Pool Advisory Committee in 2008, the Metropolitan King County Council and King County Executive Dow Constantine today recognized the members of the advisory committee and thanked them for their service.

“Giving investment pool members a seat at the table has been critical to reforming the King County Investment Pool to ensure the security of the public funds entrusted to us,” said Councilmember Bob Ferguson, who sponsored the legislation creating the advisory committee. “When the economy took a nosedive, the County took a hard look at its policies to bring the King County Investment Pool in line with best practices, which included the creation and involvement of the Investment Pool Advisory Committee.”

“The committee has been invaluable in making recommendations on a number of reforms and acting as a sounding board for the way the County handles the public’s money,” said Councilmember Julia Patterson, Chair of the Budget and Fiscal Management Committee. “Since the formation of the committee almost three years ago, what were once failed investments have now transformed into more than $400 million in increased deposits, which represents confidence among our public partners in the way the pool is managed.”

“The expertise provided by the citizens on the Investment Pool Advisory Committee has been invaluable for helping recover and protect the investments of King County and other public agencies that were rocked by the Great Recession,” said Councilmember Larry Phillips, co-sponsor of the legislation that established the advisory committee. “Their recommendations for reform helped put the King County Investment Pool back on solid footing, which is critical for ensuring sustainable funding for public services.”

“I am grateful to the members of the Investment Pool Advisory Committee for their steadfast work to keep county investments on track,” said King County Executive Dow Constantine. “These 10 citizens exemplified public service, giving their talents during a time of need. Their recommendations led to reforms that ensure future hard times aren’t felt so acutely by the residents who depend on these funds for fire, sewer, water and other basic services.”

Creation of the permanent advisory committee was recommended by the King County Investment Pool Advisory Panel in 2008. The panel was formed in response to the identification of four of the pool’s commercial paper investments, totaling $207 million, as impaired and at risk.

Since its creation, the advisory committee has made recommendations on a number of reforms, including a new investment pool agreement for pool participants and cash management agreements. The advisory committee has also made recommendations on revisions to the County’s investment policies and other business practices.

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.

The advisory committee is comprised of 10 members, including 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’s purpose is to help ensure that the pool’s policies, practices and portfolio reflect the needs and goals of its members.

RECOGNITION

WHEREAS, the King County Council created a panel to review the policies and procedures of the King County Investment Pool in 2007; and

WHEREAS, the Council passed a motion in 2008 approving the work of this panel, including its recommendations to create a permanent advisory committee for the Investment Pool; and

WHEREAS, the Council passed legislation formally creating the Investment Pool Advisory Committee in 2008; and

WHEREAS, the Advisory Committee has made valuable recommendations on a number of important issues, including a new investment pool agreement, cash management agreements, fees, and revisions to the County’s investment policies; and

WHEREAS, committee members have brought diverse perspectives and dedication to this project:

Jake Kuper from Issaquah schools and Bang Parkinson from Highline schools, representing County school districts;
David Lawson from South King Fire & Rescue, who has served as committee vice chair, representing County fire districts;
Ken Goodwin from Alderwood Water & Wastewater, representing water & sewer districts;
Margaret Raihl from Harborview Medical Center, and Linda Glenicki from the King County Library System, who has served as committee chair, both representing at-large members of the pool;
Tim Kerr and Jim Hattori, serving as citizen investment professionals;
Tim Aratani from the County Wastewater Treatment Division and Duncan Mitchell from the Department of Transportation, representing County fund managers; and
Scott Matheson, County Treasury Manager, representing the County’s Finance & Business Operations Division;

NOW, THEREFORE, we, the Metropolitan King County Council, recognize the