HomeMy WebLinkAboutMINUTES - 08021994 - S.2 TO:' BOARD OF SUPERVISORS :.
Contra
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FROM: Supervisor Tom Powers, District 1
Costa
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County
DATE: August 2, 1994 °'T� �o :`T
SUBJECT: Offer to the City of Danville the CountyI's Expertise in
Financial Services.
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)A BACKGROUND AND JUSTIFICATION
Recommendation:
1) Offer County expertise in finances and investment services
to the City of Danville.
2) Ask the Auditor-Controller, Tax Collector and County
Administrator to determine if it can offer financial and
investment services to the City of Danville
Background:
Danville has had difficulties in its investment program, probably
due to a lack of experience. Our investment and financial
resources are some of the best in California and Danville could
profit from this.
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CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON August 2 , 1994 APPROVED AS RECOMMENDED OTHER X
IT IS BY THE BOARD ORDERED that the issue of determining if the County
can offer financial services to public agencies in. Contra Costa County
and what the cost of this service would be is REFERRED `t'o the Auditor-
Controller for review and report to the Board.
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VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
,UNAN1OUS;A�SES T AND CORRECT COPY OF AN ACTION TAKEN
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AYES: G 4 1 NOES: AND ENTERED ON THE MINUTES OF THE BOARD j
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
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August 2 ,
CC: Auditor-Controller ArrEsreO 1994
County Administrator PHIL BATCHELOR.CLERK OF THE BOARD OF
SUPERVISO S AND COUNTY ADMJNISTRATOR
BY a DEPUTY
- -Danville struggles to minimize
i its in ri 'securities market
By H. GLENN ROSENKRANTZ vest certain holdings. In describing the situation to
Staff writer Ten additional securities the council members,independent audi-
town bought for $10 million remain for Scott Maze said Administrative
DANVILLE — Danville, which to be sold to clear what Town Man- Services Director Carol Rossi, the
R expects to lose up to $2 million on ager Joe Calabrigo called "problem town's top financial official, placed
long-term investments, has already investments." "too high a level of trust in a
taken a$1 million loss in the securi- Seven of these are long-term broker."
ties market. holdings at the core of the town's fi- Danville faces the loss on its
City officials said this week that nancial problems. Depending on long-term bonds because interest
since June 30, the town has sold for when they are sold, total losses for rate fluctuations have greatly de-
$4.5 million five long-term bonds the town could be either more or creased their value. They would
that it paid $5.5 million for. less than the $2 million. have to be sold at a loss.
The disclosure came during an The meeting came a day after re-
afternoon study session Thursday at lease of a highly critical report
which council members met with an Maze and Associates of Walnut
independent auditor and a represen- Creek,the town's independent audi-
tative of the town's financial man- tor. The report shows how failures
agement firm to discuss what led to and oversights at Town Hall may
the possibility of a$2 million loss in have led to the projected loss.
1 the town's investment portfolio. According to the report,the town
"We've significantly decreased had procedures for avoiding a loss
Nthe town's exposure in the market," of such magnitude. But they were
said Martin Cassell of Chandler Liq- not followed because of what the re-
uid Asset Management. The town port describes as an inexperienced
�. hired the San Diego firm last month financial manager who followed the
to manage its investments and di- advice of investment brokers.