Santana: Mystery Crisis Brewing at the OC Treasurer Tax Collector

Questions proceed mounting astir a enigma determination conscionable earlier the wintertime vacation interruption to portion investing powers from Orange County’s elected treasurer by a committee of supervisors inactive reeling from the aftermath of an FBI bribery ungraded involving 1 of their colleagues. 

It besides comes connected the heels of the 30th day of Orange County declaring bankruptcy successful 1994. 

Since my archetypal column, I kept asking questions astir this strange, last-minute determination that fundamentally relieved elected Treasurer Tax Collector Shari Freidenrich of her concern powers implicit the county’s multi- Billion dollar concern excavation — with small nationalist explanation, overmuch little input oregon transparency. 

[Read: Santana: Why Did OC Supervisors Strip Elected Treasurer of Managing Investments?]

Called the banker for the region on with assemblage and schoolhouse districts, Freidenrich superior work is the deposit, investment, postulation and paying retired of nationalist funds. 

According to region documents, she is liable for overseeing the County of Orange’s $12 cardinal concern excavation and serves arsenic a trustee for the $20 cardinal Orange County Employee Retirement System.

The past clip thing similar this happened was successful 2010 erstwhile region supervisors voted to portion then-Treasurer Tax Collector Chriss Street of his concern authority. 

Back then, that benignant of enactment sparked a batch of attention. 

Today, officials aren’t saying overmuch beyond a precise abbreviated statement.

“If the Board does not delegate the authorization to the Treasurer,” said County Spokeswoman Molly Nicholson successful my archetypal column, “the work defaults to the CEO who is liable for implementing and administering Board policy.” 

A Public Questioning 

I’m not the lone 1 asking questions. 

At the region Hall of Administration astatine 3 p.m. today, Orange County’s Treasury Oversight Committee members person scheduled a nationalist update connected what’s happening. 

The citizen’s oversight sheet is 1 of the fewer reforms near from the fallout from the 1994 bankruptcy and features nationalist members, on with the Elected Auditor Controller Andrew Hamilton and County CEO Michelle Aguirre. 

Treasury Oversight Committee Chairman David Carlson questions however nationalist inspection of the county’s investments tin beryllium done.

“I person to accidental I americium not comfy that the existent concern allows due oversight of however these funds are invested and handled,” Carlson said successful an interview. 

His concerns are exacerbated by the caller bribery ungraded surrounding disgraced erstwhile Supervisor Andrew Do. 

“Given the caller concern with Supervisor Do,” Carlson said, “one would deliberation the region would beryllium definite that oversight of each aspects of County activities were tightened and not loosened.” 

Carlson – who is besides a erstwhile longtime president of the county’s Audit Oversight Committee with 20 years acquisition connected the panel, different 1994 bankruptcy betterment – further expressed concerns that region supervisors failed to reappraisal the Treasurer’s projected 2025 Investment Policy Statement arsenic successful erstwhile years. 

That means region supervisors are flying solo. 

“The deficiency of a ceremonial Orange County [investment argumentation statement] besides clouds the quality of the Treasury Oversight Committee to rigorously show however the funds are managed against a known ceremonial argumentation statement,” said Carlson, who emblazons his concern cards with the motto, “Honoring the Public Trust With Relentless Oversight.” 

The concern besides whitethorn beryllium triggering concerns from those who excavation their investments with the County of Orange.  

“To my cognition astatine slightest 1 enactment has pulled funds retired of the pool, citing their ‘uncertainty’ with the existing situation,” Carlson said. 

Employee Troubles 

In summation to the nonaccomplishment of assurance from region supervisors, Freidenrich besides whitethorn not beryllium a large boss. 

A May 2019 Performance Audit study looking into the Treasurer-Tax Collector elaborate a precocious turnover complaint and it’s unclear however those challenges person been addressed. 

“In the six years evaluated, the TTC has had the largest percent of employees who person near their departments, with percentages doubly arsenic precocious than the different 2 departments successful the past 2 years. Most significantly, successful 2019, 34% of TTC employees separated oregon transferred retired of the department,” states the study completed by Arroyo Associations Management Consultants. 

That study recovered that the Treasurer Tax Collector’s bureau had the lowest full-time employees of immoderate akin bureau successful Southern California with lone 78 afloat clip equivalents – compared to 123 successful similar-sized San Diego County.

In summation to respective problems noted, the study highlighted problems successful unit retention. 

“With galore managerial positions open, determination is simply a imaginable for captious nonaccomplishment should the existent staffing levels continue. Since the commencement of the engagement successful July 2020, determination were 2 vacant positions retired of six full absorption positions successful the Treasury Division with 50% of the filled positions having little than 2 years of tenure. There person since been further departures by managers from the Treasury Division.”

Where’s the Investments? 

Carlson figures that the region is presently receiving astir $10 cardinal a time from spot taxation payments. Those revenues volition swell to arsenic overmuch arsenic $50 cardinal a time betwixt present and April 1., helium said. 

He is asking hard questions astir however overmuch is being invested into what fiscal vehicles from this regular currency flow.

While Freidenrich isn’t returning my calls oregon emails, she seemingly isn’t successful statement with region supervisors astir what’s going on. 

Carlson confirmed arsenic much, adding that Freidenrich isn’t precisely blessed being represented by the county’s lawyer – who is hired by OC supervisors. 

The clash of autarkic elected officials astatine the County of Orange isn’t new. 

Former County Auditor Controller Eric Woolery got into arguments with region supervisors implicit their backing of governmental mailers and pension payment packages and wasn’t blessed with his county-appointed lawyer advising him successful their disagreements, a concern helium sponsored authorities to change. 

[Read: Santana: OC Auditor Controller Leads CA Public Accountants Uprising]

Given the uncertainty of the situation, Carlson speculated that Freidenrich whitethorn soon spell this route, calling for her ain attorney. 

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