Drafter
Clerk 10/09/2007
title
A MOTION relating to King County investment policies.
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WHEREAS, the King County investment pool was established in 1989 to preserve and protect capital and provide a market rate of return on public funds through budgetary and economic cycles, and
WHEREAS, the pool is available to all districts, agencies and public authorities, except incorporated cities, in King County to invest their cash reserves, and nearly one hundred of these entities have chosen to become members of the pool, and
WHERAS, in accordance with K.C.C. 4.10.050, the executive finance committee is the "county finance committee," referred to in RCW 36.29.020 and 36.48.070, and is responsible for directing the manager of the finance and business operations division in determining the maximum prudent extent to which residual treasury cash shall be invested pursuant to RCW 36.29.020 and K.C.C. chapter 4.08. Actions of the committee shall be by majority vote except when the chairperson of the council determines such action constitutes a policy determination, as opposed to an administrative determination, which should be referred to the council. The chairperson of the council may defer action on the proposal until the council makes such policy determination regarding the proposed action, and
WHEREAS, the investment pool is currently assigned the highest credit quality rating by Standard and Poor's Rating Services, and
WHEREAS, the executive finance committee by its motion on August 29, 2007, segregated Mainsail II LLC from the investment pool in response to the downgrading of this commercial paper holding to below investment grade. As part of that motion, two conditions were included:
1. Mainsail II LLC would not be segregated if such action would negatively affect the county's debt rating; and
2. Mainsail II LLC, if segregated from the pool, would be returned to the pool if the rating of any other commercial paper holding was downgraded to be...
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