Board of Supervisors shifts investment division staff and responsibilities from treasurer to CEO.
In a significant restructuring of its financial oversight, the Orange County Board of Supervisors has voted unanimously to relocate the investment division from the office of the elected treasurer-tax collector to the county CEO’s office. This decision came during a board meeting on Tuesday and is part of a broader initiative to tighten control over the county’s substantial billion investment pool, which will now be overseen by interim CEO Michelle Aguirre.
The move marks the culmination of a reassignment process that began over a year ago when the board stripped Treasurer-Tax Collector Shari Freidenrich of her investment duties in December 2024. Control was subsequently assigned to the chief financial officer, Kimberly Engelby, creating a shift in the management of county funds that has been met with criticism from various local and state officials. Assemblymember Avelino Valencia voiced concerns regarding the lack of transparency that accompanied the board’s earlier decisions.
Freidenrich, who has served as the county’s treasurer-tax collector since her election in 2010, has expressed apprehension regarding the implications of this transition. She argues that the board has dismantled crucial safeguards established after the infamous 1994 bankruptcy, driven by risky investment strategies under former Treasurer Robert Citron. Freidenrich contended that recent board actions, including the purchase of longer-term callable bonds, have increased risk to public funds, jeopardizing financial stability.
Despite these critiques, Third District Supervisor Don Wagner insisted that the focus of the recent agenda was solely on relocating staff for enhanced oversight capabilities rather than altering investment strategies. He asserted that the transfer of investment personnel to the CEO’s office would foster better performance of oversight functions.
The backdrop of this decision includes earlier grievances from former employees who accused Freidenrich of fostering a hostile work environment. Reports from a 2022 independent investigation substantiated claims of inappropriate behavior, noting instances where Freidenrich reportedly violated workplace conduct policies.
Countering Freidenrich’s assertions, Fifth District Supervisor Katrina Foley stated that no relaxations to the investment policy had been enacted. Engelby reported on Tuesday that the county had recently made a strategic investment of approximately 0 million, which has since matured and been reinvested, projecting a more diversified investment portfolio for the county compared to previous years.
Freidenrich is poised to face political challenges in the upcoming June primary, where she will contend against Dana Schultz, her former deputy and the current chief investment officer for the county, highlighting the ongoing tensions surrounding financial governance within Orange County.
