ANAHEIM : City to Air Investment Review Plan

The City Council today will discuss forming an Investment Review Commission to monitor the city’s $874-million investment portfolio monthly.

Councilman Bob Zemel is recommending creation of the panel, which would be composed of financial experts who live in the city. The group would be separate from the existing Budget Advisory Commission.

Zemel said the proposed commission is needed to avoid future investment mistakes, such as the city’s participation in the bankrupt Orange County investment pool.

“I think this commission would provide checks and balances to our city government that the county obviously didn’t have,” Zemel said.

The city, which had $169 million in the county’s ill-fated investment pool, borrowed $95 million last year specifically to invest in the fund, which had netted Anaheim nearly $12 million over the preceding three fiscal years.

City Treasurer Charlene Jung last month had proposed a different method for overseeing city investments. She suggested expanding the city’s existing investment committee, which consists of a handful of city department heads, a representative from the private financial sector and an external auditor, who acts as an adviser.

Jung proposed adding to that group a City Council member and several members of the community with financial expertise. She said the panel should meet quarterly. Currently it has no regularly scheduled sessions.

But Zemel said he wants an entirely separate committee.

The council will also discuss Zemel’s proposal for increased public scrutiny of the city budgetary process. The councilman has recommended that a different city department’s budget be examined each month.