Four of the seven public agencies that voluntarily participate in Orange County's investment portfolio have withdrawn almost all their cash in recent months amid concerns over Treasurer Chriss Street, and others are reviewing whether to keep their money in the pool, according to public finance managers.
Voluntary investors in the pool make up a small fraction of the total, and the amount withdrawn -- just under $4 million -- is a pittance in the county's overall $6.95-billion investment fund.
But the withdrawals by the four agencies reflect the unease with which some public officials regard Street and underscore the county's continued aversion to financial risk 14 years after it filed for bankruptcy.
Since becoming treasurer more than a year ago, Street has been beset by investigations into his private business dealings before entering office and questions about his handling of county business.
"It was right when it started with Street, and we decided to pull our money out," said Trudy Ohlig-Hall, a board member with the Mesa Consolidated Water District, which withdrew $1.75 million from the investment fund. "We just said, 'We're not comfortable with the situation, and we just need to make sure our money stays safe.' "
The Yorba Linda Water District withdrew $1 million in August, though it left about $130,000 in the county fund. Ric Collette, a district board member, said that the agency needed the money for capital projects, but that Street's troubles made it a good time to withdraw.
"We just felt what was going on with the current situation, when we looked at our investments where we have money, we just made a decision it would be better to pull out of that investment pool," Collette said.
The treasurer's office rejects the notion that the departures amount to a vote of no confidence in Street, noting that the agencies were small players and that the portfolio's overall returns remain strong.
"Most of the voluntary participants had very small amounts of money in there to begin with," said Keith Rodenhuis, a spokesman for Street.
Most of the money in the fund -- which comes from the county and its school districts -- is required by law to be invested in Orange County's portfolio. The four voluntary participants that exited the pool made withdrawals totaling about $3.8 million from August to December.
The Orange County Water District and the Municipal Water District of Orange County also pulled out.
