So town councils were suckered by Lehman too

I wonder based on who's advice do the town councils carry out the investment of their funds, of which apparently up to 35% are eligible to purchase financial instruments. Do town councils hire in-house fund managers or financial advisors? Are the funds professionally managed? What are the risk horizons and who decides them? And what happens now that it looks increasingly likely these structured products are turning into junk? How do we make up for the losses and who will be responsible?

Anyhow, I am waiting to see by how much they will raise conservancy charges next.