Apparition
5th April 2010, 06:55 PM
LOS ANGELES (AP) ― The Los Angeles city controller has warned the mayor and City Council that the city will not be able to make payroll next month if it doesn't dip into its reserve fund.
In a memo to officials on Monday, Controller Wendy Greuel said the city faces its most urgent fiscal crisis in recent history after the council blocked a proposed electricity rate hike last week.
The Department of Water and Power needed the rate increase to cover a $73.5 million transfer to the city's general fund, which pays city employees and bills.
Greuel says the city will be $10 million in the red by May 5 without a transfer of $90 million from the reserve funds.
By tapping into reserves, Greuel also warns the city will exhaust the reserves by June 30.
http://cbs2.com/local/Los.Angeles.insolvency.2.1613033.html
All isn't and may never be well in the City of Angels...
In a memo to officials on Monday, Controller Wendy Greuel said the city faces its most urgent fiscal crisis in recent history after the council blocked a proposed electricity rate hike last week.
The Department of Water and Power needed the rate increase to cover a $73.5 million transfer to the city's general fund, which pays city employees and bills.
Greuel says the city will be $10 million in the red by May 5 without a transfer of $90 million from the reserve funds.
By tapping into reserves, Greuel also warns the city will exhaust the reserves by June 30.
http://cbs2.com/local/Los.Angeles.insolvency.2.1613033.html
All isn't and may never be well in the City of Angels...