L.A. Controller Warns that City Could Exhaust General Fund by Next Month
Los Angeles Times April 5, 2010
Los Angeles Controller Wendy Greuel says she expects the city's general fund "will be out of money" by May 10 and that the L.A. will likely deplete its reserve funds and be in the red by June 30.
Greuel alerted Mayor Antonio Villaraigosa and the City Council of the city's dire financial situation after the head of the Department of Water and Power stated he would oppose sending $73.5 million in utility revenue to the city treasury. Interim General Manager S. David Freeman said the council's vote to block a proposed electricity rate hike last week threatens to put the utility in a deficit.
Greuel urged the council and mayor to immediately tap the city's reserve funds so that the city has enough cash to cover payroll.
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