LA PALMA : City Vows to Recover Lost Funds
The city reaffirmed Wednesday that it will not give up its claim to any of the money it had in Orange County’s investment pool when the fund collapsed last year.
“We made no changes or decisions,†Mayor Wally D. Linn said after a special closed session on the city’s response to the county’s financial crisis.
“We’re not going to relinquish our claims on the money at this point.â€
When the county filed for bankruptcy protection Dec. 6, La Palma had $5.5 million invested in the pool.
City Manager Len Wood said that the city so far has recovered $4.5 million of that.
State and county officials have suggested that local governments, including cities, forgive the amount stilled owed to them to help the county recover from its financial ills.
La Palma’s position, however, remains that it will fight for its full amount, Linn said.
That position and statements from other municipalities will be presented at a special meeting today of the Orange County division of the League of California Cities.
The public meeting is at 7:15 p.m. at the Red Lion Hotel/Orange County Airport, 3050 Bristol St., Costa Mesa.
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