ORANGE COUNTY IN BANKRUPTCY : Anaheim’s Healthy Reserve Funds Are Called Saving Grace : Finance: Detailed plans for coping with a possible $45-million loss are still lacking, but workshop provides some clues.

ANAHEIM — Ever since Orange County declared bankruptcy last month, officials here have tried to put a positive spin on the situation.

But so far, they have not fully explained how a city that wants to build new stadiums, develop a sports and entertainment complex, see Disneyland expanded and revitalize its downtown can afford to absorb a possible $45-million loss from the county’s investment pool.

Anaheim has $169 million invested in the county pool, which lost $2.02 billion in 1994 when risky investments made by former treasurer-tax collector Robert L. Citron backfired. The city borrowed $95 million early last year specifically to invest in the fund, which had netted it nearly $12 million over the preceding three fiscal years.

Some clues to the city’s financial future were offered during a special workshop Tuesday, but a detailed plan--one that assumes the millions of dollars of city money won’t be recovered--will not be completed until later this month, officials said.

City Manager James D. Ruth said Tuesday that the city’s saving grace is a healthy reserve fund that has grown steadily, from $79.9 million in 1990 to $131.6 million in 1994--nearly 23% the size of the city’s current budget.

“We’ve built up our reserves over the last four years and we are very proud of that,” said Ruth, who has taken pains recently to stress that the city’s major development plans will move forward despite the county’s financial crisis.

Ruth said Tuesday that meetings have been scheduled this week with the Walt Disney Co., which has proposed a $3-billion resort next to Disneyland, and with the California Angels, who are close to hammering out an agreement with the city on the building of a new baseball stadium.

Negotiating a 30-year lease with the baseball team is now higher on the city’s priority list than trying to keep the Los Angeles Rams, who are expected to announce any day that they are leaving the county for St. Louis, Ruth said.

“I don’t think there is enough money in Orange County to keep the Rams here,” Ruth said. “I think they’ve made a decision and unfortunately they are going to be leaving. I think our energies are focusing on the Angels and looking at other potential franchises who may want to relocate in Orange County.”

The city will continue with its daily operations, capital improvement projects and major development plans by dipping into its reserve funds, Ruth said.

“When you have a crisis, you dig into the reserves and you try to maintain your current levels of service,” he said. “It’s a one-time hit and then you move on.”

But specifics on how the city will keep its big-ticket projects proceeding were in short supply Tuesday, raising some doubts among people at the workshop.

“If it’s just a bump in the road, it’s a pretty big bump,” said Phil Knypstra, one of 50 residents at the afternoon workshop. “Will you consider cutbacks? Benefit cuts?”

Mayor Tom Daly also asked for more specifics.

“I think the city staff does need to spell out in more detail what the next six to 12 months holds for us because of this situation,” Daly said.

In response to the county’s financial crisis, which forced it to declare bankruptcy Dec. 6, Anaheim has instituted a hiring freeze, postponed all new capital improvement projects and canceled an order for a new fleet of city vehicles. Ruth noted that the city had trimmed its work force by 10% in recent years and had sliced budgets even before the fiscal disaster occurred.

A more detailed plan of options and scenarios will be revealed during a budget workshop scheduled for Jan. 21.

“Our inclination is to not have to cut more,” Ruth said. “We’ll continue to scrutinize the budget and look at privatization possibilities.”

The city’s investment practices were examined during the workshop as Councilman Bob Zemel, who was elected two months ago, grilled Treasurer Charlene Jung on several topics, including why the city borrowed money to invest in Citron’s fund.

Jung said she relied on the county’s high credit ratings from Moody’s Municipal Credit Report and Standard & Poor’s Ratings Group. “We rely heavily on the rating agencies,” Jung said. “We pretty much have to, operationally.”

Jung proposed an expansion of the city’s investment committee, which currently consists of a handful of city department heads. A representative of the private financial sector and an external auditor act as advisers.

Jung suggested the addition of a City Council member and members of the community with financial expertise. She also called for quarterly sessions of the group, which currently does not meet regularly.