HUNTINGTON BEACH : Administrator Presses for 100% of Funds

City Administrator Michael T. Uberuaga told City Council members this week that the city will continue to pressure the county to return 100% of its $43.6-million-plus interest inthe county’s frozen investment pool.

“As far as getting our money back, yes, I’m very concerned,” Uberuaga told the council. “We will handle this in a very aggressive manner.”

Uberuaga said that, if the 22% investment portfolio loss is distributed among all 187 investors, the city’s loss would be $9.72 million. However, Uberuaga, along with council members, strongly oppose this method of distributing the losses.

Mayor Victor Leipzig said a loss of so much money could result in budget cutbacks and decisions to hold off on capital projects. Uberuaga also expressed frustration about the lack of information the county has been giving the city on the bankruptcy situation.

Because of the bankruptcy, the city could lose between $500,000 to $800,000 in interest payments and already faces a $922,000 general fund budget shortfall. At the Feb. 6 council meeting, Uberuaga will present a plan to reduce the $96-million general fund budget.

Meanwhile, the city has continued budget controls that include hiring and spending freezes and putting a halt to capital projects that have not yet started.