The Los Angeles Times reported: “The Los Angeles City Council took a step Tuesday toward borrowing up to $60 million to pay for legal payouts and court judgments despite a warning by City Controller Ron Galperin that the borrowing proposal is costly and unnecessary.”
The council voted 13-1 to proceed with the plan to borrow $60 million, which will cost approximately $20 million more in interest.
“The city normally budgets about $60 million annually for its legal liability fund. But budget officials say they’ve already spent $135 million on legal settlements and court judgments this fiscal year, forcing the city to dip into its reserve fund, which pays for emergencies,” the Times reported.
Putting together the bond proposal costs about $100,000, budget officials said. (Source: Los Angeles Times, April 4.)