City Seeks Federal Funds

The city is negotiating an exchange of Proposition A transit tax money for Federal Aid Urban funds.

Since the half-cent sales tax was set aside in 1982 for use by cities to establish public transportation systems, Cerritos has collected about $1.6 million. The city must dispose of the money by July, 1987, or lose it under terms of the transit tax legislation, Cerritos spokesman Michele Ogle said.

Because Prop. A money can only be used to start up or operate a public transportation system, the city wants to exchange about $1 million of its transit money for FAU funds. The federal urban money could be used for variety of purposes, including street building or repairs. Cerritos does not have a public transit system and there are no plans to begin one.

Council members agreed to hire a consultant to study ways the city should spend its remaing share of Prop. A money. Three transit systems--Long Beach Transit, the Southern California Rapid Transit District and the Orange County Transit District--serve various parts of the city.