ORANGE COUNTY IN BANKRUPTCY : Anaheim Turns Down Emergency Cash : Developments: City needs the money for general expenses and didn’t like limits, officials say.

Anaheim has one of the larger investments in the county’s now-frozen investment pool, but city officials in Bankruptcy Court on Monday turned down an $8.5-million emergency disbursement that could have been used to meet immediate payroll and purchasing commitments.

Officials in Anaheim, the only city to request emergency money from the court Monday, refused to sign an affidavit that would have limited how the money could be spent, city spokesman Brett Colson said. The city wanted the money to meet general operating expenses, he said.

But other cities and school districts said Monday that they could face trouble in the next few weeks if they don’t gain access to their investments in the pool.

Around the county:

* Irvine Unified School District officials said they aren’t sure if they will be able to make debt payments after Jan. 3 if they can’t get some of the $102 million they invested in the county pool.

At a Monday school board meeting, officials said they are optimistic about being able to meet payroll, vendor warrants and other operating costs through March. They also said the district probably will be able to make an $8.4-million bond payment due Dec. 31 and a $1.6-million payment due Jan. 3.

But all bets are off after the first week of January, they said. In June, the district faces a $54-million debt payment.

Board member Hank Adler suggested that the district begin preparing an austere budget that assumes the district will not recover $30 million from the pool. But other board members said it is too early to assume such a large loss.

* The Laguna Beach Unified School District is in the process of preparing just such a budget, said Supt. Paul M. Possemato.

Possemato will present to the school board Wednesday a series of suggestions that will detail how they will operate if they suffer a 30% cut in revenue. The list could include hiring freezes for employees other than teachers, discontinuing workshops and halting “nonessential” purchases.

* Placentia will ask for $700,000 from the pool in Bankruptcy Court on Thursday. The money is needed to pay the county for fire and paramedic services for the last three months of this year, said Finance Director Howard Longballa.

* Santa Ana also will be in Bankruptcy Court on Thursday. The city has asked for $9.6 million from the pool to proceed with their massive jail construction project, including a $5.3-million bond interest payment due last week that hasn’t been paid and $4.5 million due this month for contractor fees. The city does not need the money for general operating expenses, City Manager David N. Ream said.

Ream said at Monday’s City Council meeting that the city has received assurances from the county that they will receive the funds required to keep the jail project on schedule.

* Officials in the Brea Olinda Unified School District said Monday that they will not be able to make a Jan. 5 debt payment of $610,000 unless they have access to a portion of the district’s $7-million investment frozen in the county pool.

Officials also said the district’s reserves could help them absorb some losses of their investment.

“Our reserves are for future emergencies,” said Assistant Supt. Gary D. Goff. “Little did we know that this would be the emergency.”

* Anaheim City School District officials said Monday that the bond crisis has complicated their plans to accommodate an anticipated 700 added students next year. The crisis might make it impossible for the district to buy bungalows or convert additional schools to year-round schedules, officials said.

* Anaheim city officials said the city has $169 million in the county pool, or 20% of its $874-million investment portfolio. The first sign of trouble could come in April when Anaheim must pay back a $94-million loan it took out to invest in the pool.

The city must come up with $99.8 million to pay back the loan, which will be difficult if it does not receive a scheduled $100-million disbursement from the county, Colson said.

New Councilman Bob Zemel is critical of the city for borrowing the $94 million to invest in the fund.

“If it had been presented to me that we were going to borrow $94 million and invest it, I would have voted against it,” Zemel said. “I don’t think that’s prudent. We’re caretakers and can’t gamble like that.”

The Anaheim City Council will meet in closed session tonight for an update on the county’s financial crisis and will then make a presentation to the public.

Other city councils meeting tonight are those in Fountain Valley, Fullerton, La Palma, Laguna Niguel, Lake Forest, Placentia, San Clemente, Tustin and Yorba Linda. The North Orange County Community College District board is also meeting tonight.