LAGUNA NIGUEL : Citizens’ Panel Sought on City’s Role in Fund

Former councilman Paul Christiansen has asked the council to form an independent citizens’ committee to analyze the city’s investment strategy in light of the county bankruptcy. The city has $18 million tied up in the county’s devalued investment fund.

“We ask that this citizens’ panel be appointed to not look at what the county has done but look at what has happened on the city level,” Christiansen told the council Tuesday after terming the crisis an “absolute international disaster.”

Christiansen’s call for a panel of residents with financial planning backgrounds didn’t find much favor with the council, however. Only Councilman Eddie Rose and Councilwoman Patricia C. Bates expressed interest.

“We need to look at what involvement the city may have had with the county bond debacle,” said Rose, the newest council member. “Let the chips fall where they may. There may not be any involvement by city officials, but I feel the public needs to know.”

Although Bates said a citizens’ review panel could help monitor city investments, she also said she doubts residents would have been able to find the county pool’s pitfalls.

“Even the finest, the brightest, the ‘bestest’ in the financial world did not understand the problems that were about to unfold,” she said. “I don’t think we need to be looking for the rat in the woodpile. We need to make sure the woodpile is rebuilt.”

Christiansen’s proposal came after City Manager Tim Casey told the council that the city will receive new property tax revenue this month in only one lump sum, rather than the usual two payments. The one check from the county will probably represent about 10% less than what the city usually receives in December property taxes, Casey said.