BREA : Official Says Reserves to Soften Fiscal Blows
Investment losses resulting from Orange County’s financial crisis are not expected to significantly hurt municipal services in Brea, Financial Services Director Larry Hurst told the City Council this week.
Brea had $9 million--about 20% of the city’s investment portfolio--in the county-run pool when bankruptcy was declared Dec. 6. Even if half of the $9 million is lost, Hurst said, Brea would be able to maintain city services by drawing on reserve funds.
Hurst said the city is taking a look at possibly deferring or delaying various construction projects in the wake of the county bankruptcy.
One project, the $7-million Brea Community Center, has been put on hold. Grading for the center was scheduled to begin Dec. 9, but the work has been postponed at least until Jan. 23. The City Council is expected to make a decision about the Community Center’s fate within the next few weeks.
Mayor Bev Perry said the council plans to meet on a weekly basis to discuss the city’s financial situation. Perry and Councilwoman Kathryn E. Wiser said they want the meetings to be open to the public whenever possible.
“We need the community with us and understanding what’s going on,” Perry said.
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