MONTEBELLO : City Presses for Return of Orange County Funds
The City Council this week adopted a resolution urging the Orange County Board of Supervisors to return funds that the city invested in the county’s troubled investment pool and threatening legal action if the money is not repaid.
City Administrator Richard Torres said several other cities and school districts have approved similar resolutions. “(The resolution) is more a showing of solidarity than anything else,” Torres said.
Montebello invested $47 million in the Orange County fund last year, including $31 million that the city had borrowed at low interest rates and put into the pool in anticipation of greater gains.
In December, the city received a $14-million infusion from Orange County to help pay off a $25.6-million note that had come due.
The Orange County Board of Supervisors this week approved a proposal that would give pool participants immediate access to 77 cents for every dollar they had invested in the pool when it collapsed in December.
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