LAGUNA NIGUEL : City Eschews County’s ‘Share the Pain’ Notion

Despite assurances of the city’s economic stability, City Council members have unanimously voted to join the growing list of cities, school boards and special districts demanding 100% repayment of money lost in the collapsed Orange County investment pool.

During a special session held before Tuesday’s regular council meeting, city leaders adopted a resolution that rejected the county’s “share the pain” philosophy and demanded that the county take full responsibility for mismanagement of investments made by 186 cities, school districts and special districts.

The council demanded that the county return its $18.1-million investment, plus interest, and acknowledge its failure to manage city funds appropriately.

Council members also approved a passage rejecting taxes for city residents as a way of recovering lost funds.

City Manager Tim Casey assured the five council members and 15 citizens who attended the meeting that the city’s economic health is sound. Laguna Niguel has an operating surplus of $3.3 million, according to a report from Casey.

But the county’s bankruptcy is having an impact. More than $4.8 million earmarked for city improvement projects has been frozen as a result of the county’s bankruptcy.

Plans for other work in Clipper Cove, Colinas de Capistrano, Rancho Niguel and Juaneno parks have been postponed.

During its regular session, the council voted 3 to 2 to designate the city’s Community Development Department as the agency responsible for enforcing a new state law that prohibits smoking in enclosed work places. Mayor Mark Goodman, who said the state, not the city, should bear the enforcement cost, opposed the measure, along with Councilwoman Patricia C. Bates.