SEAL BEACH : City Estimates It’ll Lose $189,000 to Bankruptcy

City Manager Jerry L. Bankston told council members this week that the city could lose up to $189,000 from the county bankruptcy under the proposed recovery plan.

The city had $2.1 million invested in the county pool but has gotten back $600,000 from an emergency funding request.

Mayor George Brown is not predicting any major cuts in services from the city’s $11-million budget due to projected losses.

“If things go as planned, this should not present a significant budget shock,” Brown said.

City funds still frozen in the county pool are earning about 5% interest, about the same interest rate earned by money on deposit in the state treasury, according to Brown.

“It’s not like it’s in a black hole,” Brown said. “If we get it back, at least it will come back with interest.”

But uncertainties remain over the cost of flood-control improvements and the replenishment of sand to badly eroded beaches.

The city suffered $5 million in damage from the Jan. 4 rainstorm, including $3 million in damage to the Leisure World community. City and county officials are applying for federal funds to improve the city’s flood-control system.

Seal Beach spent about $290,000 last November for 15,000 cubic yards of sand to replenish local beaches. But city officials say they need another 100,000 cubic yards of sand to restore coastal areas.