Mayors’ Seek 100% County Pool Return

Mayors from across Orange County plan to sign a letter tonight to the Board of Supervisors that contains a counterproposal to guarantee 100% refund of city money frozen in the bankrupt investment pool.

The letter was drafted by the Orange County Division, League of California Cities, at the request of officials from Orange County cities, said Janet Huston, League of California Cities executive director.

Mayors from at least 28 of Orange County’s 31 cities are expected to sign the letter at a joint meeting in Santa Ana, Huston said.

“By working together . . . the cities firmly believe this is in the best interest of residents; anything less sells the residents short,” Huston said.

The letter-signing party will begin at 6 p.m. at The Promenade in Santa Ana.

The county’s proposal to the cities is to return 77% of investments in cash, pay back 3% in marketable securities and offer the remaining 20% in IOUs, with the possibility that the cities might have to line up with other creditors to recover that in the bankruptcy proceedings.

The letter demands 77% be paid back now in cash, 3% in marketable securities and the remaining 20% to be paid over time but collateralized with secured notes backed by existing revenue.

At its meeting this week, the Huntington Beach City Council authorized Mayor Victor Leipzig to sign the letter.

“We want a 100% solution,” said Richard Barnard, deputy city administrator. “We do not subscribe to the share the pain theory.”