BOND TICKER : ORANGE COUNTY IN BANKRUPTCY : Huntington Beach Wants Its 77% Worth From Pool

The city of Huntington Beach is asking the county to immediately turn over $28.6 million that the city had invested in the ill-fated Orange County investment pool.

That amount, when added to the $5 million that the city has withdrawn on an emergency basis since the Dec. 6 bankruptcy, is equal to the 77% payout that the city would receive if it were to approve a plan brokered by local business leaders and endorsed by county officials.

U.S. Bankruptcy Court Judge John E. Ryan is scheduled to rule on emergency funds requests from cities, school boards and special districts during a March 31 hearing in Santa Ana.

In court documents filed Monday, Huntington Beach officials said the city faces a critical funding shortage because the county’s refusal to return funds has forced city officials to operate under “great uncertainty, confusion and anxiety.”

The city maintains that it faces a “greater outflow of cash than it receives” during coming months and that it will lose matching funds for several civic improvement projects if the money isn’t in hand.

City officials also said the bankruptcy has forced delays in $8.9 million in capital improvement projects, including several improvements near the municipal pier. The city has $15.4 million in bond payments coming due this spring and must bolster its cash reserves to pay operating costs that increase during the summer, officials said.

Anaheim Says It Needs $29 Million to Service Debt

The city of Anaheim is seeking an emergency cash disbursement of more than $29 million from the county investment pool in order to meet upcoming debts, according to documents filed in U.S. Bankruptcy Court this week.

Attorneys representing the city said Anaheim needs the money to help meet its immediate cash needs, which include interest and principal payments of $100,694,894 on bonds and a taxable note.

The city borrowed $95 million last year to invest in the pool. It must repay that loan by April 4. As a precaution, the City Council on Tuesday was scheduled to accept a $75-million line of credit from Industrial Bank of Japan.

Montebello Hopes to Reach the Green With Golf Course

City officials in Montebello are considering a plan to use “certificates of participation” to help dig out of the financial crisis.

The city about 10 miles east of Los Angeles has more than $30 million frozen in Orange County’s collapsed investment pool.

Under a proposal being finalized this week, the city would receive about $22 million from Sumitomo Trust and Bank Co. Ltd. in exchange for the deed to the city’s golf course.

The city would use the money to pay upcoming debt and interest payments.

City officials said the deal is similar to a loan, with the city agreeing to pay back Sumitomo over 30 years.

Compiled by Shelby Grad, with Greg Johnson and Greg Hernandez.