FOUNTAIN VALLEY : City OKs Option B Bankruptcy Settlement
The City Council on Tuesday reluctantly accepted Option B of Orange County’s bankruptcy settlement offer, agreeing to take a portion of the cash upfront but retaining the right to sue for the rest.
The city has nearly $31 million in the county’s failed investment pool, about $6 million in reserves and $24.8 million in redevelopment agency funds.
City Manager Ray Kromer said the city would get about $4.6 million of reserve money and about $18.8 million of the redevelopment money.
A heated discussion preceded the vote, and the council rejected the option that would return part of investors’ money in recovery notes.
“I don’t think they’re good,” Councilman John Collins said of the recovery notes being offered. “I don’t trust the county.”
Councilwoman Laurann Cook agreed: “It’s going to take more than a leap of faith to pay those recovery notes.”
The city still has the option in the next few weeks to change its mind.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
