CYPRESS : City Won’t Forgive Debt County Owes From Failed Pool

The City Council has emphatically rejected a suggestion by two state legislators that it forfeit 11% of the money the city is owed from the failed Orange County investment pool.

In a letter to cities that had money in the pool, Assemblyman Curt Pringle (R-Garden Grove) and state Sen. John R. Lewis (R-Orange) said there should be an alternative to Measure R, the proposed half-cent increase in the county sales tax.

“Today we ask you to consider a bold and necessary action to help the county through this bankruptcy and to help taxpayers in your community, as well as all taxpayers of Orange County,” read the joint letter from Pringle and Lewis. “We call on you to forgive the county of the final 11% that they owe you as an Orange County Investment Pool participant.”

The City Council took up Pringle’s and Lewis’ written request shortly after midnight Tuesday, near the end of a marathon Monday night meeting. Council members were visibly weary after the long session and in no mood to be forgiving.

“I have put this on the agenda for council feedback on exactly what we want to tell Mr. Pringle,” said Mayor Cecilia L. Age. Council members grinned, and laughter broke out in the audience.

Councilman Tom Carroll said, “The city of Cypress has $5.9 million invested with the county. Eleven percent is about $650,000 of Cypress’ money.” The council should not even think of giving up that money, Carroll said. “The county has a responsibility to repay everything they owe us.”

The other four council members, including Age, gave similar speeches. They also criticized county officials, accusing them of not doing enough to cope with the financial crisis caused by the county’s Dec. 6 bankruptcy filing.

At the conclusion, the council said no vote was necessary on the legislators’ request. “We’ll send them a letter summarizing how the council feels,” Age said.