As the result of an unexpected spike in tax revenue and a loss of 2,400 workers to early retirement (not to mention a few dozen layoffs), the city of Los Angeles could actually end up as much as $100 million in the black by the end of the fiscal year, which wraps up June 30, City Council President Eric Garcetti said in a comment posted at LA Weekly.
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The city faces a $212 million deficit that inspired City Controller Wendy Greuel to declare that L.A. was on track to run out of cash by May 5. But if the Department of Water and Power comes through with a promised $73.5 million for the city's main coffers, a turnaround is possible, Garcetti said. Of course, the transfer is a big if. The DWP has been stubborn in arguing that it does not have enough surplus cash on hand to give up the dough. Here's part of what Garcetti wrote:
"Our work in February and March has resulted in further real savings that will total about $50-$65 million more by the end of June (end of our fiscal year). Combined with slightly better property tax receipts, we will be able to meet our obligations for this year. Nevertheless, I hope the DWP gives the transfer to the residents of the city that they promised to just two months ago. Combined with the actions we have taken and the slight revenue uptick, we could land at the end of the year about $80-$100 million in the black."
The sudden discovery of extra cash, right when City Hall had exhausted its options, inspired LABizObserved to declare "a miracle" among us.
Of course, come July 1, it starts all over again: The city will start the fiscal year about $485 million behind the ball.