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IPFS News Link • Economy - Economics USA

Villaraigosa warns of bankruptcy if L.A. City Council blocks electricity rate hike

• By David Zahniser,
Facing resistance from the City Council over his renewable-energy plans, Los Angeles Mayor Antonio Villaraigosa has warned that any attempt to overturn higher electricity rates approved last week by the Department of Water and Power board would throw the city’s finances into disarray, causing it to run out of money in the next four months. In a briefing paper sent to council members Monday night, Villaraigosa’s office said the DWP would renege on a promise to transfer $73 million to the city’s general fund budget if its rate proposal is rejected. Such a move would cause the general fund, which pays for public safety, libraries and other basic services, to “run out of cash” before the end of the fiscal year on June 30, Villaraigosa’s briefing paper said.