EL SEGUNDO : $1-Million Surplus Found in City Account

City officials were surprised to learn recently of a $1-million surplus in the city’s account for employee retirements.

The state Public Employees’ Retirement System has notified the city that it overestimated costs to cover worker retirements, so the money will be credited to the city, said Finance Director Steve Klotzsche.

The news comes less than two months after city officials slashed 15 positions, including that of the assistant city manager, to trim $1.1 million so it could balance its annual budget. Six of the 15 positions were vacant.

Despite the surplus, there are no plans to rehire any of the laid-off workers, said City Councilman Liam B. Weston.

“The whole purpose of the layoffs was to make government more efficient,” Weston said. He would rather hire an additional police officer with the money, he said.

The council pared its $28-million budget in July to offset a 10% reduction in the fees it charges businesses to operate in the city. Officials hoped the tax break, which will save some businesses as much as $70,000 a year, will attract high-tech firms to the city.

The city’s commerce has been hit hard by cutbacks in defense spending, and officials want to attract firms to fill office buildings once packed with aerospace workers.