CYPRESS : City Demands Return of Pool Investment

Following the example of several other cities in the county, the City Council has passed a resolution criticizing county government and demanding the return of all city money invested in the bankrupt county pool.

The council unanimously passed the resolution at a special meeting Monday.

Cypress has about $5.8 million invested in the pool, which the Board of Supervisors declared bankrupt on Dec. 6. City officials have said the invested money is not immediately needed for day-to-day expenses and that Cypress has been minimally affected by the freezing of the bankrupt county pool.

Nonetheless, some City Council members said Monday night that they fear county government may dodge its responsibility in the bankruptcy.

Councilwoman Gail H. Kerry said she fears the county will try to parcel out money losses and disguise the origins of the shortage. “Basically, what they’re going to try to do is bury it so that nobody can account for the piecemeal loss,” she said.

The resolution passed by the council charged that “the Board of Supervisors has not been responsive in disclosing all pertinent (bankruptcy) information.”

The resolution demanded that the Board of Supervisors “return 100% of all monies to the city of Cypress and all other depositors in the Orange County investment pool.”