L.A. Controller Calls for Policy on Debt
Los Angeles City Controller Rick Tuttle released his annual revenue estimates Monday, showing flat income despite rising city debt.
With that in mind, Tuttle suggested that the city adopt a formal debt policy to better control its financial obligations before the debt burden damages its current credit ratings.
Since 1989, the city has more than doubled its debt. In the 1998-99 fiscal year, Tuttle estimates, the city will have more than $400 million in debt.
To further protect itself, Tuttle also recommended that Mayor Richard Riordan and the City Council consider increasing the size of the city’s reserve fund, now at less than $14 million. In previous years, the council has used that money to address budget shortfalls. Tuttle, however, proposed an end to that practice.
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