Tags: los angeles | borrow | money | settlement | payments

LA Needs Up to $70 Million to Cover Settlement Payouts

Image: LA Needs Up to $70 Million to Cover Settlement Payouts

(AP Photo/Richard Vogel, File)

By    |   Monday, 09 Jan 2017 09:49 PM

Los Angeles owes so much in lawsuit payments that it needs to borrow tens of millions of dollars to cover them, according to a new report.

The Los Angeles Times cites L.A.'s City Administrative Office, which says the city needs $50 million to $70 million immediately so it can fulfill its obligations in "liability payouts."

The city blew through its annual lawsuit payout budget of $60 million halfway through the current fiscal year. It has paid $135 million since last July 1, the Times reports.

Among the high-profile lawsuits is a $200 million settlement involving disabled groups and housing and an $8 million case stemming from police shootings.  The former is due to be paid over 10 years.

If Los Angeles is not able to borrow money, it would be forced to dip into its reserve fund — which now stands at $295 million, a low figure for the city of nearly 4 million people.

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Los Angeles owes so much in lawsuit payments that it needs to borrow tens of millions of dollars to cover them, according to a new report.
los angeles, borrow, money, settlement, payments
154
2017-49-09
Monday, 09 Jan 2017 09:49 PM
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