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Santa Ana's General Fund Balance Dips to Just Over $300,000 - Voice of OC I Orange Co... Page 2 of 2 <br />Walters refuted that claim, saying in an email that the city expects to meet payroll obligations for <br />the rest of the fiscal year. <br />It is common for cities to run low on cash in the first part of a fiscal year as they await cash <br />infusions in December, when the largest property and sales tax installments are paid to the city. <br />Nonetheless the city's cash position has raised eyebrows among other government officials and is <br />raising alarm bells among some members of the Santa Ana City Council. <br />"I want answers if we only have $300,000 in the bank," Tinajero said. <br />To put the Santa Ana situation in context, Costa Mesa Mayor Gary Monahan rang warning bells <br />based on the fact that his city's general fund balance dropped to $5 million last November. Costa <br />Mesa is one -third the size of Santa Ana. <br />Orange County Supervisor John Moorlach, who is a former county treasurer -tax collector, said <br />Santa Ana's situation is reminiscent of Vallejo's, the Bay Area city that filed for municipal <br />bankruptcy in 2005. Vallejo had been leveraging all of its internal funds until there was nothing <br />left, prompting the city to go bankrupt, Moorlach said. <br />"It's when you're out of cash — and when your bank says, hey, we don't want to extend more <br />credit — that's when you're really hitting the wall," Moorlach said. <br />Tinajero and Councilmen Vincent Sarmiento and David Benavides said they would be making <br />inquiries at City Hall. <br />Councilwoman Michele Martinez said she asked Gutierrez about the city's cash flow after Voice <br />of OC's post on the issue last week. She said she was told that the city is waiting for its large <br />revenue disbursements at the end of the year and that the city would be able to pay all of its bills. <br />But Gutierrez did not inform her of the city's low cash position, she said. <br />"I believe we should have a reserve policy for times like these," Martinez said. <br />Mayor Miguel Pulido and council members Carlos Bustamante and Claudia Alvarez did not return <br />a reporter's calls. <br />Correction: Due to an editing error, a pervious version of this story incorrected stated that the <br />Costa Mesa's fund balance available was estimated to be $5 million by this November. In fact, the <br />city's fund balance available was 35 million in .November 2010. We regret the error. <br />Please contact Adam Elmahrek directly at aelmahrek @voiceofoc.org and follow him on Twitter: <br />twitter.com /adamelmahrek. And add your voice with a letter to the editor. <br />http : / /www.voiceofoc,org /oc_central /article 9UAa444e0- 8289- 001cc4c002e0.ht... 11/3/2011 <br />