City officials say they’ve discovered a second off-the-books account that once held nearly $1 million in public funds, but now has only $5,000.
The plan is aimed at helping thousands of borrowers who owe more than their properties are worth, but without cooperation from the banks, the program will likely have limited benefits.
A quartet of city officials are free on their own recognizance pending a hearing later this year to determine if there is enough evidence to order them to stand trial.
The move comes as pension contributions are expected to double in the next decade from about $155 million to about $306 million in 2020.
A former facilities director for the Beverly Hills Unified School District is being held on $2 million bail for allegedly misappropriating public funds.
Officials say the funds will be used to purchase high-tech gadgets like a $1 million vehicle designed to handle hazardous chemical and biological materials.
An independent think tank says California’s pension fund is awash in red ink, and the burden for every worker in the state could rise to $10,000 a year by 2014.
The Los Angeles City Council has unanimously voted to put a measure on the March ballot that would preserve emergency funds.