DWP won't make $73.5 million transfer to LA general fund

The Department of Water and Power notified the city today it would not be making an anticipated $73.5 million transfer to Los Angeles' general fund, a move the city controller said will leave the fund $10 million in the red by May 5.

Controller Wendy Greuel sent a memo to the mayor and City Council members urging the council to immediately transfer $90 million from the city's Reserve Fund to the General Fund so she can "continue to pay the city's bills, and to ensure the fiscal solvency of the city."

"This is the most urgent fiscal crisis that the city has faced in recent history, and it is imperative that you act now," Greuel wrote.