LA
07/07/2010 05:12 am ET Updated May 25, 2011

Villaragosa Rebutts Riordan's Bankruptcy Assertion

Countering assertions by former Mayor Richard Riordan that Los Angeles should consider declaring bankruptcy, a top City Hall official said Thursday that the city is working to resolve its financial crisis without resorting to Chapter 9 protection.

City Administrative Officer Miguel Santana issued a point-by-point rebuttal to the op-ed article written by Riordan and investment adviser Alex Rubalcava, saying the city is moving aggressively to reduce its payroll, cut costs and avert financial disaster.

The City Council had asked for the response to Riordan's article, which was published Wednesday in The Wall Street Journal, and is scheduled to discuss the issue during its regularly scheduled meeting today. Riordan has said he doesn't plan to attend.

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