CalPERS says the bankrupt city of San Bernardino has enough money to pay what it owes the pension fund.
Michael Lubic, an attorney for CalPERS, told a judge in U.S. Bankruptcy Court on Tuesday that the city had $26.8 million in cash as of January, not the $4.2 million it previously claimed.
Lubic's comments, at a hearing in Riverside, were first reported by Reuters and confirmed today by CalPERS.
San Bernardino halted payments to CalPERS and certain other creditors shortly after filing for bankruptcy last summer. It has said it will resume its CalPERS payments starting with the new fiscal year July 1, although it still owes the pension fund about $12 million for the missed payments.
"CalPERS believes there is sufficient cash to pay CalPERS and (the city's) other administrative claims," Lubic said in court, according to Reuters.
But a city financial consultant said in court papers that San Bernardino's cash position remains tenuous.
In a court filing April 29, consultant Michael Busch acknowledged the city had $26.8 million in January and expects to end the current fiscal year with $33.1 million.
But he added that the city's "deferred obligations" total $33.3 million. "There would not be enough cash available if the city was required to pay all of the city's deferred obligations during the budget period," he wrote.
Call The Bee's Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.