DWP transfer at risk

The city of Los Angeles lost a key legal argument Monday and now will have to go to trial to defend the annual transfer of about $30million in Department of Water and Power water-service revenue to the city's general fund. Bethj Barrett in the Daily News.

The ruling by a Superior Court judge to deny the city's motion for summary judgment comes as another potential setback for an already cash-strapped city facing a $155 million budget deficit by June 30 and as much as $500 million next year.

Because of the uncertainty of the transfers, the city hasn't included them in the current budget, nor in its financial projections.