COUNCIL TRANSFERS FUNDS FOR BUDGET : VOTE SHIFTS $15 MILLION FROM STORMWATER ACCOUNT TO HELP BALANCE CITY'S GENERAL FUND.

Byline: Rick Orlov Daily News Staff Writer

Facing a $65 million budget shortfall, the Los Angeles City Council agreed Wednesday to raid an anti-pollution account and other funds to balance the city's general fund.

``Without this, I don't know how we're going to pay our workers,'' said Councilman Richard Alatorre, who chairs the council's Budget and Finance Committee. ``We have gotten to a critical point where bills won't be paid and a threat our employees would not be paid.''

On a 12-1 vote, the council voted to transfer $15 million from the Stormwater Pollution Abatement Fund, which was created by the city in 1990 to treat storm runoff before it flows into the Santa Monica Bay.

They also agreed to transfer $18 million from the city's reserve fund, and to make $32 million in cuts to other city departments to fill the gap in the city's $3.9 billion 1995-96 budget.

Several City Council members voiced concerns about taking money from the stormwater fund.

``I think we're on difficult ground as we contemplate using that money for other services,'' said Councilwoman Ruth Galanter.

A report released last week showed that surfers and swimmers who swim near the storm drain outlets into the bay are more likely to get sick than people who swim in areas farther away from the outfalls.

``This is not just about us, it is about the future of the bay,'' said Councilman Mike Feuer. ``My concern is we have no plan in place for how to address the key issue of how to keep the Santa Monica Bay clean.''

But Galanter and Feuer voted for the transfer following a commitment from Mayor Richard Riordan's budget director to find a means of funding the storm drain treatment program.

``The mayor concurs very strongly about the problem of storm drain pollution,'' budget director Chris O'Donnell said. ``The mayor absolutely will come back and work with the council on developing a financial plan and what is necessary to make sure the bay is safe for the public.''

The stormwater fund is generated by an assessment on all city properties, and is included on Department of Water and Power bills. City officials say the average homeowner pays $2 a year, but that commercial and industrial property owners are charged much higher rates.

Under the council action, the stormwater money will be used to cover street-sweeping costs - freeing up general fund money that would normally go to street sweeping.

Officials justified the transfer on grounds that cleaning the streets reduces the amount of pollutants that go into the storm drains.

Councilman Nate Holden cast the lone dissent on the transfer, saying fees should not be assessed for one purpose and used for another.

``This is fraud. It is sneaky,'' Holden said. ``We charge the people for this one program and now you're putting it someplace else.''