By Tony Saavedra, includes “Four Southern California cities have been identified among the worst in the state for managing debt in an annual financial report conducted by an Orange County lawmaker. … When it comes to reading financial tea leaves, Moorlach believes one of the best indicators of budgetary health is a city’s unrestricted net assets, defined as funds that are free of any encumbrances after bills have been paid. …” (Note: New York City and Chicago have huge (negative) unrestricted net asset positions. Stay tuned for our annual “Financial State of the Cities” report, to be released January 28.)