Delivered before the City Council of Pasadena on June 22, 2009:
A RESOLUTION ON WATER RATES AND ENFORCEMENT
Whereas the City of Pasadena must seek a water rate increase due to a shortfall of about 10% of revenues in its Water Fund due in turn to a drop in water sales from conservation and from unsold and unrented new downtown housing units; and
Whereas the City of Pasadena seeks to also add its customary 8% surcharge tax on all water sales, including its proposed water rate increase, to divert water revenues into the General Fund; and
Whereas as of 2008 the City of Pasadena Certified Annual Financial Report indicated the City had amassed financial reserves, cash, and investments around two-thirds of a billion dollars ($667,000,000); and
Whereas to both make the City Water Fund solvent and divert 8% into the City General Fund would require a water rate increase nearly double than is necessary; and
Whereas even the Public Editor of the Pasadena Star News has called for the City of Pasadena to return up to $100 million in excess reserves and investments to the taxpayers and utility ratepayers given the economic recession at hand;
THEREFORE, we respectfully recommend the Council and the Mayor consider deferring any diversion of water revenues into the General Fund for the 2009-2012 fiscal years and dip into its reserves and investments to make the City's Water Fund solvent for 2009.
And, Whereas, the costs to administrate the City’s proposed ordinance for water enforcement personnel and a water court are reported to be about $1 million; and
Whereas, the cost to buy imported water to meet 10% of the City’s water demand may be roughly the same as the administrative costs of water enforcement, as possibly indicated by a recent purchase of raw water from the U.S. Bureau of Reclamation from Folsom Dam by the San Diego County Water Authority; and
Whereas the Chief Financial Officer of the Metropolitan Water District of Southern California has ironically called the current state drought as “California’s Wettest Drought” due to the environmental endangerment of fish species beyond the control of the water ratepayers of the City of Pasadena;
THEREFORE, we respectfully recommend that the Council and Mayor investigate the possibility of just buying imported water in lieu of enacting a tough water enforcement ordinance together with an unpopular water rate hike.
Respectfully submitted,
WAYNE LUSVARDI
CITIZENS FOR RESPONSIBLE GOVERNMENT
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