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LA WATCHDOG - DWP Ratepayers are already doing more than their fair share, contributing almost $800 million (over 9%) to the City’s General Fund budget of $8.6 billion. Now, however, the Mayor and the City Council want even more of our cash to fund their fiscally irresponsible spending addition.
The transparent Electricity Users Tax will provide the City with $575 million in the upcoming fiscal year by taxing residents an amount equal to 10% of their power bill and 12.5% for commercial and industrial customers.
The controversial Transfer Tax from the DWP’s Power System will provide the City with $220 million, an amount equal to 3.6% of projected power system revenue of more than $6 billion. This tax has never been approved by the voters pursuant to Proposition 26 because DWP and the City have avoided rate reviews that would have required a vote to approve the Transfer Tax.
The Mayor and the City are now wanting the Bureau of Street Lighting to work with DWP to install 60,000 solar powered street lights “to address the City’s backlog of street light repairs while boosting operational efficiency, reducing energy consumption, and advancing the City’s clean energy goals.” This means that DWP and its Ratepayers will be forking over $200 million to finance this initiative that is the responsibility of the Bureau of Street Lighting and the General Fund.
This is in addition to the more than $120 million that the City already owes to DWP Power System in past due receivables. If this were you or me, our power would have been cut off, and we would have been charged interest and additional disconnect and reconnect fees.
Incidentally, there is no plan for the cash strapped City to repay this past due obligation.
The City is also considering a plan for DWP to work with Recreation and Parks to implement the $300 million Stormwater Capture Parks Program to “collect rainwater and urban runoff at nine local parks in the East San Fernando Valley.” This program does not pass the smell test because the capital costs to capture a mere 1,800 acre feet are mind boggling excessive. Rather, it is designed to benefit the parks, not DWP and its Ratepayers. According to the Ratepayer Advocate, the “proposed Stormwater Capture Parks Program is not cost effective as a water source of supply, and as such would have an unreasonable impact on DWP customers.”
Overall, the City is looking to hit up Ratepayers for an extra $600 million. While these programs may be worthwhile, they do not benefit the Ratepayers and therefore not our responsibility. Compounding the problem is that the City and DWP Board of Commissioners and DWP management have not been forthright and honest with Ratepayers about these less than transparent schemes.
It is time for DWP to flush these programs.
(Jack Humphreville writes the LA Watchdog column for CityWatch, where he covers city finances, utilities, and accountability at City Hall. He is President of the DWP Advocacy Committee, serves as the Budget and DWP representative for the Greater Wilshire Neighborhood Council, and is a longtime Neighborhood Council Budget Advocate. With a sharp focus on fiscal responsibility and transparency, Jack brings an informed and independent voice to Los Angeles civic affairs. He can be reached at lajack@gmail.com.)
