Water Rate Study Ad Hoc Committee Update

The new conference center at the Main Branch Library was full of City Council candidates.  Also in the back row was Councilman Don Bankhead, who I am running to replace should voters recall him on June 5.  

Thank you to everyone who took time out of their lives to join me at the meeting.  The discussion was lively and comments were appreciated.

There seems to be two camps brewing, though it may still be too early to know.  One position is that any rent-back of City-owned property to the City is illogical and amounts to a double tax.  The other position is that some rent-back is justified.  

I'm of the opinion that we (taxpayers and ratepayers) have already paid for these facilities and that renting them back to the City is wrong and amounts to a double tax.  

With so much material to review and interesting comments by all, no action was taken by the committee.  The transfer study will be further discussed in a couple of weeks along with possible recommendations to the City Council on what to do with the surplus cash from overcharges to ratepayers.

Also, I asked that we place on the agenda discussion and, possibly, a vote on recommending that the City completely forgo any transfers to the General Fund until an audit of the fund is complete.   Speaking of audits, the transfer study was not an audit by any stretch of the imagination.  Therefore, an audit of the General Fund is necessary. 

Stay tuned for more information in coming days...

Water Rate Hike Hearing...Will you be heard?

Tonight the Fullerton City Council will take up, among many issues, water rate hikes.

I oppose the so-called "pass-through" rate increase for a few reasons.

First, the pass-through is supposed to pass along rate increases imposed on Fullerton by the Metropolitan Water District (MWD) and the Orange County Water District (OCWD).  Fullerton passes the increase to YOU 6 MONTHS BEFORE MWD or OCWD actually increase their rates.  If it isn't illegal, it should be.  At the very least, it is unethical.

Second, the MWD is neck deep in a law suit by the San Diego County Water Authority which is alleging that MWD staff together with some of the staff of MWD's member agencies (like Fullerton) have created a "Secret Society" that meets behind closed doors to develop policies and manipulate water rate increases.  

Third, the MWD is raising their rates to help cover $6,000 bonuses for ALL employees, raises that will amount to nearly 6%, and two new pay grades.  And for those who will think I'm picking on the poor defenseless public employee, let me remind you that all public employees work for ratepayers/taxpayers.  These bonuses and raises are being pushed onto water consumers without their input or approval.  The increases are coming in the midst of the worst economic disaster since the Great Depression.

Water is not like any other commodity.  We have no choice which water agency hooks up to our water meters.  It is of the greatest importance that those services which have monopolies over taxpayers are regulated sufficiently to ensure that they are free of corruption and malfeasance.  Taxpayers must be assured that they are receiving the highest level of service at a reasonable and sustainable rate.

Please attend the City Council meeting at 6:30PM at City Hall.  

Are Fullerton's Water Rates and the Proposed Rate Hikes Justified

Tonight is the Fullerton Water Rate Study Ad Hoc Committee meeting at the Main Branch Library at 6pm.

As a member of this committee, I would like to hear your thoughts and concerns on all things water related.

With a massive MWD scandal brewing that implicates Fullerton in even more corruption and with the recent revelation that Fullerton water ratepayers were over charged, I think it is important to hear what you, the ratepayers and voters, have to say.

Tomorrow, the Fullerton City Council will take up a water rate hike.  You have a say in the rate increase but you need to come and speak to the Council.

FULLERTON IS YOUR CITY.

Results from Study of 10% Water Tax Released

The City of Fullerton has released the findings of a study that looked at transfers of funds from the Water Fund to the General Fund.  In simple terms, this is the City's justification for skimming water revenue and using it for non-water related activities.

The study focused on the last three (3) years because legal counsel identified a three-year window of liability.

Here is the City's internal memo (click image to read):

Page 1 of 3

Page 2 of 3 

Page 3 of 3

The memo notes that over the last three years water ratepayers have overpaid $2.5-million. 

If you can accept the premise* of the report then the next logical question is what to do with the over payment.  This question will be the focus of the Water Rate Ad Hoc Committee over then next several weeks.

*The bulk of the $5-million that the City would like to retain is being justified as rent for the water system's use of City-owned properties and is payable to the City's General Fund.

This latest study of the franchise fee will be the topic of conversation at Monday's Water Rate Ad Hoc Committee meeting at the Main Branch Library at 6PM.