Below is a press release from the City of Fullerton. Read it carefully and mark you calendar.
Also, here is how much money has been skimmed from the Water Fund:
Fiscal (Water Fund)
Year Franchise Fee Water Sales
2001 $1,435,202 $14,342,888
2002 $1,558,578 $15,619,444
2003 $1,576,091 $15,676,902
2004 $1,775,133 $17,800,172
2005 $1,771,294 $17,499,462
2006 $2,065,417 $20,587,913
2007 $2,287,693 $22,938,001
2008 $2,278,041 $22,893,749
2009 $2,388,515 $23,967,172
2010 $2,479,930 $24,796,981
2011 $2,532,595 $25,295,986
PRESS RELEASE -
The session, which will be open to the public, will be held at 4:30 p.m. in the new Conference Center at the Fullerton Main Library, 353 W. Commonwealth Ave., adjacent to Fullerton City Hall.
David Schickling, Water System Manager for Fullerton, said the workshop will cover all aspects of the City’s water utility, ranging from where Fullerton gets its water supplies to how that water is delivered to residences and businesses in the City.
The session will also examine capital improvement needs for the aging water system.
The study session, which was requested by the Council, will be a prelude to the reopening of consideration of a water rate study which was brought to Council this past July.
“The Council took no action on the study then and, instead, directed that further study be done – specifically on the public notification process and the legality of the ‘in-lieu franchise/property tax’ transfer of funds from the Water Fund to the General Fund,” Schickling explained, noting the in-lieu franchise tax has been in place since 1968.
“The results of this expanded study are nearly complete and will be available for public review beginning with a meeting of the Council-appointed Water Rate Study Ad Hoc Committee in February.” That meeting, the date of which has not yet been firmed up, will be open to the public.
Once the committee has reviewed the results of the new study and made recommendations on it, the matter is tentatively scheduled to come to the City Council for consideration in March.
Further information about the study session or the water rate study may be obtained by calling the Office of Water Engineering at Fullerton City Hall at (714) 738-6845.
Persons requiring special accommodations to attend the study session the workshops are asked to notify the Office of Water Engineering prior to Jan. 10.
So the in-lieu franchise tax is just a way to transfer money to the general fund? Is it supposed to cover the cities administrative costs for administering the Water Systems entity? Or is there some stated purpose for the transfer?
ReplyDeleteMark, the stated purpose I have been told for transferring money out of the Water Fund is "because we can." That answer makes the transfers illegal. The City must articulate and account for all funds attributed to the Water Fund. Current practice is to skim 10% and deposit it into the General Fund regardless of the actual administrative costs that are above and beyond what are currently being charged.
ReplyDeleteIf (and that's a very BIG if) the in-lieu franchise tax was suppose to cover administrative costs, City Hall has failed miserably. The money has always been dumped into the General Fund.
City staff have told me repeatedly that they are looking at creative ways to "charge the Water Fund" so that removing the in-lieu franchise tax has no effect on the General Fund.
Among these are leasing back to you and I the land which the reservoirs sit. The City wants to bill the Water Fund for leases that do not exist and cannot exist unless the Water System is made into it's own autonomous water utility like any other water district. The only purpose in doing so is so that City Hall can continue to live beyond its means.
This will eventually force you and I to pay higher water rates to cover bond debt that will be needed to make the repairs and replace old water lines. We are way behind the replacement curve and any further delay by City Hall means exponentially higher costs.
City Hall (council and department heads) need to keep their hands off the Water Fund.