Letter: Higher rates for transfer to the general fund (August 3, 2015)
Higher rates for pipe fixes would boost City of LA General fund too
by the required 8% transfers reports LA Times today. TOAV objective is to buy Ranchos and stabilize rates
but they do not include any projections for aging pipe repairs and replacements in their analysis. To meet General Fund expenses NOW, TOAV is Transferring $7.5 million into general fund revenues (a 36% increase) to boost revenues to equal the budgeted expenditures which include the negative Golf Course and Parks/Rec. balances.
These continuing transfers from sewer and other fund balances quickly reduces them, and we ask, how are they going to be repaid for their original specific future obligation needs? Are these legal loan obligations involved in an accounting shell game, and for what short/long term? These are taxpayer paid surcharges for defined needs aren’t they? TOAV is silent on any analysis of this activity.
History and these actions by TOAV suggest that they critically need the Ranchos stream of revenue to make even more transfers in order to meet the continuing general fund deficits created by large expenditures by Council and Staff. Taxpayers just pay the freight bill without dispute. Won’t rates need to go higher in up the hill TOAV for the future pipe repairs, as Los Angeles projects, and says they will down the hill? Rate stabilization is a known myth of just some words; actions are needed.
— Al Rice, Apple Valley