07-03-10, Mike Mohill Comments on the Proposed Water Rate Increases

Every homeowner knows that to get a home loan from their local bank they have to have a pretty good FICO score; otherwise, the bank will turn them down. To the banker the higher one’s FICO score, the lower the interest to be paid back and loan approved. To the banker it is all about taking a risk.

At a recent joint meeting between the Glendale City Council and the Glendale Water and Power Commission, a public hearing was convened for the public to hear about another rate fee of 3.8%, because the public did such a great job in water conservation this past year. City water usage dropped 18%, but so did revenues for the utility and taxes that would have been collected. The City Council and GWP Commission acted surprised the residents took water conservation seriously, but they would pay a penalty of $2.35 more per month for being such good “boy scouts”.

The meeting that afternoon was all about water conservation-water shortage and how to pass on the increase in water rates to the consumers.

The GWP never mentioned they “must have” SMART METERS the City Council bought last year hook-line and sinker, against the wishes of city activists. Why did we need a state of the art metering system that would measure water and electricity in real-time? Why commit at least $50 million to the stakeholders during a major RECESSION?

What was shuffled under the rug in the afternoon meeting was the FICO score for the GWP. Fitch bond rating company had down rated the city’s water revenue bonds. The rating outlook is being revised to NEGATIVE from STABLE. If the city didn’t raise the water rates, the bond rating agency might downgrade the city’s revenue bonds further. Would Moody and Standard and Poor's be next in line to do the same thing?

GWP senior management said “This is a bare bones” budget. “We have deferred” maintenance or replacement on 93,000 feet of pipe, motorized valves, and access roads. What projects and how much money would be needed to fund other needed repairs that the GWP would not tell the public? The list was longer, but for the sake of time, management would say no more. To an outsider, maybe Glendale’s water management was looking more like our big brother Los Angeles with more broken pipes and sink holes to follow?

WOW! So, where did all the money go for these past several years as we have passed millions of dollars in bonds and have been paying one of the highest utility rates in the state? Didn’t our elected officials know where the money was going? Didn’t the City Manager and General Manager of the GWP know where the money was going?

Ask any city activist and he will tell you where all the money has gone these past seven years. Unfortunately, not for water pipes, valves, access roads, water sub-stations, potholes, needed soccer fields, libraries, police protection, etc.

As Councilman David Weaver would say “I guess in a city of over 200,000 residents” only three people from the public addressed the council last Tuesday. Therefore, the Council, Water Commission and the GWP all must be doing a great job.

GWP: WHAT IS YOUR FICO SCORE or should one say what is the FICO score for the City of Glendale management? I know we can do better!