In January, 2009, I started asking former Councilman
Yousefian about the city's water bond obligations. I prepared the attached memo and handed it out
at different city events during this year’s city council election. Perhaps, as the city is considering initiating
another water bond or two a short history of water bond obligations is
appropriate. Now would be a good time to
show the taxpayers how this city has been mismanaged. We would never have had such BOND obligations
had the city not give so generously to the city workers. Now the GWP wants us to bond more money to
cover new
technology.
Mike Mohill
818 383 5001
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“A Short History of Water Rates for the City
of
In 2002 the city council made up of councilmen Weaver,
Yousefian, Quintero, Rafi Manoukian, and Gus Gomez ALL voted to raise the city
water rates by 10% in order to raise $4 million to solve the water
infrastructure problems. Initially $1 million
was transferred to the General Fund to pay for the city employees salaries and
pensions. About two years later City
Manager Jim Starbird suggested to the council to transfer all of the $4 million
dollars to the General Fund to pay for salaries and pension.
In 2008 water rates were raised again with the support
of councilmen Weaver, Najarian, and Drayman. However, councilmen Quintero and Yousefian both
voted against this water rate increase. Water rates will rise 10% in 2009, 2010 and
2011. There will be a total rate
increase of 30% to help pay for a $50 million bond. The bond obligation will be paid over a 30
year period. A total obligation for this
bond by the city will be $100 million for both principal and interest.
In mid 2009 the Metropolitan Water District will be
raising water rates 30% to cover the cost to the District for buying water. This water rate increase is needed because of
the drought in the State of
The city staff has recommended that in June 2011 water
rates should go up another 30% over the next 3 years, to be paid at a rate of
10% per year to cover another $50 million bond. The public has been told this money will be
used for water maintenance of pumps, water lines, reservoirs and miscellaneous
repairs. Principal and interest over
this 30 year obligation will be another $100 million to the taxpayers.
Between 2008&2011 $100 million in water bond
obligations will have to be paid off over the next 30 years. The city will be paying a total of $200 million
in principal and interest.
We are putting our children at risk with over a $200
million bond debt. The next generation
of
When will the city council again raise water rates and
transfer another $50 or $150 million to the General Fund to pay for any other
pet project or more employees’ benefits?
Will the
Approximately 80% of the city budget pays for city
employees’ salaries and benefits.
Mike Mohill
Resident 818 244 3319
Ref: As told to me by CCM Yousefian. 2/22/09