Every year the Los Angeles City Council; steals money from the Department of Water and Power to help balance the budget. Money ratepayers use to expand water supplies, provide repairs for water needs (this theft, billions over the years, is a significant cause of the lack of water for the horrendous fires). The Council uses the “surplus” as a slush fund.
Instead of having surpluses, the rates should go down, so people can afford water and power. This is a theft.
“In a unanimous vote, council members approved an ordinance to direct the transfer of money from the utility’s power revenue account to the city’s reserve fund during the 2024-25 fiscal year. An initial $109.6 million is expected to be transferred within 45 days in one lump-sum payment, with the remainder to be transferred in monthly installments by June 30, according to a DWP report.
There was no discussion.
According to city officials, the transfer occurs every year after the DWP crunches its numbers. Another transfer is expected to happen related to water revenues in the 2024-25 fiscal year.
Note there was not a word of discussion—just steal the money. Want to see corruption? Looks at the Los Angeles City Council.
LA Council Approves Transfer of Surplus Revenue to Reserve Fund
by Contributing Editor, MyNewsLA, 1/28/25 https://mynewsla.com/government/2025/01/28/la-city-council-oks-transfer-of-surplus-revenue-to-reserve-fund-3/#google_vignette
The Los Angeles City Council Tuesday authorized a transfer of $219.3 million in surplus revenue from the Department of Water and Power to the reserve fund as elected officials continue to grapple with fiscal concerns.
In a unanimous vote, council members approved an ordinance to direct the transfer of money from the utility’s power revenue account to the city’s reserve fund during the 2024-25 fiscal year. An initial $109.6 million is expected to be transferred within 45 days in one lump-sum payment, with the remainder to be transferred in monthly installments by June 30, according to a DWP report.
There was no discussion.
According to city officials, the transfer occurs every year after the DWP crunches its numbers. Another transfer is expected to happen related to water revenues in the 2024-25 fiscal year.
The transfer is expected to increase the city’s reserve fund, which is experiencing a strain as a result of a budget deficit caused by lower-than-anticipated tax revenue growth, overspending due to labor contracts and liability payouts, among other challenges.
City documents previously cited nearly $300 million in overspending with some money coming from the reserve fund, an account intended to be used during emergencies to maintain operations.
City financial analysts previously warned that the fund dropped to 4% of revenues, and is likely to decrease further. It’s also below the city’s policy of keeping that fund at a minimum of 5%.
The city administrative officer has cautioned that if the fund fell below 2.75%, council members would need a two-thirds vote to move money from it, and such a low level could lead to consequences for the city’s bond rating.
Part of the overspending has been a result of legal payouts. Los Angeles has allocated $112 million in the 2024-25 fiscal year for court judgments and legal settlements for cases involving police officers or negligence, as well as traffic collisions and aging infrastructure. Those legal payouts are expected to balloon to nearly $300 million later in the fiscal year.
Elected officials are crunching departmental budgets and identifying those with excess dollars, as well as considering $80 million in judicial obligation bonds to restore the reserve fund.
Earlier this month, the council authorized a budget reduction exercise. Staff are expected to conduct an analysis of current staffing levels, a review of proposed reductions to departmental appropriations and impacts to services, and status updates on major long-term construction or public works-related projects.
They will also examine the city’s debt obligations and pending settlements.
Robing from Peter to pay Paul has been a political way of life since time immemorial! Budgets are designed without transparency to keep the public in the dark so they can’t follow the money. Dishonesty permeates throughout government at all levels. Elected officials who go to Sunday Services lie to the public about finances and justify their lies by convincing themselves they are doing it for the good of the people. Or, a better scenario is, they are just too stupid to know what is going on.