Frequently Asked Questions - Q20


Question:

There has been increasing opposition to the continued transfers of excess water and sewer revenues (“Any Lawful Purpose”, or “ALP”, monies) from the Water and Sewer (W&S) Fund to the General Fund. How will this proposed charter amendment impact that undesirable practice?

Answer:

This charter amendment should effectively end that practice, or at least limit it to the extent of such surplus available at the effective date of the amendment. That is because the debate over this proposed charter amendment is going to cause voters to become totally aware of the startling fact that it currently takes less than one-half of W&S revenues to cover W&S maintenance and operating expenses. The debate will expose the fact that the remaining over one-half of W&S revenues is more than enough for W&S debt service and capital expenditure needs. That is going to increase the already growing opposition to the ALP transfers and create a demand by voters for decreases in W&S rates (as opposed to the call by the City for increased W&S rates). If this proposed amendment passes, there will be strong efforts to bring W&S rates into line with actual W&S expenditure needs and thereby free up more of the allowable annual increase in total City revenues to be applied directly to General Fund rates and expenditure needs.



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