Never in the recent history of Long Beach have water rates been raised by double digits– and the current proposal, a 12%-rate increase, will hike rates 22% higher since just 2017.
Examining the surrounding circumstances of this attempted money grab leads to a possible explanation: Long Beach is in trouble financially and needs every dime it can muster to cover mounting pension obligations, city management over-bloated salaries, and a council that has champagne tastes.
A common mantra in our city government is “we need to find new revenue streams.”
The basis for the rate hike:
The June 13, 2019 Water Board meeting concluded a four-session Budget and Rates workshop conducted by city staff.
The proposed annual budget differs from past years with notably higher levels of reserves (up approximately 30% from recent years) and large expenditures costs for capital improvement program (CIP) projects. These projects include replacement of all water meters with electronic meters and rectifying deferred maintenance of city water wells.
LBRC and CARP question all these items for two reasons. First, the Water Department historically has not had a need for large reserves. Second, capital costs are normally spread over many years. It’s as though the budget was deliberately designed with a big shortfall to justify a big rate increase, and then later the reserves could be tapped as a “surplus” for the city’s general fund.
Water board members did concede to the audience that the rate increase owed in part to a desire to transfer some water revenues to the city’s General Fund in support of Measure M, but that is nowhere to be found in the budget presentation.
Such a transfer has been a bone of contention in Long Beach, with two lawsuits filed maintaining Prop 218 is being violated. Prop 218 prohibits local governments from charging more than it costs to provide utility service and from using utility fees for non-utility purposes. In 2017 the city settled one lawsuit. The settlement required the city to repay $12 million (a fraction of what had been illegally appropriated from the water department over a number of years) and to cease appropriating water department revenues. In an attempt to recoup that revenue stream, the city put Measure M on the ballot in 2018.
Measure M permits transfer to the city’s General Fund up to 12% of all annual water revenue. Measure M proponents told voters that this revenue, that consumers had been accustomed to paying, was required to maintain city services like police, fire, libraries and parks. Voter approval of Measure M set the stage for the water-rate increases.
Opponents again questioned the legality of the transfer, and filed a lawsuit maintaining that Measure M, whether approved by voters or not, is illegal and violates the state Constitution. This lawsuit is pending.
Both CARP and LBRC maintain that the city’s appetite for increasing taxes and rates needs to be tempered. Long Beach enjoys ample sources of income. We have a port, an airport, the tourist industry, tidelands and uplands oil revenue , property taxes, state and federal grants and a 10.25% sales tax. We need to refrain from unnecessary expenditures like a $100-million dollar swimming pool on the beach, a half billion dollar civic center, a million-dollar media wall, $750 thousand for furniture etc. When added to the escalating cost of pensions, these additional cost commitments place a burden on the people.
This water rate increase will affect all residents but in disproportionate ways.
Those without discretionary income will find the monthly increase (estimated at $6 per month) a hardship. Somewhere in Long Beach, a child will not get a sweatshirt or a daily bath and trees and plant life will suffer.
City officials make claims of concern over rent increases– and yet if the city supports raising water rates, they know it will be passed on to tenants in the form of rent increases.
Members of CARP and LBRC are asking the city council to manage the budget prudently, comply with State law and oppose this rate increase.
Residents (account holders) are urged to protest the rate increase by writing the Water Board at 1800 E. Wardlow Long Beach 90807 or email sandy.fox@lbwater.org (and/ or attend the prop 218 hearing on Aug 29). Account holders should also write to the city council, who will vote on the rate increase in September.
When I read the ordinance as it has been amended by measure M, I do not see where it states that the transfer of funds to the general fund is an obligation. All I see is mention of a transfer of SURPLUS funds, and even that only if the commission decides to transfer the money.
Where is the justification to have a transfer of funds to the city included in a proposed water department budget. One cannot know if there will be a surplus until the end of the budget year.
This is all very confusing.
Somebody, please, enlighten me.
This seems unnecessary and harmful to our disenfranchised groups. The impact to our community could be more significant than this proposal appears to address. Negative impact to our families on any level is not where our energies should be distributed. Negative impact to our parks and outside spaces needs to be carefully considered. I love our city and know we can do better.
THE INCONVENIENT TRUTH: Let’s get this straight! The Mayor and some of our elected members of our City Council are ready to approve a 12% increase in our water bill which will go into a non-related category– the General Fund? Please explain the rationale for this additional water tax increase as well as why it is going into the General fund? I don’t like taxes, but I do believe supporting our Government’s ability to maintain a Quality of Life in our Community! Bottom line question, how many retired, middle or working class Long Beach residents recently got an 12% income increase to offset this proposed tax? However, it seems that under this Mayor, we have scene nothing but continuous tax increase proposals? Or am I misinformed? Or maybe it is time for a Change downtown?
It’s still all about the Con.
The City Government, the Utilities, The Police, The Fire Department, etc. All part of the Con, for as some one put it, for the City Government’s Champagne tastes.
Guess who gets to pay for it. YOU.
Every time they ask for money we need to figure out the real reason they are asking. And if it is not clear, and not used for what it is intended for we vote no on the idea and no for the people who propose the idea.
We can only vote occasionally so it is in all of our best interests to take our vote seriously and find out facts from more than one source.
If you are rich you can throw away 12%. I can’t.
The Mayor of this city cares nothing for its residents OR their hardships.
He is a reckless charismatic ill-prepared, incredibly lazy person, all for show, and NONE to support the longtime residents of Long Beach; its seniors; its disenfranchised.
Garcia is simply a pawn for big interests in this town. He’s already helped ruin the Broadway Corridor! Have you seen it?
What a travesty, the complete faulty dismantling of parking on Broadway in Long Beach.
I’m sure the businesses which have closed due to this atrocity are no longer that fond of Mayor Garcia or Councilwoman Jeannine of the 2nd District, she who is totally WITHOUT A WORKING CLUE.
Now we have a huge water hike with proceeds to go into a general fund. WHAT AN ATROCITY.
Mayor Garcia, hopefully we can recall you and Councilwoman Jeannine for being such an active part in destroying our good city!