Tuesday, November 6, 2012
SPEECH BEFORE GLENDALE CITY COUNCIL: ORDINANCE FOR $35 MILLION BOND
The Glendale City Council recently raised our water rates 13% over the next four years. In addition, this is on top of the already 38% water rate increases residents, business, and schools have experienced since 2007.
Had our current city council and previous councils not illegally violated Proposition 218 since the year 2000 with transferring approximately $4million annually from the Water Fund account to the General Fund, then our current council would not be discussing the need tonight for a $35million revenue bond to shore up the infrastructure of the GWP (Glendale Water and Power). From 2007 to 2015 the stakeholders of Glendale will be seeing a 51% water rate increase.
In just 12 years, our city councils have drained GLENDALE WATER AND POWER of approximately $235million going into the pockets of our unions’ employees. These monies should have been used for the infrastructure repairs, but, instead, went to our city workers.
Tonight, our city council will approve a $35million water revenue bond to cover-up the mistakes our city councils have made, because they chose to transfer $235million out of the GWP, monies which should have stayed in the utility for needed infrastructure.
Because of council mistakes in July, Fitch Investor Service downgraded $50million worth of water bonds issued in 2008, partially due to GWP lack of liquidity. Today, Moody Investor Service put Glendale on “credit watch” as it reviews possible downgradingof future bonds.Council members, why the cover-up at the GWP?