Tuesday, July 28, 2015
Promises Made, Promises Kept?
Many voters know the annual electrical fund transfer of approximately $20 million from GWP to the general fund violates the [Glendale] City Charter. When the city increases our electrical rates beyond the cost of delivery and does not meet the seven criteria of Prop 26, it is a back door tax. Prop. 26 states if the city wants to increase electrical rates other than the seven criteria, it requires a two-thirds vote by the voters. The City Charter states we can transfer up to 25% of the surplus fund after all obligations are met; obligations such as: liquid cash in the depreciation fund, which is for equipment upgrades or replacements, reserve fund for emergencies and surplus fund. The above funds have no cash. The latest Glendale Comprehensive Annual Financial Report (CAFR) states the reserve fund has $120 million of borrowed money, which is bond money. This is government accounting manipulation at its zenith to fool the ratepayers. In 2015, Councilwoman Paula Devine’s numerous slogans and campaign mailers stated promises made, promises kept as she was against the annual transfer of money from GWP to the general fund. Councilman Vartan Gharpetian campaigned against the transfer in 2014 and 2015. Councilman Zareh Sinanyan, after approving the annual transfer last year, said he would not approve it again when it came up for a vote next time. On June 2, councilmembers Devine, Gharpetian and Sinanyan all disappointed many voters when they approved the $20 million transfer to the general fund. Promises made, promises not [kept]!