Of course it sounds outrageous that City Council voted unanomously for another rate hike. This time DWP (water side only). Everyone knows DWP operates at a surplus and the profits are supposed to go to the City's infrastructure, that are so sorely needed. So what's up with it, y'all? I called over to DWP and spent about 45 minutes on the phone with the best spin doctor I've come across yet. She presents some pretty compelling reasons why the hike was needed. So, I'll present them to you here and you can see if ZD got spun or not. And of course, people are already saying, "City of Los Angeles: The rate-hike capital of the universe. First, trash fee hike, now DWP increase and City Council ends up "transfering funds" and it ends up elsewhere. So I'll tell DWP's side of the story, then you guys can post comments with your side. Maybe they make some good points that will lessen your anger.
Bottom line: According to DWP, and independent audit claims, without this fee hike; although they are currently operating at a surplus, with all the reconstruction costs and environmental upgrades needed, in a year or so, they'll be looking at a deficit.
Go to http://zumadogg.blogspot.com for the details. Plus, www.LADWP.com and read the "Neigborhood Council" stuff and all kinds of financial and program details.
DWP: (Continued)
According to DWP: There was a Neighborhood Council collaboration on this issue and they were presented with findings from an outside auditor. Here are some of the expenses that will turn the surplus into a deficit over the next couple of years.
New improvements regarding clean water and water quality: All of the inbasin reserviors (used for water supply) have been commissioned for re-construction. Now most water has to be stored in underground tanks. Can't just cover the above ground reserviors anymore (to prevent debris AND astetic purposes, per the community). So these are new construction costs.
Now, instead of chlorine as a filtration proccess, chlormides have to be used for environmental purposes.
New pipes and infrustructure are needed around the City. When they made plans decades ago, estimating demand, they didn't account for today's population explosion/added demand.
Therefore, additional distribution and pumping is needed, especially in the West Valley. Plus, other capital and infrastructure programs that need to go forward.
DWP is required to fulfill all environmental committments. (And they ain't cost REDUCING.)
Dust mitigation on Owens Lake means sprinklers and water systems are needed on the dry lake bed to keep water, and help grow grass that can help minimize dust.
Re-watering the Owens River flow (in December).
So, DWP is here to remind you, they have had the fewest and smallest increases in the past decade as you will find anywhere. And they want you to be thankful you don't live in Pasedena, when residents and business owners were tagged with an 18% increase, recently.
And most importantly, an outside audit said DWP would be going into deficit, based on these impediments, without the rate hike. (These improvements run up into the 100's of millions.) Plus, inflation, cement prices are rising because of increased demand in India, China and the South from hurricane re-building. Even security cost increases are needed cause the price of copper is up, so homies are stealing the copper wiring, right off the trucks.
Add it all up, and it comes out to about a five percent increase over the next two years, y'all.
But at least, the water is actually cleaner than bottled water, due to higher saftey standards. So people from other countries who aren't used to being able to drink tap water, and everyone else who is scared by NYC stories, save your money on bottled water and drink the free stuff!