HomeMy WebLinkAbout1992-07-22; Municipal Water District; Informational; Metropolitan Rescinds Service ChargeCARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL
MTG.
DEPT. CMWD
48 # I TITLE:
METROPOLITAN RESCINDS SERVICE CHARGE CITY ATTY
CITY MGR.
IDEPT. HD. ~
RECOMMENDED ACTION:
No action required. This is an informational item only.
ITEM EXPLANATION:
This item was brought to the Commission at a recent meeting and the decision was
to recommend the Board that the service charge, to be instituted by Metropolitan,
be paid through the District’s rate stabilization fund.
Due to the recent decision by MET to fund this service charge through their rate
stabilization fund, our recommendation to our Board becomes moot. (see attached)
MWD
#flRUfUmAN WAliR U/SlRiCl OF SU'lff€RN C'U?U8N!
BO8 GOMPERZ BO8 MUlR LEE GOTTLIEB ROB HAUWACHS OFFICE (2131 250-6866 OFFICE 12131250-6930 OFFICE (213)250-6603 OmcE 12131250-6450
HOME (8181797-5478 HOME 17141 596-8057 HOME [818]766-1193 HOME (310]392-9031
( BW)(MWD/SERVICE-CHARGE) Metropolitan rescinds service charge on its
27 member agencies
Business & News Editors
LOS ANCELES--(BUSINESS WIRE)--The Metropolitan Water District board
of directors Tuesday rescinded its propped availability of service
charge that would have raised $25 million for projects and programs
necessary to provide Southern California with a reliable water supply.
by the board two months ago, in conjunction with a standby charge on
land within the district's service area.
a year in much-needed, dependable revenue. The charges were adopted
after a series of public notices and hearings.
the district should not impose the two charges at the same time.
Although we have a legitimate difference of opinion on this matter, we will abide by the attorney general's opinion and not seek a
court ruling,'' said Metropolitan General Manager Carl Boronkay.
The availability of service charge was based on each member
agency's water purchases from Metropolitan during the last four fiscal years.
member agencies this month.
will still be collected in conjunction with property taxes over the
next 12 months.
which it could rely. derived from water sales, which are variable, while at the same time
the majority of Metropolitan's costs are fixed.
as they did during the drought, revenues fall off too.
to upgrade and expand its water treatment and distribution system, which serves an ever-increasing population.
of $25 million of revenue from the service charge, the effect on our operations this year will be offset by funds from the district's Water
Rate Stabilization Fund -- a savings account established in 1987
expressly to carry the district through the revenue fluctuations
between wet years and dry years,'' Boronkay said. Metropolitan, through its 27 member public water agencies,
provides more than half the water used by more than 15 million Southern Californians in Los Angeles, Orange, San Diego, Riverside,
San Bernardino and Ventura counties.
The service charge on Metropolitan's 27 member agencies was adopted
Each of the charges was expected to bring the district $25 million
An opinion written by the California attorney general's office said
\\
The first bills for the charge would have been sent to the
The standby charge, $5 per acre or $5 per parcel less than an acre,
Metropolitan's board adopted both charges to increase revenues upon
About 75 percent of Metropolitan's revenues are
When sales fall off,
Dependable income is needed as the district proceeds with projects
"While we had budgeted for this fiscal year with the expectation
--3O--BN/la
1111 Sunset Boulevard, Los Angeles, California Mailing address: Box 54153, Los Angeles, California 90054-0153 Telephone 12131 250-6000