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LA WATCHDOG - For the last three years, Mayor Bass has neglected the City’s infrastructure, our streets, sidewalks, parks, and street lights. But now our many failed street lights has become a political hot button, the Mayor has two initiatives, one of which involves the Department of Water and Power financing the $200-300 million needed to begin the repair and modernization of our 220,000 street lights.
The City is in the process of increasing the Street Lighting Maintenance Assessment, which yields $45 million a year. This has remained unchanged since 1996 thanks to Mayors Villaraigosa and Garcetti kicking the can down the road. If adjusted for inflation, the assessment would be around $100 million today, less than the real need of an estimated $125 million.
To increase this assessment, the City must comply with Proposition 218, the “Right to Vote on Taxes Act” that was approved by the voters in November of 1996. This requires the City to conduct a voter approval process involving the property owners who will benefit from the increased assessment. This can be time consuming and involves reaching into the wallets of property owners.
The Mayor has also cooked up a scheme where the Bureau of Street Lighting and DWP will “partner” on the Solar Street Lights Initiative to install up to 60,000 solar street lights throughout the City over the next two years. This initiative will also address more than 32,000 street light service requests by modernizing these street lights or repairing them.
But this partnership is a one-sided deal where DWP will spend $200-300 million to finance the whole initiative with the idea that the City will repay this debt through the increased assessment. But over what period of time? With interest? And will the portions of the assessment be directed to cover operating expenses of the Bureau and City overhead charges?
As it is, the City owes the Department’s Power System $120 million in past due receivables (probably on an interest free basis) and has made no effort to reduce the balance. Will the Mayor’s upcoming budget include any repayment of this debt? Unlikely.
At the same time, the Department and its Ratepayers will provide the City’s General Fund with almost $800 million through the Power Revenue Transfer and the Electricity Users Tax. This is almost 10% of the General Fund’s revenue.
DWP Ratepayers are doing more than their fair share. DWP is not the City’s bank and should not finance infrastructure projects of our fiscally irresponsible mayor. This begs the question: Does Mayor Bass deserve our vote.
(Jack Humphreville writes the LA Watchdog column for CityWatch, where he covers city finances, utilities, and accountability at City Hall. He is President of the DWP Advocacy Committee, serves as the Budget and DWP representative for the Greater Wilshire Neighborhood Council, and is a longtime Neighborhood Council Budget Advocate. With a sharp focus on fiscal responsibility and transparency, Jack brings an informed and independent voice to Los Angeles civic affairs. He can be reached at [email protected].)
