The alternative would allow Glendale Water & Power to avoid a projected $2-million waterside deficit, which is forcing the utility to defer critical maintenance and repairs. It would also negate Glendale Water & Power's call for another water rate increase, which some council members admit is a back-door tax.
Under the alternative, City Council would reduce this year's water fund transfer to the city's General Fund from $4.2 million to $2.2 million. This would leave Glendale Water & Power with an additional $2 million to resolve its water-works fiscal problems and keep operations functioning properly. It will also require the City Council to make additional cuts in city spending.
Cutting another $2 million from the General Fund budget is not an ideal solution, but it is preferable to hitting ratepayers with another water rate increase. In just the past three years, utility customers have been dealt three double-digit rate increases.
