CITY HALL — The spigot for millions in water utility revenues that have been used to pay for public services could be turned off after the city attorney determined that recent court cases have thrown the legality of the practice into doubt.
City Atty. Scott Howard has recommended that the City Council suspend the annual transfer of water revenues to the city’s General Fund after conducting a review of the city’s Charter provision mandating the transfer of millions from Glendale Water & Power to support the General Fund, which pays for firefighters, police and other services.
Critics have for years assailed the transfers as illegal and contributing to higher utility rates. City officials have contended that the transfers are a vital income source since Glendale was hemmed in by Proposition 13, which put it behind other cities in terms of its stake in property taxes.