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Council targets electricity funds

City is exploring a plan to transfer money from Glendale utility to the General Fund.

May 05, 2011|By Melanie Hicken
(Page 2 of 2)

The fund transfers are written into the utility’s budget each year, but

city critics have for years argued that the practice artificially inflates utility rates. City officials have said the transfers make up for Glendale's below-average receipt of property tax revenues, frozen decades ago by Proposition 13.

Officials this week said the utility’s handling of services was in line with city policy.

“Those are policy decisions that have been made by the city …[and] the City Council has ratified them,” said Bill Fox, an assistant general manager for the utility.

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In light of the public criticism, commissioners said it was especially important to increase transparency surrounding Glendale Water & Power’s support of General Fund operations, including the millions of dollars in costs beyond the revenue transfers.

“The whole issue to me has to do with public transparency, particularly on this issue … because we are talking about significant amounts,” Armenian said.

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