City Manager Scott Ochoa went before the Glendale Power & Water Commission on Thursday to defend annual multimillion-dollar transfers from the utility's electric fund to the city's General Fund, which some residents have complained leads to artificially high rates.
The city plans to transfer $21 million from the electric fund in its upcoming fiscal budget, and an advisory committee has been formed to look at possibly increasing the electric rate by Sept. 1.
“The City Council is concerned about the transfer,” Ochoa said. “It's focused on reducing the size of the transfer, but doing so in a way that makes sense for the organization and for the community with respect for all of the different service levels that comprise the city of Glendale.”
In fiscal year 2000-01, the city transferred about 9% of the almost $120 million it generated in retail electric sales, Ochoa said. The planned $21-million transfer makes up about 12.3% of projected sales.