The following is a press release from an organization unaffiliated with Voice of OC. The views expressed here are not those of Voice of OC.
Profits + Lies = More Profits
YLWD made another cool million in January thanks to its customers. The Water District’s January financial statement is more compelling news that their profits are through the roof with their excessive rate increase.
In the last edition of Water Lies we concluded by stating we would look at the Water District’s bloated financial reserves in the next edition. After YLTA received a copy of the
District’s January Consolidated Statement (next page), it was pretty clear we needed to bring profits to your attention just one more time.
For the month of January alone, YLWD pocketed $1 million in net profit just like in December. Their net profit for the first seven months of Fiscal Year 2015/16 is now $4.96 million and $3.87 million more than they projected for this point in their fiscal year.
Since the District’s meter fee increase went into effect, they are now pocketing at least $1 million in net profit each month and on pace to pocket $10 million in net profit for this fiscal year.
What is this costing customers? Well, if you divide the $10 million by the 24,000 households in the District, they will make a net profit of $416.66 per household this year. But wait, there’s more. On July 1, 2016, the District's rate plan calls for another $6 per month increase to their monthly meter fee, so the District will be adding another $144,000 each month to their already excessive net profits.
By comparison, LADWP just established their own 5-year rate increase. On average it will raise each LADWP customer's annual cost by just $24 per year for five years. After five years, the average annual cost increase for LADWP customers will be $120. Compare that to the YLWD plan, which imposed a $288 increase in the first year and an additional $72 increase each following year. Within five years YLWD ratepayer annual costs will increase by $588 or almost five times that of the LADWP.
Outrageous is an understatement, which leads us to the next edition of Water Lies where we’ll look at the Water District’s bloated financial reserves thanks to your generous water bill payments.
Click here to view the District’s January Consolidated Statement.
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