This is an archive of a past election.
See http://www.smartvoter.org/ca/la/ for current information.
LWV League of Women Voters of California Education Fund If you appreciate our service to voters, please consider helping us with a donation.
Smart Voter
Los Angeles County, CA March 8, 2011 Election
Charter Amendment LA-J
DWP Revenue Transfers and Budget Deadline
City of Los Angeles

Charter Amendment - Majority Approval Required
Official Results

Pass: 175,271 / 81.9% Yes votes ...... 38,705 / 18.1% No votes

See Also: Index of all Measures

Information shown below: Summary | Fiscal Impact | Official Information | Impartial Analysis | Arguments |

Shall the Charter be amended to (a) require the Department of Water and Power for informational purposes to submit to the City Council by March 31 each year a preliminary budget for the ensuing fiscal year (July 1 through June 30), to be updated by May 31 with new information, and (b) establish procedures for making surplus transfers from the Power Revenue Fund to the City Reserve Fund?

Summary Prepared by
Ballot Simplification Committee:
THE SITUATION:

The Charter does not currently require the DWP to submit its budget to Council.

The Charter provides that surplus transfers from the Power Revenue Fund be transferred to the City Reserve Fund upon approval by ordinance and consent of the DWP Board.

THE PROPOSAL:

This measure would:

  • Require DWP to annually submit, for informational purposes, a preliminary budget to Council;
  • Require DWP, based on prior year audited financial statements, to notify the Council and Mayor if the surplus transfer will be made;
  • If the DWP Board votes not to make the surplus transfer, it must provide a detailed explanation, to be reviewed by the City Administrative Officer (CAO) for a report to the Council and Mayor; and
  • Require DWP, if the transfer is not made, to then either amend or uphold its action.

A YES VOTE MEANS:

You want DWP to annually submit a preliminary budget to Council for informational purposes and establish procedures for making surplus transfers from the Power Revenue Fund to the City Reserve Fund.

A NO VOTE MEANS:

You do not want DWP to annually submit a preliminary budget to Council for informational purposes and establish procedures for making surplus transfers from the Power Revenue Fund to the City Reserve Fund.

Fiscal Impact from Miguel A. Santana
City Administrative Officer:
This measure is not expected to result in any additional cost to the City or to ratepayers.

Official Sources of Information

Impartial Analysis from Gerry F. Miller, Chief Legislative Analyst
The Department of Water and Power (DWP) controls its own budget which is approved by the Board of Water and Power Commissioners (Board). However, the City relies on DWP budgetary information in preparing its budget. An important part of the City's General Fund budget is a transfer of DWP Power Revenue Fund surpluses. In fiscal year 2010-11 the transfer amounts to approximately 6% of the City's General Fund, which finances City services such as police, fire and recreation and parks. Currently, the City Charter does not require the DWP to submit its budget to the Council for informational purposes.

This measure amends the Charter to require the DWP to submit its preliminary budget to the Council for informational purposes by the specified date. The measure does not grant the Council authority to approve or change the budget. Additionally, the measure establishes procedures for making surplus transfers from the Power Revenue Fund to the City.

Budget Submission

The Mayor must submit a budget to the Council by April 20 of each year, and the Council begins deliberations on the budget shortly thereafter. This measure requires that the Board submit a preliminary budget for the upcoming fiscal year to the Council no later than March 31 of each year, in time for the Council to consider the impacts of the DWP budget on the City. By May 31, the Board must update the preliminary budget based on additional information received.

Surplus Transfer

The Charter has for many years allowed transfers to be made to the City's Reserve Fund from surpluses in the Power Revenue Fund with the consent of the Board. This measure would not eliminate or expand the ability to make the transfer. Any transfer would still require consent of the Board. It would, however, specify how a Power Revenue Fund surplus is defined and establish procedures through which the Board may withhold its consent to make the transfer in whole or in part.

The amount of the transfer programmed into the City's budget is based on estimates of surpluses from the prior fiscal year. Generally, however, the transfer is not made until more than halfway through the current fiscal year. Therefore, conditions that might reduce or eliminate the transfer must be identified as early as possible in order for the City to make any required budget adjustments.

This measure requires that, by November 30 of each year, the Board be presented with audited financial statements for the prior fiscal year. Based on these financial statements and current fiscal year information, the Board must notify the Council and Mayor by December 31 that is has consented to the transfer in full, or intends to withhold its consent to make all or part of the transfer.

The measure specifies that, if the Board makes a preliminary finding that making the transfer would have a material negative impact on the DWP's financial condition in the year in which the transfer is to be made, the Board may withhold its consent to make all or part of the transfer. In that event, the Board must provide the Council and Mayor with a detailed explanation of the basis for the finding. The City Administrative Officer (CAO) shall verify the DWP's findings, and report to the Mayor and Council no later than February 28 with its findings and recommendations. The Board, after receiving the report from the CAO, must act to either amend or uphold the Board's preliminary findings.

This measure will become effective if approved by a majority of voters.

  Nonpartisan Information

Ballotpedia
This election is archived. Any links to sources outside of Smart Voter may no longer be active. No further links will be added to this page.
Links to sources outside of Smart Voter are provided for information only and do not imply endorsement.

Arguments For Charter Amendment LA-J
VOTE YES ON J: CREATE GREATER FISCAL RESPONSIBILITY AT DWP

Measure J reforms the Los Angeles Department of Water and Power ("DWP") budgeting process to better serve L.A. residents and businesses. Measure J makes a simple, common-sense change to DWP's fiscal calendar to align it with the City's fiscal calendar. This will allow the city's financial analysts to gain a clearer understanding of the DWP's finances, and DWP will have greater accountability for its budget and operations.

Measure J also requires that the DWP Board be presented with annual audited financial statements to provide greater transparency.

VOTE YES ON J: PROTECT VITAL CITY SERVICES SUCH AS POLICE AND FIRE

The City of Los Angeles relies on a portion of DWP revenue to help fund crucial services, such as police and fire. The City Council needs to know how much of this funding to expect from DWP before it creates the City General Fund budget.

Measure J requires DWP to submit its budget before the General Fund budget is completed. This will allow the City Council to create a more accurate budget. It will help avoid problems, such as when DWP unexpectedly withheld these funds in 2009, creating great fiscal uncertainty and threatening the city's credit rating.

VOTE YES ON J: IMPROVE ACCOUNTABILITY AND TRANSPARENCY AT DWP

Join us in supporting Measure J to hold the DWP accountable to its customers.

PERSONS SIGNING ARGUMENT IN FAVOR OF CHARTER AMENDMENT J

ERIC GARCETTI
Council President
City of Los Angeles

GREIG SMITH
Councilmember
City of Los Angeles

JAN PERRY
Council President Pro Tempore
City of Los Angeles

BERNARD C. PARKS
Councilmember
City of Los Angeles

(No arguments against Charter Amendment LA-J were submitted)


Los Angeles Home Page || Statewide Links || About Smart Voter || Feedback
Created: September 13, 2011 11:10 PDT
Smart Voter <http://www.smartvoter.org/>
Copyright © League of Women Voters of California Education Fund   http://cavotes.org
The League of Women Voters neither supports nor opposes candidates for public office or political parties.