UT Council and Manager Up for Raise

Dalager and Houlihan voted to raise Council Member's salaries 10%. The vote to raise City Manager Cotton's compensation 11% (to $242,640) has been delayed until March 10th.

UT SDWD Water Rates Go Up Monday
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She said she recognizes the need for a rate increase, “but we have to get our house in order as well before we continually ask the ratepayers to pay more.”

Barth suggested implementing a lower rate increase temporarily, and drawing on reserves, to give the city time to analyze its personnel costs and reopen talks with employee unions.

NCT SDWD Votes (4-1) to raise rates

The Encinitas City Council, in its role as the board of the San Dieguito Water District, voted 4-1, with Councilwoman Teresa Barth opposed, to increase water rates starting March 1.

The conformation came in just under a month after being promised some explanation for how the City's lease-revenue bonds work and documented confirmation that the SDWD pays nothing directly or indirectly toward city hall or park bonds.

Because this issue had been brought up several times during previous meeting and not adequately dismissed by the City, this was an issue worth considering.

The City sent us a part of the City's financial statement. The City Finance Department also answered the following questions.

Which of the bonds listed in the attachment are (or could be) a liability for the SDWD?

See p. 58
2004 SDWD Water Revenue Refunding Bonds
2007 SDWD Note Payable to R.E. Badger Water Facilities Finance Authority

Which of the bonds listed in the attachment are paid directly or indirectly with direct or indirect contributions from the SDWD?

See p. 58-59
2004 SDWD Water Revenue Refunding Bonds
2007 SDWD Note Payable to R.E. Badger Water Facilities Finance Authority

Are any of the payments related to the bonds that SDWD pays structured such that the amount is related to the overall debt of the Encinitas Public Finance Authority (EPFA)?

No.

Conversely, are all of the bonds clearly compartmentalized
such that the SDWD is completely shielded from liabilities related projects that most folks consider to be city projects?

Yes.

In response to our inquiry regarding the use of SDWD staff and equipment for City of Encinitas projects, the City admits that staff and equipment have been used for City work. Our sources in the SDWD who tipped us to the practice gave no indication that the City has reciprocated the efforts. Because the Water District does not track the efforts, we won't be able to assess the scope or balance of the costs. We are told that the City jumps on the opportunity to nickel and dime the Water District.

An independent board of directors for the San Dieguito Water District would be able to determine if the current practices are fair to the ratepayers.

Here is the City’s response:

The San Dieguito Water District in one of four divisions within the City of Encinitas Public Works Department. There are times assistance is needed by each division in order to respond quickly to emergency situations in a cost-effective manner. Emergency cooperative response by various divisions could include sewer spills, major storm related damage, water main breaks, etc. When inter-department assistance of less than one day during normal working hours is requested, the cost for assistance is typically not tracked or charged to the other division. However, when there is overtime involved, the division being requested to assist will be reimbursed from the overtime or contractual budget by the division requesting assistance. There have been no large scale emergencies within the City that have occurred in the past two years that have required the use of District staff.

We asked the City how the city allocates the costs of operations with the SDWD. We also requested a copy of the cost allocation policy between the SDWD and the City.

RESPONSE: see attached file

The attached file does not appear to be a policy.

We also asked how much of the budget is subject to cost allocation. We also request documentation on the total cost/amount subject to the allocation rules in the most recent fiscal year.

RESPONSE: see attached file

Same file as above.