Report 2013-126 Recommendation 11 Responses

Report 2013-126: Antelope Valley Water Rates: Various Factors Contribute to Differences Among Water Utilities (Release Date: July 2014)

Recommendation #11 To: Los Angeles County Waterworks, District 40

To assist low-income water customers, Los Angeles County Waterworks, District 40 should work with its governing body to consider the feasibility of using revenues from sources other than water rates to implement rate assistance programs for low-income water customers.

60-Day Agency Response

LA District 40 considered the feasibility of developing a rate assistance programs for low-income water customers and determined that the current LA District 40 funding sources are subject to Proposition 218 cost of service requirements pursuant to California Constitution article XIII D, section 6 and cannot subsidize a group of rate payers. Therefore, LA District 40 does not plan to implement a rate assistance program.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

We consider this recommendation fully implemented because, according to our legal counsel's discussion with LA District 40's legal counsel, it examined available funding sources, researched efforts that other government-owned utilities have done, researched cases and secondary sources on Proposition 218, and considered creative solutions. We consider these activities to be appropriate and reasonable steps to address our recommendation to consider the feasibility of a low-income rate assistance program.

All Recommendations in 2013-126

Agency responses received are posted verbatim.