LADWP is 'Holding the City Taxpayers Hostage' Over Revenue Transfer
Leaders of the Los Angeles City Council today requested that the head of the Department of Water and Power recommend fulfilling a budgeted money transfer, which would save the city from bankruptcy on May 5th. Citing $1 billion in reserves, a letter to David Freeman said there was no need to withhold a transfer of $73.5 million. Freeman said the utility doesn't have sufficient funds to warrant a transfer without jeopardizing its bond rating.
"With regard to the Department's bond ratings, it seems that the Department is holding the City taxpayers hostage in asserting that fulfilling our commitment to the city will assuredly result in a bond rating downgrade," said the letter, which was signed by Council President Eric Garcetti and Councilmembers Jan Perry, Dennis Zine and Bernard Parks.