General Fund transfers (August 12, 2015)
Town of Apple Valley objective is to buy Ranchos and stabilize rates but they do not include any projections for aging pipe repairs and replacements in their analysis. To meet General Fund expenses now, the town is transferring $7.5 million into General Fund revenues (a 36-percent increase) to boost revenues to equal the budgeted expenditures which include the negative golf course and Parks/Recreation balances.
These continuing transfers from sewer and other fund balances quickly reduces them and we ask how are they going to be repaid for their original specific future obligation needs? Are these legal loan obligations involved in an accounting shell game and for what short/long term? These are taxpayer paid surcharges for defined needs aren’t they? The town is silent on any analysis of this activity.
History and these actions by the town suggest that they critically need the Ranchos stream of revenue to make even more transfers in order to meet the continuing General Fund deficits created by large expenditures by Council and staff. Taxpayers just pay the freight bill without dispute. Won’t rates need to go higher in up-the-hill Apple Valley for the future pipe repairs, just as Los Angeles projects down the hill? Rate stabilization is a known myth of just some words; actions are needed.
— Alvin Rice, Apple Valley
Published: Daily Press