A court ordered Long Beach to pay back its water department for $30.8 million in unconstitutional fees it collected since Measure M was approved by voters in 2018. The city has until mid-September to transfer the remaining balance of $21.8 million.
The Water Department will consider reimbursing another $21.8 million to ratepayers after a judge ruled its practice of transferring excess money to the city’s general fund was unconstitutional.
The city’s Water Commission cautioned Thursday that its vote to give customers a one-time credit did not necessarily mean it was the last action by the commission regarding the full $30.8 million the city must transfer back before September.
After the city lost a court case involving its charging access fees to the Long Beach Water Department, the Water Commission will vote on whether to use up to $9 million out of the $30.8 million it will get back from the city to create bill credits for customers.
The city will have to pay $9 million to the water fund in the next 30 days and the remaining balance of over $39.8 million in the next 180 days.
Councilman Al Austin, who chairs the committee, said the city’s projected budget issues were alarming.
In January a Los Angeles Superior Court ruled that the city’s practice of charging fees for sewer and water pipe access was unconstitutional. If upheld it could cut out about $14 million annually that had been diverted to the city’s general fund.
City says it plans to appeal judge’s ruling against utility revenue transfer
Opponents of a ballot measure that allowed the city to charge its Water Department for use of city-owned pipelines filed a complaint with the state against elected leaders, charging they sent political mailers to voters ahead of the June election.
The controversial Measure M saw over 53 percent of the nearly 40,000 ballots tabulated as of Wednesday morning vote in favor of codifying the practice which could potentially save the city’s law makers from having to dramatically adjust future budgets.
