Sewer fund dispute unresolved

By Robbie Dingeman
Advertiser City Hall Writer

City Council analysts yesterday questioned the legality of a Harris administration plan to transfer $60 million from the sewer fund to the general fund to help balance the budget for the upcoming fiscal year — a development that has the potential to force an increase in property taxes.

Council Chairman John DeSoto asked the Office of Council Services for an analysis of Mayor Jeremy Harris' proposed transfer. The office concluded that money in the sewer fund must be used for the operation and maintenance of wastewater facilities in the year after the money was collected.

The analysis said "such a transfer may be improper since the sewer fund monies can only be used for expenses incurred in the succeeding year."

Harris has indicated that the money would be transferred to reimburse the general fund for wastewater system expenses of previous years.

City Budget Chairwoman Ann Kobayashi is waiting to hear the views of attorneys in the corporation counsel's office and the bond raters who evaluate the city's financial position.

Kobayashi asked Budget Director Caroll Takahashi what would happen without the transfer. Takahashi said that "real property rates for all classes of property will have to be increased by 15.6 percent."

During this fiscal year, the Harris administration transferred $41 million from the sewer fund for reimbursement, which would also be questioned by this opinion.