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Grand Jury Investigates the Los Trancos County Water District

Grand Jury Investigates the Los Trancos County Water District

For Information Contact:
Virginia Chang Kiraly, Foreperson
FOR IMMEDIATE RELEASE
A Water District Without Water
Grand Jury Investigates the Los Trancos County Water District

Should the Los Trancos County Water District be dissolved since it no longer provides water to its service area, but still receives property taxes from the residents in its district?

SAN MATEO COUNTY, Calif. — A 2008-2009 San Mateo County Civil Grand Jury investigation found that the Los Trancos County Water District (LTCWD), formed in 1954 as a water district, has not provided water to its residents since 2005 when it sold its water system to California Water Service Company, Inc., a private company.  However, the LTCWD continues to receive property tax revenues from its residents.  The Grand Jury found that the property taxes are being unfairly used to subsidize water rates for local residents instead of going to the County for county-funded services and/or other local agencies, such as school districts and fire districts. 

After the passage of Proposition 13 in 1978, the California Legislature requested that enterprise special districts, which generate fees for services, be removed from tax rolls in order to support essential services that have no other revenue source.  The LTCWD is considered an enterprise special district but has not complied with the Legislative request to be taken off the tax rolls; therefore, the LTCWD continues to receive tax revenue from district residents.  Since the passage of Proposition 13, approximately half of the enterprise special districts in California have complied with this Legislative request.

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Contributed by Elizabeth Savusa

Approved by: Elizabeth Savusa

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