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Splitting DWP Could Thwart Secession

LOS ANGELES-Consultant says bond agreements at massive municipal utility pose difficult problem.

By David M. Kinchen | Updated on August 24, 2000

LOS ANGELES-Breaking up this sprawling city could be easier than splitting up the city’s gargantuan Department of Water and Power, a consultant has told the Local Area Formation Commission.

Craig Hoshijima of Public Financial Management told LAFCO that bond agreements would make it difficult to divide DWP among the proposed new cities in the San Fernando Valley and Harbor areas and what’s left of LA. The latest secession movement, by residents of Hollywood, would further complicate matters, he suggests.

Public Financial Management was retained by LAFCO to conduct studies on dividing up citywide agencies like DWP. Hoshijima says state law and bond agreements forbid breaking up the utility if it would jeopardize the value of the bonds.

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