City’s practice of moving money from utility funds to General Fund may also hinge on Redding case
Palo Alto Weekly – by Gennady Sheyner / January 19, 2018
For more than a century, Palo Alto’s municipal utilities have served the city as both a provider of critical services and a revenue-generating asset from which the city can transfer money to pay for basic services like public safety, libraries and park maintenance.
Now, that long and at times controversial practice is facing a legal challenge. Downtown resident Miriam Green has filed a lawsuit against the city, charging that the transfer amounts to an illegal tax. At the same time, the state Supreme Court is preparing to hear an argument over a similar case in Redding, where an appeals court has recently struck down by a 2-1 vote the city’s transfer policy.