SLO County sold water outside the county, residents foot the bill
July 26, 2022
By KAREN VELIE
San Luis Obispo County began selling water purchased by county residents to out of county water purveyors in 2008 and 2013, without returning the funds to local property owners as required by law, according to a recent SLO County Grand Jury report.
In 1963, the county entered into an agreement with the California Department of Water Resources to purchase water from the State Water Project. A tax was then added to all county properties to pay for state water, even though not all county residents benefited from the purchase.
Promoted by then-Public Works Director Paavo Ogren and Supervisor Bruce Gibson, the Board of Supervisors approved the sale of excess county water in 2008 and 2013, to out of county purveyors.
However, instead of returning the $6.3 million from the sale of the water to area taxpayers, Ogren placed the funds in the District Zone General Fund.
Supervisor Debbie Arnold’s former appointee to the Water Resources Advisory Committee, Greg Grewal, discovered the error and asked the SLO County District Attorney’s Office to take action. But after several years, the prosecutor’s office found the issue too complex, Grewal said. He then asked the Grand Jury to review the issue.
The Grand Jury determined that money garnered selling state water must be used to reduce county property owner tax burdens, including the $6.3 million already received.
The SLO County Board of Supervisors voted unanimously on Tuesday to return $6,510,000 dollars to the taxpayer fund. The item was listed on the consent agenda.
Grewal, however, wants the county to pay back the more than $10 million in interest taxpayers lost through the county’s diversion of funds.
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