DWP OFFERS BUDGET BOOST; CITY COULD RECEIVE $40 MILLION MORE.

Byline: Rick Orlov Daily News Staff Writer

Los Angeles Department of Water and Power officials offered Monday to contribute an additional $40 million to the city - to make a total $129 million contribution this year - to help balance Mayor Richard Riordan's proposed $4.1 billion budget.

The DWP pays the city 5 percent of the utility's total revenue each year to offset not paying property taxes or any other fees. Because of financial difficulties last year, the DWP paid the city only 3 percent of its revenues, $40 million less than it owed.

City Councilwoman Rita Walters wondered how the utility could suddenly afford to pay this year's full 5 percent and make up for last year's underpayment when DWP officials had complained of severe financial problems only six months ago.

``You were telling us how (the utility's 5 percent payment to the city) would bankrupt the DWP and how you couldn't afford it,'' Walters said during the first day of council budget hearings.

DWP General Manager David Freeman said the utility's financial situation has changed, that the agency has realized a 3 percent growth in rate revenues instead of the previously forecast 1 percent.

``We have the money and this is one of the benefits of a public utility,'' Freeman said. ``Sure, we could use the money to pay down our debt, but the city needs the money, and we are glad to help.''

City Administrative Officer Keith Comrie also defended the DWP payment, saying it is similar to what it would have to pay in property taxes if it was a privately owned utility.

As the council began its review of Riordan's spending plan, members also heard from cat owners angered by a proposed program for an $8 license fee for felines that are spayed and neutered, and $30 for those that are unaltered.

``All you will be doing is see more cats die,'' predicted Larraine Shelton, a cat owner. ``People will just leave their cats in the shelter and not claim them. Responsible owners do not need this. This will only result in more dead cats.''

Animal Services General Manager Sharon Morris said the idea behind the fee is to encourage cat owners to have the animals spayed or neutered, as well as allow for easier identification of lost cats. The department expects to make about $270,000 under the program during the first year.

Los Angeles Fire Department Chief Bill Bamattre presented ideas to generate over $6 million in revenue. Bamattre said the department could generate $1.8 million by charging a new $9 fee to inspect properties for brush clearance, as well as an administrative fee of $350 for properties where the city had to clear the brush.

Also, he suggested an increase in ambulance fees to match the amount charged by the Los Angeles County. The increased ambulance fee would bring in about $4.5 million.

The fire chief said he would use the funds to expand the number of paramedic ambulances in the field, in addition to training recruits and purchasing new safety equipment and automobiles.