Former Councilman Sues the City, Alleges Misappropriation of Wastewater Funds

The author of two ballot measures and a former councilman has filed a lawsuit against the city, claiming that it has been misappropriating water and sewer fees for years by illegally charging customers for more than it costs to provide wastewater service.

Bryant Moynihan, who served on the council 2001 to 2004, filed his suit on January 6 in Sonoma County Superior Court. In it, Moynihan alleges that the city is violating Propostion 218, which prohibits local governments from imposing fees on property owners that exceed the cost of providing the service.

"Petaluma has, since at least 2004-2005 and perhaps longer, been diverting funds collected from its wastewater users to fund storm drain operations in Petaluma," Moynihan writes in the suit.

The wastewater enterprise fund includes allocation for salaries, landscaping, computers and other items not necessary to support wastewater operations, Moynihan argues.

According to Moynihan's calculation, the city has transferred more than $20 million of ratepayers' enterprise funds into the general fund to supplement the ongoing shortfall.

"After spending six years of documenting the misappropriations and discussing the unlawfulness of misusing ratepayer monies with the Council and City Manager, it is with deep regret I realize a lawsuit is the only manner left to protect the citizens of Petaluma from unwarranted and unapproved taxation," Moynihan wrote in an email to Petaluma Patch. "Hopefully, the City will quickly move to correct these overcharges and reduce the unnecessary legal expenses it can ill afford.

To read the entire suit, click on the attachment on the right.

To read more about the lawsuit and Mayor David Glass's response, check out the Argus Courier article.