The $63 Million Shell Game

​By David Sicairos

The Atwater[209] Journal | Vol. 1

​If you live in Atwater, you recently received a notice that your water rates are going up on January 1, 2026.

​The City says this is necessary due to "inflation" and the "rising cost of infrastructure." They are telling you that to keep our water safe and clean, we all need to pay a little more.

​They are lying to you.

​They aren't lying about the cost. They are lying about who is supposed to pay it.

​The History You Forgot (And They Hope You Did)

​In 2019, the City of Atwater won a landmark lawsuit against Shell Oil. A jury found that Shell had contaminated our groundwater with a toxic chemical called 1,2,3-TCP.

​The verdict? Shell Oil was ordered to pay Atwater $63 Million.

​The purpose of that money was explicit: It was to be used to build the treatment plants and filters needed to remove the poison from our water so that taxpayers would not have to foot the bill.

​Shell paid for the damage. The check cleared. The money is in the bank.

​The "Double Dip"

​I spent the weekend analyzing the City of Atwater Fiscal Year 2025-26 Budget. What I found is a classic "Shell Game" (pun intended).

​The City has split the money into two separate buckets:

1. ​Bucket A (The Settlement): This is called Fund 6007 (The 1,2,3-TCP Fund). It is sitting there with millions of dollars in it, intended for capital projects.

2. ​Bucket B (Your Bill): This is called Fund 6000 (The Water Enterprise Fund).

​Here is the scam:

The City is using the Settlement Money (Fund 6007) to pay for the construction of the new treatment filters. That sounds good, right?

​But then, they are turning around and telling YOU that the Water Enterprise Fund (Fund 6000) is "running low" because of the debt and maintenance associated with... those exact same filters.

​They are using the Shell money to build the engine, but they are forcing you to pay for the gas, the tires, and the mechanic—even though the lawsuit was supposed to make the city "whole."

​The Receipt

​On Account 6000-0000-4051 of the new budget, the City projects taking $8.4 Million from residents in water charges.

Why do they need to take $8.4 Million from us if they are sitting on a massive settlement specifically designated for water infrastructure?

​They are capitalizing the asset (the Settlement) while passing the liability (the Rate Hike) to you.

​The Question No One Is Asking

​If I crash into your car, and my insurance writes you a check for $5,000 to fix it, you don't go to your family and say, "Hey guys, we need to cut the grocery budget to pay for the car repairs."

​You use the insurance money.

​So, Atwater... Where is the money?

​Why are we facing a rate hike on January 1st when we have the largest legal settlement in the city's history sitting in the bank?

​We are filing a formal Public Records Request (FOIA) this Monday to see the exact transaction ledger for Fund 6007. We want to see every dime spent.

​If they spent it on consultants, "admin fees," or salaries instead of protecting ratepayers, we will find out.

​Stay tuned.

​Subscribe HERE for The Update.​

​Did this article make you mad? Good. Anger is energy. But don't just get mad, get organized. This is the kind of systems thinking I teach in the “DIAMOND PROTOCOL". Learn to see the systems, protect your resources, and reclaim your sovereignty.

Here it is again: DIAMOND PROTOCOL.