Bielarski responds to HB 1645 claims from Commission Bryan Eastman and others
OPINION
BY ED BIELARSKI
It’s shameful, really. After voting to approve bonds that cost $2.9 million more than they would have a few months ago, Commissioner Bryan Eastman self-righteously told the Gainesville Sun, “It’s unfortunate that it’s come to this. This bill [HB 1645] is costing our ratepayers more money already and it hasn’t been signed yet.”
What Eastman didn’t say, but was just exposed, is that on March 15, 2023, GRU was directed by Mayor Ward to hold the request for approval of a debt issuance until the State Legislature ended on May 5 and to bring the new money debt issuance to the commission in June. If not for a public records request asking for “any written communication regarding who advised GRU to wait to issue the debt originally scheduled for April,” the Gainesville City Commission would have gotten away with the whole charade.
Now is the time to correct the misinformation being spread by Eastman, the Mayor, and the other commissioners:
Hoist with his own petard, Eastman is doubling down on his rhetoric, taking to social media to explain that the delay was simply an example of prudent governance. In the Facebook post shown above, Eastman claims that Rep. Clemons is “mad” that the commission didn’t “rush forward” to take out the debt in April, as planned.
Why should the commission have approved the debt in April? Because the need is real and delaying the financing didn’t eliminate that need. The debt was issued, anyway, and the only result of delaying it was that GRU lost the window of financing opportunity, which cost ratepayers $2.9 million. Funny how Eastman hasn’t acknowledged the delay as the real source of the higher borrowing costs.
Mayor Harvey Ward was quick to tell the public he doesn’t have the power to direct employees or Charter Officers. Nothing to see here, just move along.
The reality is that Charter Officers and employees live and work with the constant realization that they must take heed of whatever a mayor or commissioner tells them. If not, at any commission meeting, the Charter Officer may be terminated. I know this from experience, as my termination was considered at three commission meetings over almost seven years, and I received individual advice from the seven members of the commission regularly outside the direction of the commission as a body.
Mayor Ward’s logic that he can’t direct a charter officer since he is only one of seven members is akin to a thief saying he couldn’t steal because it was against the law. It’s obvious that Ward directed the GRU finance staff. They listened to him and changed their direction. That’s the definition of directing people.
Eastman and others say there’s no real financial crisis, just plans for a state takeover.
In an April 30 Substack article, Eastman wrote, “So what do they think of GRU? They think GRU is doing fine! Moody’s rates GRU AA3, which is higher than most other municipal utilities in Florida. Fitch has us at A+. These ratings are higher than Florida Power & Light and Duke Energy.”
The reality is that GRU’s credit rating has been downgraded five times in the last decade, costing the utility over $60 million in additional interest costs. A utility that once had one of the highest municipal bond ratings has fallen dramatically because of high debt, high general fund transfers, and high rates. Oh, and there’s this little resolution signed in 2018 that calls for the city to get to Net Zero Carbon emissions by 2045. At an estimated cost of over $3.6 billion and no way to fund it, that’s called a financial crisis.
Eastman claims GRU’s bond credit ratings are higher than FPL’s and others and says that proves that GRU is strong financially.
The reality is that while it’s true that GRU’s bond ratings are higher than FPL’s, what Eastman doesn’t tell you is that this is expected because they aren’t bound by the Florida Public Service Commission (FPSC) for utility rate increases, as FPL and Duke are. GRU’s governing board (the city commission) can raise rates and siphon off excess general fund transfers with no interference by the FPSC.
Bond agencies love that freedom. The rating agencies work for the bondholders, not GRU customers or Gainesville citizens. GRU’s bond ratings are only as high as they are because the commission has repeatedly shown that it is quite willing to raise utility rates – not always a good thing for the customer.
As for whether GRU is strong financially, the electric division has five power plants that are over 40 years of age, with no sinking fund established to pay for replacement generation. Additional borrowings on top of the current $1.7 billion will be needed. The power plants are no longer competitive with those of others who have invested in the right technology, not a biomass plant that produces up to 33% of the utility’s load.
Eastman claims the voters already voted against a new governing board in 2018 and that Clemons’ HB 1645 is an attack on the voters in Gainesville.
The reality is that it’s been the City of Gainesville, not Clemons, that has been attacking voters by taking money from suburban customers without giving them the ability to vote in the city commission elections. Approximately 40% of GRU customers live outside of city limits and aren’t allowed to vote in city elections. While I am on the record stating that this isn’t an unusual practice, the commission’s actions since the referendum vote have dramatically changed my opinion.
Since 2018, GRU has been forced to remit $68 million more than its earnings to the City in a general fund transfer – an unsustainable and highly irregular practice. Commissioner Eastman told me that I had made up these numbers in my head. Actually, I lifted them from GRU’s audited financial statements.
Eastman and the city’s public relations arm, the Gainesville Sun, are touting dropping utility rates.
The reality is that GRU’s utility rates, specifically the electric rates, haven’t fallen since 2018 when I asked for and the commission approved an 8-10% reduction in GRU electric base rates because of the biomass buyout. Eastman and the Gainesville Sun are conflating the fuel adjustment charge with electric rates; the fuel adjustment charge rises or falls based on GRU’s actual cost of power plant fuel, such as natural gas or biomass. The fuel adjustment is under the control of the general manager, not the commission, and it dropped in April and will drop again on July 1 (great news for GRU customers that did not result from any action of the city commission). The base rates are under the control of the commission and are generally set each year when the budget is adopted; the commission has already approved increases through 2027, at a minimum, and GRU’s recently-approved debt reduction plan requires the rates to increase as promised.
When he was challenged by the Joint Legislative Audit Committee (JLAC), Mayor Ward committed to bold action. In the months that followed, the commission committed to the public that they would reduce the City budget by $19 million for fiscal year 2024.
The rest of the story is that since that commitment, the City government has, instead, backtracked and instituted a plan to raise property taxes by $1 per thousand dollars of assessed value, in order to collect some $14 million from property owners in Gainesville. In a City budget that grew $30 million just between 2017 and 2022, City Managers couldn’t find $19 million a year to cut. Instead, the mayor and commissioners are coming after your money to fix a problem they created.
Worse yet, the commission just approved appropriating $250,000 from GRU’s budget to fight the implementation of Clemons’ HB 1645. Think about it: that money should come out of City funds, not the monies GRU collected from up to 40% of customers living outside of the city.
Ed Bielarski is a former General Manager of GRU.
The opinions expressed by letter or opinion writers are their own and do not necessarily represent the views of AlachuaChronicle.com. Letters may be submitted to info@alachuachronicle.com and are published at the discretion of the editor.
Thank you Ed. Most of us know the truth but realize that we have to fight the lies that flow from just about every elected official and “staff” that live every day waiting for the other shoe to drop, theirs, and in a “fake budget crises” living on the edge is a constant threat. Very sad.
Great Job Ed!
Not mentioned is that Bielarski lost an election for mayor to Ward and obviously has an axe to grind. Can really believe he would have rolled over for the traitor Clemons poorly designed and rushed bill and welcomed the hostile takeover? If so, that’s shameful and the city dodged that bullet of cowardice. If not, what a hypocrite.
Jazz, why do you resort to personal attacks when contributors simply state facts? Who has a personal vendetta here. Look in the mirror.
Sorry James, but Mr Bielarski is not “just stating facts”, he’s spinning them. Again I wonder, if he had been elected mayor instead of Mr Ward, would he have rolled over for this hostile takeover? If so, really? What kind of leadership is that? If not, why is he siding with those performing it, against a mayor and commission trying to deal with this half baked and ram rodded “plan”. Hey, criticism for specific actions he thinks he could have done better is in bounds , but he has nothing to say about the Tallahassee rip off artists who hate the city of Gainesville and it’s voters. Based on Clemons and Perry voting for the budget which withheld incentive rewards for school boards which took the state to court over it’s forcing masking decisions – a perfectly legal recourse based on homegrown experts here at UF – they are not loyal to Alachua County either. Thanks guys!
Jazz, what do you consider a “takeover” after GRU was run by 3% of the city’s population (the few who elected the “winners” in the previous many springtime elections cycles?).
Jeff, the polls are available to all citizens of Gainesville to vote in, and there is no turn out qualifier for the validity of an election. If anything, you should be wondering why those who might agree with you aren’t showing up and if the disinterest implies satisfaction with the status quo.
Someone mentioned the soup line, I guess you’re in the same as Eastman. Want some crackers or is it salty enough?
Jizzman, hope you’re whetting your appetite.
Thanks Ed for the Truth . Eastman as Azz Man won’t let facts get in the way of thier snowflake feelings . They both are Wokesville creatures.
Jazzman, please define the word traitor, as used in your rant.
Clemons votes against the interests of Gainesville and is loyal to the GOP, not his constituents. The most recent examples are this attempted hostile takeover which will remove citizen control of an entity which they own, and which they created, and his vote for the budget which specifically and with intent penalizes Alachua County Schools.
It’s clear who has taken Poe’s place in the feeding line.
Mr. Bielarski, you, unlike most of us, have never been privy to the happenings of the incompetent leadership of Gainesville. Thanks for providing more proof of the idiocy walking the halls of City Hall.
It’s unfortunate, when individuals can’t find legal substance for their argument they look for the public condemnation of someone who doesn’t fall in line with their ideals. That’s what is happening in today’s world. They want social approval, not justice. Maybe Eastman should go to the county residents who are serviced by GRU and seek their blessing instead of those who kowtow to his anti-American beliefs.
I’m confident he is the one who would be the “coward.”
Ward and the rest of the city commissions are feeling that reckoning when you are caught in a bold face lie. Kinda like Joe.
Ed, I would love to go point by point through your claims. Things like our City budget has increased $50 million a year every year, which would put our budget increase at half a billion over the last decade. Our general fund, by the way, is only $154 million.
But I’m not going to argue with you. I’m going to let Ed Bielarski argue with Ed Bielarski. I encourage everyone here to read Ed Bielarski’s posts when he was taking the exact opposite position on everything he has written here. Go through his old Facebook page, look up anything, from bonds to debt to the GFT. He defended everything the City Commission did and spends ample time attacking Keith Perry and Chuck Clemons for making the same statements he makes here. Here’s the page, it’s still public:
https://www.facebook.com/ed.bielarski
I would encourage everyone to read Ed Bielarski’s great Gainesville Sun Op-Ed entited “Perry’s propganda tarnishes GRU’s reputation” in which he takes the exact opposite position that he takes in the article above:
https://www.gainesville.com/story/opinion/columns/more-voices/2018/09/12/ed-bielarski-perrys-propaganda-tarnishes-grus-reputation/10728965007/
Or this great article written by Mr. Bielarski entitled “Audit is based on meritless claims” in which he attacks Keith Perry, the Joint Legislative Auditing Committee, and calls creating an independent GRU Board a “low blow”.
https://www.gainesville.com/story/opinion/columns/more-voices/2018/09/12/ed-bielarski-perrys-propaganda-tarnishes-grus-reputation/10728965007/
I don’t expect anyone here to put much faith in my words, but if you believe Mr. Bielarski is an expert in the utility business perhaps you will put your faith in his own words. Those are above.
Whoops, here’s Ed’s article “Audit is based on meritless claims” in which he defends GRU debt, GRU rates, and for agreeing to pay Andrew Gillum money to speak at a GRU banquet:
https://www.gainesville.com/story/opinion/columns/more-voices/2019/11/21/ed-bielarski-audit-is-based-on-meritless-claims/2246354007/
BTW, Bryan, you do know that you are engaging on a “small right-wing blog,” as you called it. Will your handlers approve? You might want to check in before proceeding any further. Years from now, some up and coming politician might tell voters that you regularity engaged on a right-wing blog and helped big old mean republicans. Oh, that’s right, you’re the one who does that stuff. Sorry. Carry on.
That’s it? Pretty weak when your only defense is faulting the other guy for responding to your attacks on the site you chose.
By the way, yes, this site is obviously run by and mostly read by Republicans – and worse – but I have been allowed to comment here without censorship for at least 3-4 months now, and the reporting covering local meetings appear to be thorough and fair, and represent all sides equally and without editorial comment. I have praised that before and continue to. The press releases from the Governor and Rep Cammarack are propaganda and there are none from any democrats, and the featuring of letters from people who have lost elections in Gainesville are regular features, but maybe they are the only ones sending them in. The recent article from Kim Tanzer, who is a professional in architecture and urban planning was excellent. I’ve told a few friends – mostly liberal – that the site is worth their look for local news, and it is.
You keep forgetting “Gainesville elections” do not represent the 97% who didn’t elect our dear leaders. Why is that?
Answered above Jeff, but in brief, all voters were able to vote in commission elections and turn out is irrelevant as to the results. If anything the low turnout indicates citizen satisfaction with the status quo.
40% of GRU customers can’t vote in city elections
‘No Party Affiliation’ here……Yes, I agree press releases from any government entity are usually self-serving with some informative content. That’s what press releases and press conferences are. Dogs bark and cats meow.
It is up to the reader/viewer to evaluate the content or allow a news media outlet to do their thinking for them.
But, regarding ‘equal time’ reporting, Jazzman, there is no such thing in media today. I’m not saying that’s good, it’s just the reality. Take a peek at the USA Today/Sun – and you’ll see the monotone ‘left’ bias.
Does the Chronicle present an alternative ‘equalizer?’ Maybe. But the Chronicle didn’t invent the ‘alternative’ voice, it just offers one in contrast to the bland USA Today/Sun for local news.
Yes, I also agree the Chronicle gives a fair accounting of local meetings with the uncensored (mostly, probably) comments.
For legacy media I only believe writing that’s critical of Democrats or positive about Republicans. I reverse this for outlets like Fox. It saves a lot of time.
2bt, I mostly agree, but the Sun does not print press releases from any side, let alone just one, barely covers local news anymore, but is very good on state news. I assume this is due not to Sun staff – if there is any left other than 2 sports columnists, but statewide USA Today staff. It no longer has an editorial page or letters, but when it did, published letters from differing positions and it’s Sunday opinion pages seemed open to many sources for discussion of local issues and in my opinion was better in the end than it ever had been before.
Thanks for your comment on the AC coverage of local meetings. Your view of their reporting as being fair largely matches mine. And I find their coverage far more complete than what is available from other sources.
You are just making yourself irrelevant. I made numerous arguments against Bryan’s inane responses. I threw in a reference to his putdown of the Alachua Chronicle as a small right wing blog.
There’s still hope for you Jazz! By the way, I am a lifelong Democratic swing voter. I try to leave partisanship where it belongs, at the ballot box, and not in critical thinking. There is too much at stake in this country right now to be at odds with ourselves but that’s today’s reality. Think for yourself, put others’ opinions on equal footing, and really educate yourself on all sides of the issues before you just parrot the party line. Just sayin…
Why didn’t you cut the city budget a lot more? That’s the overriding question you should be prepared to answer, but there is no good answer. Ed’s piece doesn’t say anything about $50 million a year in budget increases or anything even remotely close to that. You guys need to work on presenting the image of competence, especially since you have another real winner of a mayor.
Bryan, it is as clear as the sun coming up tommorrow that you have no comprehension of context and timing. All of the articles you sited were before the city commission went on its outrageous and unwarranted use of GRU as a piggyback on steroids. Prior to siphoning off $68 million in excess General fund transfers, my words were totally appropriate. I was protecting GRU employees from a bad bill that simply allowed the commission to appoint their own independent board with people whose views on GRU matched theirs. I stand by my words. You might want to try it sometime.
It’s a strength, not a weakness, to evolve one’s opinions as more information comes in over time. Just ask the DNC.
Having been raised here by parents who were both born and raised here, it’s a shame of what’s come of Gainesville and Alachua County under the guise of progressive politicians such as yourself and the others who claim, falsely, to care about the city. You would rather drag everyone down to bring up a few just so you can claim social righteousness. You’re a fake, plain and simple.
Have to give you a thumbs up though, you’re coming in for a strong finish for lapdog of the month.
The biomess continues to saddle GRU with debt, the Net Zero resolution promises to approximately triple that, and the regressive Eastman tells us, “GRU’s credit rating is great!” UF didn’t think so, did they? They refused to do business with the local utility! Why is that Eastman? Because they saw how poorly it was managed by the local government, and they saw your group and knew it was only going to get worse.
People, never forget that Eastman wants to end single family housing. He was in favor of forced masking of children in schools even at a time when the school board’s own information showed that kids had about a zero death rate and were not the super-spreaders that our local health “experts” kept saying they were. And people, watch as he votes to increase your taxes now that the piggy bank has ben taken away. Eastman is a regressive and what he really wants is to make as many people dependent upon government as he possibly can.
Our elected leaders at the state level did not go far enough with this bill. They should have dismantled (look at me using a regressive term) the city government entirely. That is the only possible way for taxpayers to come out ahead financially. Because this group of regressives will not and cannot stop spending.
Oh yeah, let’s not forget that every time you pull into a gas station, grocery store, etc. and you’re accosted for money by a drug/alcohol addled derelict you can thank people like Eastman who have supported and encouraged them to overrun our community. You know, because he thinks they’re “unfortunate” or “down on their luck.” Only here’s the thing Eastman would learn if he ever actually spent any significant time around these people- most of them are addicts. It is true that some have serious mental health issues and need to be in an institution. But, by far, most of this population are flat-out addicts. And Eastman welcomes them to the Gainesville community even as they commit crime and foul everything up. Why is that Eastman? The people want to know.
Eastman? Where are you? The people want a response!
Also, tell us the truth- you want to change America into a socialist system, don’t you? (What you would probably euphemistically describe as “democratic socialism.”) In fact, you’re part of a larger national movement to effect that change at the local level, are you not?
Be honest. The people deserve to know. I mean, after all, haven’t you described yourself as open and transparent? So, don’t be afraid to tell us who you really are and what you really believe in. Come on, you know you want to.
Bryan Eastman, no matter how much you try to deflect you have been caught red-handed being extremely dishonest.
The incompetent and childish Gainesville City government, of which you are unfortunately a part, is 100% to blame in this instance for wasting $3 million dollars of taxpayer money. Period.
That is only a drop in the bucket compared to the amount of “ghost” tax money you and your cronies have stolen and squandered from unrepresented citizens through the GRU General Transfer Fund over the years.
Looking forward to the day that you and your fellow crooks are removed from office by the State of Florida. The citizens of Gainesville will all be cheering for your removal.
Just one question what was the profit of GRU this year y’all took 15, million how much profit did that leave for unseen problems
Suburban GRU customers cannot vote in city elections, but woke UF Students who are not g r u customers can vote for all of the crazy ideas of the city commission and stick g r u customers with the bill. So unfair!
Ward and Eastman are career politician-wannabes and therefore just dumb, or liars. DeSantis should replace them with Clemons appointees.
To speculate unholy political motives drove the passage of HB 1645 is to ask anyone not in a coma to ignore the nearly airtight, cumulative case argument that the legacy of Gainesville City Commissions’ and Mayors’ mismanagement of GRU resources has put the city in a debt spiral while raising customer utility fees.
Conservatives and liberals cannot rationally contest the ‘outside’ bond and credit rating downgrades the city has received. Those are ‘real’ values reflecting the fiscal standing of the public trust, and near distant past, placed in city leadership.
That cannot be hidden under the cloak of partisanship or personal revenge. Neither can the numbers showing the high customer fees and percentage of GRU profits moved to the City.
The objection being raised isn’t denial of those conditions. Instead, the objection is, ironically, an admission the City leadership made bad decisions BUT because they are elected by the voters (60% being GRU customers) they MUST be allowed a local control sovereignty – a ‘right’ to make bad decisions? – over the city and its utility.
The City Attorney has advised the Commission that objection and defense has no foundation in law.
As such, that objection then becomes a political opinion which, arguably, could be used as a battle cry for the next city election. It will certainly galvanize the incumbents position of their imagined legal power over GRU and its resources and the Republicans are coming to take that, and every child, away leaving Gainesville a debt-ridden ghetto in the blue lagoon.
The voters have essentially believed that through past elections – if, in fact, they voted issues and not ‘identity’ – but a new, independent GRU board will have the better part of a year to put some scratches and dents in that political spin with performance rather than rhetoric.
Gunsville is at the place where..”Eventually you run out of other people’s money”.
Problem is they already burned through all our money, but they still won’t stop spending!