Eastman: GRU by the numbers, Part 1
Letter to the editor
On November 4, voters will decide who they want running their utility: our local community or Tallahassee politicians. To make that choice, people deserve clear, accurate information – not spin or invented numbers, but facts you can verify.
Yet in recent years, some have tried to rewrite GRU’s story to score points rather than solve problems. Ed Bielarski’s “Fact or Fiction” series is a prime example. He casts himself as a lone truth-teller challenging a fiscally irresponsible Commission, when the record clearly shows otherwise.
Since this is the Alachua Chronicle, I don’t expect you to just take my word for it. That’s why each section starts with Ed’s own words – because if you don’t believe me, maybe you’ll believe him.
Claim: The City Commission took more from GRU than it made in profits.
Fact: GRU made enough to cover the transfer, pay down debt, and build reserves.
“GRU is a business owned and operated by the city. I find it fascinating that there are many very conservative, fiscally minded people who would almost always side with the ability of a business to turn a profit and use it for whatever the company’s mission, are suddenly opposed to GRU returning its profit to the city.” – Ed Bielarski (Facebook post on October 2, 2018)
Ed’s whole argument depends on his personal definition of “profit,” which doesn’t appear anywhere in GRU’s audited financial statements, budgets, or bond resolutions. It’s an invented number – not recognized by any accountant.
GRU doesn’t technically make a profit; it balances its budget each year using rates and reserves. But if it did, it would follow industry standard formulas, not Ed’s creation, which includes over $100 million in non-cash depreciation and ignores major revenue sources.
Worse, Ed changes his definition to fit the story he wants to tell. In his article, he used one formula to claim GRU lost money; then, in the latest budget, he switched to a different invented formula to show a new large profit. It’s a moving target to suit his narrative.
GRU’s finances are simple: revenue in, expenses out. If reserves were tapped, that’s counted. It’s the same logic any household uses to balance its checkbook.
So did GRU lose money during Ed’s time? No.
By the time the Commission handed GRU to the Governor, it was $12.4 million in the black, with reserves rebuilt and debt being paid down. These aren’t my numbers – they’re GRU’s.
Claim: The City Commission used GRU as a “piggy bank”
Fact: The Commission didn’t take any extra money
The esteemed Senator [Keith Perry] literally accuses the GFT (General Fund Transfer) of becoming a “Slush Fund”. I have heard the term used, and I associate it with rather unsavory actions bordering on illegal. Quite frankly, the transfer to city’s general fund is ordinary, reasonable and necessary.
In regard to justifying the $36 Million, the Senator surely knows that a company or city doesn’t need to “justify” using its return on its investments. – Ed Bielarski (Facebook post on September 26, 2018)
Ed and his new allies claim the Commission constantly grabbed more money from GRU. In reality, during Ed’s time as General Manager, the transfer actually decreased slightly. Even as base rates rose, the transfer stayed flat – right at the level Ed himself once called “ordinary, reasonable and necessary.”
By definition, the transfer couldn’t have caused increased financial strain. That’s likely why Ed strongly defended it at the time, calling critics “misinformed” and backing the Commission at every turn.
Claim: GRU took more from its utility than peer cities
Fact: GRU has been at the bottom of the pack
“There is virtually no one who would legitimately argue that the GFT is NOT a transfer that GRU should make to GG. Virtually every municipal utility does so and almost every for-profit utility pays equivalent franchise taxes or taxes paid in lieu for the right to serve a city’s customers.” – Ed Bielarski (Facebook post on September 27, 2019)
Ed now claims GRU took more than its peers, using his own personal profit formula. But real, industry-standard comparisons from Fitch show GRU transferred just 6% of its budget in 2022 – less than Tallahassee, Orlando, Kissimmee, Jacksonville, and Lakeland.
If GRU were a private company, it would owe over $60 million annually in equivalent taxes and franchise taxes to local governments. Instead, it paid about $36 million to the city — a good deal for GRU, not a piggy bank.
Claim: Ed and Management “Stood up to the Commission”
Fact: Ed was the Commission’s Biggest Champion
“So, please Senator Perry, what you proudly parade as common sense, well it’s nonsense. You are simply perpetuating the GREAT GRU HIGH BILL HOAX.” – Ed Bielarski (Facebook post on September 26, 2018)
When he worked for the Commission, Ed was the same as he is today, but the opposite. Instead of defending an Authority, he virulently opposed it, writing angry editorials attacking Chuck Clemons and Keith Perry, defending the Commission, and praising the General Fund Transfer.
His old Facebook posts, which are all still public, show this all, clear as day.
Or you can check out his Gainesville Sun editorials: Perry’s Propaganda Tarnishes GRU’s Reputation by Ed Bielarski is one among dozens.
He was, like he is today, hyper-focused on “correcting misinformation,” except the misinformation he was “correcting” back then was the exact opposite of what he’s saying now.
It would be one thing if Ed simply explained why he had such an extraordinary change of heart. But instead he insists on spinning a story that he always held these positions – when everyone who was there knows he didn’t.
Stop The Spin, Get to Work
The GRU Authority has now controlled GRU for nearly two years – longer than most of the current City Commission ever did. Instead of relitigating the grievances of one terminated employee, it’s time to focus on what really matters: lowering rates, paying down debt, and planning for a reliable, affordable future.
Bryan Eastman, Gainesville City Commissioner
The opinions expressed by letter or opinion writers are their own and do not necessarily represent the views of AlachuaChronicle.com. Assertions of facts in letters are similarly the responsibility of the author. Letters may be submitted to info@alachuachronicle.com and are published at the discretion of the editor.
I’m interested to see Ed’s response to this ad hominem attack. It is my understanding that Ed did in fact have a change of heart. If so, good for him! Better late than never.
Please note that Eastman did not even attempt to address the fiscal and operational issues that have plagued the utility under previous city leadership. Eastman fails to realize that citizens want lower rates and better infrastructure – which requires paying the debt down much quicker than the city planned to do. Additionally, he makes zero mentions of the corrupt biomass contract that still act as a millstone around our neck.
The city requires operational control of GRU in order to fulfill their obligations to the ICLEI, of which they are a signatory to.
The ICLEI is BS..it’s not a mandate from the State of FL or the US Federal Government…
But not to their careers, ladder climbing goals outside Hoggetown.
Sherm, what I was implying is that they have a philosophical and careerist obligation to ICLEI, not a legal one. Your comment is absolutely correct too.
Did you catch the number Eastman casually dropped in there? $60 million? $60 million?!!
If the ballot referendum passes, the current limits on the GFT in the charter will also be deleted, allowing the city commission to take as much as they want from GRU.
Eastman, some people will say anything to keep their job-case in point, YOU!
Now, you are saying the following:
“it’s time to focus on what really matters: lowering rates, paying down debt, and planning for a reliable, affordable future.”
Eastman, you never made any attempts to lower rates when you had the chance. Not even something as simple as raising the tier1 electricity usage cap from the dastardly 850kwh you had us under. You could have pushed for raising it to at least 1000kwh as a small modicum of empathy towards the ratepayers but you didn’t.
Eastman, if you are serious, please tell us in detail in your next letter how you envision city-run GRU 2.0
lowering rates for the average ratepayer.
Dems suddenly care about “affordable” when they want families too.
Eastman – fact, you’re a liar.
More facts:
You and your partners in crime have continuously utilized GRU profits for your own personal agenda. I don’t recall seeing rainbow sidewalks, multiple lit crosswalks, a parking lane close to GPD Offices, and making 2 lanes of 8th Ave into bike lanes critical to city residents.
Since you continue to show how ignorant you are:
profit: noun
prof·it ˈprä-fət
often attributive
1: a valuable return : gain
2: the excess of returns over expenditure in a transaction or series of transactions
especially : the excess of the selling price of goods over their cost.
By the way, the City Commission and former Mayor, and fellow idiot Poe, voted to increase utility rates until 2027 to make up for their financial incompetence. Here you’re telling Bielarski, “it’s time to focus on what really matters: lowering rates, paying down debt.” When have you voted to do that?
Thanks for showing all the Chronicle readers the true liar and hypocrite you truly are.
If Eastman had any character he would resign.
According to the numbers, 90+% of those who’ve read the comment agree with the opinion that he’s a liar. I believe that’s a higher percentage than those who believe the US President is. Don’t think that’s an accomplishment to be proud of.
Unforunately the comments section here is populated with people who obviously lose every city election. You are the opposite of representatives of public opinion.
The City Commission of Gainesville has always done a terrible job managing its budget and providing basic services to the citizens. Surrendering control of GRU back to these incompetents would be incredibly foolish.
Agree! I’m sure the bankers/bond holders of city debt are freaking out and leveraging the commission…which explains their erratic behavior now.
Since they are different entities, the City and GRU have their own credit profile/rating. These ratings allow their bond/debt holders to evaluate the associated risk. So what’s good for GRU’s bankers is not good for Gainesville’s bankers and visa-versa. (i.e. transferring profits from GRU to the city is a pro for the city and a con for the utility). The city bond holders are understandably freaking out because they don’t know how in the hell they’ll be repaid. Not our problem though.
All this version oriented rhetoric escapes the objective fact that the City of Gainesville Florida is:
TWO BILLION DOLLARS IN DEBT
Just make a graph expressing that and write a narrative on how expeditiously this can be overcome.
Then operate GRU optimally serving the taxpayers with the maximum reward of return.
Inact legislation by referendum. NEVER allowing any politicians again access to exploit GRU like the mafia/mob in which that predatory behavior cannot be sustained and that which has led to extreme financial deterioration.
Most definitely be vigilant and keep the elected body away from the possibility of liquidation of another similar asset of the taxpayers.
Never trust government this is what they do collectively. You can’t stop We, the People we have rights but, YOU can stop the government and YOU have. Don’t get fooled again especially like this one here legitimizing the “General Fund Transfer”
I live in a one bedroom apartment on section 8 and I just want a utility bill that i can afford and the GFT prevents that. My utility bill is sometimes more than my portion of rent. Many of us can’t compete and periodically GRU cuts OUR services …
Ah, Bryan Eastman, I knew you couldn’t leave my Fact or Fiction articles alone. Thank you for exposing yourself as 1) thinking GRU ought to pay $60 million a year to the city, despite both Moody’s and Fitch Rating Agencies (who dictate our Bond Ratings) telling us and the world of investors that we will be downgraded if the city demands more than the current $8.6 million; 2) trying to call me out for being a spin doctor by simplistically quoting what I wrote in September and October 2018 BEFORE the city went on to take $68 million more than GRU earned (what I said was true before that time but then the commission took a huge turn towards fiscal mismanagement; 3) not capable of understanding net income (shown on GRU financials) is the same as profit and that there are various levels of profit; 4) trotting out the old tale that GRU is at the bottom of the pack in paying a general fund transfer only because you can’t recognize that all other Florida Public Utilities haven’t been burdened by the excesses of a city commission with over market Solar feed-in-tariff deals, and biomass power purchase agreements which WHOSE EXPENSES MUST COME OUT OF REVENUE BEFORE THE GENERAL FUND TRANSFER IS PAID (ergo consistently trotting out your General fund transfer as a % of revenue is misleading and dangerously mis-informed at best); and 5) consistently unable to understand depreciation is the economic use of an asset that must be replenished through investing capital not sending it to city hall.
Finally, you’re right on one thing. I was a champion of the commission until 2018 when they showed the community who they were by keeping General fund transfers at level higher than GRU’s profits resulting in taking $68 million more than GRU’s profits from 2018 until 2021. So, I never thought the commission would be so careless, so irresponsible as to take more than the ordinary, reasonable and necessary General fund transfers from GRU. I was wrong. The city commission tried to kill the goose that laid the golden eggs. But, the state created an independent board to make sure that didn’t happen. And, that’s why I’m back managing the utility and the people I truly love.
Thanks for giving me more fictions…
Bryan Eastman wrote:
“Quite frankly, the transfer to city’s general fund is ordinary, reasonable and necessary.”
I disagree. In fact, there should be zero transfers to the city’s general fund. If any transfers are to be made, it should be to all GRU customers. We the people can sure use that money, especially in today’s economy, instead of the city government pissing it away.
The citizens of Gainesville own GRU, not it’s customers in the county. Do you expect Walmart to send you a check?
🥱…😴
There you go again Jazzy E. You introduce a non sequitur with your Walmart reference. But thank you for pointing out the ridiculous notion that the customers FORCED into buying GRU have no representation. Since you claim to be a champion of equity and democracy, why don’t YOU lead the way to allow ALL GRU customers to have a say in how GRU is run? Are you scared of the results?
Because I’m not an unprincipled idiot Bok Bok. Take that how you want.
Sorry, Jazzy, but the CoG owns GRU, not the citizens or residents.
Don’t know where you come from “The Rest” but in America we are governed by democracy.
Not any more. The City sold GRU to Wall Street Bond Holders when they bought the GREC PPA.
Read Ed’s book, “The City that Lost Control” to learn what really happened. His book was published in 2023. This book explains how we got to where we are today.
If GRU is to survive, it needs new power generation in the future. It cannot do that if its profits are siphoned off again by trendy local politicians on their way out of town to a new career in Tally or DC.
Mr Eastman, I don’t believe I have ever seen someone with the cojones to so blatantly distort the truth (lie) as you have done here. If you and your fellow incompetents really wanted an honest election, you would limit it to the actual account holders, ALL of them. You would not include college students with no stake in the income, you would not keep misrepresenting the facts. But then, honesty, integrity, and knowledge, are not bywords of the local Democrat party.
The “acount holders” are the citizens of Gainesville, not it’s customers who live elsewhere. This isn’t difficult. They built it 100 years ago and are responsible for it’s maintenance and debts.
PS It’s “the Democratic Party”, not the Democrat Party. I know you’ve been trained by your GOP handlers but we all tend to call organizations by their chosen name, or the Republican Party could be called the Republicanista Party.
Demonstrably false. I have an account, I pay every month, but I am not a citizen of Gainesville, and have no recourse but to pay Gainesville’s hidden taxes through my utility bill, though I receive little to no benefit from those taxes.
You’re put this blatant falsehood out there so many times that I suspect it’s just being used to muddy the waters of the discussion, and should therefore be ignored.
“anon”, what’s the punch line? I’m sorry you don’t get the simple and obvious fact that entities spend their profit how they want and that would be true no matter who you got your electricity from. FPL spent $100k of theirs in 2018 in an illegal dark money contribution to Sen Perry’s campaign. Did they check with their customers?
Jazz from once I agree with you, the customers who live in the county that is stuck with the ridiculous GRU should demand that the county work out agreement with clay electric, Duke energy or FPL to provide them power then see what your light bill will go to once you lose those 40% of the customers
GH, going to the county would be the logical choice and our democratic forum. We elect them, not the Gainesville Commission. I don’t know what the agreement is that has so much of the county as GRU customers, but it is not written in stone. I have been in the same house in the county for 37 years and for the 1st half of that Clay Electric provided our service. I think GRU is significantly better, but maybe Clay has improved in that time.
There is nothing democratic about “the Democrat Party”.
Here’s the way I see it Brian. GRU is under an extreme debt load thanks to your fellow libtards before you. So…now wer’e stuck with some of the highest utility rates (and property taxes too!).
And now you have the gall to keep skimming GRU for your liberal nonsense money wasters. More Leftist lies and garbage.
Hopefully not only the property owners in Alachua county but rest of the state in November 2026 get a chance to vote to do away with property taxes altogether
Hopefully Eastman replies and he and Belarski can drill down deeper on the facts.
What is not in dispute however – by anyone with a functioning brain that is – is that the citizens of Gainesville own GRU, built it starting over 100 years ago – the county didn’t, nor did the state GOP – and are responsible for it’s maintenance and debts, but have had their property stolen by GOP tools who use foolish customers who don’t own it to think they should not only control the utility, but how it’s profits are spent – as if anyone thinks any other business works this way.
Belarski even stated here last week that these out of town customers – like me – had been “disenfranchised” by GRU when – as he later in that column admitted – they had never been enfranchised.
However the numbers work out – and if Belarski is right and GRU eventually goes under – that’s the problem of Gainesville citizens, not Alachua County citizens. I’m sure another utility would step in and serve that area – I was under Clay for the 1st 20 years of living where I am now. The crime is theft and the ending of local control and democracy, not what electric rates are. Does anyone think that the state legislature would have done this to a red town? F..no! We had our 2 leading GOP leaders – elected by the voters outside both the city and the county at war with local Democratic leaders and they pulled in their bully buddies in Tally who have already stripped us of meaningful representation in Tally and DC. Anyone think this is an accident? Don’t be a fool!
The only fools are those who believe Eastman’s lies and continue to vote for those who’ve brought GRU to this point.
Interesting that you don’t mention that it was a group of Democrats that asked the State to step in to give us all some relief.
Did I think the State overstepped a bit and ignored home rule? A bit yes, but when citizens ask for help isn’t it the responsibility of elected officials to attempt to help? The City ignored them and citizens had no choice but to go to the State.
If the City Commission doesn’t want to hear from rate payers outside the City (or have them vote), then they should have considered never expanding utility service outside city limits decades ago. Btw…they account for about a third of GRU customers – where would OUR utility be without them and how much of a ‘contribution’ would Commissions be able to get then?
“Disc”, what democrats are you speaking of?
Jo Beaty, Ernesto and Debbie Martinez, Ray Washington off the top of my head. There were others, but I don’t recall all those that asked for help and actually went to Tallahassee on a number of occasions. The ones that are told by their fellow Democrats on the Commission to be quiet.
You make an interesting point about out of town customers.
One of the previous mayors of Gainesville, said in the past, that the city should have incorporated the areas outside the city to ensure everyone’s voice was heard.
That has been at the root of many of the issues.
Oh for FFS Jazzy,
Why are you and the city so adverse to some sort of resolution allowing all customers to have a vote when it comes to GRU governance? It’s a natural monopoly. Other power companies are not lining up to service unincorporated west Gainesville. The government is supposed to protect us from a situation like this, but the FL PSC doesn’t fully regulate GRU.
It’s messed up and it’s been going on for decades.
“Never”, it is a matter of important principle that voters don’t vote in elections where they don’t live, and just as important that the state does not take property and control from local voters, and in this case clearly driven by partisan actors.
Out of city customers were franchised with HB 1645 – giving them representational rights on board. Got that point.
Those rights would be rescinded if HB1645 was revoked.
Those are the two steps.
Ed, you said in your 1st column that county customers were disenfranchised from deciding GRU governance when in fact – show us ifI’m wrong – they rightly were never franchised to vote about city property.
But onto this post, you are completely wrong. HB 1645 disenfranchises city voters – who own GRU . That’s it! No one was “franchised” as county voters have no say in GRU affairs now, just as they never had. Did you mean to type “Gov DeSantis” when you typed “out of city customers”?
This is not difficult!!
😣
Interesting rebuttal, but not fully transparent. No mention of ballooning Commission budgets over the last 15 years, no understanding of depreciation, no mention of accelerated debt payments nor of items Ed B brought up. Look at the rating agencies and their unbiased take!
Hmmm…Ed B warned numerous times that the GFT was not sustainable while he was a charter officer reporting to the City Commission. It fell on deaf ears and they removed him when he didn’t fall in line.
Eastman should explain to us what the GRUA board has done wrong since its inception – lowering or maintaining rates, maintaining or increasing credit ratings, getting out of unaffordable solar deal, entering into repurchase natural gas deal and accelerating debt payments to name a few positives. The Commission has been the aggressor in this!
I don’t blame Eastman, or other current members, for the transgressions of past Commissions. But I do hold them accountable for towing the same, stagnant party line!
I have two simple questions that only require a simple answer.
If control of GRU was to be returned to the City Commission:
1. Will they agree not to raise electric rates for at least 3 years?
2. Will they agree to cap the GFT at a reasonable amount? What would that amount be?
You know the commission can’t bind future commissions, so any promises would be worthless. And the current commission still has a resolution that would require them to raise rates until 2027 unless they revoked it.
My question was directly to Bryan, though I respect your opinion. However, these are questions every current commission who is campaigning to regain control of GRU should be able to answer for themselves. At least, they will be on record.
He won’t answer you because it would illustrate his propensity for lying.
This is what he’s thinking though.
1. No. I mean, HELL NO.
2. Not going to put a cap on the GFT either. That may prevent our continued waste and would very likely preclude our ability to give ourselves raises. We may need to hire someone else for future commission needs too.
Being of the same cloth as that other wackado Saco, he’s also giving the 🖕🏻to you and any other person who would question his motives and intent.
Annie, this is in no way meant to minimize your comment, just providing insight into Eastman’s concern for those who have expressed an answer for those types of questions. By the way, they should be able to answer for us, not themselves.
Eastman probably had to borrow one of GRU’s cherry pickers to get these examples.
It’s really easy to tell when any of the city commissioners are lying their mouth moves if GRU was operating in the black. Why was the credit rating down downgraded and one of the things the rating Service worried about was the amount of money at the city of Gainesville is transferring. The sad part of this whole situation is the GRU customers that live in the county they have no say so in this matter yet they’re stuck paying the outrageous GRU bills and I can say this for a fact because last year(5-30-24) I moved out a hills of Santa Fe to Suwannee County and Duke energy almost identical square footage Home both with brand new AC units I average $125-$150 a month less than what I paid GRU. If you want to make it fair open the voting to all of GRU customers or give them the option to switch to clay electric i’m willing to bet you you’ll lose everyone of the out of city customers
Is Jazzman really Mark Sexton doing a side gig for the CC?
GRU need to go back to the citizens so we can gets the money we needs for things like the chuckle cheese chestnut citizens field redo for 150 million. Like reduced rent for renters. Like a new McPherson park. Trolleys for downtown. Free concerts at depot park. Free bus rides for all not just 99%. Give the peeps what we want. After all, we voted them in.
Hey Eastman let’s talk about your blatant disregard for sunshine law and the removal of a post that you had posted stating GRUA is the reason you all cannot balance the budget! Remember after the city clerks office sent me back a message that there was no record you messaged me via Facebook messenger stating you didn’t know it would delete 😂😂😂 just like you and Ward don’t use Snapchat too to violate sunshine laws. But you did message me and sent the video I wanted. The same one I had shared and was the way we knew it had been removed. The same post I addressed the issue in and you claimed to not know what I was talking about. Hmmm is this an ethics issue? You keep blaming Ed mind you the city had control back then and made final decisions. Mind you you all had 18 findings that proved the mismanagement of the utility based on the money issues the city itself caused. 1.8 BILLION DOLLARS, of debt because a green Pageen wanted a biomass wrecking ball. And then the corruption was clear from that point on.