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.

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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.

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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.

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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.

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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.