GRU memo says Mayor Ward delayed bond issuance, costing ratepayers $2.9 million

BY JENNIFER CABRERA
GAINESVILLE, Fla. – An internal Gainesville Regional Utilities (GRU) memo states that, contrary to statements made at a recent Gainesville City Commission meeting, a request from Mayor Harvey Ward was the real reason for a delay in a recent bond issuance that cost ratepayers an extra $2.9 million.
The memo, obtained through a public records request, was sent to GRU General Manager Tony Cunningham by a member of his executive team on May 11 and states, “On March 15, 2023, GRU was directed by Mayor Ward to hold the request for approval for the debt issuance until after the State Legislative session ended on May 5th, and to bring the new money debt issuance to the Commission in June 2023.”
GRU’s financial advisor, PFM Financial Advisors, solicited proposals for $155 million in bonds from 15 banks in January, and seven banks responded; the intent at that time was to bring the bond issuance to the City Commission and close the transaction in April. However, GRU Director of Accounting and Finance Mark Benton told the City Commission on June 15 that “GRU was asked to delay the bond issue” until after June 1.
The May 11 memo states that the delay in issuing the bonds, which were originally scheduled to be approved in April, “allowed for multiple public comments by elected officials which may have jeopardized GRU’s ability to obtain funding.” As evidence, the memo quoted a March 15 article from MainStreet Daily News that said, “[Rep. Chuck] Clemons has said GRU is headed for bankruptcy and that an independent board could help resolve the financial ‘mess’ created by various city commissions” and also quoted a letter from Ward to Clemons: “[T]his bill…will cause a downgrading of our current investment grade bond ratings for both the utilities and the city’s general government operations”.
According to the memo, GRU Finance met with each member of the City Commission either on or around March 15 and “communicated clearly that GRU would need funds for capital infrastructure by the end of the fiscal year, if not sooner, and that the costs may increase.”
The memo states that Barclays submitted due diligence questions to GRU on May 8, “specifically referencing the statements made by Representative Clemons and Mayor Ward” and informed GRU on May 10 that the bank might withdraw its offer. On May 11, Barclays notified GRU that the bank was unwilling to close before June 30 but proposed a closing around July 10, “after the proposed legislation becomes effective.”
During the June 15 City Commission discussion leading up to the approval of the bond issuance, GRU staff and City Commissioners squarely placed the blame for the cost increase on “ambiguity” in the bill regarding the authority of the City Commission to issue bonds after the bill’s effective date, July 1, and Barclays’ unwillingness to close on the bonds before June 30. However, the memo shows that Ward delayed the issuance of the bonds two months before Barclays informed the City on May 11 that the bank had concerns about issuing bonds in the days before July 1. If Ward had not delayed the approval of the bonds, the transaction would probably have closed as scheduled in April.
Ward told Alachua Chronicle by email, “It’s important to know that I am one of seven members of the commission. It is not in the authority of my office to ‘direct’ such a thing, nor did I. With each issuance of debt, staff generally presents the idea to each member of the commission for feedback, which is what they did in this respect as far as I know. I advised them that while we were in the midst of a great deal of legislative uncertainty, I thought it best for all involved that we wait until we all had more clarity – after the legislative session – before processing a debt issuance.”
Former GRU General Manager Ed Bielarski told Alachua Chronicle, “I learned in my almost seven years as the General Manager that when the Mayor advises against bringing an item to a commission meeting, you’d best heed his advice, unless you are prepared to be on the losing side of a commission vote.” He also noted, “While a Mayor can’t direct a Charter Officer individually, a Mayor or Commissioner can call for a vote to terminate a Charter Officer at any time.”
The day after the City Commission approved the issuance of bonds for $2.9 million more than Barclays had offered, Commissioner Bryan Eastman posted on Facebook, “Yesterday the GRU Takeover bill cost GRU rate payers another $3 million, and it’s not even signed yet. The bank we used to do our bond swaps pulled out due ‘uncertainty’ of how poorly written and vague the law is, and we had to go with a much more expensive backup option that will cost our rate payers another $1 million per year.”
Clemons told Alachua Chronicle, “Nothing that I, nor any other member of the Legislature, has stated about GRU’s poor financial health is unknown to the financial markets. However, it was Mayor Ward’s directive to hold off on the issuance of debt, in unison with his steady stream of dire predictions and his committed resistance to an orderly transition, that has had the intended effect of further punishing the ratepayers.”
Clemons continued, “This memo is further evidence that the governance of GRU by the Mayor and the City Commission has demonstrated their nonexistent concern for the well-being of the utility and the ratepayers. They opt for making decisions detrimental to the future of the utility in order to manufacture some fabricated blame on those of us who stand at the ready to rescue it.”
Referring to yesterday’s allocation of $250,000 to hire outside counsel to challenge Clemons’ bill, Clemons said, “In the midst of all of this, the City Commission somehow managed to find an additional $250,000 in order to explore filing suit to block the Authority from taking control of the utility. When and if that legal maneuver comes to fruition, by way of depositions, discovery, and subpoenas, citizens will finally get the answers that they have been entitled to.”
Are these purposeful actions that are inflicting financial damages by the Commission on taxpayers and GRU customers fraud and deciept? Asking for a friend and a potential list of attourneys amd investigators..
Freaking idiot. Any future decisions should be on freeze and vetted thoroughly by professionals who have institutional knowledge and expertise instead of these clowns. We’re not playing with chump change here, this is real life and their egos are affecting REAL PEOPLE. Get that commission out of there. If they were managing a private business I assure you they would’ve been fired a long time ago (probably wouldn’t have been hired to begin with)
It all started when Public Failure Poe was elected Mayor…he encouraged and led failure followers like Hayes-Santos (never a successful job in his life), Arreola (same – no professional job or experience), the failure Ward who worked in church offices, again not successful at anything. All colluded to run up debt pursuing the most radical causes in the country, causing the city attorney to bolt out of fear of being caught up in it. All were huge liars too as Poe claimed to be an “Economics Professor” but had only a basic history degree teaching high schoolers in dual enrollment (was eventually ask to step down or be fired). Hayes Shltos only venture was to volunteer as Finance rep of the county job training that he swiftly led into bankruptcy and refused to provide documents to state investigators. Arreola had a new big job offer a month or two after being elected and was fired 6 weeks later. Where do we get these radical lying failures? Ward hopefully is the end of the line, but no dumber that his peers, but maybe more deceitful.
Ward also failed at WUFT where he realized he didn’t want to work as hard as anyone else.
You serious Clark? Wow. Didn’t know any of this…
Go back to Hanrahan to find out when all this idiocy REALLY started
Dam it just keeps building up. I would like someone to explain why the City took 15 million from GRU if they knew that GRU would need to borrow money. I wish the state would come in do an audit on the whole city finances.
I’ll answer that, “because they can”, and their only concern is for themselves and the disruption they can cause. If at that JLAC meeting when Ward falsely promised to take huge action, the turmoil was about to get even worse. Instead of making huge cuts,they rushed to add an unneeded solar contract, made very few overall cuts, continued making excuses, did not cut frivolous woke departments and positions added in the last few years, and did not even suggest across the board pay cuts. They also engineered secret text messages and email campaigns to discredit possible GRU legislation. But, they did accomplish raising property taxes, fire assessments and GRU rates. There should be no doubt, that Ward and the rest of the city commission should be promptly removed and GRU should be independent and report to a state appointed board.
Because the city can’t borrow money themselves. But they can take from GRU and force GRU to borrow.
Mayor and CC are disgusting!
Ward is throwing the rest of the CC under the bus so he doesn’t sink alone! What a Hero!
Again, the GNV Mayor and CC could give a rats butt about the ratepayers, regular citizens, those who didn’t vote for them, those who are not like minded in spending money on “marginalized special interest groups,” their personal pet projects, and on and on!
Deflection, distortion, fear mongering, threatening citizens with lack of core services! That is how this, and previous, Mayor and CC govern!
Do you want to get rid of them and their wasteful, spiteful, ways? Get the Independent Voters activated by offering candidates who are REALLY interested in governance for the public good!
Quite frankly, the Republican Party in AC/GNV has offered nothing but “Democrats are Bad”, same as the Democrats broken record “Republicans are Bad!” Base your candidacy on what YOU will do for the greater public good, not smear the other worthless party!
Good idea. I am an independent voter who wants a competent, insightful, and questioning candidate to run for office.
As stated many times, Harvey Ward is a lying POS. His family must hate to have to go home every day and face the cause of ridicule and embarrassment when they’re out and about without their masks on. He’s not worth that much but he should forfeit his paycheck instead of passing his ignorant incompetence on to taxpayers.
Maybe the city can sue the voters next. I hope we get to see each of the commissioners speak to Caruso and Pizzo, from the JLAC. Especially 20-hours-a-week Saco and political-prostitute Eastman.
I really love that comment! Especially the part about Eastman 😂😂😂
So back in March, Ward wanted to delay approval of the debt issuance until after the State Legislative session ended, but at the same time was in a big rush to approve a solar contract with Origis Energy to buy ‘green’ energy even though GRU already has more that enough generating power to meet our needs. Do these Commissioners really think the State Auditors are that stupid?
This is of no surprise to anyone who knows there are two faces to Ward – the lying public one and the devious private one.
They don’t call him Harvey “Two Face” for nothing.
I’m feeling like a mayor will be dethroned very soon!
As much as I’d like to see it (and the rest of the CC), it’s not going to happen! Demos own Alachua County,
Repubs are too weak (and offer no alternative to the current group of local career politicians) to mount a challenge!
Get a clue Republicans, you cannot win with same old rhetoric of “Dems are bad!” Energize the Independents!
2024 is already upon us!
State and City Corruption at is best.
Thank you Mayor Ward, for unintentionally proving why the state had to intervene and save GRU from the 3%-elected city “leaders”. Thanks again.
This is the result of low voter turnout and UF students get to determine which liberals will run Gainesville.
Very true, students should vote absentee from their permanent residence. I bet if they voted to raise their “Daddys” taxes their credit cards would be cut up.
This is where Republicans must become smart, that is after drafting an actual platform for the good of the county. As posters write, the GOP here mostly whines with little to offer. The climb is steeper because Gainesville has a motivated, university driven Leftwing voting bloc and normal taxpayers have little to vote for, only against.
It seems pretty easy… we need to bring businesses and good jobs here, especially the tech-type businesses that Poe tried so hard to drive away because he wanted to keep the citizenry dumb, drunk and poor. Grace Marketplace should be phased out for obvious reasons. We need law and order to attract businesses. GPD needs fresh blood from Miami or somewhere similar. No more “traffic calming” BS, narrowing roads, etc., and a moratorium on new high-rise student housing.
Hey Red, look at the public records on voting precincts in Gainesville. Student vote is irrelevant.
Malfeasance sums it up!
How about mailicious conspiracy ?
Then he lies about it like a true politician. Ya’ll keep voting for these communist, keep paying through the nose then.
Another ‘in your face’ blunder that will cost all of us. Almost time to get the torches & pitchforks out if they keep this BS up.
Thanks Jennifer for shining a light on Harvey Ward and providing proof of his ineptness and incompetence in his futile attempt at being a mayor. Voters should take a hard, well-defined examination of his types before casting a vote for such obvious ignorance and unbridled stupidity.
Amusing that a crisis for credit, created by Clemons and his attack – continuing to this day – on the City of Gainesville and GRU, which has/had a higher credit rating than FPL, is blamed on Mayor Ward for suggesting caution going forward. The City is and was between a rock and hard place, with rock having been installed by Clemons and his state GOP buddies, including the FPL lapdog Sen Perry.
The ‘crisis’ of credit was directly due to Ward’s decision, any other blame is simply deflection. Now the discussion about the appropriateness of him unilaterally doing so can begin.
Ward created the crisis Jizzman. He, his lackeys and people like yourself. Did you get a late breakfast this morning or just thought to regurgitate your same comments?
Bray on.
There is a big difference between suggesting caution and advising experts (particularly when you aren’t one yourself) that they shouldn’t do what is best for the utility. Financing are almost always conducted within a window of the best opportunity. That was April. It obviously conflicted with Ward’s window of opportunity to Curry favor with JLAC. Politics won out. Now, you are justifying a bad decision. More politics. People are sick of more politics.
Gee, how self centered of Ward to try and curry favor from the JLAC.
THERE WAS NO FINANCING CRISIS UNTIL CLEMONS PULLED HIS STUNT AND THE GOP LEGISLATURE RUBBER STAMPED IT WITH NO HEARINGS, NO EXPERT COMMENT, AND NO CITIZEN INPUT.
Nobody with any sense would favor having a bunch of third-rate radical communists in charge of the city, let alone the utility company. Look at where it has gotten us, in terms of both the city and the utility company. That was great when former commissioner Helen Warren spoke at the “JGAC” (she didn’t bother to learn the correct name) and removed all doubt about the fitness of the commissioners to run anything. I guess everyone realized Poe seems like a basket case in the real world, outside of libtardville, so he stayed home. Yvonne Hayes-Hinson represented the city leaders well… lots of DUMB mixed with lots of magical thinking.
Like you’re an expert and local leaders have ever accepted citizen input.
Keep staying Jizzy with it!
Sorry Jazzman, but there was. It’s like the guy who jumps out of a 20 story building. As he passes the 10th floor he looks in and yells, “so far, so good.” It is where GRU is heading, not where it’s been. 5 power plants over 40 years of age, unable to compete and too highly leveraged to build new plants, the commission was whistling through the grave yard.
We are talking about a financial crisis, not long term problems. GRU’s credit rating was higher than FPLs. In any case, the City owns GRU – which it created about 100 years ago – not the GOP in Tallahassee and the city and it’s elected leaders should fix it or face the financial consequences. Based on the clowns DeSantis has appointed on boards at other unprecedented hostile takeovers he has staged, there is no reason to think a new board – which voters will have no say in – will be other than ideological political hacks and religious nuts. If that’s what citizens want, they should elect them.
Hilarious that you call DeSantis appointees clowns, while backing the incompetent left wing degenerates that continuously run Gainesville into financial ruins! The state of Florida has a budget surplus!
Blah, blah, blah…same crap just a different day for you Jizzy.
The described crisis was caused by the blundering, fiscally incompetent idiots you voted for. You’re as much to blame as they are. Giving your support for the BioFiasco and the financial burden that put on the city is but one reason there needs to be some oversight over the local governing authorities. You just lap up what Ward & Co are willing to feed you without regard to how it may cause you to feel in the morning. It’s true, garbage in, garbage out. You’re proof of that.
Speaking of lapdogs…
You seriously are bryan Eastman’s best buddy aren’t you, hmmm so very well at trying to lie, but fail miserably! Guess what the emails are in several peoples hands at this point.., 🫢🫢🫢
The rock is the biomass plant and the hard place is disgrace marketplace and the other wasteful spending and failed leftist policies for the last many years.
Yawn. With a name like Jazz, don’t you have any other tunes?
Ward appears to be playing ANTIFA tricks to bring down the Republic. I hear Poe footsteps
Those sounds are more likely sucking sounds than footsteps.
TeachYourChildren said:
“Ward is throwing the rest of the CC under the bus so he doesn’t sink alone! What a Hero!”
Only because they LET him. If they’re that stupid/spineless, they deserve to get run over.
Ward knows what he should do, problem is he’s not man enough to actually do it.
His parents would be so proud of what they created.
So, uh, this makes sense for the need of an ‘outside council.’
If you are or know of a business subject to the GRU rates and whimsical overbearing City of Gainesville, consider coming to Newberry.
We have 3 utility companies servicing our 8000 residents and businesses. We would be happy to help you site a business functional to your needs.
Our schools are highly rated and workforce is not afraid to get dirty if needed and money saved in utility bills may offset any inconveniences of distance.
In reality we are actually only 20 minutes from the interstate. Our planning department Director is Bryan Thomas and his phone number is 352-472-5440.
#smalltownbigheart #charactercommunity
– Tim Marden Newberry City Commissioner.
Maybe Ward was on drugs or drunk when he made those decisions? He could use the Hunter B Excuse — knowing his 3% voters would accept.
Three. Million. Dollars.
Wasted, utterly wasted, due to the mind-blowing incompetence of Gainesville Mayor Harvey Ward .
GET THIS CLOWN OUT OF OFFICE!
Jazzman is clearly a mouthpiece for the current Gainesville City Commission. Let me directly counter his propaganda. The primary reason GRU’s credit rating is higher than FPL and a few other state utilities is that its governing body has free rein on rate setting AND a history of increasing those rates to the highest in the state (combined residential and commercial). In other words, GRU is operated as a total monopoly outside of rate-setting parameters of the Florida Public Service Commission. The City Commission has abused this situation. What Jazzman crows about is what he should be most ashamed off.
This also goes to the heart of why Eastman is just plain wrong with him continuous comment in this publication about GRU’s credit rating.
I don’t remember which rating agency said it but, they flat out stated in their report that GRU was given its rating due to the fact the city commission kept signaling it was willing to continue raising rates.
He’s more than just a mouthpiece for the commission. That’s apparent to many of us.
You don’t know me Ed. I am a long time county resident who doesn’t believe in taking the property of others and taking away the rights of citizens to vote for who they want running what they own. You apparently don’t GAF about basic American principles like these and/or your personal vendettas and disappointment at losing the election governs your thoughts. I have criticized the city commission for other actions, including on a recent thread still on the board here, so I am no one’s mouthpiece but my own. I’m not sure you can say the same.
GRU had a higher credit rating than FPL and so THERE WAS NO CRISIS until the GOP legislature passed the traitor Clemons bill without public or expert comment, or serious review of the results, and certainly none respecting the rights of the citizens of Gainesville – and their responsibilities to fix whatever they might have to. This not disputable to anyone who knows the facts and cares about them.
Yes, he is a laughably obvious Democrat-party shill and I note he doesn’t post on Federal holidays.
Any time there is a story about Ron DeSantis, Jazzboy chimes in to collect his $0.07 per post.
I just skip his verbal diarrhea without reading and advise others to do the same, depriving him of his $0.03 per reply. I doubt he even lives in Florida, much less Alachua County.
Maybe if he loses 200lbs he can fill an opening in the Patriot Front team. They lost a few operatives due to demasking last weekend.
Jazzman proudly states that the city owns GRU…as though there can never be any situation in which that ownership is tethered to legal restrictions. While ownership has its privileges, the business world is replete with events where companies are forced into bankruptcy, receivership, and yes, hostile takeovers. GRU is in such a situation, brought on be decades of malfeasance by a politically-adept but horribly non-business savvy Board. Finally, I had to laugh when Jazzman cried that the voters have not been allowed to cast their ballot on this new authority. You mean just like the 40% of County voters who have not been allowed to cast their vote for decades.
I don’t live in the city, so I have no reason to be proud of GRU’s ownership by the city of Gainesville, which by they way, created it many years ago.
This isn’t the “business world”, this is a democracy where citizens vote and then take responsibility for the actions of their government, good and bad. It’s not a democracy anymore when those who don’t live there and are openly hostile to that government and it’s voters, force half baked – at best – legislation which takes away control – and responsibility – from them and giving it to a near dictator with no expertise in the area – he’s never had a job in the private sector, let alone run a business – and both of whom are supported by another politician who won his next to last election using illegal dark money from FPL. Apparently you can stomach that, but is says pretty bad things about your loyalty to Gainesville.
As to voters not in the city – we don’t own GRU, or FPL. Many of us have had opportunities to be annexed into the city and most expert opinion is that unified county/city government, when the main city drives the economy, is the most efficient, and those living outside the city limits would have complete say in city politics. Might even had had more Republicans in office. Lastly, perhaps you missed it, but on the day of the vote Rep Hinson offered an amendment to set up county voters ability to opt out of GRU service. It was quickly voted down, and like every other action taken on this bill, without any discussion, intelligent or otherwise.