“I just don’t see how we’re going to lower rates any time in the near future”: No motions made, no votes taken in Joint City of Gainesville/GRU Authority meeting

BY JENNIFER CABRERA
GAINESVILLE, Fla. – At the first Joint Gainesville City Commission/GRU Authority meeting on February 28, the board members discussed the transfer of funds between GRU and the City, but no motions were made and no votes were taken.
Introducing the agenda item about the transfer of funds from GRU to the City, Mayor Harvey Ward said the City Commission was just there to listen, but “the City of Gainesville provides a lot of very highly rated services to the folks who live here and folks who come from outside and enjoy being a part of what the city of Gainesville has to offer. And we know that any large change in revenue will impact the services and the things that we offer to the people who live here.”
GRU Authority Chair Craig Carter said, “Everyone knows how I feel about the transfer–you watch my votes, I’m staying fast to that. [The City Commission] did make an adjustment of $19 million, you were able to make that up on property taxes. My problem with that is, just the citizens of Gainesville have got to pay that debt.” He said he was more concerned with the Service Level Agreements, payments between the two entities for services provided.
Carter: “I want to maintain the transfer, myself”
Carter said the Authority is planning to build on the City’s existing debt defeasement plan for the utility, “so we’re not sitting there scrapping everything. You know how I feel about the transfer; I want to maintain the transfer, myself.” He pointed out that motions to eliminate the fund transfer have repeatedly been defeated on a 2-2 vote.
Carter: “I just don’t see how we’re going to lower rates any time in the near future, with our debt ratio.”
Carter continued, “What’s important to us is to get our debt down and somehow stabilize our rates. I just don’t see how we’re going to lower rates any time in the near future, with our debt ratio. I mean, we’re paying $100 million a year in debt.” He said his personal goal is to get everything in writing between the Authority and the City: “I think we have to have a discussion, and this is the body to do it. So that’s what I’m hoping we’re able to do.”
Ward: “probably years to work through every one of those things”
Ward responded that Service Level Agreements will need to be worked out between staff and then brought individually to the City Commission and the GRU Authority. He predicted it would take “not weeks, probably not even months, but probably years to work through every one of those things, because some things don’t even pop up every year.”
City Commissioner Ed Book pointed out that the City and GRU had worked out a formula in 2023 for the fund transfer from GRU to the City to “establish a non-arbitrary system of monies that get transferred every year, so we couldn’t come back [and say] ‘You know, we need an extra x amount of million.'” He also pointed out that GRU’s own presentation on January 17 showed that if half the transfer was cut and all the savings went to reducing rates, “the rate impact… is only about $13 over the course of 10 years.”

Similarly, Book said the reduction in the transfer would only result in an improvement of about 2% in debt-to-capitalization ratio after 10 years.

Book said his point was that these reductions would force the City to reduce services but would have only a small impact on GRU’s rates and debt.
Carter responded, “Mr. Book, we’re going to pull a lot of levers. We’re not pulling one lever… It’s going to add up. We’re looking at all options. That’s what a business does… And [GRU] overpaid $67 million [in transfers] over five years from what we show on our books as a profit; that made us go into our reserves. So when do we recapture any of that money, is our concern.”
Lawson: “I support a formulaic approach to the [Government Services Contribution]”
GRU Authority Member Eric Lawson said he was looking for “predictability on both sides, and so I support a formulaic approach to the [Government Services Contribution]… So I just want you to know that the position I take is we’re sort of all in this together, and I see us as partners in how we provide services.”
Ward: “Be careful calling it a business… It is absolutely part of municipal government”
Ward responded, “When we talk about GRU as a business–you should absolutely apply business practices. But be careful calling it a business, I would say… It is absolutely part of municipal government, any way you slice it, and that’s a different thing than running a private business.”
Eastman: “I think it’s just the responsibility of the Authority to pay the same way that every other taxpayer does”
City Commissioner Bryan Eastman discussed general fund transfers paid by other municipal utilities and the taxes paid by private utilities and said, “I think it’s just the responsibility of the Authority to pay the same way that every other taxpayer does for those services that are rendered. You have the authority, clearly within the Charter, to choose to not pay it, but I think it’s the right thing to do… so I’m happy to hear that you’re part of it, that you understand the importance of that, and I hope that’s the way you guys continue forward.”
Ward added, “To be clear, I mean, I don’t think anybody’s intimating that you’re not intending to pay some share of what you use.”
Following public comment, Carter reiterated that it will take a while to get agreements in writing: “I mean, I’m looking at 1985 agreements here; this is how bad some of this goes.”
With no further lights on the dais, Ward adjourned the meeting. No motions were made, and no votes were taken. Authority Member Robert Karow and City Commissioner Desmon Duncan-Walker were absent.
Best to just declare default now and ask for a bailout? Seems the way things get done now at the federal level – mis-manage and then socialize the losses with the money printer.
Exactly!
I’ve always wondered why we spend the resources for a first class military if some jack ass money changers can just pop in and take everything regardless. What’s a fighting force even good for when your being taken over by other means?
…what are we doing?
The meeting was the biggest accumulation of dead, useless brain matter since old man Joe Biden dined alone.
All your talk about “handouts” makes me wonder if that is your own desire you won’t admit to publically. It is obvious that FPL will buy GRU. It’s been the goal all along with large cash donations to the auditing board, DeSAntis and even funding Keith Perry in 2018. The bailout will likely be higher utility rates overall as FPL has rates equal and higher than GRU.
Carter acts like an obstructionist doing the bidding of his friends on the City Commisison?
He needs to resign. What an embarrassment!
Appointing a fifth member could fix this. We must ask why this hasn’t happened yet? We can’t blame one guy for everything when the damn governor won’t even fill all the seats on the board. Also- the hospital CEO seems to be much worse than Carter…just watch & listen to him.
Carter partly responsible for this fiasco to begin with. If you go back and watch the meetings where commissioners discussed buying the plant and making the 2 or 3 GREC equity folks beyond rich, they decided on something less than $700 m, $675 I think…which GREC was watching on TB of course and rejected it asking for $750. Next meeting, right away, Carter publicly stated, “I’ll go $750”, pretty much wrapping up any further negotiation to try to save 25, 50, or 75 million right then. GREC would have came around to a lesser amount but that’s not needed when the sheep just walk in for the slaughter. I’m sure they are still laughing about it from their Swiss Chalet.
One might conclude it’s not just a banana Ward has in his pocket.
These knuckleheads should just make a bigger circle with the City Commission…and jerk each other off. That appears to be the one thing they’re good at. Give the residents a break.
Sure, that how y’all do it in the comments section here.
Jizzy heard Jerk off and had to jump right in.
You got exactly what you wanted, EXACTLY! Measure snuck past voters by Clemmons. Board picked by DeSantis. No better off. Just remember, this is what you wanted!
This is at least some better than Poe & Ward leading other radicals while Bielarski & Cunningham lick up all they suggest. Nothing passing is better than anything previously passing.
Well, Cunningham is still running GRU, so you’re wrong there. But now that you’ve cut off your nose in spite of your face, enjoy your high utility rates. Enjoy even higher rates when “the solution” of FPL purchasing GRU presents itself. Right up there with GRU rates are FPL. It’s really gonna cost you a lot to “own the libs.” Just remember to keep your hand in yor pocket and pull yourself up by your bootstraps.
Because the cancerous city commissioners are corrupt greedy demonrats.
Well the GRU Authority Board is appointed by the Governor and all four are registered Republicans…so….
And there you have it. Rates not going down. Duncan-Walker absent again. No court ruling yet on Authority residency requirement. Praise for property tax hikes. And just more inaction from DeSantis on the 5th Authority member.
5th member will never be added….might make for effective action. Last thing some want.
The Mayor explains why Gainesville Bankrupted GRU. The Gainesville leaders are in denial that GRU should be run as a business.
Good Luck Gainesville with that logic. And Biomass Carter needs to be replaced . His positions are not in line with objective oversight. Very, very disappointing.
Carter continued: “What’s important to us is to get our debt down and somehow stabilize our rates. I just don’t see how we’re going to lower rates any time in the near future, with our debt ratio. I mean, we’re paying $100 million a year in debt.”
We live in a country that is almost $35T in debt and he is worried about a measly $100M. The point being, your debt doesn’t matter as long as you have a product that is in demand.
People can’t do without electricity, and you have a growing customer base…
GRU is like the proverbial cat-house on an army base.
Lower the rates and give the shareholders of the cat-house some love too.
As for the creditors, what are they going to do? Confiscate all the utility wires?They can wait on their money like
we all have learned to do.
Lower the rates or disband this board.
Bidenomics strikes again. Global green political chaos and amateur foreign policy are affecting energy security, among other things like food prices.
Thank you 2020 superficial voters.
Just like Trump’s horrible economic numbers were terrible in his last year and why it’s unfair to note the GDP and unemployment numbers of 2020 because they were due to Covid, so was world wide inflation which followed. These are facts.
“Joe Biden is mostly right that the US inflation rate is the lowest among other leading economies
IF YOUR TIME IS SHORT
Starting in July, the U.S. passed Canada for the lowest inflation rate among the G-7 countries, which represent some of the world’s biggest economies. And for the previous five months, the U.S. ranked a close second to Canada for lowest in the G-7.
Expanding out to a larger grouping of 30-plus large economies, the U.S. has one of the lowest inflation rates. However, a few countries — Denmark, Greece, Portugal, South Korea, Spain and Switzerland — have lower inflation than the U.S. does…”
You mean when Democrats shut down their states, just to make Trump look bad economically? The actions of those Democrat Governors (and a few RINO ones, which are Democrats in disguise) destroyed the lives of 10s of millions, set school-age children back years, and ran up the national debt – all to get Trump.
FYSA, US interest rates have traditionally been lower than the rest of the world, particularly Europe. You aren’t pointing out anything special, just what has always been a result of better fiscal policy (historically, not from the last 4.5 years).
WTF does other state’s shutting down have to do with GRU utility rates? Sorry the U.S. economy isn’t crashing so that you can “own the libs”. Actually, I’m not. Remember, this is what cons wanted…a Republican representative duped you into believing a Republican Governor could appoint only Republicans to the GRU authority in lowering rates! Now that the kool-aid has worn off, its time for you to enjoy the fruits of your vote.
Reckoning was responding to jazzman you idiot! They didn’t lower rates but they did reduce what the worthless thugs in city receive from gru! Anything that reduces what the scum receive is good!
No, Gainesville City Commissioners curtailed their funds transfer by 55% and filed a plan to completely stop the transfers by 2032, long before GRU board bill was floated by Clemmons. You got duped.
There is no plan to end the transfers
“Under the formula, the GSC would be $15.3 million for Fiscal Year 2024 and would go up to $16.78 million in FY 2025 before starting to drop. It would be at $10.78 million per year from 2027 to 2033.”
https://alachuachronicle.com/gainesville-city-commission-cuts-transfer-from-gru-to-city-requiring-budget-cuts-of-about-19-million/
My mistake and thank you for correcting it. The reduction was in place before the vote on creating the GRU Authority.
If I remember correctly, there was no intention of a reduction until City Conmen realized they were in trouble and about to lose their golden goose.
The city made the change after the auditing board told them “drastic” measures had to be done or the state would come in. That is when Clemmons introduced his authority board bill.
BWHAHAHAHA! what do “bidenomics” have to do with a Republican state representative strong-arming legislation to take away local control of GRU under the promises of lower utility bills, with Republican legislators approving the plan, a Republican Governor appointing only registered Republicans to the GRU Authority? This is EXACTLY what you wanted! Enjoy it!!!
This is what you get when you allow the likes of Pegeen to ‘engineer’ (ha) the local utility. What a mess….and Pegeen nor anyone else will ever be held accountable for this fustercluck.
Germany is finding out too late, too… https://www.eugyppius.com/p/the-german-energy-transition-threatens
FY 23 Audited Results: Debt up by $117 million; Unbilled Revenue $20 million as usual; SLA-Losses are unstated and unknown; Biomass plant depreciation exceeds amortization of related debt; GRU Com- $3 million loss, $1.2 million direct GSC, SLA-losses (amount unknown), unbilled revenue($218,000).
Jim, what is SLA? Thanks
See 7.02 Service-Level Agreement Loss (SLA). Providing something below cost.
Thanks.
I see many commenters on this board wanting a rate decrease from GRU and, for the life of me, I can’t understand how a rate decrease would be possible at any time in the foreseeable future if the utility going to survive.
It also appears that the day to day management at GRU doesn’t have the bandwidth to both run the utility AND manage the separation of its affairs from the tentacles of city. GRU needs to get some sharp people on temporary contract to handle the line by line separation. This is all the more truce now that that the city has signaled they will slow walk every item.
Steve, ending the “transfer” saves GRU over $445M in the next 8 years. It will bankrupt Wokeville, and that’s okay because both will go bankrupt if the transfer continues anyway.
Discontinuing the “transfer” would at 1st stabilize rates, and then possibly decrease them as the transfer was used to reduce debt instead of use to fund unConstitutional DEI agendas, buy tampons for men’s rooms and putting locks on the doors to multi-stall bathrooms.
Yes, the transfer needs to go immediately. The city is broke but it is not the GRU authority’s job to bail out the city.
The city IS ending the transfer
https://www.gainesville.com/story/news/local/2023/04/14/gainesville-commission-approves-plan-to-gru-debt-by-315m/70110673007/
They are promising to reduce it, not end it. How good should we feel about their out-year promises after they did a bait and switch with the county on funding the hobo help vans?
Legalese for “government handouts?”
Service Level Agreements…as discussed above
Carter: “I just don’t see how we’re going to lower rates any time in the near future, with our debt ratio.”
End the transfer…it’s the only way and then most likely only be able to slow the rate increases due to all the debt our previous logicless liberals leaders stuck us with.
Pretty clear there’s zero desire to take courageous action that is needed
Exactly. End it entirely. FORCE the yoyo’s on the city commission to make some decisions (like shutting down DEI and Climate departments, etc.).
You can’t fix the problem by following the rules of the same people that created the problem.
Lead this Authority, or get out of the way.
1) End the transfer and let the chips fall where they may.
2) Identify only the most frequent city “services” and get those agreements in writing. Those are the only essential services. Forget about the rest of the stuff that only pops up every decade and just deal with anything as it comes.
What is the city going to do, stop you from generating power? Direct all power outages to City Hall first. You’ll be amazed at how easily these services will continue to be provided despite no formal agreement.
Stop being wishy-washy and just take action. It’s going to be messy, but the faster you start the faster we come out on the other side.
Exactly. If you’re a medic and the soldier is bleeding out, even if you only have one gauze in your medikit you use it.
yeah, because causing the city government to cease operating is, in your twisted mind, wise? No police. No fire. lawlessness in the one city that generates the most county revenue, you want to destroy it, simply to “own the libs”? Either case is why you can’t solve big problems with knee-jerk solutions of a toddler tantrum. Even if fund transfers to Gainesville ended today, rates would not drop for years.
That is a silly red herring. If the city ever ceased to operate or exist, the MTSU portion of the property tax would automatically transfer to ACFR and ACSO. The ACSO is constitutionally the primary law enforcement agency in the county, and is immune from city commission and city manager influence. ACSO is responsible for patrol service anywhere in the county without a functional local PD, and has overriding authority within those municipalities as well. With the tax base of the city diverted to the Sheriff, the County would gladly staff road deputies for Gainesville.
As if we aren’t fighting ACSO shortages currently. Even with the additional tax revenue, staffing/recruitment/retention wouldn’t be markedly different.
The meeting was 8 against 2. Carter thinks he is still on the City Commission. The GRU Authority never had a chance.
At the end of the AC article covering the Feb 7th Authority meeting:
alachuachronicle.com/if-were-going-to-do-this-every-2-weeks-why-dont-we-just-tell-the-governors-office-were-gonna-pause-until-we-get-our-5th-member-gru-authority-again-votes-down-proposal-to-withhold-genera/
Chairman Carter disclosed his communications with the Governor’s office and the backer for his GRU position. Carter indicated both unidentified parties were happy with his actions so far.
Seems to me there are hidden entities calling the shots, out of public view, regardless of what goes on in the meeting room.
Hanrahan trying to comply with UN Kyoto protocol ruined our utility!!! No more of that zero waste, sustainable development, agenda 21, agenda 3O,
Or great reset! The planet is fine!
F the UN, the WHO, & WEF!
Here’s a lever to pull: All government accounts are exempt from late fees on GRU bills. Remove that from the ordinances! If the City, County, State agency, School Board, Federal facility etc. is late on their GRU bill, they should pay a late fee, just like every residential customer and business customer. How often do government agencies pay late? How much revenue could GRU get from these late fees? It won’t solve the whole budget issue, but it is a lever and each small step adds up to bigger savings.
From Municode, Sec 27-14 (e): “The United States of America, the State of Florida, and all political subdivisions, agencies, boards, commissions, and instrumentalities thereof, are exempt from the payment of the late fee imposed and levied thereby.”
The sale to FPL is incoming….(Do your research that has always been the plan)
Exactly what I have been saying all along. FPL will pay off GU debt in exchange for ownership.
Please explain. It seems if FPL was running the show they would have left things as they were. The city would have bankrupted the utility faster and FPL would have gotten the corpse cheaper and free of the mountain of debt the city has built.
Plus if the city was still in charge, FPL would reasonably expect to benefit from the fact that the city commission has repeatedly proven to be a horrible bargainer. They get taken to the cleaners over and over.
Review FPL’s attempt at acquire JEA and you’ll see why they are behind the authority board.
Like every other democrat led city, Gainesville is racing towards bankruptcy. Complete mismanagement of taxpayer funds for the use of rainbows (literally) and unicorns has destroyed city budgets. We all know where this ends because city/county managers refuse to cut funding resources. Tax payers are tapped out. COVID funds are drained and Desantis took away their piggy bank. The homeless population they attract doesn’t pay taxes but instead worsens the crisis. These commissioners are the picture of failure.
And they say the quiet part out loud. GRU is part of the government and is a private organization. Therefore no real regulations can be applied and they get to eat østrich while we eat the crow.
Maybe time to force the issue… deregulate and let GRU compete on a level playing field with Duke, FPL, Clay, etc. Just a thought.
Highly correct: The Gainesville City Commission does provided high high utility costs, high service costs, high taxes, high rent, very high parking lots that add to high traffic congestion, high numbers of highly paid administrators who enjoy high cost benefit packages, lots of very highly paid consultants as well as high cost, no-bid contracts, and astronomically high charges for public information about the above.