Bielarski: The day the board took control

Letter to the editor

Despite the fireworks surrounding the discussions of firing the GRU General Manager, the real story of the June 10 Gainesville Regional Utility Authority (GRUA) board meeting was the series of milestone accomplishments for GRU and its customers.

In a very important and compelling way, the Board used the power it was granted under House Bill 1645. We addressed structural budget issues, General Fund Transfer (GFT) overpayments, and utility rates in the manner the bill intended.

All told, through votes on nine separate initiatives, the GRUA reduced GRU expenditures between $100 to $125 million over the next ten years; these monies will be used for a combination of rate relief and/or debt reduction. It also fulfilled its purpose of “managing, operating, controlling, and otherwise having broad authority.”

On June 10, the Board:

• Rejected the General Manager’s request (based on a 2021 Gainesville City Commission resolution) for utility base rate increases in fiscal year 2025.
• Recognized the verified $68 million in GRU’s GFT overpayments to the City, voting to recover the full $68 million over the next ten years. This is the final installment in a process that has taken the GFT from $38 million in FY23 down to just over $8 million for FY25.
• Cut $20 million from GRU’s capital expenditure budget in fiscal year 2025.
• Cut $12 million from GRU’s operations budget, apportioned between fiscal years 2024 and 2025.
• Placed tighter controls on GRU’s general manager, instructing him to:
  • Provide immediate communication to the Board on IRP (Integrated Resource Plan) plans, decisions, incurred costs, and projected planning. The Board may pause the process, given the projected $3 billion in nominal costs.
  • Provide immediate communication to the Board on the Main Street Water Reclamation Facility Renewal and Upgrade Project plans, decisions, incurred costs, and projected planning costs. The Board may pause Phase 2 of the project, given the projected $110 million in nominal costs.
  • Come back to the Board with the optimal level of earnings GRU can release to the City, ensuring that 1) GRU never pays more than what it earns, nor 2) more than what it needs to operate the utility in accordance with utility best practices

In addition, my presentation showed:

• GRU management had over-budgeted its internal electric service costs by over $3 million.
• GRU management had included approximately $3.5 million for employees who were not yet hired.
• GRU management had requested budget dollars for programs the Board had not yet voted upon or was aware of.

June 10 was a seminal moment in the short history of the Gainesville Regional Utilities Authority – it was the day the Board took control.

Ed Bielarski, former Chair of GRUA and current Interim GRU General Manager

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