League of Women Voters of Alachua County Recommendation: Vote YES

Background:

In 2014, 2015 and 2016, our state representative filed bills in the State Legislature to change Gainesville Regional Utilities (GRU) governance to an autonomous authority. All failed.

In 2017, he was able to get House Bill 759 through the legislature and signed by the Governor. The law mandated a referendum on the November 2018 ballot which, if it had passed, would have amended the Gainesville City Charter and turned control of GRU over to an autonomous authority whose members would have been appointed by the city commission. Once appointed, the city commission would have had no further control of that authority’s actions. Voters rejected the referendum by nearly 60%.

During the 2023 legislative session, using a process that bypassed voters, our representative introduced, the legislature passed, and the governor signed House Bill 1645.

This new law amended the Gainesville city charter to create an autonomous GRU Authority of five members appointed by the governor to oversee Gainesville’s public utility. The change split city governance into two parts - general government run by elected city officials and GRU run by the Authority that answers only to the governor. At no point did local citizens or officials have meaningful input on this change to the city’s charter.

Governor DeSantis appointed the first five members starting in October 2023. One of them resigned within 24 hours and the remaining four resigned in April 2024 due to a legal settlement recognizing that their appointments failed to meet the requirements of the law.

The governor appointed five new members who promptly fired GRU’s general manager and appointed the Authority chair as GRU general manager. The Authority members also reduced the general services contribution from the utility to general government, from the budgeted $15.3 million, to $8.5 million dollars per year for the next ten years.

In response, citizens petitioned the city commission to give them a choice to restore local public control of GRU by placing a referendum on the November 2024 ballot. The commission voted unanimously to direct the city clerk to place a referendum on November’s general election ballot. This act allowed voters to decide what is best for their city (principle of democracy) and restored home rule.

Citizens can vote Yes if they want control of GRU to return to our local elected officials, or No if they want GRU control to remain with the governor-appointed Authority.

League of Women Voters of Alachua County Recommendation: Vote YES

A YES vote:

• Eliminates the GRU Authority and restores the ability of our city to manage the utility we own (principle of Home Rule.)
• Future changes to GRU governance will not require state legislative action. Instead, changes will be handled by local ordinances voted on by our elected officials. Gainesville’s residents will have influence over the mission and management of their locally owned utility through citizen action and the voting booth.
• Restores a single unified governing body for all Gainesville city departments, eliminating the need for duplication of attorneys, auditors and other professional contracts and their associated costs.
• Allows GRU policies and priorities to be determined by city ordinances that reflect community priorities regarding social, environmental and other goals.
• The annual general services contribution (GSC), a designated portion of GRU profits that provides substantial support for city services, could revert to the previous debt reduction plan that preserves essential governmental services and restores the predictability and stability necessary for long-term budget planning.

A NO vote means:

• All decisions regarding GRU will remain with the governor-appointed Authority with powers determined by the state bill, HB-1645, giving the Authority sole power to govern, manage, operate and control all GRU systems: electricity, water, wastewater, gas and broadband.
• The Authority is accountable only to the governor. Citizens and elected officials will have no power to influence Authority decisions, and any future changes to GRU’s governance will require state legislation or legal action.
• The Authority will make all decisions regarding our electricity, water and wastewater, utility rates, use of GRU revenue, contributions to the general services contribution, over 800 local jobs, and all other GRU budget and management matters, with no accountability, checks and balances, or input from our elected officials.
• The Authority sets its own policies without regard to local ordinances set by general government and will continue to be prevented, by law, from considering any “social, political, or ideological interests” like procurement preferences for veterans or small business, living wages, low-income assistance, energy or water conservation measures, or renewable energy benefits to the environment.
• The annual general services contribution from GRU to the city, which has historically provided a significant contribution to Gainesville’s operating budget, will be subject to the sole discretion of the Authority. Property taxes may rise again to compensate for loss of contributions from GRU.