Published July 31, 2018
On November 6 Gainesville citizens must choose how the Gainesville Regional Utility (GRU) will be controlled. HB 759, a law passed by the Florida legislature, requires a referendum asking whether the City's Charter should be amended to create an “Authority” as the governing board of GRU. A "YES" vote on the referendum will transfer control of GRU from the Gainesville City Commission to this autonomous Authority. A "NO" vote will preserve the current governance.
The League of Women Voters of Alachua County, in accordance with the position of the Florida League, has repeatedly opposed efforts such as this by the Florida legislature to undercut the home rule of local governments. In essence, this referendum is asking Gainesville residents to undermine the authority of their local government by taking control of the City's publicly-owned local utility out of its hands. Although the five-member Authority that the referendum would create would be a unit of City government, it would not be subject to the operational control of the elected City Commission. It would be subject to rules established by the State legislature.
Some Gainesville residents and GRU customers hope that passage of the referendum will result in lower utility rates, but the referendum and HB 759 are silent on the issue of rates. There is no guarantee that the Authority would lower utility rates or make better decisions. Currently, GRU is governed by the City Commission and administered by a general utility manager and a team of utility professionals. A Utility Advisory Board (UAB), which includes energy and utility experts, advises the Commission on policy and governance decisions. The UAB was established in 2016, and this year the City Commission determined that it would be more effective with a slightly different structure. This kind of change by the City Commission would be impossible under the Authority structure. The UAB needs time to prove that it can be an effective advisor to the City.
Presently, voters who are dissatisfied with utility decisions can complain to their elected Mayor and City Commissioners and can vote to replace those elected officials if their concerns are not addressed. If the referendum passes, Gainesville citizens would have no recourse if they did not approve of Authority actions since Authority members would not be accountable to City voters. Citizens would not have the option of voting Authority members out of office.
Passage of the referendum would have long-term impacts that would not be subject to change through City elections or local action. The City would lose control over the amount of money that is transferred to its general fund, which constitutes more than a third of the City's budget. This could make it difficult for the City to do long term budget and environmental planning. The City also would no longer be able to hire or fire the General Manager of GRU or make salary decisions as to GRU employees, although they are City employees. The City would have no say in Authority decisions regarding purchase and sale of assets, issuance of revenue bonds for financing or refinancing utility system projects, or decisions that might have adverse environmental impacts. Consequently, the City could find itself subject to liability or debt as a result of Authority decisions over which the City Commission had no control.
Changes in the governance of GRU which can now be made locally will require state legislation or court action if the referendum passes. Gainesville citizens will not be able to make changes or modifications easily in the future.
A League of Women Voters action team carefully studied HB 759 and the pros and cons of the GRU governance referendum. Based upon the team’s unanimous recommendation and the state League’s position on home rule, the Alachua County League of Women Voters recommends a "NO" vote on the referendum.
