GRU Authority holds off on vote over $15.3 million transfer, wants to discuss with city
The Gainesville Regional Utilities Authority board voted unanimously Wednesday night to meet with the city commission to discuss the potential impacts of dramatically reducing the amount of money given from the utility to the general government budget each year.
The authority was expected to make a decision Wednesday about the government services contribution (GSC) — a pot of money given to the city’s general budget from the utility each year. The GSC was decreased by 55.4% for fiscal year 2024, a reduction of $19 million, in order to help pay off some of the $315 million of GRU debt. The change forced the city to raise taxes, cut over 100 jobs and increase utility rates for next year.
A presentation shown to the board members at the meeting primarily focused on two recommendations from GRU staff: Cut the contribution in half, or slash it entirely.
Staff said the savings, up to $15.3 million for the utility, could be used to pay off some debt and offer relief to customers. Critics of the recommendation to cut the GSC, including city commissioners, the city manager and local groups such as the Alachua County Labor Coalition, have warned that losing the GSC could force the city to make deep cuts to essential services.
City Manager Cynthia Curry said in a December memo that the baseline cuts will be applied evenly across all departments of the city. This could mean dramatic cuts in numerous city departments, inevitably leading to more layoffs in these areas. The memo also states that outside agency funding will be reduced to zero. This indicates that outside entities such as GRACE Marketplace, the Early Learning Coalition, the Hippodrome and many more Gainesville cultural staples may completely lose funding.
Curry spoke at Thursday’s meeting, urging the GRU Authority members to meet with commissioners on the subject and to say that cutting such a significant source of revenue for the city in the middle of a fiscal year would make things extremely difficult for city staff and ultimately residents.
More: Local labor group warns GRU Authority action could force city to cut essential services
“I’m not saying that to pose a threat or for anybody to think that it is putting you in a difficult position as an authority you have your own situation to deal with and I understand this,” Curry said. “But I would appreciate if we could have conversation back and forth since we do rely on each other.”
The motion passed unanimously to allow GRU Authority Chair Craig Carter and General Manager Tony Cunningham to meet with city officials to propose a reduction in the GSC.
More: Environmental group suggests GRU could do more to reduce costs long term
The authority also voted to stop paying the city for services the utility no longer uses since it got a new governing board. This includes services from the city clerk, the equal opportunity office, the city auditor and more. The vote will save the utility $1.4 million this year, and force the city to grapple with the new shortfall in its budget.
“We're here for a purpose and we're here for a reason… if there's no electricity, who's going to get blamed? We are all of us up here,” said Vice Chair James Coats. “Someone's got to rip the Band-Aid off in this thing.”
This article originally appeared on The Gainesville Sun: GRU Authority to meet with city before vote on $15.3 million transfer
