The Gainesville Regional Utilities authority board unanimously passed a resolution Wednesday clarifying that the board’s CEO and Chief Financial Officer can negotiate and carry out financial arrangements.
Now, the resolution is at the discretion of the Gainesville City Commission. If rejected, the board warned utility rates may increase.
“If you think the city commission is going to do the right thing, I think you’re mistaken,” Gainesville resident Jim Konis said during public comment.
Financial transactions
The CEO and CFO hold full authority to control its bond issues as long as they get board approval. So, this resolution is mostly symbolic, David Warm, GRU’s communications director, wrote in an email to The Alligator.
Despite the authority and city commission’s recent disputes, Warm wrote, GRU is “still part of the city,” and investors who issue bonds are looking for a unified front to create more stability and, in turn, better interest rates.
The city and the authority board are in an ongoing legal battle over a referendum in which residents voted to return control of local utilities to the city commission. The suit, filed by the authority, claims an overreach of power.
The case reached an appellate court Feb. 10, though a decision is still pending.
GRU issues bonds to pay for property improvements to its facility, as well as to pay and restructure debt, Warm added.
“If the commission doesn’t approve the resolution and we have to find another way to borrow money, it will cost a lot more, and we will have to pass those costs along to the customers,” Warm wrote.
If the city doesn’t accept the resolution, CEO Ed Bielarski wrote in a press release Wednesday, the authority would be prevented from re-issuing millions of dollars of debt, and utility rates would have to be increased to generate revenue.
In 2023, GRU’s debt totaled about $1.7 billion, and since its establishment the same year, the authority board has prioritized debt reduction. During fiscal year 2026, the authority plans to put $132 million toward reducing debt.
“This is not the time to play politics,” Bielarski said in the press release. “The commission isn’t doing GRU a favor by approving the resolution, it’s doing its job by protecting more than 100,000 GRU customers in the manner required by law.”
The city will review the resolution at its commission meeting Thursday, and the agenda recommends the commission to adopt it.
More from the meeting
An additional resolution to fund city wastewater system improvements to better storm resilience passed unanimously on Wednesday.
The U.S. Congress created the Supplemental Appropriation for Hurricanes Helene and Milton and Hawai’i Wildfires grant in 2024. It provides $3 billion in funding to assist water facilities impacted by hurricanes Helene and Milton or the Hawaii wildfires by encouraging capital improvements.
The GRU authority is eligible to receive over $19 million from the 2024 appropriation for improvements to its wastewater collection and treatment systems. The proposed projects include a betterment of wastewater lift stations and backup generation for wastewater treatment centers, according to the resolution.
Now, the GRU must submit a loan request to the Florida Department of Environmental Protection to access the available SAHM funding. It must also develop a plan detailing proposed improvements for FDEP approval.
The funding will be given full principle forgiving and will not require city repayment.
Contact Maria Arruda at marruda@alligator.org. Follow her on X at @mariazalfarruda.
Maria Arruda is a second-year journalism and political science student, currently working as the City Commission reporter for The Alligator. Previously, she reported on Student Government under The Alligator's University desk. She enjoys running, reading and going to movie theaters!
