Don’t let split vote take BVU from city

Bristol Virginia City Council should not give BVU away to become an independent authority. The citizen ratepayers of Bristol own and paid for this asset and won’t be properly compensated. Ownership is lost forever with an authority.
BVU’s reasons for separating are relieving debt from the city and running the utility “more like a business.” BVU’s revenue bond debt does not impact the city’s borrowing capacity as explained by a Davenport & Company representative at the last City Council meeting. The extraordinary success and status of BVU proves that they are run like a business now.
BVU’s perceived advantage to separation is avoiding accountability to City Council, however the city is hurt in the two areas of finance and economic development.
The net book value of BVU is approximately $84.4 million. The net payment BVU proposes are annual payments of $100,000 for 10 years and $100,000 per year from OptiNet beginning in 2013, which could increase. This is not a fair trade especially considering the electric system has a market value of one-and-a-half to two-and-a-half times its book value according to two utility analysts. An asset like this gives the city a safety net of north of $100 million to be used if times get tough.
Regarding economic development, consider that Bristol is an independent city and cannot annex into Washington County. With a nearby development opportunity, Bristol can come to the table with sewer capacity that is not available in the county. A revenue sharing deal facilitating the development could be struck benefiting both political subdivisions. With an authority, Bristol is not a player.
City Council favors the authority 3 to 2. This division signals a divided community. Three members are ready to give away the citizens most valuable asset.  Unless we citizens can convince one of the three to change his mind, then BVU ownership is lost forever.
With substantial reasons to keep BVU and no reason to let it go, call your city councilmen today and ask him to vote no to the proposal to turn BVU into an independent authority.

Frank Goodpasture III
Bristol, Va.