Writer Supports Plan To Turn Bristol Virginia Utilities Into An Authority
I am in support of the proposal to turn Bristol Virginia Utilities into an authority. I think this is in the best interest of the city of Bristol, Va. The city is in dire financial circumstances, in part because of the economic downturn and the state not funding local government as it has in the past. The city’s debt is the major financial difficulty the city must overcome in the next few years.
I worry about the aging water and sewer system we have in Bristol. I have heard that EPA may start making cities like Bristol borrow the money and repair or replace these old lines. No one knows how many millions of dollars that would cost the city. I do not think the city can afford to borrow that kind of money, and I don’t think the citizens of Bristol can afford the taxes that would have to be passed to pay that kind of money back. That should be an obligation of the utility and will be if they are no longer part of the city.
BVU has customers all over the county, and I don’t think the citizens of Bristol should have to carry all of that debt alone anymore.
Jerry Hyatt
Bristol, Va.
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once they issue stock they can be taken over.
The city’s “dire financial circumstances” would not be avoided or enhanced by giving control over this tremendous asset over to a new service authority…only magnified.
What other asset does Bristol, Va have that could be considered a growing asset…our tax base? If there were something wrong with this arrangement, why would BTES immulate our model? Could we not accomplish the same goals by simply broadening the BVU mandate instead of relinquishing control?
The debt service costs of any future infrastructure borrowing needs would still be borne directly by US the rate payers.
The best case scenario for the City and the rate payers is to retain control of BVU and utilize it’s ability to grow, produce income and cash flow to address the needs of the citizens who retain reprsentative control over the BVU’s activities.
BVU’s ability to assume the entity risk, service the debt, and send an annual pitance back to us for taking the initial risk is the very reason this proposal is absurd for us to even consider.
Why should we get rid of the Albatross turned Golden Goose now? The primary reason I can ascertain is to allow salary, expense and ultimately rate levels to float unchecked to the level of alternative providers…which is why we got into the business intially…to avoid those issues.
Only under the following terms should we even give a moments consideration to this matter:
Open Ended Profit Sharing Arrangement
Salary/Administrative Expense Control
Reversion of Control Clause every 5-10 years like our utility contracts.
City Council Appointee List approved by referendum..with TERM LIMITS.
Home Territory Rate Increases only by referendum
BVU wants to separate purely so they can flex their muscle “as a utility” to take rates through the roof.
If permitted, they’ll be just like TVA, AEP and all the others shoving rate increases down our throats.
ASK- Can/ Will BVU assure us they are capable of providing rate reductions as a separate entity? What will Directors salaries be as a separate entity?
If not, whose benefits are they serving- ours, or theirs?
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