So, where is that “plan” for closing the city’s budget gap?

BY MARK SCHUMANN

Mayor Craig Fletcher
Mayor Craig Fletcher

In answer to a question posed at a candidate forum last fall, Vero Beach City Councilman Craig Fletcher said a plan exists for closing the budget gap that will result from the sale of its electric system.

Depending on what opportunities the city has for restructuring its pension plan, the general fund budget shortfall is projected to be between $1.5 million and $3 million.

About the many questions regarding what the final terms of the sales agreement with Florida Power & Light will ultimately be, or about the costs to the city of a delayed closing, or about how the sale will impact city taxes and services, Fletcher remains curiously silent.

Councilwoman Pilar Turner
Councilwoman Pilar Turner

If Fletcher has a “plan,” for balancing the city’s budget following the sale of the electric system, he is certainly keeping his cards close to his chest.  The question is, why?  What is there to hide?

Among his many puzzling flip-flops, Fletcher has taken no less that three different positions on a referendum.  First, he opposed any referendum on the sale.  Then, in advance of the November 6 election, he conveniently, though reluctantly supported the concept of putting the deal before voters once the sales agreements with FPL and the power purchase agreements with the Orlando Utilities Commission are finalized – probably some time in 2014, he said.

Councilwoman Tracy Carroll
Councilwoman Tracy Carroll

Fletcher now argues that the referendum he once insisted was unnecessary must be held on March 12, in order, he says, to maintain “momentum” for the sale.  Never mind that, in the terms of the city’s transactional attorney, “arduous” negotiations lie ahead.

As the city works out a plan, assuming one can be found, for resolving its obligations to the Florida Municipal Power Agency, the proposed purchase and sale agreement will undoubtedly change substantively.  Under the circumstances, it is disingenuous at best to ask voters to approve a sale of Vero Electric, “…under terms substantially similar to the asset and sale agreement between the City and FPL.”

If there ever was an example of public officials attempting to pull the wool over the eyes of a trusting, unsuspecting public, this is it.

Because Fletcher has the support of fellow Council members Tracy Carroll and Pilar Turner, the proposed purchase and sale agreement, partial and tentative though it may be, will almost surely be put before voters March 12.  All three of these Council members seem equally determined to hold a binding referendum before the agreement is fully negotiated, leaving voters to cast their ballots virtually blindfolded.

IV.012212shirt off back cartoon.jpgFor Carroll, Fletcher and Turner, the priority is clearly not about selling the electric system under the best terms possible for the city.  If their motivation for divesting the city of its electric system was ever about doing what is best for the city and its taxpayers, the Council troika has long sense abandoned this high ground. Their only priority now seems to be to hand the system over to FPL on whatever terms the utility giant dictates.  And make no mistake about it.  FPL is calling the shots, and will likely be spending tens of thousands of dollar to sway the outcome of the referendum.

That these three Council members, elected to be stewards of the city, would negotiate a deal so disadvantageous raises questions about their motivations, if not their competence as negotiators.

For Carroll, Fletcher and Turner, their next target, once they get the city of the electric business, will almost surely be to hand a profitable and price-competitive water and sewer system over to the county for a small fraction of its value.

Having denuded the city of both of its valuable utility enterprises, they will step back and wait for the inevitable financial collapse of the city, declaring victory in their fight against what they or their supporters consider to be an unnecessary level government, namely the City of Vero Beach.

2 comments

  1. This affair looks like the “machine politics” of the 1930s. Beyond reasonable doubt, there are violations of their oath of office. Beyond reasonable doubt, there are ulterior motives, financial or political.

  2. It is becoming more and more apparent that the things that Mr. DeMattia so clearly states are exactly right. Thank you Mr. DeMattia.

    Why not just show us how this sale will benefit our City and what will the cost be to the City residents? If we knew that, we would be able to make an informed decision. If selling is a good idea, just show us what makes it a good idea. Reduced electric rates is not a convincing argument without knowing how that reduction in City funds will effect our property taxes, our city services and how permanent those reduced rates are, for starters.

    How do we cover the loss of income from the sale, we are the losers in this deal. Do the math! If our services are severely cut, again we are the losers.
    Are the pension funds in need of an influx of money? Depends who you talk to, what answer you get. Apparently this too is being misused for propaganda. Yes I know it was in the PJ.

    We need answers and we are not getting them. One must wonder why.

    Interestingly We have gotten two glossy expensive mailings in the past three days trying to convince us to vote yes. One is direct from FP&L and the other from a PAC run from a County group not interested in what is good for the city, but what they think is good for them. Are you SURPRISED? That’s where the money is.

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