((Editor’s Note: The following is a letter from Athens Municipal Water Authority Executive Director Wylie Pirkle in rebuttal to a letter published last week from Athens Mayor Jerry Don Vaught. You can find the mayor’s letter, as well as links to other stories about this issue here.))
DROWNING IN LOCAL POLITICS
The Athens Municipal Water Authority (“AMWA”) has served the citizens of Athens (“City”) for over 55 years. During that time, it has been the steward of Lake Athens and current and future water resources. This article addresses several concerns mentioned in a January 24 message from the mayor.
The City of Athens maintains they are providing their services to the City in the most efficient manner possible. Over the last ten years, the city tax has doubled, going from .319 per $100 to .630 per $100, while AMWA’s has stayed the same at .125 per $100.
AMWA’s elected board members are successful businessmen, two of who are in the water business. Their business expertise has enabled AMWA to save over $8 million in assets that are currently earmarked to maintain current and develop future water sources for Athens. During the last two years, AMWA developed a water-well farm consisting of nine wells capable of producing three times the yield currently taken from Lake Athens. We estimate that within the next 10 years, the consumptive needs of Athens will surpass the safe yield of Lake Athens, and well water will be required to keep up with the needs of the community.
The members of AMWA’s board have discussed selling water to other local entities. However, Athens is our primary customer, and it will always get the water it needs before any alternative is considered. Our board has discussed bringing in industries that are in need of a consistent water source to enhance our Economic Development opportunities and the creation of jobs and additional taxes. Our thoughts on this alternative are to generate additional revenue, therefore, giving us an opportunity to reduce your taxes. After all, AMWA belongs to you.
Last year AMWA spent more than $1 million completing a well located at the water treatment plant that is capable of producing 1 million gallons per day. The well, which was paid for by AMWA, was tied to the water treatment plant and given at no cost to the City. The billing discrepancy dispute between the City and AMWA began when bills to maintain this well, that should have been the City’s responsibility, were presented to the board.
The mayor mentioned that the City would “continue development of the water-well farm and bring wells on-line when needed to serve Athens.” Since AMWA brought the water-well farm idea to Athens, we are pleased that the City recognizes our good work.
I invite you to review the findings of an independent PhD who analyzed the financial situation of the City and draw your own conclusion of what would happen to the City’s finances if they absorbed AMWA. If AMWA is absorbed by the City, the modest tax AMWA charges would be eliminated. However, after depleting AMWA’s $8 million in assets, how will the City pay for the necessary water services and improvements? Will it be necessary to increase taxes or raise water rates or both? After you read the findings of Dr. Mark Vargus, you will understand the answers to these questions.
((EDITOR’S NOTE: That document by Dr. Vargus is filed in the 173rd District Court as part of the AMWA v. City of Athens lawsuit.))
AMWA spent over two months trying to work out its differences with the City without coming to any resolution. We asked for a third party, an unbiased judge, to define the parameters of AMWA’s contract with the City in regards to the allocation of monetary responsibility. The City’s answer to being questioned was to abolish the water authority. Problem solved.
AMWA has served Athens for the past 55 years with sound fiscal and business expertise. To further support their value to the City, AMWA was granted a 20-year renewal agreement with the City in 2011. It is surprising that the City has suddenly come to the conclusion AMWA is “redundant.” AMWA was created for the citizens to protect and secure our water resources. Our performance speaks for itself. If you would like a copy of the agreement between AMWA and the City, please contact me by E-Mail at [email protected] and I will send you a copy for your review.
I firmly believe the citizens of Athens will wade through the local politics and make the right decision to vote to keep AMWA and protect their water resources.
Wylie Pirkle, Executive Director
Athens Municipal Water Authority
I read with interest the AMWA response to Mayor Vaught’s letter to the Citizens of Athens and first would like to commend the Mayor for communicating directly with the Citizens instead of using a third party. It is too bad we have heard nothing directly from the “successful business men” elected by the Citizens to serve on the AMWA Board.
It is a fact that over the last ten years the tax rate for the City of Athens has doubled. The increase was neccessary to maintain the services we expect from the City and includes Police, Fire, Street Maintenance, and Utilities. Unlike the AMWA we expect the City to maintain an acceptable level of service and our elected officials have done a great job of balancing the service required with the desire to keep taxes as low as possible. The only service AMWA provides is to provide water to the Citizens of Athens. With the City providing all of the overhead including operation of the Water Treatment Plant and maintaining the records and finiancial requirements of AMWA it is easy to understand why there has been no requirement to increase the AMWA tax rate. In fact, if they have been able to build over $8 million in assets it might even suggest that they could have lowered the AMWA tax rate.
The AMWA has completed the development of the water-well farm consisting of nine wells. One of those wells has been completed and has been tied to the water treatment plant. AMWA states this well was developed at no cost to the City. The contract to provide electricity to this well was negotiated with an Electricity provider by AMWA without input or notification to the City of Athens. When the bill was received AMWA then questioned if the City should be responsible for payment. You would think the “successfull businessmen” who are elected to serve on the AMWA Board would understand the City would first need to be notified of the additional expenditure when they are preparing the Budget so funds would be available for payment. They should also understand that contracts entered into with a third party (the electric company) should be neogotiated by the party responsible for the payment.
The City of Athens has an annual audit by a local CPA firm of high integerity. This firm continues to commend the Mayor, City Council, and Staff for providing the Citizens with the dedication necessary to provide services and increase reserve funds that place the City on Athens in a strong financial situation.
The AMWA was granted a renewal of the contract in July 2011. The Executive Director, Wylie Pirkle, negotiated that renewal. At that time Mr. Pirkle did not find any areas that needed to be discussed or changed. Only two years later AMWA finds it neccessary to refuse to mediate changes in the contract and sue the City of Athens. Could it be possible there are personnal agendas that have become more important than serving the Citizens?
The AMWA was created for the sole purpose on providing water to the Citizens of Athens. AMWA has served that purpose and with the new water-well farm that will provide water for years to come their purpose has been served. The law suite filed by AMWA has already cost the tax payers thousands of dollars on both sides. It may be time to recognize that AMWA is a redundant entity and the Tax Payers can eliminate AMWA and put some of the tax money back in our pocket instead of the lawyers pocket.
Just asking if the above letter is written by the husband of Athens City Manager Pam Burton ?
It was written by the AMWA Executive Director.