((EDITOR’S NOTE: For background on this issue and a list of links to previous stories, click here.))
Dear Athens Residents,
I want to set the record straight concerning the City of Athens’ relationship with the Athens Municipal Water Authority (“AMWA”). You may have heard things or read articles or even advertisements paid for by AMWA’s own attorneys recently. Here are the facts:
- Eliminating AMWA eliminates a tax. AMWA is a taxing entity. It collects property taxes separate and independent from the City of Athens. Eliminating AMWA will eliminate an unnecessary taxing entity and streamline our local government in the most efficient manner possible for the taxpayers and residents of Athens.
- The City determined that the services and functions provided by AMWA can be more efficiently provided by the City staff. The City staff currently operates, maintains, and supervises repairs at the Lake Athens dam and reservoir, the water treatment plant, and other facilities necessary to provide water to the residents of Athens.
- The City is dedicated to providing all services to Athens in the most efficient manner possible. After re-evaluating the City’s relationship with AMWA the Council determined that the tax revenues levied and collected by AMWA are an unnecessary tax burden on Athens residents since the City performs all operations and maintenance of the AMWA facilities.
- As stated in the dissolution ordinance, the City Council determined that the dissolution of the Athens Municipal Water Authority would be in the best interests of Athens and its residents. This was for many reasons, some of which are expressed here. The vote to dissolve AMWA was done with a heavy and collective heart, but knowing it was best for our great town.
- AMWA currently maintains approximately $4,800,000.00 in bank accounts and certificates of deposit, in addition to owning several pieces of property, including the dam at Lake Athens. AMWA itself has stated its assets exceed $8,000,000.00.
- If AMWA is dissolved, all of these assets vest to the City. AMWA has stated that this money would be placed in the general operating fund of the City to fund City government and/or to construct additional City buildings. This is wrong on all levels. If AMWA is dissolved, its assets would be placed in the City’s utility fund for the sole purpose of preserving and protecting the City’s water supply for future generations in Athens.
- The City will continue to study future water needs and will continue development of the water well farm and bring wells on line when needed to serve Athens. AMWA has not told you what they really want to do is sell water from the wells developed with public funds to customers other than the residents of Athens and then charge Athens additional fees for any water needed from these wells. Eliminating AMWA eliminates this threat and preserves our water for generations to come.
- The City is in excellent fiscal condition. Our finances are audited each year by an independent accounting firm and they have repeatedly rated the City’s finances as excellent, including last year and routinely commend our City Staff for their outstanding management of public finances.
- AMWA was created to sell bonds so the City could construct Lake Athens and the water treatment plant, along with other functions. Those bonds matured long ago and AMWA currently has no debt. AMWA has served its purpose. It appears AMWA intends to utilize facilities paid for by the residents of Athens to sell our most precious asset (water) to other customers other than Athens and still impose higher fees for Athenians. That isn’t right for Athens.
- This is all public money and that’s a shame. AMWA’s Executive Director has stated that no taxpayer funds are being used in the lawsuit but he did not state that AMWA is utilizing public funds for legal counsel and the related expenses with this lawsuit. AMWA has two sources of income, ad valorem taxes and revenue and these are both public funds. Public funds should be utilized for the public good; a lawsuit is never in the best interest of the public.
- The City proposed that a third party mediator be retained to conserve the time and expense of a lawsuit. AMWA unfortunately elected to seek litigation instead of this far cheaper alternative first. AMWA’s own Executive Director stated that he thought litigation would be faster and cheaper than anything else. Resolving disputes at the courthouse is never fast and certainly not cheap, especially when two public entities are involved.
- About that lawsuit. AMWA has asserted many allegations, all of which the City vehemently disputes. AMWA’s publicly elected Board of Directors and its own Executive Director unanimously approved all expenses AMWA has paid for decades. This includes its current Executive Director who is not “new,” but has held his position since 2010 and has approved all of the expenses AMWA now seeks in the lawsuit. The City is baffled that AMWA would now claim the City owes AMWA “approximately $4,000,000.00.”
- Ask yourself this question, because I certainly have: Why would a public entity with over $8,000,000.00 in public assets sue another public entity for $4,000,000.00 more when they approved each and every expense they now seek in the lawsuit?
- AMWA has made many outlandish accusations against City Staff. The City Council works with the loyal and dedicated City Staff on a daily basis and they have the complete trust and confidence of the entire City Council. Ironically, you should know they have AMWA’s too. Despite AMWA’s allegations in the lawsuit, AMWA has repeatedly asked that City Staff continue preparing AMWA’s financial documents, meeting minutes, and every other task just like they always have.
- The action to dissolve AMWA was pursuant to a statute enacted by the Texas Legislature many years ago that permits a city to dissolve a local water authority if the governing body of the city determines it would be in the best interests of the city to dissolve the water authority. The City Council has now voted unanimously on three separate occasions to dissolve AMWA, and the City Council firmly believes this is best for Athens.
- Pursuant to the statute, the City Council reconsidered the dissolution ordinance and after significant consideration again voted 5-0 to dissolve AMWA. This issue now goes to the public for a vote on the May 10, 2014 ballot pursuant to the statute enacted by the Texas Legislature many years ago. I encourage you to learn about this important issue and to make your voice heard. I love Athens and appreciate the opportunity to serve this great city. I know that my colleagues on City Council and the City Staff do too.
I want what is best for Athens. I encourage you to make your voice heard now, on May 10, and in the future.
Jerry Don Vaught, Mayor, City of Athens, Texas