Category: Athens

((EDITOR’S NOTE: For background on this issue and a list of links to previous stories, click here. ))

A state appeals court this week ordered the Athens Municipal Water Authority (AMWA) and City of Athens to mediation in their lawsuit.

The 12th Court of Appeals order defines mediation as “a mandatory, non-binding settlement conference conducted with the assistance of a mediator.”

The Court of Appeals got the case after attorneys for the City of Athens appealed a decision on jurisdiction by Visiting Judge Joe Clayton at a Jan. 13 hearing.

The Court appointed Andy Tindel of Tyler as the mediator in the case, but the two sides have the option of agreeing on a different mediator.

Officials from both AMWA and the City have said they are happy with the court-ordered mediation.

When asked to comment on the mediation, AMWA Executive Director Wylie Pirkle said, “We are very glad and hopeful that we will get the chance to resolve this and begin a new era of cooperation for the citizens of Athens.”

Athens Mayor Jerry Don Vaught said mediation “is what we wanted from the very beginning,” pointing out that the City was making arrangements for mediation when AMWA filed its lawsuit.

((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

((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 Continue reading “Letter from Athens Mayor Jerry Don Vaught”