City board frowns on use of utility funding

Debate over funding


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  • | 9:04 a.m. April 16, 2015
Photo by: Tim Freed - Utility funds are being used to fund outside organizations, raising concerns by board members.
Photo by: Tim Freed - Utility funds are being used to fund outside organizations, raising concerns by board members.
  • Winter Park - Maitland Observer
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Winter Park’s electric, sewer and water funds are now footing some of the bill for donations to outside organizations, to the dismay of several utilities advisory board members.

The city’s utilities advisory board questioned the city’s approach of tapping utility budgets during their meeting on Tuesday. Organizational funding previously came entirely from the general fund, but was chosen to be split with utility funds when the current annual budget was approved in November.

Many utilities advisory board members said they weren’t aware of the change.

“Don’t we have other things we need to do here, like transformer repairs?” Board Chair Katherine Johnson said. “Nobody consulted us.”

Of the $257,000 the city will contribute to outside organizations, $171,000 – or roughly 66 percent – will come from the electric, water and sewer funds.

Organizations the city supports include Winter Park Day Nursery, United Arts, the Winter Park Historical Association, Mead Garden and, most recently, the Dr. Phillips Performing Arts Center.

Board member David Smith said funding Orlando’s Dr. Phillips Performing Arts Center, which will receive $100,000 from the city each year for 10 years, makes the least sense.

“I find it hard to believe that [the city] thought ‘Gee, it would be a great idea to donate money to Dr. Phillips,’” Smith said.

“If it was some small typical amount, that’s OK,” board member John Reker said. “But for the amount that we’ve committed to over 10 years….”

The $171,000 to five organizations may not be a lot of money in the grand scheme of the city budget, Johnson said, but it’s still very important.

“It is, in fact, [important] when we’re trying to have sufficient reserves for all these wonderful things we do to provide service to our rate payers,” she said.

The board should be first thinking of the residents, member Linda Lindsey said.

“I think our discussion should be on what would be an appropriate amount to come from the rate payers of our utilities for these purposes, not on the organizations to which it’s given,” Lindsey said.

Johnson added that direct charges from the utility budget to fund other causes can make it difficult for the advisory board to make decisions.

“It’s got to be hard for you guys to plan if you think you’re going to get this amount and then all the sudden it’s something less,” Johnson said.

The board agreed to begin crafting a transparency policy urging the City Commission to consult them before making decisions effecting utility budgets and to consider the general fund first and foremost with organizational funding.

 

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