Correction appended: A previous version of this story incorrectly stated Judge George M. Wright's judicial position.
A state circuit judge ruled Wednesday that the Gainesville Regional Utilities Authority Board cannot be dissolved until the outcome of its lawsuit against the city, even if voters approve the referendum on the November ballot.
Eighth Judicial Circuit Judge George M. Wright did not rule on whether the referendum was legal, which will ultimately determine whether the votes can be nullified.
Wright said he will rule on the referendum’s legality after the November elections.
In June 2024, the Gainesville City Commission voted unanimously to place a referendum on the November ballot that asks voters to choose whether the GRU Authority Board or the city commission should control the utility company.
The authority board sued the city, arguing it could not overturn state law. The city argued, in turn, that chapter 2023-348, also known as HB1645, only changed the charter, which voters and the city can amend.
Wright’s decision keeps the status quo, which Eric Lawson, chair of the GRU authority board, said helps the board and GRU continue to reduce debt and manage rates.
Another board member, Robert “Chip” Skinner, said he feels confident about their case.
“I think we have a very strong case and for the simple reason that we were created by an act of the Florida legislature, which trumps city policies, city ordinances just like the judge read it back to us at the end,” said Skinner.
Daniel Michael Nee, the city attorney, declined to comment.
Wright explained that four criteria must be met for an injunction: the likelihood of success on the merits, if irreparable harm would be caused, if it serves the public’s interest, and, finally, if not granting the injunction would cause more harm to the plaintiff than the harm it would cause the defendant if the injunction is granted.
Wright ruled that the authority board has the right to exist by statute, irreparable harm would be caused to the the utility company if the bond rating was lowered, it was in the interest of the public to have a stable utility and reasoned that the harm to the authority board if the injunction was not granted was greater than the harm to the city if it was.
The power struggle began after the Florida legislature passed a law that amended Gainesville’s city charter and created the Gainesville Regional Utilities Authority, removing control from the Gainesville City Commission.
“The structure as it is now with a state takeover of utility is unlike anywhere else in the United States of America,” said Bryan Eastman, a Gainesville city commissioner. “There have been so many changes, so many things that are outside of the norm for a utility. Having a municipal utility that is owned and operated by the city, accountable to the people of the city is the standard industry practice.”
The legal battle between the city and the GRU authority will resume at a two-day hearing scheduled for December.