February 26, 2007
WHY IS THE MLGW PILING UP YOUR MONEY IN VIOLATION OF STATE LAW REQUIRING THEM TO OPERATE AS A NON PROFIT?
It comes as no surprise to any taxpayers in Memphis and Shelby County that the MLGW has given a special deal to Edmund Ford. This is serious and those responsible should resign. However this is a small amount of money compared to the mountain of cash and cash equivalents that the MLGW is sitting on and continues to pile up each year out of the pockets of ratepayers who do pay their bills.
Consider that the MLGW only publishes their financial statements nine to ten months after they close their financial year on December 31. Looking at the 2004 and 2005 statements, the unrestricted cash reserves have increased from $177 million to $230 million. They say that they like to keep on hand 30 days of expenses, which is about $94 million so why do they need the extra $136 million? Could it have anything to do with financing the new proposed football stadium that the Mayor proposes? Actually the current cash after more than 13 months from the last published financial statement is probably over $270 million as they continue to pile up cash at the expense of the rate payers.
Tennessee law 7-34-115 (Operation of Utility Systems- Disposition of Revenues) states that “User charges, rates and fees shall reflect the actual cost of providing the services rendered. No public works shall operate for gain or profit or as a source of revenue for a government entity, but shall operate for the use and benefit of the consumers served by such public works and for the improvement of the health and safety of the inhabitants of the area served.”
Furthermore the law states that “Any surplus remaining, after establishment of proper reserves, if any, shall be devoted solely to the reduction of rates.”
The City Council should not only investigate the Edmund Ford affair but should investigate why the MLGW continues to pile up profits when it is supposed to operate as close to zero profit as is possible and why it does not return the huge excess cash to its customers in reduction of rates. I have attached the figures from the 2004 and 2005 statements.
Click here to see how the MLGW is piling up profits each year instead of operating as a non profit as required by state law
WHY IS THE MLGW PILING UP YOUR MONEY IN VIOLATION OF STATE LAW REQUIRING THEM TO OPERATE AS A NON PROFIT?
It comes as no surprise to any taxpayers in Memphis and Shelby County that the MLGW has given a special deal to Edmund Ford. This is serious and those responsible should resign. However this is a small amount of money compared to the mountain of cash and cash equivalents that the MLGW is sitting on and continues to pile up each year out of the pockets of ratepayers who do pay their bills.
Consider that the MLGW only publishes their financial statements nine to ten months after they close their financial year on December 31. Looking at the 2004 and 2005 statements, the unrestricted cash reserves have increased from $177 million to $230 million. They say that they like to keep on hand 30 days of expenses, which is about $94 million so why do they need the extra $136 million? Could it have anything to do with financing the new proposed football stadium that the Mayor proposes? Actually the current cash after more than 13 months from the last published financial statement is probably over $270 million as they continue to pile up cash at the expense of the rate payers.
Tennessee law 7-34-115 (Operation of Utility Systems- Disposition of Revenues) states that “User charges, rates and fees shall reflect the actual cost of providing the services rendered. No public works shall operate for gain or profit or as a source of revenue for a government entity, but shall operate for the use and benefit of the consumers served by such public works and for the improvement of the health and safety of the inhabitants of the area served.”
Furthermore the law states that “Any surplus remaining, after establishment of proper reserves, if any, shall be devoted solely to the reduction of rates.”
The City Council should not only investigate the Edmund Ford affair but should investigate why the MLGW continues to pile up profits when it is supposed to operate as close to zero profit as is possible and why it does not return the huge excess cash to its customers in reduction of rates. I have attached the figures from the 2004 and 2005 statements.
Click here to see how the MLGW is piling up profits each year instead of operating as a non profit as required by state law
posted by watchdog at
8:17 PM
1 Comments:
Who's responsibility is it to initiate legal action against MLGW?
Why hasn't something been done?
Lots of talk no action.
By
Anonymous, at 4:50 PM
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