Facts regarding utility funding must be stated for the benefit of our wonderful city.
Over the last five years, at no cost to Water Valley taxpayers, the Electric Department of the City of Water Valley has been blessed with $7,250,000.00 in funding and commitments from the Mississippi Legislature and the federal government to maintain and improve utility services for our residents.
LOOK AT THE FACTS
Year 2022
- The Mississippi Legislature appropriated $500,000, allowing the City of Water Valley to purchase two transformers to help prevent catastrophic electrical disruptions like the one our city suffered in 2022.
- This appropriation also helped secure an additional $300,000 federal grant toward the purchase.
- Total Funding: $800,000.00
Year 2023
- The Mississippi Legislature appropriated $750,000 to fund improvements to the Water Valley electric system, enabling needed pole replacements across the city grid.
- Approximately $480,000 of these funds remains in the city depository, waiting for the Utility Department to apply it toward pole replacements or other essential upgrades.
- Total Funding: $750,000.00
Year 2024
- During my first week as Mayor in 2024, I sought to include the City of Water Valley in the TVA Grid Resilience and Innovation Partnerships (GRIP) program. As a result, the federal government committed $2,000,000 in funding for electric grid improvements and repairs on our municipal system.
- The Mississippi Legislature also appropriated $1,500,000 for utility improvements. Of those funds, $400,000 was used to clear 41 miles of municipal electric rights-of-way, completed shortly before the recent ice storm. WHERE WOULD THE CITY OF WATER VALLEY BE IF THIS HAD NOT HAPPENED!
- Total Funding: $3,500,000.00
Year 2026
- The Mississippi Legislature appropriated $1,200,000 for the maintenance and improvement of electric department services.
- The city also secured a grant from the Delta Regional Authority for approximately $1,000,000, utilizing matching funds appropriated by the Mississippi Legislature.
- Total Funding: $2,200,000.00
TOTAL FUNDS ALLOCATED TO THE CITY ELECTRIC DEPARTMENT NOT PAID FOR BY THE TAXPAYERS OF WATER VALLEY IN THE LAST FIVE YEARS: $7,250,000.00
HOW ON EARTH ARE WE IN THIS MESS WITH ALL THAT FUNDING?!?!
For the past generation, the Water Valley Electric Department has paid a “fee in lieu of taxes” (as many other cities do) to help support essential city departments that do not generate direct revenue. This includes funding for the Fire Department, Police Department, Street Department, city building maintenance, and other vital municipal services.
Nearly 11 months ago, the Utility Commission halted these fee-in-lieu payments. That decision has nearly depleted the city’s long-standing revenue reserves, creating the budget shortfall we face today.
Next, the Utility Commission, which has been given so much money by the State of Mississippi and the United States of America, determined not to provide the funding necessary for the city to deliver essential services at the level our residents expect. This could result in drastic cuts to Fire, Police, Street, and other necessary city services. THIS SHOULD NOT HAPPEN, and it could result in increased fire insurance rates for our citizens as well as a reduction in POLICE PROTECTION.
Utility services are important to our citizens, but so are our Police, Fire, and other necessary services. Those in our city who put their lives on the line for us all every day could earn much more money if they were employed by surrounding cities for the work they do. In fact, they have not received a pay raise for their necessary services in the PAST THREE YEARS, at a time of greatly increasing costs for us all.
Our city budget is balanced if all revenue-generating city departments contribute to the necessary funding of the budget, as shown in the budget. This should be demanded by all of our citizens. Remember, the amount of money sought from the Water Valley Utility Department is LESS BY FAR than what has been paid by the department in past years. Also remember, the Utility Department has been allocated, in the past five years, more than the total annual city property tax revenues per year in additional funding from state and federal sources.
If our city is to succeed, we must all work together. Utility services are a treasured part of our city resources, but so are our Fire, Police, and Street services. We must not shortchange any of our crucial services if we are to succeed in our common goal of making our city the best it can be for all our citizens.
/s/ Tommy Reynolds, Mayor