Judge grants GRU Authority's request for temporary injunction against upcoming referendum

With less than two weeks before Election Day, a district court judge on Wednesday granted the Gainesville Regional Utilities Authority a temporary injunction against the upcoming GRU governance referendum that will appear on the Nov. 5 ballot.

As part of Judge George Wright's ruling, if the referendum, which asks voters to decide whether to delete the article of the city’s charter that created the authority, passes, the city of Gainesville would be unable to enforce the results until after a formal hearing on the matter is held in December.

The board, created and passed by a Republican Florida Legislature, completely stripped the all-Democrat Gainesville City Commission of its power over the utility and handed it to authority members appointed by Gov. Ron DeSantis.

Attorney Scott Walker, managing partner for Folds Walker LLC, the law firm that represents the authority, told The Sun Thursday afternoon that the judge’s “ruling is supportive of a local legislative elected body which implemented GRUA,” and that the board remains focused on debt reduction while keeping residential and commercial rates stable.

"One of the basic tenets of Florida constitutional law is that state rules and laws take precedent over local rules and laws, and that’s what the court did yesterday (Wednesday),” Walker said. "... The concern for GRUA is the nearly 40 percent of ratepayers that live outside the city. They’re a voice for that 40 percent, which could be considered disenfranchised by what the city is doing.”

The GRU Authority filed for the emergency injunction in September in an effort to the keep the referendum off the ballot, which it believes "violates the Special Act of the Legislature that created the authority."

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The filing by Folds Walker LLC and Theriaque & Spain also argues that the ballot language is "misleading" because it doesn't specify who would take over control of GRU decisions in the event the authority is dissolved or to whom the utility's general manager would report.

According to the Alachua Chronicle, Judge Wright granted the injunction based on it passing a four-prong test, including that the injunction was the only remedy currently available, that the referendum would cause irreparable harm, that the GRU Authority's case has a high likelihood of success and that the injunction serves the public interest.

The Chronicle reported that Wright said "the status quo will be maintained" regardless of the outcome of the referendum until a formal hearing can be held.

According to a press release from GRU, the hearing is is scheduled for Dec. 19-20.

Gainesville city commissioners and Mayor Harvey Ward unanimously passed the measure to be placed on the ballot in June.

"I’ve said since March of 2023 that the people of Gainesville, who are the owners of these utilities, should have a voice in who governs their utilities. I continue to believe that, and I encourage the people to let their voices be heard at the polls," Ward said in a statement to The Sun on Thursday afternoon.

Commissioner Bryan Eastman in an email to The Sun in September called the GRU Authority's filing of the emergency injunction "absurd."

"... If we want a utility that is affordable, sustainable, and community-focused we need one that is accountable to the actual ratepayers, not political appointees of the governor," he wrote. "That's just common sense. ... "