Following the 12% rate increase, MLGW’s monthly financial transparency ceased. As of April 18, 2024, no 2024 MLGW monthly financials are available. This unfortunate development comes as other locally publicly owned quasi-governmental organizations submit to their board monthly financials for the month preceding the previous month in which the quasi-board meeting is being held.

Examples of this board reporting practice can be seen with the Economic Development Growth Engine (EDGE), Downtown Memphis Commission (DMC) and Memphis Health Education and Housing Facilities Board (MHEHFB). MLGW execution of this practice would have January and February 2024 monthly financials before the MLGW Board, City Council, and the public. But again, no 2024 MLGW financials are available.

Given this 2024 unavailability, the following will provide a 2023 MLGW financial review.

MLGW finished the year with $473M in cash on their balance sheet, across MLGW divisions when only $226M is needed, per the 45-day minimum recommended by the Government Financial Officers Association. This means MLGW finished the year with $247M in excess balance sheet cash.

The electrical division finished $7.7M and 4% below the $174M recommended. Gas finished at $139M (351%) and water at $115M (927%) above the 45-day recommended minimum.

Excess cash on public balance sheets creates moral hazards. Given these massive cash excesses, MLGW expenditures need close monitoring, with significant cash diverted from MLGW to other areas of Memphis public need.

But sadly, the new Historic City Council has taken a step back and ended public questioning of MLGW expenditures before consideration of the MLGW consent agenda. This lack of public voice has been an unfortunate consequence of this Historic City Council.

And what does Mayor Paul Young think of these massive MLGW cash balances? Or what does Herb Hilliard think? Hilliard is a former financial executive at First Horizons, Chair of the National Civil Rights Museum and Tennessee Public Utilities Commission. With such an accomplished background, Hillard must have an opinion regarding $250M in excess cash on the MLGW balance sheet.

Next, to capital spending performance.

MLGW finished 2023 with a $36M and 12% actual to budget capital spend deficit across all divisions. The water division experienced the largest percentage spend deficit at 30% at $13M. Electric and gas were off 9% and 7%, respectively.

The MLGW Board voted on April 17 to expand their voting board from five to seven seats. Upon passage by the Memphis City Council, Memphis City voters will determine, through referendum, whether to expand the MLGW Board two seats with new voting board members coming from outside Memphis but in MLGW’s Shelby County service area.

The board expansion vote comes as efforts to establish a landlord registry to remediate Memphis blight, initially backed by MLGW, City of Memphis and Shelby County government failed in a subcommittee of Collierville’s Kevin Vaughan’s Chaired TN House Commerce Committee.

The failure of HB34 in Vaughan’s House subcommittee signals an unwillingness of suburban power centers to partner with Memphis in blight remediation efforts. Vaughan has also supported wetland deregulation efforts that potentially threaten clean drinking water in contrast with MLGW’s charge of providing clean drinking water.

Other concerns raised at the April 17 MLGW Board meeting include Protect our Aquifer’s Sarah Houston. Houston stated that any new suburban representation should not result in over-representation of the MLGW water utility, as much of the Shelby County area, external to Memphis, is served by suburban municipal water utilities.

The former should heavily weigh on the Memphis City Council in expanding MLGW Board membership, where suburban partnership on matters of Memphis blight remediation and clean drinking water may not exist.

Dr. Ray Bauer - Co-founder of the volunteer MLGW watchdog advocacy group 21st Century Memphis or Bust!, PhD from Vanderbilt University

Lloyd Brown - MBA and CVA and former Professor of Finance, Taxpayer Justice Institute Board member.

Glenda Hicks - Co-Founder 21st Century Memphis or Bust, MLGW Retiree, former MLGW Billing Representative/Specialist for residential, commercial and industrial customer accounts. Former Mortgage Lending Loan Processing Specialist Arkansas State University Graduate, Mass Communications

Radio/TV Broadcasting.

Joe B. Kent - BBA and MS in Curriculum. Founder of the Taxpayer Justice Institute.

MLGW 2023 December Monthly Financials - https://1drv.ms/b/s!AiNXRWm6KZQigp9vVFnfF6BZvIWEyQ?e=YWw7lO

MLGW Board April 17, 2024 - https://mlgw.iqm2.com/Citizens/SplitView.aspx?Mode=Video&MeetingID=2205&Format=Agenda

TN General Assembly HB34 (00:39:30) – https://tnga.granicus.com/player/clip/29899?view_id=703&redirect=true