Your Choctaw Utilities Board met on Monday May 22nd in a public meeting at the Lodge, and one of the items on our agenda we would like to share with you if you were unable to attend is our presentation on the Pros & Cons between how the Choctaw Utilities operates now as a For-Profit Corporation in comparison to becoming either a Non-Profit Association, and/or a 6119 Regional Water District as set forth in the Ohio Revised Code.
Here is that presentation:
FOR-PROFIT CORPORATE (Current)
Pros
* Allows CLPOA to appoint CU Board Members
Cons
* Subject to property taxes of $50K per year
* Not eligible for grants or special financing
* Potential subject to PUCO regulation (assets owned by CLPOA)
NON-PROFIT ASSOCIATION
Pros
* Not subject to property taxes (save $50K per year)
* Eligible for grants and special financing options
* Not subject to prevailing wage and public bidding requirements
* Can be done quickly
* CLPOA could still select CU Board members
Cons
* Less transparent than 6119
* Costs $5K – $9K to organize
6119 REGIONAL WATER DISTRICT
Pros
* Operates under Ohio Revised Code 6119
* Tax exempt (save $50K per year)
* Very transparent
* Required audits, Sunshine Law, Public Meetings & Records Law
* CLPOA appointment of CU Board members
* More funding options, including selling bonds, and 0% interest loans (OPWC)
* Eligible for grants and easier access to funds
* Free to set rates
* Sovereign immunity / cheaper insurance
Cons
* Public bidding requirements
* Prevailing wage
* Planning and construction costs may be higher
* More stringent requirements
* OPERS
* Cost = $10K – $20K