​Questioning the City of Marietta’s Investment Decisions | OpEd

EDITOR'S NOTE: The following is a guest editorial by state Rep. John Carson (R-Marietta)

Years ago, the city of Marietta spent taxpayer money for a hotel and conference center, thereby getting into the hotel business. The city ultimately lost money trying to run the hotel and eventually leased it to a hotel management firm, which is now seeking $15 million from the city for a renovation. Later, the city invested in a broadband business, lost $20 million and became a poster child as to why governments should not risk taxpayer dollars in competitive markets.

Despite these huge financial losses, the city now wants to invest more taxpayer dollars in the competitive natural gas marketing business, competing against a saturated market that includes more than ten private companies that already offer this service in Marietta and statewide.

Ironically, customers of the city-owned Marietta Board of Lights and Waterworks are captive. Marietta customers rely on the city’s service footprint and have no other option to choose for their electric or water supplier.

City officials have not held public hearings to present future business plans for their newest competitive experiment. The city has not disclosed the associated costs and risks for taxpayers or explained the reasoning behind the latest venture.

The Georgia Public Service Commission correctly denied Marietta’s request to become a competitive natural gas marketer. Undeterred, the city is spending legal fees that could easily exceed $100,000 to reverse a recent commission order. This commission order ruled that governments cannot compete against private companies.In addition to legal fees, the city of Marietta will have to spend hundreds of thousands of dollars in software development costs, information technology services and additional employees to manage the new business venture.

These initial costs, plus the assets required for this capital-intensive business, could easily add up to $10 million dollars (or more), or over $163 for every Marietta city resident.

I believe most people would agree that taxpayer-funded government business ventures should not be allowed to compete against private companies. It is just not logical to allow governments to use taxpayer dollars to compete against private businesses. Apparently, the city of Marietta cannot withstand the allure of investing in a business, even though a government should not compete with private business and they have not had any success in doing so.

I urge Marietta taxpayers to join their fellow citizens in calling our elected city officials and to tell them to focus on providing necessary governmental services as efficiently and effectively as possible so that taxes can be minimized or reduced. City officials need to stop wasting our taxpayer dollars for additional unsuccessful attempts to compete against private businesses.

State Rep. John Carson represents District 46, which includes portions of Cherokee and Cobb counties. He was elected to the House of Representatives in 2011 and currently serves as Vice Chairman of the Appropriations Committee, Vice Chairman of the Energy, Utilities & Telecommunications Committee, Vice Chairman of the Transportation Committee and Secretary of the Insurance Committee. He also serves on the Intragovernmental Coordination and Ways and Means committees and is a member of the Military Affairs working group.

Image John Carson