Resident urges council to study privatizing New Braunfels Utilities
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Summary
A New Braunfels resident told the council during public comment that the city should seriously study selling New Braunfels Utilities, arguing proceeds could retire city debt and fund services; council took no action.
During the July 14 public comment period, resident Bob King urged the City Council to “seriously contemplate privatizing NBU” (New Braunfels Utilities), arguing the utility could fetch more than $1 billion in enterprise value and that proceeds could be used to pay city debt and increase recurring revenue for public services.
King described his background in banking and energy-sector mergers and acquisitions and said privatization would yield large cash flow and many bidders for the utility. He told the council that proceeds could be used to retire all city debt and free up an estimated $16 million a year in interest expense to address pay and staffing for police and fire. King also criticized the utility’s governance and oversight at recent meetings, citing what he described as insufficient scrutiny of $22 million in general and administrative costs and a proposed $184 million corporate headquarters project.
No council action was taken on the suggestion during the meeting. The remarks were delivered during the citizens’ communication portion of the agenda; the council did not debate or vote on a study request at that time.