Mayor warns of fragile electric and water systems, cites $4.9 million in uncollected revenue

At a work session of the Alexander City Council, the mayor warned that recent engineering assessments show the city's electric and water systems need significant work to avoid repeated outages, and he described a cash-flow shortfall that limits near-term capital work.

The mayor said an engineering review showed the city's substations require about $16.2 million to restore reliability and prevent failures that already have disrupted services, and he described an interim contingency package engineers offered that could be implemented within about 12 months. He also said the city came 'within an hour and a half' of losing water for roughly 40,000 customers during a recent incident.

Why it matters: the mayor framed the infrastructure needs and repairs as urgent but costly. He said the city operates a roughly $79 million enterprise fund but has only about $2.9 million in undesignated reserves (well below a stated target) and about $4.9 million in uncollected customer revenue, which constrains the ability to finance large projects.

The mayor described steps staff have taken to limit near-term risk. He said engineers returned with a lower-cost package (figures discussed in the session include a multi-million-dollar interim option and additional hardware that could be secured through a partner), and he cited a possible short-term water fix that would cost "around $300,000" to buy generators, redo breakers and connections and reduce outage risk.

The mayor said the city has been in talks with Constellation, whose representatives indicated they could supply some transformers and breakers or otherwise partner on needed equipment in exchange for other services. He said city staff are meeting with potential investment bankers about consolidating obligations and improving cash flow to make longer-term borrowing or bonds feasible once reserves and finances stabilize.

The mayor also emphasized internal reforms: he distributed a document about cultural and organizational change and said city leaders will focus on human-resource development so more promotions and technical work can be done from inside city government.

A city staff member confirmed the receivables breakdown discussed by the mayor: the mayor cited about $4.9 million in uncollected revenue, with roughly $1.6 million under 30 days, about $156,000 between 30 and 60 days, and the remainder over 120 days. Staff said auditors and outside advisors are working on cash-flow steps and set tentative milestone months for progress.

Numbers flagged in the session: during the briefing some numerical figures were given inconsistently in the transcript (the mayor cited both a $16.2 million figure for electrical system needs and—in a separate line—what sounded like $16.2 billion). The mayor's principal description to the council identified the engineers' estimate as $16.2 million; the transcript contains a later phrasing that appears inconsistent. The mayor also referenced an engineered contingency package figure described in the meeting; that figure was spoken in a way that is unclear in the transcript and is recorded here as stated by the mayor. All dollar amounts in this report are presented as the mayor stated them at the session and are noted where the transcript was inconsistent or unclear.

No formal votes on capital projects or borrowing were taken at the work session. A council member moved to adjourn after the mayor's update; the motion was seconded and the presiding official adjourned the meeting until 5:30 p.m.

The mayor repeatedly framed the situation as a combination of urgent operational fixes and longer-term planning: "we have to tell the truth about the current reality" and then "lift up a clear and uplifting future," he said. Staff and the mayor said they will pursue contingency purchases, partner discussions, and further financial work before returning with formal proposals for council action.