When Omaha residents pay their water and gas bills, they probably don’t know they are paying for more than water and gas.

An investigation by Nebraska Watchdog has uncovered expenses ranging from golf and bowling leagues to employee picnics and Rotary Club fees. 

Nebraska Watchdog has been told the expenses date back nearly 10 years costing ratepayers with the Metropolitan Utilities District (MUD) an estimated $2 million. The expenditures are part of MUD’s annual budget.

Next year’s budget, which is scheduled to be voted on by the MUD Board of Directors on December 2nd, is expected to include what Board Chairman Mark Doyle has called “significant” increases in water and gas rates. MUD President Tom Wurtz, the man who runs the utility day in and day out, tells Nebraska Watchdog he does not consider the rate hikes to be significant. The amounts of those rate increases have not been made public.

The proposed budget is also expected to include several thousand dollars in discretionary expenditures; expenses the utility could cut without directly affecting services. Those discretionary expenses are now the focus of widespread debate by MUD’s seven member board of directors and Wurtz.

In October three board members Doyle, Amy Lindsay, and Dave Friend asked Wurtz for a full list of the utility’s discretionary expenditures. When the list totaling $265,994 was presented to the board by Wurtz, several board members were clearly caught off guard. 

During the board’s last monthly meeting on November 3rd, Doyle who has been on the board 15 years said, “It did add up to a lot more than I thought.” 

At that same meeting Friend was noticeably agitated. “I’m not convinced that we operate as efficiently as we could…I want efficiencies before I vote for any rate increases,” said Friend. “I didn’t even know we funded the children’s holiday party.” The party costs $2,500.

During an interview with Nebraska Watchdog, Friend said one discretionary expense that could be eliminated is Wurtz’ company car. Wurtz, who drives a 2008 Jeep Grand Cherokee, tells Nebraska Watchdog that his annual salary is, “$270,441 and use of a company vehicle, the majority of which is for district business.”

Along with Wurtz  four other top managers at MUD also receive a company car. Next year’s discretionary spending includes a total of $23,285 for all five vehicles.

Tim Cavanaugh, who has been on the board 9 years, tells Nebraska Watchdog, “It’s reasonable to have a company car for (Wurtz) the president.” But Cavanaugh is convinced other expenses are in jeopardy. “The golf leagues are not going to fly,” said Cavanaugh.

During the November meeting Cavanaugh said when looking at discretionary expenses it is important to balance any cuts with employee morale. Cavanaugh told the board that MUD, “…has the greatest employees in this city…for that reason you just don’t start eliminating everything.” Cavanaugh added, “You could put a monkey at this table and they could start crossing things out.”

Friend, who has been on the board 8 years, said the proposed discretionary expenses are part of a larger problem, “The culture of this company is to raise rates when we need more money.” 

Wurtz tells Nebraska Watchdog he plans to save $17,348 by no longer publishing MUD’s annual report which is available on line. Wurtz indicated he would like to keep the company’s $40,250 Wellness program. Wurtz said it includes weight loss and smoking cessation programs that result in healthier employees and lower health care costs.

Doyle said he wants to review all the expenditures but also said the employee picnic, which costs $32,445, should not be cut. “I will be fighting to keep that picnic,” said Doyle.

Here is the list of MUD’s discretionary expenses uncovered by Nebraska Watchdog:

4 leagues (coed bowling, 2 men’s golf, 1 men’s basketball)     $   4,830

Adopt a school (Marrs, Franklin Learning Center)                        $   5,000

Annual report                                                                                       $ 17,348

Children’s Holiday Party                                                                   $    2,500

Company executive vehicles with separate insurance              $ 23,825

Employee picnic                                                                                $  32,445

ESB Recognition Dinner                                                                 $    6,215

Flower seeds for water conservation (already dropped            $  10,000

      from $20,000 to $10,000)                                       

Rotary Clubs                                                                                     $     4,231

Service Award Recognition Dinner                                               $   13,200                                       

Service Awards                                                                                 $   39,350

Tuition Assistance                                                                            $   57,000

United Way loaned executive                                                        $     6,800

Veterans Club                                                                                   $     3,000

Wellness Program                                                                           $   40,250   

Reported by Joe Jordan, joe@nebraskawatchdog.org