Mayor vetoes council’s plan to borrow $44M in non voter-approved debt
Mayor Oscar Leeser Tuesday vetoed City Council’s move to publish a notice of intent to issue $44 million in certificates of obligation to pay for public improvement projects involving streets, a police parking garage, parks, libraries and public art.
Certificates of Obligation allow the city to borrow money without voter approval. The City of El Paso currently has $521 million in non-voter approved debt.
“I believe the City should not be issuing certificates of obligation to fund projects that were not included in the current city budget,” Mayor Leeser said, “I also believe if the funds provided by voters as part of the Quality of Life bond program are not sufficient to complete the projects, the increased budgets should be included in the City’s budget for the coming fiscal year.”
LINK: Texas Comptroller, Fiscal Notes on Certificates of Obligation
“I think there was a great deal of surprise on staff’s part. The city manager is going to have to work with staff to figure out what are our next steps are,” said Mark Sutter, deputy city manager for finance and public health. “We will have to have that conversation with the mayor and move forward. I know these projects, a lot of people were looking forward to these projects. So, I think the community was excited about it.”
City officials said nearly $9 million would match funding from the Metropolitan Planning Organization, signals for I-10 intersections and restrooms at San Jacinto Plaza. By matching MPO funding, the city would get more leverage when it comes to state funding for certain projects.
Nearly $2.5 million would be earmarked for repairs at the El Paso Police Headquarters parking garage, after it partially collapsed.
The Sun City Lights project would get $4 million and some $10 million would go toward aquatic centers.
