Confusion surrounding El Paso mayor’s veto of $44 million in new debt
El Paso Mayor Oscar Leeser is explaining why he 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.
Leeser issued a statement that in part read: “As a council, we agreed not to add additional projects unless there were savings in the current year budget to fund the new projects.” He added: If we run out of funding to deliver what the public already approved, perhaps we go back and ask the voters to approve additional funding.”
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.”
Rep. Lily Limon agreed with the mayor’s decision, but calls the current situation a mess.
“And I’ve been asked what are you going to do? And I saying it’s not my issue, it’s the city manager. He’s the one that needs to resolve this mess.” Limon said.
Limon supports the mayor’s argument that issuing certificates of obligation for city projects such as street improvements not in this year’s budget is a bad idea and money for quality of life projects coming up short in funds short, such as bathrooms for San Jacinto Plaza and aquatic centers should be part of the next fiscal budget.
“We spent a lot of time really going through and hashing out the budget and here we are in March and we are already looking at was the budget not a good budget after all? What did we do wrong because all of a sudden we have all these projects that need to be funded,” Limon said.
City CFO Mark Sutter said the mayor had been briefed on the city’s plan last week.
“I’m not really sure because I thought we did a fairly good job in briefing him last Thursday and he didn’t seem to have any questions at the time. So I’m not exactly sure what caused the veto,” Sutter said. “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 our next steps are. 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.”
Rep. Claudia Ordaz called the mayor’s veto frustrating.
“What I feel that he did, and some of the members did was a lack of leadership. I understand it’s difficult. But we have an obligation to get these done. Especially, one minute you are voting to support these projects to fix our streets, and then the next it’s like never mind. we don’t want to talk about it. It’s bad,” Ordaz said.
LINK: Texas Comptroller, Fiscal Notes on Certificates of Obligation
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.
City reps could override the mayor, but that would take at least six representatives. Most everyone on council agrees there is one issue in the $44 million worth of projects the city needs to act on fast.
The police department’s parking garage has partially collapsed. Rep Acosta is putting that item – by itself- on the agenda for the next council meeting.
