SPECIAL REPORT: Several 2012 Quality of Life Bond projects over budget

El Paso city leaders want to deliver on the 2012 Quality of Life Bond projects that voters were promised.

They’re willing to do so at any cost — literally. City Council is issuing certificates of obligation, which is a form of non-voter approved debt, in order to pay for the bond projects which are over budget.

Voters approved just more than $473 million for several quality of life bond projects.

Seven years later, it’s clear that many of those cannot be completed at the original price tag.

“I think the voters voted for projects to be completed appropriately. What we’re trying to do is fulfill that fiduciary obligation to the voters. It was over 72 percent who voted for it,” El Paso Mayor Dee Margo said.

The city acknowledges the three signature projects that voters approved — the downtown multipurpose arts and entertainment center, the new children’s museum, and the Mexican American Cultural Center — are all over budget.

Rather than build the projects with the money that was originally allocated, the city is using certificates of obligation to pay for it.

“All the folks who did that budgeting for the quality of life bond election are gone. It was done improperly, I don’t think it will withstand scrutiny,” Margo said.

Here is a list of several 2012 Quality of Life Bond Projects that are over budget. The list was provided by the City of El Paso.

Former Mayor John Cook takes issue with how the current city government criticizes the original budget that was put together.

“We did our due diligence. We spent over a year and a half on due diligence. It wasn’t that we just made up a number out of the air, and it turned out not to be a good number,” Cook said.

Cook said he wouldn’t issue additional debt to finish these projects.

“What you can do when you find out that now that the projects are over budget — you have a list of projects you have two choices — you can either find a way to pay for the additional cost that you’re incurring, or you can widdle the projects down and say which ones make the most impact to the community,” Cook said. “Are there some that you can cut back on? If that’s the case, then cut back. or figure out another way to pay for it.”

ABC-7 asked Margo why not ask the voters for additional money for these projects.

“The big issue is, do you go to the voters or not? Yes, a general obligation bond is a direct vote by the voters. But, a collateral obligation bond is a vote as well,” Margo said. “It’s through the elected representatives that are on city council and mayor.”

Texas Governor Greg Abbott has been critical of city and county governments that issue certificates of obligation. ABC-7 asked him if he thinks the city using them for quality of life projects is responsible.

“Our goal as government leaders is to make sure that we are running government efficiently and effectively and at low cost because the power belongs to the people and the money belongs in the peoples’ pocket,” Abbott said.

City officials said it would also cost money to hold another election.

“An election, for example, would run anywhere between $300,000 – $400,000 a year,” City of El Paso Chief Financial Officer Robert Cortinas said. “If we were to do that, that’s an added cost that the city obviously doesn’t have in the budget.”