By Juan MontoyaLike the classic "limosnero con garrote," Brownsville City Manager Charley Cabler went before the PUB board less than half an hour before the city commission was set to vote on passing a balanced budget.
And before he left, pliant PUB members – with Mayor Pat Ahumada voting "nay" and member Ramon Hinojosa abstaining – the former police detective made out like a thief and walked out of the PUB board room with the promise of $3 million in 2009-2010 to make up the city's budget deficit.
The vote effectively let the city commissioners off the hook without either having to raise ad-valorem (property) taxes or adopting PUB studies on wastewater and other services that recommend rate increases.
The transfer is to be made in monthly $250,000 deposits from the PUB's Capital Improvement Projects (CIP) fund and be made available to the city as needed. PUB members were surprised to hear Cabler tell them that their financial advisor Noe Hinojosa told him the $3 million outlay would not affect their bond rating or debt service requirements.
At first PUB chairman Robert L. Guerra asked Cabler whether the funds could be doled out as needed and whether the outlay was to be repaid once the city gained better financial footing.
Cabler made it clear to the PUB members that he wasn't there for a loan. He told the members that the $3 million the city was requesting was to be a grant on top of the $10 million in transfers and services the utility already "grants" the city.
In a letter dated Sept. 10, Cabler told PUB members that income from the international bridges was down 32 percent, sales taxes 5 percent, and that even with budget cuts, the city faced a shortfall.
"This is an extraordinary financial year for us," Cabler said, a visible nervous tick on his right leg as he stood behind the podium.
Ahuamda –the commission's representative on the PUB board – said that the commissioners had refused to bite the bullet on approving the recommendations of the PUB impact study and had raised that fee to developers to $2,600, instead of to the $4,000-plus recommended by more than $250,000 in studies.
Additionally, he said that the studies recommending that the city raise electric and wastewater rates had been ignored by the other commissioners.
"The commission has dipped into reserves ever since 2006 to make up for the deficit and they still refuse to raise rates or adopt those studies," he said. "They also refuse to raise the ad-valorem (property) taxes by two cents to balance the budget. What makes you think they are not going to come back next year and ask us for more?"
PUB member Arturo Farias questioned Cabler on the need for $3 million if the city's projected deficit should they pass the two-cent property increase would only leave them a $740,000 shortfall.
Cabler said the city had pulled money from a bond fund meant for Morrison Road to make up for shortfalls in the Public Works Department budget and that the administration would rather return the money and ask the PUB for the cash.
"We just want to make sure that the city adopt the wastewater study recommendations (and) adopt the studies, or you might not find the welcome reception you're getting now," Guerra said.
"And vice-versa," Cabler shot back.
In the end, the motion to give the city the money was made by Dr. David S. Morales and seconded by Emmanuel Vasquez. The item was placed on the agenda by Morales and Enrique G. Najera.
And before he left, pliant PUB members – with Mayor Pat Ahumada voting "nay" and member Ramon Hinojosa abstaining – the former police detective made out like a thief and walked out of the PUB board room with the promise of $3 million in 2009-2010 to make up the city's budget deficit.
The vote effectively let the city commissioners off the hook without either having to raise ad-valorem (property) taxes or adopting PUB studies on wastewater and other services that recommend rate increases.
The transfer is to be made in monthly $250,000 deposits from the PUB's Capital Improvement Projects (CIP) fund and be made available to the city as needed. PUB members were surprised to hear Cabler tell them that their financial advisor Noe Hinojosa told him the $3 million outlay would not affect their bond rating or debt service requirements.
At first PUB chairman Robert L. Guerra asked Cabler whether the funds could be doled out as needed and whether the outlay was to be repaid once the city gained better financial footing.
Cabler made it clear to the PUB members that he wasn't there for a loan. He told the members that the $3 million the city was requesting was to be a grant on top of the $10 million in transfers and services the utility already "grants" the city.
In a letter dated Sept. 10, Cabler told PUB members that income from the international bridges was down 32 percent, sales taxes 5 percent, and that even with budget cuts, the city faced a shortfall.
"This is an extraordinary financial year for us," Cabler said, a visible nervous tick on his right leg as he stood behind the podium.
Ahuamda –the commission's representative on the PUB board – said that the commissioners had refused to bite the bullet on approving the recommendations of the PUB impact study and had raised that fee to developers to $2,600, instead of to the $4,000-plus recommended by more than $250,000 in studies.
Additionally, he said that the studies recommending that the city raise electric and wastewater rates had been ignored by the other commissioners.
"The commission has dipped into reserves ever since 2006 to make up for the deficit and they still refuse to raise rates or adopt those studies," he said. "They also refuse to raise the ad-valorem (property) taxes by two cents to balance the budget. What makes you think they are not going to come back next year and ask us for more?"
PUB member Arturo Farias questioned Cabler on the need for $3 million if the city's projected deficit should they pass the two-cent property increase would only leave them a $740,000 shortfall.
Cabler said the city had pulled money from a bond fund meant for Morrison Road to make up for shortfalls in the Public Works Department budget and that the administration would rather return the money and ask the PUB for the cash.
"We just want to make sure that the city adopt the wastewater study recommendations (and) adopt the studies, or you might not find the welcome reception you're getting now," Guerra said.
"And vice-versa," Cabler shot back.
In the end, the motion to give the city the money was made by Dr. David S. Morales and seconded by Emmanuel Vasquez. The item was placed on the agenda by Morales and Enrique G. Najera.
No comments:
Post a Comment