Tuesday, February 17, 2015

SINCE MARTINEZ TOOK OVER,TAXPAYERS OWE AT LEAST $7,000 MORE EACH...AND THE METER IS STILL RUNNING

By Juan Montoya
When the supporters of then-candidate Tony Martinez were campaigning for him, they turned to a very effective argument: "Tony's a millionaire, he's not going to take the city's money like Pat Ahumada."
Then the story about the $26,000 city check deposited in Ahumada's personal bank account would follow. It didn't matter that a jury found Ahumada not guilty, the charge stuck anyway and Martinez sailed into office.
Well, we're four years into the Martinez administration and would you believe that the $26,000 check Pat deposited into his account now seem like peanuts compared to the profligate ways the millionaire who wouldn't steal has spent of the public's funds and assets?
In that short time Martinez has convinced the other pliant members of the city commission to encumber the estimated 50,000 ratepayers and taxpayers of the city and the Brownsville Public Utility Board (Brownsville residents) with $325 million to build a gas-powered electric plant in partnership with Tenaska.
This, on top of the existing $200 million debt of the PUB (totaling $525 million), made Fitch Rating grade future PUB bonds "negative."
But whether you agree with the Tenaska project or not, that is an additional $325 million in debt since Martinez took over the money spigot at the utility.
PUB ratepayers are already paying for the plant through "small" increases (which by the way the Herald never reported until recently) which were approved by commissioners in December 2013 during a special meeting.
They adopted upwards rate hikes that will see city residents pay a 36 percent increase in electric rates over the next three years, a 20 percent increase in water rates over the same period, and a 6 percent hike in waste water costs over two years.
Under the plan approved by both bodies, electric rates went up by 14 percent by October 2013 and will go up another 22 percent by October 2016. (See graphic, click to enlarge.)

Add in another $22 to $25 million in certificates of obligation issued by the city commisssion under Martinez and that makes it about $350 million in new debt since Da Mayor (who wouldn't spend the city's money) took over. The graphic below shows the certificates of obligation issued since Martinez took over in May 2012. Another CO issue was approved after the last notation, so a estimate of $25 million is a conservative number. (Da Mayor likes COs because he doesn't need to go to the voters for approval of the extra debt.)























If one adds the PUB $325 to the 25 million in COs, that make $350 million in debt that has accrued under Da Mayor. And what did he use in particular CO issue for? Would you believe real-estate speculation that ended up benefiting his close pal Abraham Galonsky and others who unloaded their fallow properties on the citizens of Brownsville. A sample of just one CO issue that allowed for $2.3 million for the purchase of Galonsky's Casa Del Nylon is listed below.

If there are a combined 50,000 taxpayer and ratepayers in the city, this means that there has been an additional $7,000 debt burden on city and PUB ratepayers during Tony's watch.
In a sense, the residents of Brownsville are the victims of double taxation. Not only will they pay higher utility costs for the construction of the Tenaska-city plant, but they will also have their utility payments transferred to the city to ditch out the city commission as they live past the income generated by property and sales tax revenues.
Each year, the utility transfers $7 million to help the city make ends meet. That's in addition to free utility usage to city facilities totaling about $4.5 million annually.





















Not content to indebt the city residents, Martinez also wants to give away their assets at bargain rates to outside entities (not only Tenaska) like the University of Texas System which received a response from the city for its Request For Proposals which:
*Has offered to sell huge tracts of prime publicly-owned land to the UT System at bargain rates and had the following public-funded entities offer some goodies.
* Greater Brownsville Incentives Corporation - $2,500 to $5,000 for every University job associated with UTB's location downtown
* Brownsville Economic Development Corporation - BEDC will contribute tax revenue from increased sales, mixed beverage, and parking meter taxes to UTB for public realm improvements downtown
*Brownsville Community Improvement Corporation - BCIC will provide funding and/or subsidies for "quality of life" projects, including cultural and athletic amenities in greater Downtown Brownsville
* Brownsville Metropolitan Planning Organization and BCIC - MPO and BCIC will increase bicycle infrastructure, including the extension of city hike and bike trails to better connect the UTB facilities with surrounding downtown neighborhoods and amenities
* Public Utility Board - PUB will provide reduced utility rates for new UTB buildings that are built to LEED accreditation standards
* Brownsville Metro - Brownsville Metro will increase their bus coverage area to better serve UTB's campus and to increase service frequency to UTB campus facilities.
What is the state of the city under Martinez?
The state of the city is in hock.
Now, unless you're one of the lucky 1,500 to attend the $50 a pop seat to hear him paint a rosier picture, you won't hear it because it's by invitation only. Martinez – facing re-election in May – is using city property, personnel, utilities, and security and still charging the average citizen to pay to hear him.
At $50 a pop for 1,500 seats that's a cool $75,000. After paying the M.A.P.(Message, Audience, Presentation, Inc.) of Austin, the same company that ran his campaign for mayor to advertise, organize, and plan his "State of the City" event at the Brownsville Event Center their due, that still leaves a nice lump of cash for Da Mayor's favorite charities (like his reelection, maybe?).
What was that Martinez supporters said about him not stealing from the citizens since he was already a millionaire?

5 comments:

Anonymous said...

Igor Galonsky for mayor for integrity, honesty, and freedom for all; includes the peasants.

Anonymous said...

Add several million for the Firefighters lawsuit that continues to grow with interest and legal fees for using irresponsible loser attorneys. The Texas Supreme Court denied the cities appeal yet the mayor and commission continue to practice wreckless behavior by abusing the system and applying for a review as opposed to cutting their losses.

Anonymous said...

As I Was in Rome,this past summer at the eternal, city,I had the distinct opportunity to speak with the the Pope. . He inquired if Da Mayor still disguised himself as a nun begging for alms at the Price Rd. underpass was true, I told him there were hundreds of witnesses attesting to his disguises. This article was published in the Obervatore Romano .

Anonymous said...

PUB is still running business as if it were still 1980. The lack of leadership and innovation proves that all executives, directors, and managers are dinosaurs need to retire.

Anonymous said...

Ughhh ! So stupid .

rita