AT LEAST THEY'RE CONSISTENT: SADDLE TAXPAYER WITH DEBT

By Juan Montoya

At last Tuesday's City of Brownsville commission meeting, this bunch lived up to its true character.

Not only have they encumbered the city with outrageous $325 million debt through the agreement with private energy company Tenaska while simultaneously hiding the actual contract form the public, have promised the UT System 80 acres of prime real estate and a public park at bargain-rate prices, but they have also livede way beyond their means by going to debt well time and time again.

On Tuesday they did it again.

Under the item:

6. Consideration and ACTION on Ordinance 2015-1599, to authorize the issuance, sale and delivery of approximately $9,500,000.00 in aggregate principal amount of “City of Brownsville, Texas Combination Tax and Revenue Certificates of Obligation, Series 2015”; securing the payment thereof by authorizing the Levy of an annual Ad Valorem Tax and a pledge of certain surplus revenues of the City’s Municipal Landfill System; and approving and authorizing the execution of a paying agent/registrar agreement, a purchase contract, an official statement and all other instruments and procedures related thereto. (Pete Gonzalez – Deputy City Manager), they once again dipped into future property tax income and increased landfill costs to make ends meet.

This latest $9.5 million brings the total of COs issued without taxpayer approval in the last three years to more than $30 million.

Add this to the fact that the city funnels $7 million annually from the Public Utilities Board budget, and an additional $4.5 million in free utilities, and you have a picture of a commission that is simply not living within its means.

The new money will be used to buy a new bus, three ambulances, install traffic signals, improve some streets and drainage, and bicycle trails and park improvements, according to the bond issue. It states some of the funds will also be used to remodel the Stegman Building for use as an arts facility.

Those, of course, are worthy endeavors.

But  we do have a budget process which is approved at the beginning of every fiscal year. When they pass that, it's as if they were doing it with a nod and a wink. Let's go ahead and pass it, anyway we can always come back and add more debt without getting approval from the voters with COs. 

The mayor and the city commission has already foisted a 36 increase in electric rates in the last four years while Martinez, Ricardo Longoria and Jessica Tetreau have been in office.

So, over the past three years, the city commission has lived way beyond its $78 million in revenues by raiding PUB yearly for $12 million, plus the additional $30 million in COs over the last three years.
That's $36 million more than they had (PUB's $12 million times 3) and  an additional $10 million a year in COs ($30 million divided by 3). That's $66 million they spent that they didn't have.
If you add the $325 million in debt that PUB (and the city commission) approved for the construction of the Tenaska plant, it is obvious that these people won't think twice about borrowing yet more money and digging the city deeper and deeper in the hole.
This city election, All Out.