Texas Border Business
By DAVID A. DÍAZ
Recently-hired City Manager Pilar Rodríguez, P.E. is recommending that the Edinburg mayor and city council members, who will be meeting on Thursday, August 9, 2018, approve scheduling a special bond election, to be held on November 6, 2018, for the purpose of generating money to pay for drainage and street improvements, the Edinburg Economic Development Corporation has announced.
The amount of the new revenue needed and the specific beneficiaries of the proposed drainage and street improvements will be determined during the Thursday, August 9, 2018, public session of the mayor and city council.
The meeting, which is open to the public, will be held in the Edinburg City Council Chamber at Edinburg City Hall, located at 415 W. University Drive, beginning at 6 p.m.
“The bond issue sought by the city council is for streets and drainage improvements,” Rodriguez noted in his executive summary of the matter. “The council is requesting the voters’ approval on the issuance of the bonds.”
The funding mechanism involves what are known as general obligation bonds.
In general, a general obligation bond (GO) is a municipal bond backed by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project. General obligation bonds are issued with the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects. (https://www.investopedia.com/terms/g/generalobligationbond.asp)
The Edinburg EDC, of which Joey Treviño is the Executive Director, is the jobs-creation arm of Mayor Richard Molina, Mayor Pro-Tem David Torres, Councilmember Homer Jasso, Jr., Councilmember Gilbert Enríquez, and Councilmember Jorge Salinas.
The Edinburg EDC Board of Directors is comprised of Councilmember Enríquez as President, Edinburg School Board Trustee Miguel “Mike” Farías as Vice-President, Councilmember Salinas as Secretary/Treasurer, and Mayor Molina and Mayor Pro Tem Torres as Members.
If the city manager’s recommendation for the bond election is approved by the mayor and city council, the proposed language for the election – which could be changed during the meeting – is as follows:
PROPOSITION 1
“Shall the City Council of the City of Edinburg, Texas be authorized to issue and sell one or more series of general obligation bonds of the City in the aggregate principal amount of not more than $______________ for the purpose of making permanent public improvements or other public purposes, to wit: _______________________________________________, such bonds to mature serially or otherwise (not more than forty (40) years from their date) in accordance with law; and any issue or series of said bonds to bear interest at such rate or rates (fixed, floating, variable or otherwise) as may be determined within the discretion of the City Council, provided that such rate of interest shall not exceed the maximum rate per annum authorized by law at the time of the issuance of any issue or series of said bonds; and shall the City Council of the City be authorized to levy and pledge, and cause to be assessed and collected, annual ad valorem taxes, within the limitations prescribed by law, on all taxable property in said City sufficient to pay the annual interest and provide a sinking fund to pay the bonds at maturity and the cost of any credit agreements executed in connection with the bonds?”
PROPOSITION 2 “Shall the City Council of the City of Edinburg, Texas be authorized to issue and sell one or more series of general obligation bonds of the City in the aggregate principal amount of not more than $______________ for the purpose of making permanent public improvements or other public purposes, to wit: _____________________________________ such bonds to mature serially or otherwise (not more than forty (40) years from their date) in accordance with law; and any issue or series of said bonds to bear interest at such rate or rates (fixed, floating, variable or otherwise) as may be determined within the discretion of the City Council, provided that such rate of interest shall not exceed the maximum rate per annum authorized by law at the time of the issuance of any issue or series of said bonds; and shall the City Council of the City be authorized to levy and pledge, and cause to be assessed and collected, annual ad valorem taxes, within the limitations prescribed by law, on all taxable property in said City sufficient to pay the annual interest and provide a sinking fund to pay the bonds at maturity and the cost of any credit agreements executed in connection with the bonds?”
The official ballot shall be prepared in accordance with the Texas Election Code, as amended, so as to permit voters to vote “FOR” or “AGAINST” the aforesaid propositions which shall appear on the ballot substantially as follows:
PROPOSITION 1 – “THE ISSUANCE OF NOT TO EXCEED $________________ OF CITY OF EDINBURG, TEXAS GENERAL OBLIGATION BONDS FOR _____________________________________, AND THE LEVYING OF A TAX IN PAYMENT THEREOF”
and
PROPOSITION 2 – “THE ISSUANCE OF NOT TO EXCEED $______________ OF CITY OF EDINBURG, TEXAS GENERAL OBLIGATION BONDS FOR ____________________________________, AND THE LEVYING OF A TAX IN PAYMENT THEREOF”.
