OSCAR LEESER
‘MAYOR OF ELPASO
‘Tomés Gonzilez, City Manager
Juliet Lozano, Public Information & Marketing Corporate Manager
SUBJECT: Further Information in Regards to Veto of Agenda Item 19.1
March 7, 2017 City Council Agenda
DATE: March 8,2017
It is my understanding some of my colleagues are working to call a special meeting to consider
an override of my veto, Ihave been monitoring the media coverage and would like to provide
‘more information regarding my action and clear up some of the miseonceptions.
of all, {was watching the council meeting on Tuesday, and Iam fully aware ofthe fact the
action approved by council was the first step in the process. A process that was intended to
provide the public with notice ofthe fact meetings were going to beheld to discuss the issuance
‘of $44 milion of additional debt without voter approval. I know Cosncl did not eommit to issue
the debt. However, through the veto I issued yesterday, I was giving advanced notice of my
intent to veto the debt issuance later in the process. [believe I should advise the council and the
staff as early as possible when Ihave strong feelings and will likely exercise my veto right. Not
todo so results ina waste of valuable time and resources,
‘Staff and the City Council should not be surprised at my veto. T have been very consistent in my
approach to debt management. The only other time I have used my veto in the nearly 4 years 1
hhave been the Mayor was to reduce the burden to the tax payer in the budget process. As @
‘council, we agreed not to add additional projects unless there were savings in the current year
budget to find the new projects. If the council approves the issuance of the certificates of
obligation as presented by staff, they will be acting against that resolve to hold the line on taxes.
Before we even consider additional debt we should carefully review the budget to determine if
there might be savings to pay for some of the projects not included inthe budget.
CTY OFEL FASO + 300. CAMPBELL 2¥® FLOOR + ELPASO, TEXAS 79901
915.212.0021 + Fax 915.212.0022As I watched the meeting 1 was very disappointed in the presentation, 1 do not believe it was
‘made clear to Council that in oder to issue tae debt as presented by staff, the City Council would
first have to reverse along standing policy not to use certificates of obligation to fund quality of
life bond projects. I firmly believe major expenditures for quality of life bond projets should be
approved by the voters. If the council votes to amend the debt poliey to remove the prohibition
against sing certificates of obligation for quality of life projecs, | will be inclined to veto that
‘action. Council can override that veto if they so choose, but that should only happen after the
public has had a chance to speak on the issue and Couneil makes an informed decision, Starting
‘the debt issuance process without this discussion was putting the cart before the horse.
Staff continues 0 say the estimates for the 2012 Quality of Life Bond Projects are wrong, and
consequently, we will be in a position where we may not be able to deliver all the projects
without additional funding. 1 do not dispute that fact, However, it does not make sense to me
that you should add more projects or enhanc» the ones we are already committed to deliver if we
do not have adequate funding. We have an ligation to deliver what the voters approved and all
our efforts should be concentrated on that. If we run out of funding to deliver what the public
already approved, pethaps we go back and ask the voters to approve additional funding. If we
have been good stewards of the money, delivered most of projects and can justify the need,
pethaps the voters will approve additional det. The citizens of El Paso have shown a willingness
to fund quality of life. We should not atempt to bypass them and issue debt they cannot
approve.
‘The proposed ist of projects to be funded by the certificates of obligation includes items like the
police department parking garage and matching funds for traffic signals and other operational
‘expenses. I understand our debt policy allow certificates of obligation to be used to finds those
types of expenses; however, I question wi these items have not already been addressed inthe
City budget or why they cannot be included in the upcoming budget process. Since taking
office, have prioritized the needs of police, and fire for that mater, 1 ensure they are given all
the tools they need to protect our great city
Lam very bothered by the rushed and seemingly haphazard way this very important matter was
handled. Ihave been told staff was anxious 0 get the process started because the bond market
Likely to change and we may not have the advantage ofthe interest rates we have been enjoying.
have also been told that Council would not necessarily issue the full $44 million, It is my
‘understanding $44 milion is all that i left inthe debt cap City Couneil has approved. | am not
ready to consider spending the entire amount which will surely result in an increase inthe cap.
Our constituents deserve better. Long befor: we consider issuing more debt, changing our debt
policy creating an environment which will likely lead to an increase in our debt cap, amending
‘our budget to add more Quality of Life Projects or enhancing the projects we do have to deliver,
‘we need a frank and detailed discussion abous what we can afford,
‘CITY OF ELPASO + 300N, CAMPBELL, 2 Floor ElPso, Tous 7950)
disarzooat = FAx3152120022