I read with interest the article titled “City looking at utility alternatives” by Terry Fitzwater in the Thursday, April 5, 2018 edition.
I would like to see a follow-up article asking why the City could not use the $1.7 Million Certificate of Obligation they approved April 4, 2017 without voter approval, to repair the hydro-electric dam. I assume because they are specific to their intended purposes, wherein lies the abuse of a COO by municipalities.
I had repeatedly written my City Councilman as well as Mayor Kacir for documentation of why the hydro-electric dam repairs were a needed and PRUDENT decision; especially to require a Certificate of Obligation without voter approval. GBRA had stated publicly that hydro-electric dams in today’s economy do NOT produce enough revenue to fund their maintenance and repair. If not, why did the City of Gonzales’ leadership feel otherwise?
I never received ANY supporting information.
Seems to me if they engaged the Certificate of Obligation maybe they could use that money to fund both the replacement of the Electric department vehicles and the Wastewater plant repairs and truck needs; of course, depending on the language used in the original effort. If they did not engage, why not – a moment of clarity?
I hope the City leadership learns to avoid these kinds of rookie mistakes; such as going overboard when the oil boom went to their heads (not the one with reason)!
P.S. The statistics of City’s abusing the Certificate of Obligation position is well documented and would make an interesting article on its own. The City of Gonzales one in April/2017 in most people’s mind did not meet the requirements of a COO, and especially if put under a legal interpretation microscope.
It will be an interesting election cycle.
J. R. Anderson