As a means to both start and complete a series of construction and infrastructure projects, the City of El Paso is contemplating the use of certificates of obligation to fund those efforts.
Members of the El Paso City Council are currently reviewing the possibility of issuing up to $96 million in such certificates.
The certificates are part of a significantly larger $1 billion budget for fiscal year 2022.
Certificates of obligation have proven to be particularly popular with cities and counties in Texas because, unlike general obligation bonds, the certificates don’t require voter approval.
While the El Paso council, on a 6 to 2 vote, has opted to go the certificates route, it has also scheduled a public hearing for August 24, allowing for input on what infrastructure projects should be prioritized.
The certificates are expected to be generally used for street construction and upgrades, as well as park improvements, and the building of the proposed Mexican American Cultural Center, among other projects.
According to research issued by the Texas Public Policy Foundation, certificates of obligation were originally primarily used only for emergency spending, but in recent years increasingly targeted park, swimming pool, and public art projects at the city and county level.
By Garry Boulard
