Why Is Belize City Eyeing a $46 Million Bond? Deputy Mayor Explains

According to Deputy Mayor Eluidge Miller, Belize City Council is not taking on $46 million in “new investment”. His clarification builds on the public discussion of the council’s latest municipal bond offering.

Miller said the figure is rather a combination of refinancing existing obligations and securing new investment for future projects. “We had over $20 million worth of existing investment, and so what is happening is that we are reprofiling that, meaning that we are turning it from short-term investments, one- to two-year investments, into the city into longer-term investments, five to 10 years,” Miller said.

This means, he said, new investment is being layered on top of that $20 million as part of the same offering. “I would not want for anybody to get the idea that we’re taking on $46 million in new investment,” Miller added. 

Miller said the council has maintained a strong repayment record despite the economic impacts of COVID-19 and Hurricane Lisa. “We have been able to meet every single payment,” he said. “I am proud to say that we have never defaulted on an interest or principal payment.”

Responding to questions about why the council continues issuing municipal securities despite its annual budget, Miller said the bonds are a financial tool used to fund major capital projects that cannot realistically be covered through day-to-day operations alone. 

“Our municipal securities allow for others to invest in the city,” he said. “As you can imagine, it’s quite difficult for us to maintain and upgrade all the infrastructure that we have in the city.”  

Miller said municipal securities remain the council’s main tool for funding capital projects it cannot cover through operations, including upgrades to more than 300 of the city’s 700-plus streets over the past six to seven years. 

This offering is also expected to fund an expansion of the city’s e-mobility bus fleet and further infrastructure upgrades.