CitCo Seeks New Funds for Capital Projects
With municipal elections just eight months away, the Belize City Council is looking to borrow sixteen million dollars in new funds. The council is proposing a forty-six-million-dollar bond that, according to Deputy Mayor Eluide Miller, would be used to fund major capital projects across the city. But with election season approaching, questions are already being asked about timing, priorities, and the council’s ability to manage that level of debt. Miller says the Bernard Wagner-led council has a strong track record, noting that it has never defaulted on an interest or principal payment.
Eluide Miller, Deputy Mayor, Belize City
“I would not want for anybody to get the idea that we’re taking on forty-six million dollars in new investment. We had over twenty 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 ten year. But as a part of that as well, we’re also taking on some new investments. And that has been going well. I think we have been doing a good job of encouraging the public and private sector to invest in Belize City. As you know, it is one of the most attractive offerings on the financial market. There is a lot of liquidity out there in the market. And I think the Belize City Council has effectively managed our municipal securities offering over time. I am proud to say that we have never defaulted on an interest or principal payment, even through the impacts of the COVID-19 pandemic, even through the impacts of Hurricane Lisa, and all the economic implications that came along with that, we have been able to meet every single payment. We continue to do what is necessary to build our interest reserve fund, and our sinking fund, and those continue to be managed properly as well. And so I’m happy to report that that has been going well.”
Miller contends that municipal bonds are financial tools made available to municipalities for capital investment.
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