Successors at City Hall Fear Cash Crunch

Bernard Wagner

During the past two terms of the U.D.P. city council, large sums of money were borrowed for the construction of streets across the city.  Those projects were funded with the proceeds of a municipal bonded that had been floated.  The financial situation that the new administration has met, according to Mayor Wagner, will undoubtedly affect any future city council.

Bernard Wagner, Belize City Mayor

“The council borrowed and they borrowed heavily.  Twenty million in bonds and another twenty-three point six million to creditors, suppliers credit.  We know the deal.  Most of the loans were used for street building, most of them.  And you know that the council had a street bid committee in place set up for transparency and accountability but discontinued in 2013.  The last recorded date of that committee on file being October ninth, 2013.  So what we are left with here, the council‘s activities are exposed.  We are an exposed council and we are exposed to financial risks through credit risks and liquidity risks.  Council not collecting its taxes to meet its commitments.  Receivables at twenty point six million with impairment provision of five point seven million.  This is too high.  Most of that five point seven million will not be collected, so this will impact the council‘s commitment to meet its obligations.”