Bill for Municipal Bond tabled in Special Sitting of the House

Dean Barrow

The real business of the House had to do with the municipal bond. Belize City Mayor Darrell Bradley announced a month ago that he is inviting investment in the twenty million dollar municipal bond.  The bond, issued by local government, would be used to create an infrastructure fund for the continued repairs of streets in the Old Capital.  In order to secure the agreement, central government would need to lend its support by introducing a bill that would allow for the formation of a Belize City Infrastructure Fund, as well as a trust reserved to pay the debt.  This morning during the Special Sitting of the House of Representatives, P.M. Barrow presented a proposal to underwrite the floating of a municipal bond.

Dean Barrow

“I rise to introduce a bill for an act to provide for the use, management and repayment of monies raised by the Belize City Council, from an issue of bonds, for the establishment of a Belize City Infrastructure Fund and a sinking fund and to provide for matters connected therewith or incidental thereto. Mr. Speaker, this bill has the recommendation of the Cabinet and perhaps just a few words in explanation of the bill.  I think now the entire country is aware of this initiative on the part of the young mayor of Belize City, Darrell Bradley, and his council.  Even absent the passage of this legislation and the floating of the municipal bond Mayor Bradley and his council have succeeded in doing wonders with respect to the infrastructure in Belize City.  Together with central government he’s been able to extend certain guarantees that we have put up that we have preexisting at some of the commercial banks.  He’s been able to increase the loan amounts of the city council with these banks, taking advantage of the lowered interest rates and he has, with these additional monies, ensured the spending of the monies in a way that is absolutely and utterly transparent and in a way that very clearly produces tremendous value for money.  On the question of the bond, it is such a wonderful idea, I think we are all forced to wonder how come nobody came up with it before.  But the fact is that this is Mayor Bradley’s baby.  This is a project conceived of and now being executed by this U.D.P. Belize City Council and we are extremely proud. We might encourage people to take up this bond issue.  All of the payments that bondholders will receive by virtue of the servicing of the bonds on the part of the city council, all their interest payments will be free from income and business tax.  We really want the city and in fact the country to get behind the floating of this bond and government will do its part to make the bond as attractive as possible.  Also, the works that the city council will contract under the monies derived from the bond we will ensure will not be subject to GST.”

The House meeting concluded after midday when opposition members were able to put in questions relating to their constituencies.