Wilmington Mayor Mike Purzycki and City Council President Hanifa Shabazz claimed in a press release that city Treasurer Velda Jones Potter overstepped her duties by interfering with an approved Fiscal Year 2016 Capital Budget.
They also dismissed as inaccurate the treasurer’s claims today that the bond issuance scheduled for next month is excessive, unnecessary, or will harm the city’s fiscal position. Potter is a former state treasurer.
“The Treasurer’s job is to execute the bond issuance as directed by the two branches of government,” said Purzycki. We dispute Treasurer Jones Potter’s claim that there are millions of unspent dollars from previous city bond issuances available. Funding from previous bond issuances have either been committed to originally approved projects or are being reprogrammed. It is just misleading to have citizens think we are not using these proceeds wisely.”
Shabazz, who was a member of City Council when the FY 2016 Capital Budget was debated and approved, agreed that it is not within the scope of the treasurer’s office to dictate to Council Members or the Executive Branch which projects they can and cannot fund.
The city earlier announced it will issue $43 million in bonds next month with the approval of the Mayor’s Office and City Council. The city routinely goes to the bond market every two years to borrow for approved capital projects. Bonds are used for large infrastructure projects or capital purchases that are too expensive or are of a longer duration to be funded through normal revenue-raising options such as property and wage taxes and fees.
Purzycki and Council President Shabazz said today that they expect the Treasurer to carry out her duties regarding the bond issuance.
The chart below outlines the various projects that will be funded from the planned bond issuance.
On the Water/Sewer chart, some of the projects listed are being funded through the State Revolving Fund, or SRF, which are federal dollars that the state loans to local municipalities at low-interest rates and with minimal closing costs.
