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City wants judge to rule on voter approval on debt
By Rhiannon Meyers
The Daily News
Published June 9, 2009
FRIENDSWOOD — The city has asked a Travis County judge to say it is legal for Friendswood to issue $11 million in debt without voter approval.
The city had planned to issue $11 million in certificates of obligation to fund roads, parks, an animal shelter and a records building, but some residents said the city charter prohibited the city from issuing certificates of obligation.
While bonds require voter approval, certificates of obligation do not.
The city charter was amended by voters in 1997 to prohibit the city from issuing debt without voter approval that it could not finance from its own revenue streams, except in cases of emergency or “urgent public need.”
The city attorney has said state law allows the cities to issue certificates of obligation and state law trumps the city charter.
Friendswood voters in May rejected the city’s $9 million bond package, which would have funded unspecified parks improvements, the construction of a new library and the conversion of the existing library into a community center.
The city has asked Judge Orlinda Naranjo of the 419th Judicial District in Travis County to rule that its plan to issue $11 million in certificates of obligation is legal and valid, including its plan to use that debt to buy park land outside its city limits in Brazoria County. A trial is set for Monday in Austin.
Mayor David Smith could not immediately be reached for comment late Monday.
The city asked for a judge’s declaratory judgment because city officials anticipated that residents intended to sue Friendswood if certificates of obligation were issued, the lawsuit states. A lawsuit filed by city residents would have stalled “badly needed public projects in their tracks,” the lawsuit states.
Friendswood’s action is equivalent to the city suing its citizens, former city councilwoman Janis Lowe said.
The amendment to the city charter clearly forbids Friendswood from issuing debt without voter approval, except in special circumstances, Lowe said. The city wants to place additional tax burdens on residents without their vote, she said. Certificates of obligation are a blank check that give cities permission to spend taxpayer money without taxpayers’ approval, Lowe said.
The charter restricts the council from issuing certificates of obligation because they were abused by prior councils.
“Making a mockery of our city charter is not in our best interests,” she said. “Buying land in another county/city against state law is not in our best interests. This is yet another arrogant action of this council exhibiting bad leadership and poor decision-making skills resulting in the abuse of Friendswood citizens.”
Lowe said, despite city claims, she would not have sued the city if Friendswood sought an attorney general’s opinion on the topic. She said she hopes the judge upholds the charter.
The city last approved a bond proposal in 2003 when voters agreed to $20 million of improvements to streets, drainage facilities, public safety buildings and Centennial Park.
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