Wednesday, September 3, 2014
City Rep Emma Acosta Posts Item to Dissolve PSB Board
A source within the City of El Paso indicates that the language reads:
Discussion and action to review, amend, or dissolve the City of El Paso ordinance that created the Public Service Board, charged with the management and control of the water, sewer, and drainage systems of the City. To analyze, recommend, and determine the most desirable and best interest of the citizens and rate payers of the City of El Paso, in any changes, amendments, or repeal of the ordinance.
The advantage to dissolving the PSB is that it would make the city council the board that directly oversees the PSB. So you could argue that there is more direct voter oversight of the entity. The other advantage is that the city would get all the revenue from the PSB, which is likely fairly significant. And if I'm correct they would also be able to collect all the fees and have the land and water rights. The PSB is the one of, if not the, biggest land owners in the area.
The bad part is the bonds. Everyone who purchased a bond is in a contract with the PSB. The City would also likely have to refinance all the debt of the PSB (I have no idea what that looks like right now) and then that debt would show up on the City's books. I think that will have a pretty big negative impact on the debt service and bond rating, which isn't good.
This is developing (the email I saw said it was sent out at 3:35pm this afternoon) and I haven't had a chance to reach out to Representative Acosta for more info but I will get more details soon.
Posted by The Lion Star at 4:05 PM