Commissioners debate bonding GoMESA distributions for capital projects; no final vote recorded
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Summary
On Sept. 18 Mobile County commissioners debated a preliminary resolution to issue limited-obligation warrants backed by GoMESA distributions, with one commissioner calling the approach 'a horrible idea' and others arguing bonding enables larger projects and manages debt capacity; no final vote on the bond issue was taken at the conference.
Commissioners debated the merits of bonding future GoMESA (Gulf of Mexico Energy Security Act) distributions for capital projects during the Sept. 18 Mobile County Commission conference, with one commissioner urging caution and others defending the financing approach. The item under discussion was a preliminary resolution authorizing issuance of limited-obligation warrants not expected to exceed $35 million for capital improvements.
One commissioner said bonding GoMESA funds would “hamstring future commissioners” and expressed opposition to taking the county’s annual distributions as a lump sum rather than leaving funds to be spent year-by-year. “I feel like I’m in a J.P. Wentworth TV commercial where they say ‘It’s my money and I want it now,’” the commissioner said, adding they had opposed prior bonding and considered the idea “a horrible idea.” The commissioner cited past distribution figures and expressed concern that bonding now reduces future officials’ discretion.
A fellow commissioner disagreed, saying the county manages its debt limits and that bonding provides up-front capital for projects that the county could not otherwise afford. That commissioner argued the amortization period and debt service are managed under county policy and that doing projects now avoids higher future construction costs.
County staff clarified aspects of the earlier bond structure: previous bonding provided an advance using GoMESA distributions and that debt service obligations reduce annual funds the county can immediately use. Staff said the bond structure was initially adopted when federal future distributions were uncertain, and noted the bond market approach had allowed the county to leverage funds to accomplish larger capital projects and to pair those dollars with other grant sources.
No formal vote to adopt new debt was recorded at the Sept. 18 conference; commissioners discussed the item and said they expected further information and possibly additional discussion at the next meeting. Staff said more details would be available on Monday following additional review and requested documentation.