Water You Thinking?
What to Know: In spite of a global pandemic and the worst economy in modern times, the city of Amarillo is set to issue $7.9 million in certificates of obligation (aka nonvoter approved debt) to build a âstate-of-the-artâ water park featuring a lazy river, poolside cabanas, and more. In fiscal year 2019, the cityâs outstanding debt totaled $398 million or more than $2,000 owed per resident.
The TPPF Take: Cities shouldnât own water parks. Cities definitely shouldnât go into debt to own a water park. Cities absolutely shouldnât go into debt to own a water park during an economic meltdown.
âGovernment doesnât belong in the water park business,â says TPPFâs James Quintero. âAmarilloâs ill-advised borrowing binge underscores the need to eliminate certificates of obligation. Local officials continue to misuse this instrument to the detriment of struggling taxpayers.â