A state lawmaker said city comptrollers met Assembly members in order to address a series of pending issues after their respective 2013 Finance Reports were rejected.
Assemblywoman Rosalba López, a Mexicali member of the National Action Party, said among those attending the meetings was Mexicali City Comptroller Humberto Zúñiga.
Assembly members rejected the city’s report, called Public Account, due to the lack of payment of fees to the state agency in charge of public employee pension and healthcare services, known in Spanish as Issstecali.
Then-Mayor Francisco Pérez Tejada was sued for the 850 million pesos or $47.22 million that were unpaid by his administration.
Pérez Tejada has said the city made an agreement with the agency to pay the debt.
“We were informed 18 judicial processes were open and are about to reach a final ruling within the next months and federal and state authorities will be informed of the situation,” she said. “This is a historic event as similar meetings have not being held three months before the city administrations end.”
The parties also discussed issues relating transparency reports that might be addressed in future administrations.
Moody’s confirms city’s ratings
Moody’s de México confirmed days ago the ratings for the City of Mexicali and left them at Caa1/B3.mx and revised its outlook to negative.
The company said Tuesday in a press release that the city’s loan of 814 million pesos or $45.22 million with Banobras public bank was set at B1/Baa3.mx.
According to Moody’s, this action closes the review for downgrade after the local government missed payments on two short-term unsecured loans on June 30.
The company based its ratings on Mexicali’s very tight liquidity position, its structural reliance on short-term debt, net working capital of -20.2 percent –which is one of the lowest among Mexican rated municipalities-, low cash position that covered 0.1 times its liabilities at the end of 2015, high total debt levels and the negative gross operating balances.
Moody’s said the City of Mexicali’s short-term debt stood at $13.4 million with two private banks that represent 24 percent of its total direct debt, while long-term debt was $83.25 million at the end of last year that equaled to 68.7 percent of its operating revenues, one of the highest debt levels among Mexican rated municipalities.
The city’s gross operating balance was -7.8 percent at the end of 2015, Moody’s reported.
“We expect Mexicali to continue accumulating arrears with suppliers while it keeps its short-term debt to operating revenue ratio constant at the end of 2016,” Moody’s said. “The negative outlook reflects our expectations that Mexicali will continue experiencing pressures to fund its recurrent deficit and will continue relying on short-term financial debt.”
The credit rating agency also said the negative outlook reflects too the uncertainty regarding the financial policies to be implemented by the incoming administration that begins Dec. 1.
“Given the negative outlook, a rating upgrade is unlikely in the medium-term. However, the rating could be stabilized if Mexicali improves its gross operating and reduces deficits,” Moody’s said. “The ratings could also be stabilized if Mexicali improves its liquidity position through a reduction in short-term debt, an increase in cash holdings, or a combination of the two.”
City cleaning efforts continued
A city official said authorities remove every month around 2,000 meters or 1.25 miles of unauthorized propaganda and business signs from the streets.
Urban Administration Director Luis Vizcarra said companies can be fined with up to $1,666.67 in Mexican currency for each violation.
City inspectors patrol the city every day to find businesses if their signs blocks pedestrians from walking on a street.
Vizcarra asked businessmen to approach his office in order to update their permits to avoid fines and other measures.
Every advertising sign must follow local ordinances and require a special permit from the city, he said.
Robbery suspects arrested
Two men were arrested separately by police officers with arrest warrants for robbery, said the Municipal Public Safety Department.
Authorities said the first arrest was reported at 12:14 a.m. Thursday at Fuente de Medusa Avenue and Fuente de la Felicidad Street at Colonia Voluntad neighborhood.
Police agents arrested José Ángel “Doe,” no age reported.
The other suspect was identified by authorities as Christian Irán “Doe,” 21.
The man was found at Coatzicaliy Street and Mixteca Street at Fraccionamiento Ángeles de Puebla neighborhood.
The suspect had a small blue bag with about six doses of methamphetamine.
The man had an arrest warrant for robbery and another one for being under possession of a firearm.
The suspects were transported to the police headquarters.
