‘Pursue valuation report of CNMI properties’

Senate President Edith E. DeLeon Guerrero (D-Saipan) hopes the Palacios-Apatang administration will put more effort into having a valuation report on Commonwealth properties, so that people would know exactly what the CNMI’s market value is.

DeLeon Guerrero underscored the need to have such a valuation report during a Senate special session on Monday, during which they discussed and subsequently passed with some amendments a bill that authorizes the CNMI government to negotiate a revolving line of credit with the Marianas Public Land Trust in the amount of $15 million.

DeLeon Guerrero said it is important to exactly know how to promote the Commonwealth if they were to float additional bonds to keep the government afloat.

The president cited Article 10: Taxation and Public Finance Section 4: Public Debt Limitation where it states that “public indebtedness other than bonds or other obligations of the government payable solely from the revenues derived from a public improvement or undertaking may not be authorized in excess of 10% of the aggregate assessed valuation of the real property within the Commonwealth.”

DeLeon Guerrero then asked Finance Secretary Tracy B. Norita if the proposed revolving line of credit is in excess of the allowable 10% of the aggregate assessed valuation of the real property within the Commonwealth.

Norita said she wishes she could answer that question since they have yet to have a published study of the 10% valuation of CNMI properties.

That report was actually part of a Technical Assistant Program award from the U.S. Department of the Interior’s Office of Insular Affairs, Norita said, but that project has stalled due to the cost of the proposals that were submitted. She said the grant funds were insufficient.

“So, at this time, I don’t have any updated information as to the 10%,” Norita said.

She added that the line of credit is meant to be a short term and not a long-term debt instrument.

Because the line of credit is tied to awarded grant funds to ensure or secure the payments, it would still be beneficial to move forward with the $97 million federal projects that they have in front of them, she said.

DeLeon Guerrero recalled that, if she is not mistaken, the prior Finance secretary had cited a census report that placed the CNMI value at maybe a little bit over or under $2 billion.

DeLeon Guerrero said that, without a current valuation of the Commonwealth, considering that they are currently debating the issue of a $15-million revolving line of credit, and the execution of this particular note would be today, not having a current valuation report means they are unsure if the $15 million will be in excess of the allowable 10%.

She said the only valuation they have is whatever they had many years ago.

Norita said she does not have with her right now any information as to when the valuation study was done for the Commonwealth. “I know the efforts to have an updated valuation report has stalled so I don’t have that information right now,” Norita said.

DeLeon Guerrero noted that there was a request for proposal that was published with respect to pursuing the valuation of the Commonwealth properties to keep it current.

“And, as you stated today, the money was not enough and therefore this project has not gone anywhere,” said DeLeon Guerrero, adding that the administration should push forward with this project.

Tracy B. Norita

Senate President Edith E. DeLeon Guerrero