Rep. Edwin Aldan, who sponsored T.L.B. 16-3, said the loan will be paid through the municipal gaming revenues that will be collected.
He also stressed that it’s just a coincidence that the measure was passed just before the Nov. 7 general elections.
“There is no political posturing. This pay raise is long overdue. They have been waiting for this for the past 17 years. They were granted this raise since 1992. [People don’t care much about the politics behind this] as long as we don’t steal the money,” he said.
“This was negotiated since Nov. 2008. At that time, we didn’t agree. This is a reasonable measure,” he added.
The bill empowers the Tinian mayor to establish a separate account where the municipal gaming revenues will be deposited to pay MPLT, the investment arm of the Department of Public Lands which collects payments for public land leases.
The new law, however, does not specify how many percentage of the projected Tinian municipal gaming revenues should be allocated to pay MPLT.
Further, the new law empowers the mayor “to be the expenditure authority of any funds approved for expenditure by resolution adopted pursuant to 2(a).”
“The [Tinian] delegation may adopt a resolution from time to time approving the expenditure of a portion or the entire loan proceeds for any public purpose in the interest of the municipality and its inhabitants,” the new law reads.
Senate Floor Leader Jude Hofschneider, R-Saipan, earlier raised concern about the measure’s lack of specific purpose to use the proceeds of the loan.
“I simply cannot agree to a general appropriation to “municipal projects and activities” without a showing of specific purposes,” said Hofschneider in a letter to Tinian Delegation Chairman Sen. Joseph M. Mendiola, Covenant-Tinian, before the local measure was passed.
Aldan said the Tinian mayor’s office is now negotiating with MPLT regarding the loan.
