The Municipality of San Sebastian filed with the U.S. Bankruptcy Court an objection to the Commonwealth of Puerto Rico’s ad hoc municipalities committee’s request for official committee designation.
The objection asserts, “Eleven of Puerto Rico’s municipalities filed a request that they be named as the Official Puerto Rico Municipalities Committee. The Municipality of San Sebastian (SS) opposes said designation for the reasons set forth below and requests that this group’s motion be denied in its entirety….Movants claim that they have ‘important and vested interest in the Title III Petition because any plan of adjustment and the budgets mandated by that plan, will directly affect each and every Municipality.’ Although the plan of adjustment may treat municipalities different, the budgets are determined by the Fiscal Plan, which has already been certified. Moreover, although movants complain of the reduction in the amounts they receive in the approved budget, the reality is that they have no control over it since it is a function of the Executive, the Legislature and the Board, irrespective of the existing Title III.”
In addition, “Movants also complain, with good reason, about the actions taken by the GDB that affect their budgets. The GDB, however, is not in Title III. Moreover, although two municipalities (Caguas and San Juan) have sued over the RSA approved by the Board for the GDB, none of these Municipalities has sued or moved to join any of these suits, putting in doubt their opposition to the deal and its consequences. In addition, although movants claim might also affect them, they do not explain how they would be affected in a manner different from all other residents of Puerto Rico. The reality is that no Committee can adequately represent the interest of the Municipalities as a whole since they have different interests.”
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