Tulum Council Approves Request for 75 Million Peso Credit to Cover Operating Costs

Tulum, Quintana Roo — The Tulum municipal council voted to seek a 75 million peso credit to cover day-to-day operating costs, a decision that raised questions about the resort town’s finances and about why a session dealing with the matter was held online.

Most members of the council, known in Mexico as the Cabildo, backed the request during the 52nd ordinary session, held virtually on Thursday, Nov. 5. The loan will be put to three banks for bids, and officials said it must be repaid before the current administration leaves office.

The move revived concern about the municipality’s books, since Tulum took out a similar financing arrangement last year. Repayment on that credit is scheduled to be completed on Nov. 15.

Municipal treasurer Raziel Ek Cruz said the new financing would serve as a contingency line of liquidity to guarantee basic obligations: garbage collection, the municipal payroll, police salaries and year-end bonuses.

Under Article 30 of Mexico’s Financial Discipline Law, the municipality must receive at least three bank proposals in order to secure the best terms, he said. A preliminary offer carries an interest rate of 6.65%, and the money cannot be spent on new public works, only on the uses the law permits.

Municipal trustee Rifka Renee Queruel Nussbaum questioned the request, noting that about a month earlier the treasurer had described the municipality’s finances as healthy. She called the apparent contradiction a source of uncertainty for residents and asked for a clearer account of the administration’s economic position.

Ek Cruz responded that the financing is precautionary, given uncertainty over revenue and the need to keep public services running over the coming months.

Councilor Eugenio Barbacho acknowledged residents’ concern but supported the need for liquidity, saying Tulum is facing an economic and tourism downturn that has hit hotels, restaurants, businesses and services. He warned that low seasons are lasting longer and urged the municipality to seek emergency support from the state and federal governments.

Councilors also criticized the decision to hold a session on a financial matter of this size online, and called for the justification for the virtual format to be made public.