Ensenada Mayor Claudia Agatón Muñiz has asked the city council to approve a 450 million peso (roughly $22.5 million USD) loan that would not be fully repaid until 2046, drawing a divided vote and raising questions about the municipality’s fiscal health.
The proposal also includes refinancing an existing 410 million peso ($20.5 million USD) debt. Combined, the two measures would place roughly 860 million pesos ($43 million USD) in long-term obligations on the city’s books.
What the Money Would Pay For
According to the proposal, the new loan would fund basic infrastructure needs. Those include road repairs, pothole patching, drainage construction, and the purchase of at least one street sweeper. Residents familiar with Ensenada’s roads, particularly in colonias east of the toll road and along the city’s main arteries, have long complained about deteriorating pavement and chronic flooding during winter rains.
The 20-year repayment timeline means the debt would extend well beyond Agatón’s current term in office. Future administrations would inherit the obligation, and the annual debt service payments would reduce the share of future budgets available for other priorities.
Council Split on the Vote
The city council did not approve the loan unanimously. The divided vote signals disagreement among council members over whether taking on two decades of debt is the right approach to addressing Ensenada’s infrastructure backlog. Details on which council members voted for or against the measure were not immediately available.
The refinancing of the existing 410 million peso debt is also notable. That prior loan already represented a significant commitment for a city that has struggled with revenue shortfalls. Refinancing typically extends payment timelines or adjusts interest rates, but it also means the original debt has not been retired on schedule.
Financial Pressure on Ensenada
Ensenada, Baja California’s third-largest city with a population of roughly 520,000, has faced persistent budget pressure in recent years. Municipal governments in Mexico rely heavily on property taxes, water fees, and federal transfers, all of which can fluctuate. The city’s growing population and expanding footprint have placed increasing demands on infrastructure that has not kept pace.
For property owners and long-term residents, the loan could eventually translate into higher fees or taxes if the city needs additional revenue to service the debt. At a minimum, it commits a portion of future budgets to loan repayment rather than new projects or services.
The story was first reported by Zeta Tijuana.