SAN BENITO — The city might be borrowing money to fund a multimillion-dollar sewer system upgrade.
Later today, city commissioners are expected to meet with financial advisor Don Gonzalez to discuss borrowing money to upgrade six sewer lift stations along with other improvements.
Commissioners will consider preparing documents needed to issue certificates of obligation.
Officials have put the cost of the lift station upgrades at about $11 million.
The Texas Commission on Environmental Quality has given the city about three years to upgrade the lift stations or face hefty fines for a series of sewage discharges along the banks of the Arroyo Colorado in 2009 and 2010.
In the meeting, commissioners are also expected to discuss public-private partnerships.
In recent months, McAllen developer Damian Guevara has proposed privately financing as much as $25 million to fund the lift station upgrade and street repairs.
However, Commissioner Rene Villafranco has indicated he is not interested in pursuing the proposal which former Commissioner Esteban Rodriguez had pushed before losing the May 5 election to Rick Guerra.
City Manager Manuel De La Rosa stated the city was considering the issuance of certificates of obligation as a “funding option” to upgrade at least six lift stations, a waterline along Business 77 and “other capital improvements.”
Mayor Ben Gomez and Commissioners Villafranco, Guerra and Carol Lynn Sanchez did not respond to messages requesting comment.
Commissioner Tony Gonzales declined comment.
Gonzalez, of Estrada Hinojosa Co. in San Antonio, said he had been asked not to comment.
Earlier this month, De La Rosa told commissioners the proposal to fund the lift station upgrade would impact the city’s budget for the upcoming fiscal year.
Now, the city’s long-term debt stands at about $32 million, largely incurred through the construction of a water plant, sewer plant and water tower.
