Bandera City Council Delays Road Repair Loan Amid $13 Million Wastewater Project Costs
The Bandera City Council decided against a proposed loan for road repairs due to financial strain from a $13 million wastewater treatment plant relocation. Financial adviser Ben Rosenburg indicated that taking on additional long-term debt would necessitate tax increases and suggested exploring support from the Economic Development Corporation. The estimated $4 million in temporary road improvements would only provide a short-term solution, lasting two to five years.
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On February 24, the Bandera City Council opted not to pursue a loan for road repairs, citing financial pressures from a $13 million wastewater treatment plant relocation mandated by Texas. Financial adviser Ben Rosenburg highlighted that the loan repayment would require increased property taxes and water and sewer bills.
He indicated that while temporary road improvements are estimated at $4 million, they would only last two to five years. The council expressed concerns about the $2 million in interest over the loan's 20-year term. Rosenburg noted unfavorable loan options and mentioned the potential for future state grant funding to cover about 70% of the wastewater project costs.
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