Citing financial strain tied to a $13 million wastewater treatment plant relocation, the Bandera City Council on Feb. 24 declined to move forward with a proposed loan to address road repairs, saying the city cannot responsibly take on additional longterm debt.
The council met with city financial adviser Ben Rosenburg to review potential borrowing options to fund temporary road improvements estimated at roughly $4 million.
According to Rosenburg, repayment on a 20-year loan would require increases to property taxes and water and sewer bills. He also suggested the city could consider requesting additional support from Bandera’s Economic Development Corporation.
Using the latest engineer’s report on city streets, Rosenburg said the proposed repairs would provide only a short-term solution, lasting two to five years at most.
“I can’t get behind getting a loan for a two-year repair,” council member Debbie Breen said. “I am not going to pay twenty years for a two-year fix.”
Mayor Denise Griffin voiced concern about the estimated $2 million in interest the city would pay over the life of the loan.
“Roads aren’t being fixed at the moment because we are focused on the wastewater treatment plant,” Griffin said. “We got to get that done. But I was not expecting that much interest. That’s almost $2 million, half of the loan.”
Rosenburg agreed the available loan options were not favorable under current circumstances.
“I only get paid if you take out a loan, and I am telling you, it’s better to wait,” he told council members.
The city is currently in the process of relocating its wastewater treatment plant, a move required by the state of Texas. The total cost of the project is approximately $13 million.
Rosenburg said he was unable to secure state grant funding for the 2025-26 fiscal year but noted that grant qualifications change annually. He expressed optimism that the state could potentially cover about 70% of the total project cost in the future.
The Bandera Bulletin submitted an inquiry to the city asking why road repairs were not addressed by previous councils or before the wastewater plant relocation began. The city declined to comment.
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