Eagle Pass reports $5.3 million recovered from state water loans; $2.8 million remains

Eagle Pass city finance staff told the City Council on June 3 that the city has recovered $5,316,000 in reimbursements from the Texas Water Development Board for previously financed waterworks projects and that roughly $2,800,000 remains outstanding.

The update came during the council's discussion of item 18, a Texas Water Development Board loans reimbursement update. "I am happy to announce to you ... the total amounts that we were able to recover since the time I came in on board. It's $5,300,000 that we got," Mr. Castillo said, adding the city still needs to recover approximately $2,800,000.

The council heard that the deficit originated when city staff had paid contractors on waterworks projects but had not claimed reimbursement from the Texas Water Development Board, forcing the city to temporarily finance those projects from the general fund. Mr. Castillo said the most recent deposit was received in October 2024 and that a $3.1 million payment arrived about two weeks before the meeting.

Council members and staff described the recovery as a major correction of an audit finding. City staff attributed the issue to internal miscommunication and said they hired a consultant and worked with the waterworks department and engineers to reconcile accounts and pursue the federal-state reimbursements. "In less than a year, we were able to recover $5,000,000. We still have 2.8 to go," Mr. Castillo said.

Council members noted the recovered funds were deposited to the general fund and will be available for routine uses and possible reinvestment. The council repeatedly thanked staff for the recovery work and the persistence that led to the deposits.

No formal vote was required; the item was presented as an update and staff said they will continue pursuing the remaining reimbursements.