El Paso FOAC recommends council seek TxDOT SIB loans to meet MPO local-match requirements

The City of El Paso Financial Oversight and Audit Committee on April 1 recommended that City Council authorize staff to apply for State Infrastructure Bank (SIB) loans from the Texas Department of Transportation to meet local-match requirements for federally funded projects programmed by the Metropolitan Planning Organization.

Joaquin Rodriguez, grant‑funded program director in the Capital Improvements Department, told the committee the SIB loans are a low‑interest alternative to one‑time capital asset sales and could provide a predictable source of local match for MPO projects. “The SIB loans offer us a more predictable and sustainable alternative to those one‑time funds,” Rodriguez said.

Rodriguez said the city had executed about $117.5 million in federally and state funded transportation projects from 2018–2024 and contributed roughly $32 million in local match (about 27 percent of project totals). He described a staff plan to pursue a portfolio approach: large projects handled as individual loans and smaller bicycle‑and‑pedestrian projects grouped into single agreements. Rodriguez identified one immediate candidate, the Sean Haggerty bridge project, for a $7,360,000 loan that would cover utility relocation and contingencies; staff recommended a 25‑year term for city affordability.

Rodriguez also described SIB program features: loans are eligible for Title 23 U.S. Code projects, may cover construction, right‑of‑way and utility relocation, have no application fee, and follow a roughly six‑to‑eight‑month TxDOT approval timeline. He said El Paso qualifies for an interest‑rate discount for economically disadvantaged counties (a 55‑basis‑point reduction under current policy) and that the city’s credit rating affects pricing.

Committee members asked for clarifications about project timing and oversight. Representative Travis Yeboque asked whether the “year of expenditure” on the list equates to project completion; Rodriguez replied the year of expenditure is the year the city will bid and begin paying contractors, and construction timelines are typically 18–24 months. When one committee member said authorizing up to $39.12 million in a single motion for three years made them “uncomfortable,” Rodriguez replied that council would still see each loan twice: once for the application and once for execution, and that staff would return to council for each final loan agreement.

The committee voted unanimously to recommend that council approve use of SIB loans for MPO match requirements and to adopt a resolution allowing staff to submit loan applications for up to $39,120,000 over the next three fiscal years. Rodriguez said staff will bring a draft resolution to council that grants the city manager and finance staff authority to apply for the grouped loans and will return later for execution resolutions for each final loan agreement.

Next steps: staff will prepare the council resolution for submission and continue work with legal and the city’s financial advisors on loan terms and grouping strategy. Council action is required to submit SIB applications and to execute any loan agreement.