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Court amends TCEQ contract to apply reimbursement to principal only; staff to research interest-account options
Summary
Commissioners approved an amendment to contract 582-25-71-293-RG with TCEQ (TARP program) to require reimbursed funds be applied to principal only and held in an interest-bearing account; staff will research grant-specific subaccounts or Texas CLASS options to capture interest and avoid bank fees.
The court voted to amend article one of contract number 582-25-71-293-RG, a TCEQ-related contract linked to the county’s TARP program, so that reimbursement funds are applied to principal only and any difference is held in an interest-bearing account for future scheduled payments.
Assistant county attorney Evelyn explained that TCEQ will not allow grant funds to be used to pay interest or penalties. The county had anticipated using TCEQ funds to reduce a larger purchase contract; due to contractual language the county expects to owe roughly $19,000 in interest that cannot be covered by the TCEQ reimbursement, but TCEQ allowed the county to apply the money toward future payments (e.g., 2027) rather than pay interest.
Commissioners discussed administrative options to avoid bank fees and maximize interest: opening a non–interest-bearing checking account specifically for the grant receipts or creating a Texas CLASS subaccount to capture higher short-term yields, with staff asked to report back with a recommendation at the next court meeting. The court approved the contract amendment by voice vote.
