City's financials help Elsa secure another grant

ELSA — City administrators came close to pulling out an application for improvements to their water treatment plant.

City Commissioner Cain Caceres said they’re glad they kept it in.

The city received a $5.1 million grant last month from the Texas Water Development Board for extensive rehabilitation to its water treatment plant and distribution systems.

The grant follows two others announced in the past month to improve drainage systems and its sewage plant.

All told, the $12 million in federal stimulus package grants for the city dwarf its $3 million annual budget, Caceres said. But if the city’s budget wasn’t in order, it might not have been in this position.

The city originally considered pulling out the latest application when they were told they would likely only get a no-interest loan for the $5 million, an amount the city would have struggled to pay back in the past, Caceres said. But the city council met with their financial advisers, who determined they could slightly revise the budget and manage to float the loan.

Caceres said they kept the application in — knowing they might end up only with a loan — and were rewarded with the full grant, which will reverse years of neglect at both city plants.

"It’s been more than 10 years since they laid a hand on the water or sewer plant," Caceres said. "With this money, it’s going to set us up for growth for the next 20 or 30 years."

City Manager Maria Teresa Rodriguez said the project is shovel-ready and will begin as soon as bids are accepted. The city received bids for the $6.4 million in work to its sewer plant last week.

State Rep. Aaron Pena, D-Edinburg, said the city council made a concerted effort to get all of the grants.

With no other foreseeable funds to take care of water and sewer infrastructure, the council presented a unified voice on its trips to Austin to lobby for the grants, Pena said. It was a departure from the city’s history of "rough and tumble politics" where the issues were sometimes forgotten.

"It’s been too many times on beating each other up than focusing on the bread and butter issues of the community," he said. "These funds were absolutely essential, and they were persistent in getting them."

Jared Janes covers Hidalgo County government, Edinburg and general assignments for The Monitor. He can be reached at (956) 683-4424.