ODEM, Texas — The City of Odem is two weeks away from going broke.
Documents obtained by 6 Investigates reveal the city is spending $400,000 a month on expenses, but only bringing in $200,000 in revenue.
"At this time there appears to be approximately two weeks of cash available in the city account, I have suspended all discretionary outlays today," Odem Mayor David Maldonado wrote in a document obtained by KRIS 6 News. "The preliminary opinion is that the City will need to borrow approx (sic.) $250K per month for Sept., Oct., Nov., and Dec. If not the city will be unable to cover expenses which include employee salaries."
Maldonado said he has reached out to Charter Bank to see what assistance can be provided and that the city needs approximately $1 million to fund expenses for the rest of the year.
In a separate document, he said he is working to secure a Tax Anticipation Note, or a temporary loan given in advance of property tax payments.
6 Investigates spoke to a city government expert, who spoke on the condition of anonymity, and said these types of notes, which are typically secured through the government are not eligible to fund operating expenses.
This expert added that when expenses outpace revenue, the only option for municipalities is to cut spending.
The City will hold a budget workshop at 9 a.m. on Saturday to discuss solutions.
This is a developing story, please check back with KRIS 6 News for updates.
