ODENM TEXAS — A vote from the Odem Economic Development Corporation board to loan out $200,000 to the City of Odem may keep the city from going broke, leaving only $64,000 left in their own fund.
As 6 Investigates has reported, internal emails from the new mayor, David Maldonado, say the town is quickly running out of money and running at a deficit of around $200,000 each month. There were questions raised by some on the board about the legality of the use of ECD funds on City Operations, which Mayor Maldonado says will be brought up to attorneys during the negotiation phase.
"As long as the city attorney gets involved and he says legally, we can do it. Let him call the attorney general, let him call the state comptroller; if we get his blessing, then it's on him," said City Council member Billy Huerta, who is also a board member for Odem EDC.
"These are funds that are used for developing business, but who is going to bring business to a bankrupt town? Who is going to bring business to a town that doesn't have the facilities to support them?" said Rollie Braddock, board member for the Odem EDC.
Maldonado tells 6 Investigates this loan will help keep the city running and the lights on until they start seeing income tax in October, but cuts will still have to be made.
"We are working together, myself and our city council, we are looking at any and every avenue to make sure that we help get the city in the right direction. I'm going to be open and honest with everything that is going on. We are going to do our best to get back on track," said Maldonado.
This will now go to the City of Odem City Council in September, where terms will be laid out for repayment and allocation of the funds, which will need to be paid back in full and with interest.
