Weslaco to decide on $1 million loan

WESLACO - The city will have to wait at least another week to secure a $1 million line of credit from First National Bank.

The City Commission took no action on the measure Tuesday night but could reach a decision on the issue at its meeting set for Tuesday next week.

The city needs a $1 million line of credit to settle two lawsuits, City Manager Anthony Covacevich said earlier this week.

But Tuesday night, Covacevich did not discuss with commissioners why the loan is needed.

Some of them have questioned the rationale for the loan, saying they had previously been assured that the lawsuits would be paid for with money from Weslaco's water and sewer fund.

Covacevich said the city would be able to pay back any money it borrows from the bank as property tax revenue starts coming in to the municipal coffers in December and January.

At Tuesday night's meeting, Mayor Buddy De La Rosa accused Covacevich of acting hastily and not keeping the commission apprised of an apparent "financial crisis" that has made it necessary for the city to seek a line of credit.

"I'm not saying the money isn't needed, but it's impossible for the commission to act without full knowledge," the mayor said during the meeting.

Covacevich could not be reached on his cell phone after the meeting, but earlier this week he declined to respond to De La Rosa's allegation that he hasn't been candid with the commission.

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