No official announcement has yet been made but sources told Brownsville Radio yesterday that there could be a called meeting of the Brownsville Board of Mayor and Aldermen before the end of the week. Brownsville Radio and the Brownsville Press have learned that leaders are meeting with financial advisors from the Municipal Technical Advisory Service (MTAS) as they try and unravel the city’s financial crisis that was disclosed over two weeks ago.
Brownsville is so short of cash Mayor Bill Rawls proposed borrowing up to $2 million to fund city operations. Aldermen did not support Rawls’ proposal at a meeting last week, but insiders say there may be no choice.
Earlier this year the board agreed to a $3 million line of credit the Mayor said would be used to fund payment for projects funded by grants. The city often must pay bills before grant money arrives, and the mayor said the payments cause cash flow problems.
Brownsville Radio and the Press have learned that the contract for the line of credit has not been closed and no money has been drawn. Before the loan can become final the city’s most recent audit must be delivered and the Comptroller of the Treasury must also approve the loan. Neither of the conditions have been met.
