Elsa officials, sheriff question shady $1.7 million TxDOT loan application
ELSA — City officials and county authorities are investigating an infrastructure loan application filed with the state in March.
Dated March 9, 2007, the application requests $1.7 million from the Texas Department of Transportation State Infrastructure Bank for relocating utilities along Farm-to-Market Road 88 in Elsa.
But the application was not signed by Mayor Senovio Castillo, the city’s highest official. It was signed and submitted by former Mayor Pro Tempore Javier Guerrero for Castillo, according to the loan application.
In addition, Resolution No. 2005 — dated Sept. 19, 2005, and submitted with the loan application — was also signed by Guerrero instead of the mayor and City Secretary Hilda Ayala.Loan applications with the SIB require the signature of the city’s highest-ranking official and a copy of a resolution approved during a city council meeting.
The resolution authorized only the mayor to sign and approve any documents necessary to complete the loan application. Also, the final loan application needed to be presented to the Board of Commissioners to identify projects to be funded and how the loan would be repaid.
A copy of Resolution No. 05-12, a two-page document dated Sept. 27, 2005, also shows Castillo’s signature, as well as Frieda Reyes, who was city secretary at the time.
The Sept. 27, 2005 meeting agenda called for discussion and action regarding the SIB loan, but did not call for approving either resolution. Copies of two different resolutions approving the request were also acquired through an open records request with the city.
Castillo said he questions whether either resolution is legitimate.
Unlike other Elsa city ordinances, the one that bears his signature contains one page with the resolution details and one with only Reyes’ and his signature — without a date or any details of the resolution.
“I don’t recall myself signing that particular resolution,” Castillo said. “I think Mr. Guerrero and Ms. Ayala were taking things into their own hands because [Resolution No. 2005] shows that he and she signed it.”
But Ayala said the reasoning for filing Resolution No. 2005 with the loan application was simple.
“I couldn’t find the ordinance at the time,” she said. “I put the wrong date also.”
Castillo said he needed to double-check with City Hall to make sure he actually did sign any ordinances for the loan request.
But Ayala said that the city has no minutes or documents from its meetings when the resolution apparently was passed.
Hidalgo County Sheriff Lupe Treviño said his office has been investigating the matter and would know more details about whether any laws could have been violated next week.
Commissioner Cain Caceres, who took office in June 2006, said the questionable application and resolutions casts a dark shadow over the city.
“It makes us look like crooks,” he said. “In my opinion, it looks like we’re trying to defraud the state of Texas by providing false or tampered resolutions to the state.”
Attempts to reach Guerrero Friday via telephone were unsuccessful.
According to the SIB Web site, the loan was still pending approval as of August 9, the most recent date listed. TxDOT State Infrastructure Bank officials could not be reached for comment Friday.
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Jared Taylor covers Edinburg, the Delta Region and general assignments for The Monitor. You can reach him at (956) 683-4439.
