Reprint from the Progress Times - February 9, 2007
©Progress Times 2007 - All Rights Reserved

Water Corporation Runs Into New Financial Problem

Just when it appeared the La Joya Water Supply Corporation was on the road to recovery, a new problem has appeared - the company must come up with an estimated $5 million to replace water lines that Texas Department of Transportation construction will require to be moved.

The state holds utilities and municipalities responsible for removing and replacing any water or sewer lines in the way of construction.

Announcements of the projects by TxDOT caught LJWSC officials by surprise. "Although the state had been planning these projects for the past four years, we were not aware of them," said Frank Flores, who took over as manager after the corporation was placed in receivership last year by the state. "So, right now we are trying to come up with sources of funds for the projects."

Flores said the previous water corporation board had been informed of the projects, but that information had not been passed on after receivership was imposed.

At issue are four separate projects in the western area of Hidalgo County. The projects are in the Palmview, Penitas and Abram areas, three of them involving Expressway 83 and Business 83.

Flores said Hidalgo County Commissioner Joe Flores had already offered to come to the assistance of the corporation. He said the commissioner told him he was trying to divert about $1.4 million in federal funds from his precinct to the corporation.

In addition, the corporation is trying to borrow an additional $2 million, but Frank Flores said that is still pending.

LJWSC officials also are hopeful that TxDOT will reimburse the corporation for land along Expressway 83 that is needed for one of the projects. How much that might be remained uncertain.

The corporation had been placed into receivership last year by the state because of financial problems and problems with billing and collection of those bills, among other problems.