ODEM, TX — Odem is facing a budget crisis. As 6 Investigates previously reported, the city is spending nearly $400,000 a month for operations, but only bringing in $200,000.
New documents obtained Tuesday by 6 Investigates show the city has been operating in the red for several years since 2015. For example, Odem's utility fund this year has a deficit of $600,000.
On Monday, the Odem City Council voted to increase the proposed property tax rate to the maximum allowed by law, or the diminimus tax rate, saying it also intends to increase utility rates.
It's a choice that not all council members agreed with and raised some concerns from citizens at the council meeting.
"I don't feel that the citizens should have to pay that burden because of our cities deficits," Odem City Councilmember Elizabeth Asevedo Candela said.
"I really don't think the citizens should have to be the ones that are having to bail out what ya'll say has been so many years of issues," an Odem resident at the meeting said.
The proposed tax rate is set to be implemented in October. Voters in Odem, however, can ask for an election to overturn this decision. To do so, roughly 50 voters would have to sign a petition asking to take the issue to the ballots, which would cost the city over $20,000 for the vote.
Last week 6 Investigates reported that the city council was set to vote on a loan from the Economic Development Corporation. That vote was tabled Monday and may be heard again during the next meeting.
Right now city council members haven't been able to answered how much money does Odem have in its bank account, and what happened to create this deficit
Odem Mayor David Maldonado told 6 Investigates on Tuesday that the city's primary bank account has about $200,000.
This is a developing story and KRIS 6 News will continue to update as more information comes in.
