Chief Financial Officer Carolyn Miller explains to the Brenham City Council how an interfund loan between the city's sanitation fund and water fund will be used to repay a line of credit for the Lake Somerville water intake repair project.

The Brenham City Council approved an interfund loan to help repay a local bank for a water line repair project at Lake Somerville at a brief meeting today (Thursday).

The interfund loan is between the city’s sanitation fund and water fund, and will be used to repay an advancing line of credit with Bank of Brenham for the raw water intake structure repair project at the lake.

Chief Financial Officer Carolyn Miller said the city is still waiting on reimbursement from FEMA, so it will instead repay the line of credit with cash reserves.



Last July, the council approved a $5 million advancing line of credit from the bank at an interest rate of 2.6 percent to provide interim financing for the repair project, which will be reimbursed by FEMA at a 75-25 percent share.

City Manager James Fisher said the project was initially estimated to cost around $1.5 million $1,178,100, but ended up bidding out in February 2020 at $4,999,991 to Lindsey Construction.  He said while FEMA has allocated the amount of the initial cost, the city is still waiting to receive the difference up to the amount of the bid award.  Update @ 6:30 p.m.: Following the council meeting, Fisher clarified to KWHI that FEMA has authorized reimbursement of 75 percent of $1,178,100, or about $883,575.  The city pays the other 25 percent, plus other costs that are not allowed by FEMA.

The current balance of the line of credit is $1,351,075, plus accrued interest.  The interfund loan for $1 million will be repaid over 10 years with an annual interest rate of 2 percent.  The remaining $351,075 and accrued interest will be paid from water fund cash reserves.  Once the city receives FEMA reimbursement for the project, the water fund will repay the interfund borrowing from the sanitation fund.

In the only other item on the agenda, the council moved to appoint Adonna Saunders to serve on the Board of Directors for the Brenham Community Projects Fund, Inc.  The non-profit foundation provides funding for quality of life enrichment for recreation, literacy and community philanthropy and development.  Saunders will fill the Treasurer position of former councilmember Susan Cantey.

Other officers for the foundation are Mayor Milton Tate as President, Mayor Pro Tem Clint Kolby as Vice President, and Fisher as Secretary.

What’s your Reaction?


  1. It is obvious that Brenham city management no longer has any morals in conducting day to day business and long term city citizen planning. Worst yet is that city mayor and city council and city supervisors and city directors are all drinking the kool aid that city management is serving. I can’t go to council meetings since I am still lucky enough to have an oil field job. Where are we headed in Brenham?

    1. Just not sure we haven’t changed the city’s name to JAMES FISHER TOWN !!!
      We just believed that new members would help for POSITIVE CHANGES….Oh well….new members YOU as well are a disappointment!

  2. What about the assistant city manager, he is just as guilty as the city manager. Reese presented the original bid and water project work to the city manager and city council. Reese recommended approval. Reese now has also raised the rates of septic services costs in the county by eliminating septic services from dumping local county waste at the local sewer plant. Sounds to me like Reese is costing the city big bucks due to his ignorant mistakes and he also doesn’t want to take any manure from anybody.

  3. I simply do not understand what Fisher tells city council and they believe everything he says without question. This is another story how a project can be estimated at 1.5 and then comes in at almost 5 mil. What kind of calculator are they using.
    Sounds like another behind the door decision was made just like the Fire Chief firing….. we never heard from city council on why they agreed with fisher he should be fired or what he did to justify his release.
    I smell a rat and looks like new council members are no better than what we had……….just sad.

  4. I’m confused FISHER the SHOULD OF BEEN GONE BY NOW city manager says it was an estimate of about 1.2 million, then when bidding is done with its 5 million. If my calculations are correct that’s 3.8 million off !!!!! THEN FEMA will ONLY pay 885k city pays the additional of about 300k. Then in addition city will pay 3.8 million. Then city will pay any additional fees that are NOT ALLOWED BY FEMA !!!! PLEASE CORRECT ME SOMEONE if I am wrong.

    THEN let’s take from Peter(WATER FUND) to pay Paul, (SANITATION) and wait to find out if Robert (FEMA) pays us anything back AND if he does let’s rush that money back into the proper accounts or pay back bank loan at a mere 2%?

    What qualifications did brenhams city manager have to create an estimate of 1,778,000?
    Personally when you involve more than one method of paying back loans….things will hit the fan !!! Don’t worry tax payers I see nothing but TAXES GOING UP AGAIN !!!!

    1. Agree ! I am totally shocked that an estimate could be that far off (3.8 million). There is a major problem, somewhere, when there is that much difference between the bid and the actual cost. Hope there is documentation to explain this “major Flub”.

  5. I have read this twice as is has been in the paper before and no one has said how much is the interest to pay is and how it reflects back to how much is in our reserve funds.

  6. So does anyone else see the probably with this guy in charge???? Bid was to be around what 1.5 million but ended up being 4.9???? I thought the new members elected to City Council was going to step up and do what the others wouldn’t do????

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