Hawk Cove, Texas, October 21, 2025. Good news for the sewer loan: the City is ahead. At tonight’s regular meeting City Attorney Ronna L. Hodges reported on the monthly payment to the USDA. “It covers the city’s monthly payment to the USDA of $1,800” (0:06:08), through a pre-authorized debit agreement.
The timeline, as reported
- September 15, 2025: the City learned the USDA “had not auto-drafted the monthly $1,800 from the city’s account for July or August 2025” after the USDA “had converted from one payment system to another” (0:06:08).
- The City’s “August 15 2025 $24,240 payment had posted on September 9th 2025” (0:08:06).
- The USDA then “tried to auto-draft all three payments $5,400 in one lump sum.” The bank “rejected this attempt as unauthorized. The PAD agreement that the bank follows is $1,800 a month” (0:08:40).
- October 14: “the city secretary drew and mailed a check in the amount of $7,200 to cover the now for payments for July August September and October” (0:09:05).
- October 15: the USDA “auto-drafted the October 15th payment of $1,800. So now they’ve got five months worth of payments” (0:09:05).
The bottom line, in the report’s own words: “the city has essentially paid the November 2025 payment in advance” (0:09:05). The rest, the Council heard, will be settled “When communications with Mrs. [name] are restored.”
Also reported
The same report said the City “is not eligible to receive grants,” and that the USDA’s Special Assets Unit had recommended a demand letter and referral of the City’s “debt default and delinquency to the Department of Justice for legal action” (0:05:41). Asked afterward for a copy of the statement, the City Attorney said: “What is public is the recording,” and, “I will not be supplying a copy” (0:14:26, 0:15:05). So here is the recording, transcribed.
For the loan’s history, see Sewer Loan Passes the $800,000 Mark in Interest.