Six out of the seven Capital Metro board members Monday approved taking out a $10 million loan.
According to Cap Metro's vice president of finance, the loan will be used only if needed.
Currently, Cap Metro's reserve fund is down to almost nothing. Just a few years ago, the transportation agency had nearly $200 million in reserves.
Cap Metro said that money was used for capital improvement projects, including the new metro rail.
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Cap Metro Loan
News 8's Reagan Hackleman explains why some think it's moves like this that got the agency into financial turmoil in the first place.
 
Cap Metro Board
Hackleman tells us about a legislative bill that would change the makeup of the Cap Metro board.
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"It's unfortunate that we can't look internally to try and find budget cuts and expenditure savings before we go out and apply for a $10 million credit card," Cap Metro Board Member and Austin Councilman Mike Martinez said.
According to the board, their options included taking out the loan, not paying some bills, or suffering a disruption in service.
"None of those options are good, but the line of credit seemed to be the least bad of three bad options," Cap Metro Board Member Brewster McCracken said.
State Rep. Eddie Rodriguez, D-Austin, co-authored a bill that would change the makeup of Cap Metro's board, saying it’s time for some changes within the agency.
"It just tells me they don't think things through a lot, before making some bad decisions," Rodriguez said. "You have to look at who's in charge, and right now I don't think that individual or individuals are making the right decisions."
If Cap Metro decides they don't need the loan, they'll still have to pay $25,000. If they do spend the money, the fee will decrease, but Cap Metro will have to pay interest on the amount used.
The Cap Metro board approved taking the loan by a 6-1 vote. Board Member Martinez was the only member to vote against the measure.
