Commission Strives for Better Financial Reporting and Transparency

Investigations continue on several fronts as La Feria City Commission seeks to regain community’s trust

by Victor Moreno/LFN

The La Feria City Commission met at their regular city meeting on Tuesday, March 14, 2017. Although Mayor Olga Maldonado was not present, Mayor Pro Tem Esmeralda Lozano, city attorney Rebecca S. Hayward and the rest of the commission were present to call the meeting to order.

The commission first heard public comments from Mrs. Gloria Casas who requested a community meet and greet with the six candidates currently running for city commission positions.

The council then took action on the donations collected by the Antique Car Club during the Fiesta de La Feria. The donations amounted to $607.00 and donated to St. Francis Xavier Food Bank. The members of the Antique Car Club, who are mostly military veterans, received a standing ovation from those present led by commissioner Lozano.

UTRGV was invited to present their Area Health Education Centers (AHECs) program which would call for a partnership between UTRGV and the City of La Feria for use of the City’s Community Resource Center located on 1001 Pancho Maples Dr. After a few questions from the city commission and advice from attorney Hayward of no possible conflict of interest it was determined that the use of the facility was within the City’s budget to allow UTRGV use of the facility from once to eventually three times a week for their outreach program.

The commission then considered a request from Balch Machine Company to terminate their contract with the City relating to Unit 4B, AN-47 drain ditch improvement project due to Balch company filing for bankruptcy. The council and attorney Hayward concluded that this step is necessary to move the project to completion and that the City would deal with and collect any penalties due the City at a later date.

A motion was passed to table any action to approve a Municipal Setting Designation for the City of La Feria with regards TCEQ seeking environmental closure for the CVS property located at the corner of Main and Business 83 pending a further report that there is no possible ground water contamination.

The council then listened to attorney Hayward who presented findings on information related to the La Feria Industrial Development Corporation. It was discovered that periodic reports to the Secretary of State’s office had not been in compliance on multiple occasions and that the articles of incorporation for the IDC were out of date which led to the IDC being involuntarily dissolved several times in past years. Hayward also stated that they are still investigating other corporations created by the City in past years but that the IDC’s records are now current and up to date.

The council then heard from the finance director on the City’s financial report. The finance director reported that he is closely monitoring expenditures and taking steps to secure better rates from vendors and looking at other ways to recoup monies due the City. The finance director reminded the council that the city’s debt must be paid first to move ahead to a more realistic budget.

Commissioner Lozano took a moment to remind the finance director of past experiences with previous financial reporting and that she felt the council had been duped by previous bogus budget reporting.

“Nothing short of outrage” stated Lozano on learning of missing funds.

“We don’t deserve it and the people don’t deserve it” said Lozano.

Lozano also requested that it be priority to collect penalties from contractors for projects not completed on time stating “we are working hard to regain the trust of our community”.

The commission then entered into executive session to discuss pending litigation styled Sunny Phillip (plaintiff/counter-defendant) v. the City of La Feria (Defendant/counter-plaintiff), 2016-CCL-01195, and legal issues related to the counter suit filed against Sunny K. Phillip by the City of La Feria.

After returning from executive session the commission moved to authorize City Manager, Jaime Sandoval to update and ensure compliance of all La Feria IDC information with the Secretary of State’s office including all related non-profit organizations organized and controlled by the La Feria IDC.