On Monday, the Amarillo City Council approved a constrained budget for the Amarillo Economic Development Corporation (AEDC) to cover day-to-day expenses. This temporary budget will be in place until the city’s internal auditor and outside counsel make necessary changes to the current policies and procedures.
“Today, council did move forward so that October 1 our EDC has a budget that they can work under. It’s a constrained budget, it approves the operating expenses, payroll or salaries, and then contractual obligations,” Amarillo Mayor Cole Stanley said.
The council acknowledged that the AEDC had been operating outside of state law and stressed the importance of compliance moving forward.
“From past experience and what we’ve found out, we’ve been operating outside of state law and it’s very important we follow state law,” councilmember Tom Scherlen said. “We stay with the state law and by the new articles of incorporation, that’ll tie it right together.”
City Manager Grayson Path presented several options for the AEDC’s 2024/2025 fiscal year budget, ultimately recommending a budget that allows for some flexibility but requires council approval for any significant overspending. The council also discussed the Texas Panhandle Regional Development Center (TPRDC), which operates under the AEDC and provides small business loans.
Stanley brought in the City Council’s attorney, George Hyde of Hyde Kelley LLC, via Zoom to discuss another option for approving the AEDC’s budget. Stanley asked Hyde to help the council “Draw a line between budget and expenditures” with the AEDC.
Hyde explained that local government code 501073 section A requires that the city council approve an EDC’s expenditures in addition to its budget. Hyde likened this to a County budget, where the Commissioner’s Court approves the county’s bills to be paid monthly.
“We will do our business in public, we will bring the documentation to you, we will answer direct questions and we will continue to move forward in a professional way,” Stanley said. “That is how you restore that trust and then the way you maintain it is I should not be asking you to trust me in this, I should be willing to show you.”
This budget will be in effect until the council receives the audit and changes that were recommended from outside council. The internal auditor will have his findings finished Friday.
It looks like the Amarillo City Council is taking significant steps to ensure the AEDC operates within state law and maintains transparency. The temporary budget they approved will cover essential expenses until the internal audit and recommended changes are completed.
Stanley and the council emphasized the importance of compliance with state law and transparency in their operations. This move aims to restore and maintain public trust by ensuring all expenditures are approved by the council, similar to how county budgets are managed.
It seems like a positive step towards better governance and accountability.
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