The Truth about City Finances
Allegations of financial impropriety have been made and some have stated that the city has been found fraudulent by financial auditors. These allegations are false. Here are the facts:
- Prior audits revealed that the city engaged in accounting practices that, while not criminal in nature, were not professional and had to be improved. During Mayor Skipworth’s term in office, the city finance department has overhauled its accounting practices.
- The city is behind on its financial audit schedule largely due to the failure of our independent auditor to meet established deadlines. On three separate occasions the city fulfilled a “final request” for records from the auditor. This audit firm has never delivered an on time audit to the city going back prior to the mayor’s election to city council. Recent audit update sent to council.
- The City recently hired a new audit firm to execute outstanding audit items.
It has been alleged that the city is “broke” due to overspending and a drop in tax revenue. These allegations are false. Here are the facts:
- General fund revenue has increased every year Sean has served as mayor while the city reduced the property tax rate.
- As of December 12th 2023, the city had a positive balance of approx. $5.5M across all municipal revenue funds.
- The city maintains a general fund reserve in excess of the requirements set out in the city charter.
- Events like Red, White, and Bayou are not examples of out of control spending. Hotel/Motel taxes were the major source of funding for this event and these funds are heavily restricted for use on events like festivals. RW&B had not been held since 2017 and the city had a large surplus of Hotel/Motel funds available.
- The city has engaged in fiscally responsible management aimed at increasing public service. Public works positions have been expanded, police officers have seen salary increases and benefit cost reductions, and millions of dollars have been spent on road and drainage work. All the while, the city has maintained a healthy fund balance while reducing the property tax rate.