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Residents and council press for finance director hire; staff cites ARPA deadline and impact‑fee questions

August 07, 2025 | La Marque, Galveston County, Texas


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Residents and council press for finance director hire; staff cites ARPA deadline and impact‑fee questions
Former council member James Osteen and other members of the public told the City Council at the Aug. 7 special meeting that the city urgently needs a permanent finance director and clearer monthly financial reporting.

Why it matters: council members and residents said the absence of a permanent finance director and investment officer impedes oversight — notably the regular delivery of a check register and clear account reconciliations that charter requires — and contributes to public confusion about how impact fees, ARPA funds and bond proceeds are being used.

Osteen said he had spoken to city accounting staff and insisted the city needs a finance director and an investment officer to manage city funds and investment decisions. He also urged the council to enforce charter obligations such as monthly financial reports and check registers. In public comment he referenced impact fees in a city account he understands to be about $2,600,000 and urged the council to review statutory deadlines for the use of impact fees.

City manager Holly responded that the city is in the process of recruiting and interviewing for a finance director. She told the council she has a master's degree in economics, said staff are using a hiring panel and that interim finance support remains available while the city completes the hire.

Holly also reminded council that the city was awarded roughly $4,400,000 in ARPA funds and that ARPA allocations must be obligated and spent by December 2026. She said city staff are reviewing where ARPA has been used in past versions of project spreadsheets and that prior administrations sometimes shifted ARPA designations when pursuing other grants; that practice has contributed to inconsistent internal worksheets showing matches from different funding sources.

Finance staff member "Nance" told council she had located a remaining balance in the 2020 CO bond account we have on record — she reported $2,325,978.48 as available in that CO bond account and said she would provide additional detail on what the bond proceeds may be spent on after further review.

What's next: Holly said the hiring panel is active and that staff will return with a candidate list. Council members asked staff for clearer monthly financial reporting in the regular agenda packet and for a reconciliation showing which grant matches and projects are funded by ARPA, the 2020 CO bond or other city sources.

Ending: Council did not take a formal vote at the special meeting but directed staff to accelerate the finance director recruitment and to produce reconciled, project‑by‑project accounting in time for upcoming budget decisions.

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