La Marque council advances proposed 0.452161 tax rate after audit finds $2.1M general-fund shortfall; emergency loan, union deals approved

The La Marque City Council on Thursday accepted a completed independent audit for fiscal 2023–24, held a public hearing on the proposed 2025–26 budget and proposed tax rate, and approved several short-term financial steps and labor contracts to keep city services running while staff works to reconcile accounting and cash shortfalls.

The independent auditor, Mike Brooks of Brooks Watson & Company, told the council the firm issued an unmodified (clean) opinion but reported large adjustments and a net drawdown in fund balances: governmental funds’ combined ending fund balance fell to about $6.26 million (a decrease of roughly $4.2 million year over year) and the city’s general fund used about $2.1 million of fund balance in 2023–24. Brooks said the city’s unassigned general-fund balance ended the year at a deficit of $273,098.

Those figures framed hours of public comment and council discussion about whether to increase the city tax rate and how to restore reserves. City Manager Holly and Finance staff said the proposed ordinances would adopt the 2025–26 budget and levy a proposed tax rate of 0.452161 per $100 of assessed value (maintenance & operations 0.336908; interest & sinking 0.115253). City staff and bond counsel also briefed the council on financing options and an emergency loan…