Residents call for audit and tighter oversight of HeadCo amid disputed travel records and contracting

Several residents used the public-comments period at the Sept. 2 Henderson City Council meeting to press elected officials for a full review of HeadCo, the Henderson Economic Development Corporation, citing missing travel records, large increases in marketing and travel budgets and a recent $50,000 contract with an out-of-state firm.

Trey Seguri, a volunteer on HeadCo’s board, told the council he supports the corporation’s work to “incentivize business, job growth, and sustain business throughout our community,” and urged the council to approve the budget and scope of work so HeadCo can continue housing initiatives, business grants and land deals he said are “on the cusp” of delivering benefits to Henderson.

A resident who identified themselves during the public comment period described a series of open-records requests dating to July 19 and said HeadCo’s attorney replied that “there are no records responsive to your request regarding travel expenditures.” The resident said that is inconsistent with public material, including HeadCo executive director Brett Gardella’s LinkedIn profile, which lists travel to India, London and South Korea, and with agency budget lines that include training, travel and marketing. “This response is deeply concerning,” the resident said. “HeadCo needs a complete overhaul.”

The resident provided specific figures for the council’s review: advertising and marketing spending increased from $70,023.24 to $120,024.25 (a 71.43% increase), training and travel rose from $12,000 in 2023–24 to $50,000 in 2024–25 (316% increase), and HeadCo is proposing $60,000 for training and travel in 2025–26 (about 20% higher than the prior year). The commenter also said HeadCo paid $50,000 to New Realm 3 LLC from November 2024 to August 2025 for branding, web design and LinkedIn content and asserted New Realm had been tax-forfeited on Sept. 27, 2024. The resident urged the council to “remove HeadCo financials from the consent agenda, conduct a full review of budget items, invoices, and vendor relationships, reject the proposed '25–'26 bloated budget” and to require monthly attendance by department heads and HeadCo’s executive director.

The resident recommended either a forensic audit or referral to the Texas Rangers and referenced Local Government Code 505.352, saying citizens could petition for an election to terminate HeadCo if the council failed to act. “We will not accept scapegoats or token resignations,” the resident told the council.

Another resident, identified as Escher during the meeting, urged council members to follow the City of Henderson Code of Ethics and asked whether they had read the code they signed. Escher said recent conduct by some officials and HeadCo leadership has eroded public confidence and noted the code allows the council to “impose sanctions on Board and Commission members who do not comply with the city’s policies up to and including removal from office.”

Councilmembers did not take any immediate formal action on HeadCo’s budget or contracts during the public-comment period. Councilman Searcy later moved to remove a previously tabled transparency resolution from the agenda for now so staff could gather pricing and logistics to post minutes and audio/video online; Councilwoman Melissa Martin seconded and the motion carried. Multiple residents at the meeting said they want posted meeting recordings, consistent meeting locations, published minutes and clearer board membership listings on HeadCo’s website.

The concerns raised in public comment centered on records and processes the council can review: open-records responses, budget line explanations, vendor due diligence and whether expense documentation exists. Speakers asked the council to withhold HeadCo financial items from consent until the requested documentation and reviews are complete and asked for enforceable deadlines in any transparency resolution.

Council members acknowledged the concerns will require follow-up work from staff and the council; no council vote to order an outside audit or to remove HeadCo financials from the consent agenda is recorded in the provided transcript.

The council moved later in the meeting to proceed with other agenda items and to discuss the city budget and tax rate in public hearings. The HeadCo-related public comments remain on the record for council consideration.