Henderson council approves HITCO budget after weeks of public outcry over spending and oversight

The Henderson City Council approved HITCO's June and July 2025 financials, its FY2025–26 program of work and the organization's proposed FY2025–26 budget following extensive public comment on the agency's spending and governance.

Why it matters: HITCO (the city's economic-development organization) is central to Henderson's business-attraction strategy. Public speakers raised questions about large line-item increases, use of fund balance and whether the council has been sufficiently exercising oversight; council members approved the budget at the meeting but postponed appointments to the HITCO board.

Residents and board members traded sharply different accounts about the organization. Brett Gardello, identified in public comment as HITCO's executive director, apologized for recent divisions and asked the council to approve the budget and scope of work so the organization could continue recruiting businesses and advancing local projects. "I apologize to you because I have failed myself," Gardello said, asking council members to help the organization move forward.

By contrast, a public speaker who identified herself as Miss Hale reviewed financial spreadsheets and alleged steep increases in multiple line items between FY23–24 and the proposed FY25–26 budget, claiming some line items rose by "36 to 550%" and that the proposed FY25–26 plan would spend roughly $2,500,000 on a speculative shell building. She told the council the proposed budget would draw $4,700,000 from a $5,900,000 fund balance, leaving less than $1,200,000 on hand, and urged strict council oversight and enforcement of cited Texas statutory provisions.

Michael Bell, who said he had participated in the executive-session interview process that selected "Mr. Cordello" (transcript variant), said he moved to terminate the executive director after that session but the motion did not pass; Bell urged the council to back the board and allow HITCO to continue. Another resident, Atkinson, warned the council that not passing the budget could make it harder to recruit future economic-development leaders and suggested law-enforcement review of leaked audio related to the controversy.

Council discussion during item 12 focused on HITCO capital projects, including a previously termed "speculative" (now called "contracted") building intended to serve an identified prospective tenant, completion of business-park infrastructure (lighting, fiber, signage), a solar project with an estimated federal rebate of roughly $170,000–$180,000, and coordination with Rusk County on a runway-extension request (noting most of the road/runway ownership lies with the county). The HITCO director and board members acknowledged carryover items and said some budgeted projects represent multi-year efforts.

Council votes and follow-up: The council approved items 9 (June financials), 10 (July financials), 11 (program of work) and 12 (HITCO budget) by voice vote during the meeting; the council then tabled item 19 (appointments and reappointments to the HITCO board) until the next month. There was no roll-call recorded in the transcript for the approvals; the record shows the motions, seconds and "aye" voice votes.

What comes next: Appointments to HITCO's board were explicitly tabled, leaving governance questions open and creating a potential follow-up item for the council. Community members who raised statutory and fiscal concerns said they expect the council to exercise the oversight they cited; supporters said failing to approve the budget would undercut economic-development momentum.