Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the LURA Audit topic
No spam. Unsubscribe anytime.
Council approves $249,000 scoping audit of Loveland Urban Renewal Authority after narrowing language
Summary
Council approved a $249,000 appropriation (Ordinance 6749) to fund an Ernst & Young scoping engagement for the Loveland Urban Renewal Authority, removing the word "forensic" from the ordinance after council concern; an attempt to cut the appropriation to $125,000 failed.
Loveland City Council on Dec. 3 approved an appropriation of up to $249,000 to hire Ernst & Young (E&Y) for a scoping and ancillary audit of the Loveland Urban Renewal Authority (LURA), after councilors successfully removed the word "forensic" from the ordinance.
The motion to adopt Ordinance 6749 on second reading was made and seconded; during debate several councilors argued the phrase "forensic audit" overstated the initial scope. "It's not a forensic audit," City Attorney Vincent Jungles told the council, describing the first phase as a scoping engagement with the possibility of more targeted auditing if irregularities are identified. The council voted unanimously to change the title and scope language to "scoping and ancillary audit."
Councilor Foley moved to reduce the appropriation to $125,000 to force a narrower initial scope; that amendment failed on roll call. Supporters of the full appropriation said E&Y will provide regular checkpoints to council and LURA so the engagement can be stopped if the council directs; staff said E&Y will provide updates and that the services agreement includes a 30‑day termination provision.
City staff and the vendor proposal described the initial work as document review and organizational scoping, with E&Y prepared to identify "abnormal transactions or irregular activity" if found. Councilor Krenning said he expected a clean bill of health but welcomed the audit to put lingering questions to rest. Opponents of approving the full amount warned that taxpayers would bear the cost if the audit failed to produce actionable findings.
Final vote: after two separate roll calls on an amendment and the main motion, the council approved the appropriation by 5‑4 (yes votes recorded on the roll call included Councilors Mallow, Black, Lyk Kovach, Krenning and Mayor Marsh; no votes included McFall, Foley, Sampson and Olson). Staff said E&Y will return periodic reports and that the city and LURA retain the right to terminate the engagement.
Next steps: staff will finalize the services agreement with E&Y and bring the scoping engagement into effect; E&Y is expected to provide early written updates to LURA and council within weeks.
