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Council member: chamber audit limited to city 'hot funds'; city pursuing mediation to avoid lawsuit
Summary
Council member Elise Chacon said the audit of the Aransas Pass Chamber of Commerce covers only 'hot funds' the city provided and is not a forensic audit; the city attorney told council staff are seeking mediation to avoid litigation but earliest mediator availability is in May.
Elise Chacon, council member, clarified that the audit concerning the Aransas Pass Chamber of Commerce covers only the "hot funds" provided by the city and is not an audit of the Chamber's entire finances. "The audit is only for the hot funds," Chacon said, adding that as of March 2, 2026 "the third‑party auditor have not received any receipts, bank statements, credit card statements, or anything else that has been asked for."
The city attorney told the council staff are attempting to resolve the matter through mediation rather than filing suit. "We're working hard trying to keep this thing from having to blow up into a full blown lawsuit," the city attorney said, noting that the mediators contacted so far were not available until May and that staff will pursue additional options to get an earlier date.
Chacon said the auditor engaged for the city is seeking records the Chamber has not yet provided and emphasized the limited scope of the city's audit request. The city attorney said the administration prefers mediation to litigation but did not set a firm timeline; council discussion did not produce a final action beyond continuing efforts to arrange mediation.
The council then moved the meeting forward to citizens' comments and other business; the Chamber audit and related lease matters were later listed for executive session discussion.
