Loveland URA approves $250,000 Ernst & Young audit contract after split vote

The Loveland Urban Renewal Authority voted 7-5 to approve a professional services agreement with Ernst & Young LLP to perform a forensic-style audit of URA-related activities, with the clerk recording the tally as seven in favor and five opposed.

Supporters said the audit is a necessary step to protect taxpayers as tax-increment financing (TIF) revenue diversions end in 2029 and long-term debt obligations come due. Commissioner Malloy said the audit is part of the board’s fiduciary duty and necessary to understand financing risks ahead of 2029. “Until we really see what’s going on, the city does not have a real future with what is coming with, by the year 2029,” Malloy said.

Opponents criticized the timing and scope of the contract and urged procedural safeguards before spending public money. Commissioner Samson said the board had been presented a scope of work less than 24 hours before the vote and warned against approving what he called a loosely defined engagement. “I’m not ready to write a blank check to this organization,” Samson said, adding he appreciated parts of the proposed scope but objected to the pace and lack of a formal procedure.

Commissioner Olsen, a retired CPA, told colleagues audits required under the master financing agreement (MFA) have been completed and questioned what specific deliverables the new engagement would produce, including remedies such as identifying heirs or material breaches. “If they find an heir, what is it we want out of this?” Olsen asked.

Commissioner Marsh framed the debate around the authority’s long-term obligations and prior public spending, pressing for clarity about public benefit from redevelopment outlays. Marsh said diverted TIF and public improvement fee revenues wind down in 2029 and cited roughly $5.9 million spent on ‘‘Parcel 206’’ as an example of prior public investment that needs accounting. “We need to understand how the monies have been spent in the past, and we need to make sure we're controlling how they're spent in the future,” Marsh said.

Commissioner Black, who backed the contract, said residents and other commissioners had spent months compiling concerns and that the audit was not a political stunt but a fiduciary responsibility. “This is my fiduciary duty,” Black said, urging colleagues to support the engagement.

The motion to adopt the resolution approving the professional services agreement between the Loveland Urban Renewal Authority and Ernst & Young LLP was read aloud by staff before a roll-call vote. The clerk recorded individual votes by name and announced the final count as 7 yes, 5 no; the chair then declared the resolution passed.

The board had no items removed from the consent agenda, heard no reports from the executive director or legal staff at that time, and adjourned at 7:01 p.m. The chair announced the next regular meeting is scheduled for Jan. 14.