* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:01] WE'RE READY. [I. INVOCATION, PLEDGE & ROLL CALL] WELCOME TO OUR CITY COUNCIL MEETING HERE IN THE GREAT CITY OF PORT ARTHUR. WE ARE HERE FOR OUR SPECIAL MEETING ON THIS AFTERNOON. IF YOU'D LIKE TO JOIN US BY TELEGRAPH, UH, TELEPHONIC AND OUR VIDEO CONFERENCE, PLEASE JOIN US, UM, TODAY, JUNE 30TH AT 3:00 PM BY TELEPHONIC AND VIDEO CONFERENCE. IN ADDITION TO ALLOWING IN-PERSON ATTENDANCE, WE MUST HAVE A QUORUM OF, UH, THE CITY OF PORT ART CITY COUNCIL WILL BE PHYSICALLY PRESENT IN THE CITY COUNCIL CHAMBERS ON THE FIFTH FLOOR OF CITY HALL AT 4 4 4 FOURTH STREET IN PORT ARTHUR, TEXAS. THE PUBLIC MAY PARTICIPATE IN THE MEETING IN PERSON OR BY DIALING ONE OF THE FOLLOWING TOLL FREE NUMBERS AND ENTERING THE MEETING ID, YOU CAN CALL 8 7 7 8 5 3 5 2 4 7, OR (888) 788-0099. AND ONCE YOU CALL THAT NUMBER, PLEASE USE THE MEETING ID 8 9 1 4 9 8 1 2 0 0 8, AND PUT IN THE PASSCODE OF 3 4 7 2 2 0. ALSO, WE WANNA BE IN COMPLIANCE WITH THE AMERICAN WITH DISABILITIES ACT. YOU ARE WELCOME AGAIN TO JOIN OUR MEETING, UM, BUT YOU HAVE TO REQUEST IT 24 HOURS IN ADVANCE. AND PLEASE CONTACT OUR CITY SECRETARY'S OFFICE AT 4 0 9 9 8 3 8 1 1 5. WE WANNA REMEMBER TO MUTE ALL CELL PHONES AND ALL OF OUR, ANY MOBILE DEVICE YOU MAY HAVE WITH YOU. AT THIS TIME, WE'LL HAVE OUR INVOCATION, OUR PLEDGE, AND OUR ROLL CALL AT THIS TIME. COUNCIL MEMBER DOUCETTE MAYOR PRO TEM DOUCETTE, IF YOU WOULD LEAD US IN PRAYER WITH ALL HEADS AND REPEAT OUR LORD. PRAYER, OUR FATHER HEAVEN. HOW DONE ANYTHING GOD CAME, WILL BE DONE ON EARTH. HEAVEN. GIVE US THIS DAY, OUR DAY, AND US OUR IT NOT DELIVER FROM EVIL, THE KING, THE POWER, THE GLORY. AMEN. I'LL ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INVIS WITH LIBERTY AND JUSTICE FOR ALL. CITY SECRETARY, IF YOU WILL ESTABLISH A QUORUM, PLEASE. MAYOR MOSES. HERE, MAYOR PRO TIMM ETT. HERE. COUNCIL MEMBER LEWIS. HERE. COUNCIL MEMBER HAMILTON. I DON'T. COUNCIL MEMBER BECKHAM. COUNCIL MEMBER KINLAW. HERE. COUNCIL MEMBER FRANK, PRESENT. YOU HAVE A CO MAYOR. THANK YOU. AT THIS TIME, WE [II.(1) P.R. No. 24415 – A Resolution Of The City Council Of The City Of Port Arthur, Texas, Accepting The Annual Audit For The Fiscal Year Ending September 30, 2024, Approving The Annual Comprehensive Financial Report For The Year Ending September 30, 2024, And Approving The Single Audit Report As Of September 30, 2024] HAVE AN INDIVIDUAL ITEM REQUIRING INDIVIDUAL ACTION. PROPOSED, UH, PR NUMBER 2 4 4 1 5. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS, ACCEPTING THE ANNUAL AUDIT FOR THE FISCAL YEAR, ENDING SEPTEMBER 30TH, 2024, APPROVING THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDING SEPTEMBER 30TH, 2024, AND APPROVING THE SINGLE AUDIT REPORT AS OF SEPTEMBER 30TH, 2024. MAY I HAVE A MOTION TO ACCEPT THE PR? NO. SO SECOND, WE HAVE A MOTION AND A SECOND. ANY QUESTIONS? ALL IN FAVOR? YES. HOLD ON A MINUTE. YOU HAVE A QUESTION? I'M SORRY. COUNCIL MEMBER LEWIS. YEAH, YOU THE AUDIT? YOU GOT ME. I NEED TO TALK WITH YOU FOR A MINUTE. HE WAS ABOUT TO APPROVE THE AUDIT. JUST ONE VOTE RIGHT ON THERE. THIS AUDIT. ARE THERE ANY, ANY, UM, AUDIT EXCEPTIONS? YES. ON YOUR, ON THE THIRD ONE THAT IS CALLED THE SINGLE AUDIT REPORT IS THE THIRD HANDOUT THAT I HAD GIVEN YOU. AND IT SHOULD SAY, AT THE VERY TOP SINGLE AUDIT. AND I WILL DIRECT YOU TO THE FINDING. ARE WE LOOKING AT WHAT, WHAT ARE WE LOOKING AT? I'M, I'M JUST GETTING YOU, I'M JUST FINDING THIS ON MY DESK. SORRY. ARE WE LOOKING AT, THIS IS THE THIRD ONE. IT SAYS SINGLE AUDIT REPORT AS THE TITLE. IT'S A SMALLER DOCUMENT THAN THE BIG ONE. OKAY. AND THEY SHOULD BE ALL STAPLED SEPARATELY. OH YEAH. IT'S ON THE BOTTOM. DO YOU HAVE IT? YEAH. DOES EVERYONE HAVE THE SINGLE AUDIT BEFORE THEM? [00:05:01] OKAY. IT'S NOT IN, IT'S NOT IN THE BIG ONE. IT'S STAPLED SEPARATELY. IT'S JUST THE ONE. IT'S ON THE BACKSIDE OF IT. YES. I DON'T NEED TO FIX. YEAH, WE HAVE ONLY ONE FINDING, WHICH IS ON PAGE 12. PAGE 12. YES SIR. AND LYNN BOSWELL HERE, DIRECTOR OF FINANCE PAGE, PAGE 12 IS MISSING. IT'S ON THE BACK. IT'S ON THE BACKSIDE. IT'S ON THE BACK. YEAH, I GOT YOU NOW. OKAY. THIS IS THE SAME FINDING FOR THE PAST FEW YEARS. AND I DO WANT TO TAKE NOTE THAT WE HAVE RESOLVED ANY OTHER FINDINGS FROM THE PAST, WHICH WE'VE HAD IN THE PAST FOR ALL OF THE THREE DIFFERENT YEARS. YOU HAD THE RESPONSE FOR THE FINDING ON THE LAST PAGE, WHICH IS PAGE 14. AND WITH THAT MAYOR COUNCIL MEMBERS, THE CITY OF PORT ARTHUR IS ALL CAUGHT UP ON ALL AUDITS. GOOD. WE ARE NO LONGER BEHIND. WE ARE, WE ARE CLEAR. DONE. AND THIS IS THE FINAL REPORT. THAT'S AWESOME. THANK YOU. THAT'S WHAT I MEAN. AND NO MORE FINDINGS ON OUR SINGLE AUDIT. WE CLEARED OUR SINGLE AUDIT VERY WELL FOR 2024 WHEN WE HAD FINDINGS FOR THE PAST THREE AUDITS. RIGHT. YOUR SINGLE AUDIT FOR 2024, YOUR GRANTS HAVE CLEARED RESOLVED. OKAY. NOW WITH ALL THIS CLEAR, HOW DOES THIS IMPACT US GOING FORWARD? NO, IT JUST IS GOING TO, I'VE GOT ONE MATERIAL FINDING THAT I NEED TO RESOLVE AND THAT'S INTERNAL FOR FINANCE, WHICH I KNEW WAS COMING AND THE RESOLUTION. I, I DO HAVE THINGS IN PLACES NOW THAT I HAVE TIME TO LOOK AT ALL MY FINANCES GOING FORWARD. THE GOAL IS GOING TO BE TO HAVE NO FINDINGS. AND THAT AGAIN, IS MY GOAL. WE'LL SEE IF WE CAN MAKE IT HAPPEN IN 25. IF WE CAN'T MAKE IT HAPPEN IN 25, IT IS GOING TO HAPPEN IN 26. SO THAT'S WHERE I'M AT RIGHT AT THIS POINT FOR OUR AUDITS, THESE FINDINGS DON'T HAVE AN I IMPACT BECAUSE THEY'RE NOT THE, THE HIGHEST LEVEL OF CONCERN FOR THE AUDITORS. THEY JUST NOT IT AS A CONCERN. OKAY. OKAY. THANK YOU. ALLOW. YES, SIR. OUTSTANDING JOB. THANK YOU. COUNCIL MEMBER KEN LAW. THANK YOU. UH, REAL, UH, DIRECTOR. SO THE FINDING THAT YOU WERE SPEAKING OF, BUT THAT'S INTERNAL WITH YOUR FINANCE DEPARTMENT? THAT IS CORRECT. 'CAUSE THAT THE ONES THAT WE'VE HAD FOR THE LAST COUPLE YEARS THAT YOU SPOKE OF, THEY'RE THE SAME ONES YES. FOR THE PAST THREE YEARS. AND HOW SO? BUT CAN YOU GET THIS FINDING? UH, WE HAVE, I'M HOPING THAT THE IMPLEMENT WE CAN START IMPLEMENTING IN 2025, UH, THROUGH THIS AUDIT, I WAS ABLE TO FIND SOME ISSUES WITH 25 THAT I WANNA HAVE CORRECTED BY THE END OF THIS FISCAL YEAR. AND HAS A LOT TO DO WITH THE CONTROL. A LOT TO DO WITH, OH YEAH. I'M LOOKING, I'M READING YOUR, UH, BUT IT IS INTERNAL CONTROL. THAT IS CORRECT. REPORTING. THAT'S SOMETHING THAT YOUR OFFICE HAS TO HANDLE SO WE CAN GET POS, RIGHT? THAT IS CORRECT. OKAY. WHAT CAN A COUNCIL DO TO HELP YOU OUT TO MAKE SURE THAT WE CAN GET THIS ALLEVIATED? WHAT CAN COUNCIL DO? 'CAUSE WE ARE WILLING TO HELP. WE'RE WILLING TO HELP. I, YOU KNOW, I, I KNOW THAT YOU'RE DOWN A LOT OF PERSONNEL 'CAUSE OF TRANSFERRING AND DOING BETTER AND BIGGER THINGS, BUT WE WANT MAKE SURE THAT THE FINANCIAL ASPECT OF THIS IS DONE CORRECTLY AND THAT YOU HAVE NO MORE, HAVE TO GO BACK YEARS AND DO AUDITS. AND WE THANK YOU FOR DOING THAT. I REALLY DO. BECAUSE SINCE I'VE BEEN ON HERE, WE'VE ALWAYS BEEN BEHIND AND YOU CAME ON BOARD. NOW WE FINALLY AT THIS POINT THAT WE CAN SAY WE ARE COMPLETE THE AUDIT PROCESS AND WE DON'T HAVE TO WORRY ABOUT THAT. WE DON'T HAVE TO WORRY ABOUT THAT AFFECTING OUR RATING ANYMORE, ANYTHING LIKE THAT. SO WHAT CAN THE COUNCIL DO TO HELP YOU OUT? WHAT THE COUNCIL CAN DO THAT WOULD REALLY HELP ME OUT IS CONTINUE TO SUPPORT YOUR CITY MANAGER WHO ALSO BACKS ME AND HELPS ME WHEN I HAVE NEEDS THAT GO ON. SO IF THE CITY MANAGER IS ASKING YOU ON MY BEHALF FOR SOME OF THE NEEDS THAT I MIGHT HAVE, PLEASE CONTINUE TO SUPPORT HIM IN, IN, UH, HIS SUPPORT OF MY DEPARTMENT. AND THAT'S BEEN VERY, VERY HELPFUL. WE'VE BEEN GOING VERY AS FAST AS WE POSSIBLY CAN, ACCURATELY AS WE CAN. AND WE'RE, WE'RE DOING EVERYTHING THAT WE CAN. I'VE GOT GREAT STAFF AND I'M LOOKING FORWARD TO BUILDING EVEN BETTER STAFF. THANK YOU, MAYOR. YOU'RE WELCOME. UM, RIGHT NOW WE HAVE COUNCIL MEMBER. FRANK. YES. THANK YOUR NEXT. YES, LYNN, THANK YOU SO MUCH. I WANT TO THANK THE CITY MANAGER AND I WANT TO THANK YOU. YOU WALKED INTO A VERY DIFFICULT SITUATION, BUT SINCE YOU'VE BEEN HERE, MAN, YOU'VE DONE A TREMENDOUS JOB AND I WANT TO APPLAUD THE COUNCIL. I'M SURE AS WELL, UH, WANT TO APPLAUD, UH, THE JOB THAT YOU'VE DONE. THANK YOU SO MUCH. IT'S GREATLY APPRECIATED. THANK YOU. THIS WAS DEFINITELY A TEAM EFFORT AND THANKS TO ARIEL GIBBS FROM THE PAST WHO'S MON WHO'S MOVED ON TO CONROE. UH, DEFINITELY THANKS TO OUR AUDITORS WHO HAVE WORKED VERY DILIGENTLY WITH ME, WHO'VE BEEN VERY, VERY PATIENT [00:10:01] WITH ME AS WELL. AND ALSO I DID HAVE AN OUTSIDE ACCOUNTANT WHO HAS BEEN WITH THE CITY FOR A LONG TIME. AND HIS NAME IS DOUG MARTELLA AND HE CONTINUES TO BE A HELP RIGHT NOW. SO A, A TEAM EFFORT AND IT THAT INCLUDES THE CITY MANAGER AND THE ACMS AND, AND IT DOES INCLUDE YOURSELF. SO THANK YOU VERY MUCH FOR YOUR SUPPORT SO THAT I CAN GET THIS DONE. THANK YOU. AWESOME. COUNCIL MEMBER DOUCETTE. YES. I'M GLAD WE CAUGHT UP WITH THE AUDITS. OKAY, SO NOW THAT WE GOT THAT OUT THE WAY, A LOT OF TIMES PEOPLE LISTEN TO THE LOOK AT THESE COMPREHENSIVE AUDIT AND THINK A BIG DEAL, BUT I DON'T KNOW THAT WE ARE THE ONES THAT PREPARE YOU, PREPARE THE AUDITS THAT COME BEFORE US. SO ACTUALLY WE GETTING YOU TO TELL US WHAT YOU FIND. OKAY. BUT I'LL JUST LIKE TO SAY A COUPLE THINGS THAT I'M GONNA BE LOOKING FOR NOW THAT WE GOT ALL THESE AUDITS UP. ONE IS, UH, IT TO BE REFLECTED WHEN WE'RE DOING OUR BUDGET, THAT OUR BUDGET IS BASED ON THIS PAST YEAR. THAT'S THE WAY WE SHOULD DO IT. SO WITHOUT US HAVING IT, IT'S PRETTY HARD TO DO THAT. BUT YOU HAVE DONE IT. SO WHEN WE LOOK AT THIS YEAR'S BUDGET, I MEAN THE UPCOMING YEAR BUDGET, I'LL BE LOOKING HARD AT 24, 25. THE OTHER THING IS THAT DOESN'T REFLECT IN OUR AUDIT AND STUFF, IS OUR SPENDING OF THE MONEY. AND I'M GONNA SAY IT NOW BECAUSE THAT'S WHAT I'M GONNA BE WATCHING THIS UPCOMING YEAR, IS WHEN YOU BRING SOMETHING OR STAFF BRINGS ANYTHING TO COUNCIL, FOR US TO APPROVE, APPROVE SPENDING AND COUNCIL SAYS, YES, WE SHOULD SPEND THE MONEY. WE SHOULD SPEND THE MONEY. I'VE NEVER SEEN IT. SO YOU GOT ALL THIS OUT THE WAY YOU'RE THE FINANCE DIRECTOR. YES SIR. THOSE ARE THINGS THAT WE ARE GONNA BE, I'M GONNA BE LOOKING AT BECAUSE THOSE ARE THINGS THAT KEEPS US, WHEREBY WE DON'T HAVE TO DO A LOT OF PAY FOR SHUFFLING AT THE END OF THE YEAR. WE MONITORING THE FINANCING ACCOUNT FOR EVERYTHING, BUT DON'T BRING NOTHING TO CANCEL, TO APPROVE SPENDING AND DON'T SPEND THE MONEY. SO THIS, THIS COMING YEAR, SINCE YOU GOT ALL THE AUDIT DONE, WHEN I ASK QUESTIONS AND I ASK QUESTIONS OF YOU, THOSE TYPE OF QUESTIONS I'M GONNA ASK. AND AS THE FINANCE DIRECTOR, THOSE THINGS THAT YOU'RE RESPONSIBLE FOR TO ENSURE THAT STAFF AND EVERYBODY'S FOLLOWING THESE CORRECT PROCEDURES SO THAT IF WE HAD AN EXTERNAL AUDIT THAT CAME IN, WE'LL GET THE SAME TYPE REPORT AS WE GET WITH THESE COMPREHENSIVE AUDIT UH, AUDITS. OKAY? SO THAT'S SOMETHING THAT WE REALLY GOT TO GET A HANDLE ON. IF YOU ASK US TO APPROVE MONEY TO BE SPENT, SPEND THE MONEY. IF YOU DON'T WANT TO SPEND THE MONEY, DON'T ASK US TO APPROVE IT. YES SIR. THAT'S ALL I HAVE. MAYOR, ONE MORE QUESTION IF YOU DON'T MIND. I HAVE THE CITY MANAGER'S LIGHT ON NEXT. I'M SORRY. CAN WE, UM, I JUST WANTED, I WON'T BE CONFUSED. CAN I STAY AT THAT OVER ? SO GIVE, YEAH. OKAY. CITY MANAGER. SO REAL QUICK, I JUST WANNA REMIND COUNCIL THAT IN SPITE OF THE FACT THAT WE HAD THIS PRESENTATION TODAY, OUR PRIMARY PURPOSE IS TO MAKE SURE THAT WE MEET OUR FIVE O'CLOCK DEADLINE TO SEND TO THE TEXAS WATER DEVELOPMENT BOARD SO THAT WE CAN ACCESS FUNDING MM-HMM. FROM THE TEXAS WATER DEVELOPMENT BOARD. BUT IN SPITE OF THAT, WE WILL COME BACK AND HAVE PAT TELIO BROWN MAKE A PRESENTATION. THAT IS CORRECT. YEAH. BECAUSE THE DOCUMENT THAT YOU HAVE PRESENTED TODAY, WITH THE EXCEPTION OF COSMETICS, COMMERCE AND FORMATTING, NOTHING WILL CHANGE IN THIS DOCUMENT. ACTUALLY, THIS IS THE FINAL, THIS ISN'T EVEN DRAFT. THAT'S RIGHT. IT'S SO, YES. SO, UM, YOU JUST NEED THE MAYOR'S SIGNATURE SIGNATURE. WELL JUST ON THE, ON THE DOCUMENT THAT WE SENT YOU SIGNED. ALRIGHT. UM, THAT WILL HELP US LY. SO THANK YOU FOR COMING TODAY. THAT WILL HELP US LY MAKE OUR DEADLINE THANK WITH THE TEXAS WATER DEVELOPMENT BOARD. OKAY. I HAVE TWO MORE QUESTIONS. UM, UH, COUNCIL MEMBERS. COUNCIL MEMBER FRANK, AND THEN COUNCIL MEMBER LEWIS. JUST MY FINAL QUESTION. ONE OF THE THINGS, BECAUSE IT WAS AUDITED, UM, I KNOW THAT DURING THE AUDIT INTERNAL CONTROLS ARE, ARE LOOKED AT. DID, DID WE HAVE A FINDING BEFORE? AND SINCE YOU SAID WE ONLY HAVE ONE FINDING, I SUPPOSE THAT IT MAY HAVE BEEN CLEARED UP ON RECEIVABLES AND PAYMENT OF RECEIVABLES. SO THERE WERE, THE FINDING I THINK THAT I WAS MENTIONING THAT I SAID WAS RESOLVED HAD TO DO WITH THE FACT THAT THEY COULDN'T GET THE INFORMATION ON GRANTS AND SINGLE AUDIT THAT THEY NEEDED FOR THE FED'S PIECE OF IT, THE SINGLE AUDIT. SO THOSE WERE THE FINDINGS FROM THE PAST. ALL OF THAT WAS RESOLVED AS IN TERMS OF INTERNAL, IT'S GOING TO BE THE SAME. IT'S GOING TO BE RIGHT NOW STILL WORKING ON BANK RECONCILIATION, STILL WORKING ON RECONCILING. YES. AP AND RECEIVABLES HAVE A LOT TO DO WITH IT, BUT THE FACT THAT I COULDN'T CATCH EVERY SINGLE THING AND THE AUDITORS [00:15:01] HAD TO RECOMMEND JOURNAL ENTRIES TO GET EVERYTHING CORRECTED IS PART OF WHAT IS DRIVING THAT FINDING. IF I CAN GET THEM A CLEAN JOURNAL LEDGER THAT THEY DON'T HAVE TO BARELY, MAYBE ONE OR TWO HERE, THEN THIS WOULD GO AWAY. AND THAT'S GOING TO BE THE GOAL IS I GIVE THEM SOMETHING VERY, VERY CLEAN THAT, THAT I'M SATISFIED WITH WITHOUT FORGETTING SOMETHING HERE OR THERE. THANK YOU. OKAY. YES SIR. COUNCIL MEMBER LEWIS? NO, JUST BRIEFLY. UH, THE OUTSIDE AUDITORS, HOW LONG THEY BEEN WITH US IS A FIVE YEAR. WE HAVE STILL HAVE A FIVE YEAR RANGE ON THESE PEOPLE. THEY ARE GOING TO BE WITH US FOR ONE MORE YEAR. THE RFP GOES OUT IN JANUARY. OKAY. ALRIGHT. THANKS. ALRIGHT. MOTION FOR ADJOURNMENT. OH, OH, I'M SORRY. I HAVE ONE MOTION DISCUSSIONS. I'M SORRY. I'M TRYING TO GET OUT. I'M SORRY. I'M SORRY. UH, SEE. OH, UH, COUNCIL MEMBER. EVER FEEL SORRY ABOUT THAT. THANK YOU. NO WORRIES. THANK YOU. UH, THANK YOU MS. LYNN FOR ALL THAT YOU HAVE DONE. ALL OF THE HARD WORK THAT YOU HAVE PUT IN THE TOUGH SCAN THAT YOU'VE CREATED WITH COMING BEFORE COUNCIL AND SHARING YOUR FINDINGS, UM, EVERY OTHER WEEK. AND THIS NEXT COMMENT IS TO CITY MANAGER. I WOULD LIKE FOR YOU TO GIVE US SOME UPDATES AND OUR NEXT WELL MEETING AFTER NEXT AS TO HOW THIS AUDIT HAS HELPED US PROPEL FORWARD WITH ADDITIONAL GRANT FUNDING OR LOANS THAT WE MAY NEED, SUCH AS THE APPLICATION THAT'LL BE SUBMITTED WITH THE TEXAS WATER DEVELOPMENT BOARD. THANK YOU. ALRIGHT. THANK YOU COUNCILOR. EVER FEEL ALL IN FAVOR? AYE. THE AYES HAVE IT. THE MOTION PASSES. NOW OUR NEXT ITEM IS MOTION FOR ADJOURNMENT. SO, SO MOVED. SECOND. THE MOTION HAS BEEN MOVED AND SECONDED. WE HAVE ANY QUESTIONS? ALL IN FAVOR? AYE. AYE. THE AYES HAVE IT. WE ARE ADJOURNED. THANK YOU. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.