Crockett council approves payoff of economic-development debt after audit timing debate

Crockett's council voted to approve paying off an outstanding economic-development corporation note dating from the 2000s after several council members questioned whether the city should wait for a concurrent forensic audit.

Staff and board representatives told council the obligation in question dates to 2004 and was renegotiated in 2014 and 2016. Unidentified Speaker 3 (board representative) said the note had been paid down over time and that eliminating the remaining balance would remove an ongoing obligation the city is currently servicing. The figure cited by staff for the balance was $315,284.03.

Unidentified Speaker 2, arguing for immediate payoff, said the city could capture near-term savings: "we could save $27,000 right now," the speaker said, calling attention to reduced interest expense if the debt is accelerated. Staff added that the city is currently paying about $7,400 per month on the note.

Opponents urged caution. Unidentified Speaker 7 moved to table the payoff until the forensic audit was complete, stating, "I say we table it until the forensic audit is complete, and we get the findings." That motion failed for lack of a second. Several council members said they were concerned the payoff could complicate or at least not align with the audit's timing; others said paying off the note would not erase the historical record and could be a prudent fiscal move.

After further discussion, Unidentified Speaker 5 moved that the council consent to paying the debt in full; the motion was seconded and carried. The council did not record a roll-call vote in the transcript excerpt; the presiding officer announced the motion carried.

Council members noted the records for the loan would remain available for auditors and the public. Several speakers reiterated that the forensic audit is expected to be completed in less than 90 days, and staff said the city has cash and bank support to cover the payoff if council directs it.

The council action accelerates repayment of the economic-development debt; staff said the payoff would reduce monthly debt-service outflows but did not specify the exact timing of the transaction or the source of funds other than general cash reserves. Council also noted the debt history will remain part of the audit record even after payoff.