Council questions DMD/EDC transfers; considers cutting funding for Galveston County Transit

Council members asked staff to clarify how the management district (DMD) and EDC transfers were recorded in the packet and whether any encumbrances removed from DMD amounts had been accounted for. Finance staff referenced the general fund summary and special revenue funds, noting the vehicle and equipment replacement fund (VERF, fund 21) reflected a $300,000 transfer and that some DMD funds have been moved into city line items.

A public commenter urged removing funding for the Galveston County Transit District and argued the service 'isn't meeting the demand' and charges too little for specialized rides. Council members asked whether the city's obligation was contractual or annual; staff confirmed the contract is annual and that DMD historically handled the payment. Mayor and council discussed returning some line items to the DMD or leaving grant-type purchases with the DMD so that the city avoids direct management of certain nonprofit or special-event funding.

Council asked staff to produce a clear list of DMD/EDC allocations, identify the year each commitment began, and show which transfers freed up general-fund capacity for police and other priorities.