LITTLE ROCK, Ark. (AP) - Two Arkansas lawmakers say they are disappointed that Texarkana officials have not done more to address problems raised in an audit of financial incentives the city paid to a developer of a new hotel-convention center and water park.
Sen. Jimmy Hickey and Rep. Prissy Hickerson, both Texarkana Republicans, along with Prosecuting Attorney Carlton Jones, had requested the audit, which was the subject of a legislative hearing Friday.
The Legislative Audit Division reviewed selected transactions from Oct. 30, 2009-Sept. 23, 2013, in which the city’s portion of the now-completed Holiday Springs Water Park and the Texarkana Convention Center expenses totaled $8.4 million.
The division’s auditors found inadequately documented construction expenses totaling $4.1 million, the Arkansas Democrat-Gazette reported (https://bit.ly/1lTSwZA ) Saturday. They also accused the city of failing to comply with various state laws and city codes, ordinances, policies and agreements.
The audit also found several unusual transactions authorized by City Manager Harold Boldt. Those included the city paying significantly more per square foot for property for the development than its investor, Texarkana doctor Hiram Patel; waiving building-permit fees; and reducing water rates for the water park, the division said. But the audit said there was no indication that Boldt benefited personally from these transactions.
After hearing testimony Friday from Boldt and Texarkana Mayor Wayne Smith, the Legislative Joint Auditing Committee approved Hickey’s motion to delay final action on the audit, according to the Texarkana Gazette. Hickey said that would allow auditors “to examine any possible contradictions or misrepresentation that we heard today and refer to the appropriate authorities, if the investigation warrants that.”
Boldt, who had been city manager since 2007, left the job after a March 2013 board meeting, a move city officials described as neither a resignation nor termination. But in October, the Board of Directors voted 4-3 to rehire him.
He was Little Rock’s finance director from 1996-2000.
Hickerson said Texarkana officials have acted like the auditors’ findings “are minor and they don’t need to be taken care of” since they met in December.
“I understand there is a lot of controversy among the board members, but . it would have been nice for the members (of the audit committee) to hear some of this has been corrected on these six violations,” she said during the committee’s meeting.
Afterward, Hickey said he’s disappointed that city officials aren’t fixing the problems.
Boldt said city officials submitted more than 1,000 pages of documents to state auditors and “we thought we had responded appropriately.”
“We have every intent to fix these things . and I think within two or three months we can have it done,” he told the Democrat-Gazette.
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Information from: Arkansas Democrat-Gazette, https://www.arkansasonline.com
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