LA MARQUE — The La Marque City Council approved setting up a separate account for the city’s Economical Development Corp.

The corporation’s portion of city sales tax and the city’s portion were kept in the same account, a situation that led to mistakes that were discovered during an audit last year.

The audit found that $3.1 million in Economic Development Corp. funds were used without proper authorization to pay for city infrastructure projects.

The money for the projects should have come from certificates of obligation the city issued in 2005 and 2007.

“The problem was immediately corrected by the current finance director,” Mayor Bobby Hocking said.

Creating separate accounts and improving other reporting procedures would provide an “extra layer of protection,” Hocking said.

Council unanimously approved the separate account last week. A separate account was created under the name of the La Marque Economical Development Corp., City Manager Carol Buttler said.

She said tight procedures had been set up to keep track of the sales tax revenue and that accounts are reconciled promptly.

Contact reporter Christopher Smith Gonzalez at 409-683-5314 or chris.gonzalez@galvnews.com.

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